Strengthening Export Coordination Division Functions

Legal basis and coverage purpose

The Order is anchored on Executive Order No. 127, strengthening coordination, monitoring, and oversight functions of the Export Coordination Division (ECD) (Section I.a).
The Order addresses a dynamic international trade environment affecting Philippine exports and revenue collection through effective application of Rules of Origin (ROO) (Section I.a and Section I.b).
The Order focuses on improving compliance with ROO protocols and deterring violations involving the issuance and utilization of Certificates of Origin (COs) (Section I.c).
The Order targets improved data access and reporting on COs for the Commissioner of Customs and for other government agencies needed for policy determination and trade negotiation (Section I.d).
The Order also establishes a pool of ROO Trainers to train customs officials, employees, and members of the trading community (Section I.e).

Objectives and operational targets

The Order strengthens coordination, monitoring, and oversight of ECD functions in relation to COs and ROO (Section I.a).
The Order promotes proper application of ROO under FTAs and preferential schemes, including AFTA, ACFTA, AKFTA, JPEPA, GSP, and the future or ongoing implementation of ATIGA, AANZFTA, and AJCEPA (Section I.b).
The Order requires a central office at the BOC for an internal control system, including oversight and a system of bureau-wide retro-verification (Section I.c).
The Order requires real-time data on COs issued and utilized for reporting and for trade policy and negotiation needs (Section I.d).
The Order directs the creation of training capacity through ROO trainers for customs and trading community stakeholders (Section I.e).

Scope: ROO, COs, and related activities

The Order covers all matters relating to the coordination and monitoring of activities in Rules of Origin (ROO), including pre-evaluation of exporters and products, issuance of COs, post evaluation of utilized COs for imported products, internal control mechanisms, records keeping, and retro-verification (Section II).
The Order applies to oversight of issuance and utilization of Certificates of Origin (COs) whether unilateral, bilateral, regional, or multilateral (Section III.1).
The ECD’s responsibility extends regardless of where Export Declarations are processed and regardless of ports of loading for pre-evaluation purposes (Section III.2).
The Order requires coverage of CO databases and post-evaluation monitoring tools for compliance and statistical recordkeeping (Sections III.4 and III.5).
The Order covers centralized handling of retro-verification responses and the coordination mechanics between BOC units and issuing authorities (Section III.8).

ECD functions, databases, oversight controls

The Export Coordination Division (ECD) exercises an oversight function over all activities related to the issuance and utilization of Certificates of Origin (COs) (Section III.1).
ECD is responsible for pre-evaluating all exporters and their export products for CO issuance purposes regardless of processing location or port of loading (Section III.2).
The Chief, ECD may delegate authorized CO issuance to Export Divisions or equivalent units in all Collection Districts where Export Declarations are processed, but only for products that already have pre-approved evaluation from the Chief, ECD (Section III.2).
ECD designs and maintains a post evaluation system of COs with coordination from Formal Entry Divisions and/or their equivalent units in all Collection Districts to ensure proper and appropriate duties and taxes are collected (Section III.3).
ECD must establish and maintain:
- a comprehensive database for information related to the issuance of all types of COs and for pre-evaluated exporters and their products, including production/manufacturing processes and product costing (Section III.4, including Annex references); and
- a comprehensive database on utilization of all kinds of COs for post evaluation and statistical records to comply with ROO international agreements (Section III.5).
The Order mandates a monthly report generated by ECD on all COs issued and utilized, containing at least export/import descriptions, volume, HS code, originating rule used, FOB value, and country of destination/origin, among similar information needed for policy consideration (Section III.6).
ECD must coordinate with MISTG for possible CO automated applications, including issuance, transmission, retrieval, and recordkeeping of exporters’ 201-file (Section III.7).
Retro-verification responses must be centralized to ECD, and all queries must be directed to ECD by Chiefs/Heads of Export Divisions or equivalent units in all Collection Districts (Section III.8).
Formal answers to retro-verifications are signed by the Deputy Commissioner, AOCG, upon recommendation of the Chief, ECD (Section III.8).
The Chief, ECD may recommend to the Commissioner—through the Deputy Commissioner, AOCG—requesting retro-verification from the issuing authority when there are doubts on the veracity of COs presented for utilization, using the operational procedure on ROO; communications are signed by the Commissioner (Section III.8).
ECD may conduct its own retro-verifications upon receipt of valid derogatory information tainting issuance and/or utilization irregularity, and the results with recommended action must be submitted by the Chief, ECD to the Deputy Commissioner, AOCG (Section III.8).
For enhanced functions, ECD may receive additional staff, realignment, or recall of personnel; to concentrate on these functions, ECD no longer processes Export Declarations, while supervision of the One Stop Export Declaration Center (OSEDC) remains in ECD (Section III.9).
ECD is the lead office for training customs officials and employees and stakeholders on ROO (Section III.10).
ECD directly reports to the Deputy Commissioner, AOCG on all matters related to ROO and performs other functions consistent with the tasks of the AOCG that may be assigned by the Commissioner (Section III.11).

Recordkeeping, retention, and reporting duties

The retention period for customs copies of COs issued, supporting documents, and the 201 file of pre-evaluated exporters follows the Operational Certification Procedure of ROO (Section III.4).
All exporters’ and CO issuance/utilization data must be supported by ECD databases and post evaluation recordkeeping systems (Sections III.4 and III.5).
For initial database building, all Export Divisions and Formal Entry/Warehousing Divisions and/or equivalent units in all Collection Districts and sub-ports, and special units like the One Stop Shop Processing at the Phil--Export and Export Processing Zones, must submit a report of all COs issued and utilized from January 2008 up to the effectivity of this Order (Section IV.5).
ECD prepares the report format, and all concerned must submit the initial report within thirty (30) days from issuance of the Order (Section IV.5).
Thereafter, concerned offices must submit monthly reports to ECD, in the manner prescribed by the Chief, ECD, latest every 10th of the following month, covering:
- COs issued (Export Transactions);
- COs utilized (Import Transactions); and
- Pre-evaluated exporters and products (Section IV.5).
ECD must prepare a consolidated report every 16th of the month, covering COs issued for preferential tariff purposes and COs presented for imported products, noting in remarks if dishonored, and must submit it to the Commissioner through the Deputy Commissioner, AOCG and to the Bureau of International Trade Relations (BITR), Department of Trade and Industry (DTI) (Section IV.5).

Pre-evaluation workflow and approvals

Chiefs of the Export Divisions in all Collection Districts must provide ECD within thirty (30) days from effectivity all documents on hand (including 201 files, bill of materials, production flowcharts, and product costing) pertaining to exporters and export products approved for purposes of CO issuances (Section IV.1).
Metro Manila pre-evaluation applications for exporters and export products for CO issuance must be addressed to ECD (Section IV.2).
ECD evaluation and approval/disapproval for Metro Manila applications must be completed within ten (10) working days from receipt of the application (Section IV.2).
Requests for additional supporting documents, requests for clarification, or similar issues toll the running of the ten (10) working day period, and the period recommences upon receipt of responsive written answers from applicants (Section IV.2).
Provincial pre-evaluation applications must be addressed to the Chief, Export Division concerned, who must make a proper recommendation to the Chief, ECD (Section IV.3).
For provincial applications, the Chief, Export Division concerned must forward the recommendation within five (5) working days (Section IV.3).
The Chief, ECD must evaluate, approve or disapprove, and communicate action within five (5) working days from receipt of the recommendation (Section IV.3).
Like Metro Manila processing, communications requesting additional documents or clarification toll the running of the five (5) working day period, and the period recommences upon receipt of responsive written answers (Section IV.3).
Standardized application forms must be used, and signatures are required with the form being signed and under oath by the proprietor for single proprietorship or natural persons, or by a responsible official duly authorized for juridical exporters as supported by a Corporate Secretary’s Certificate (Section IV.3, with Annex reference).
Supporting documents must be original copies signed by the applicant, and where photocopies are used, they must be certified true and correct by the applicant (Section IV.3).
Upon receipt of applications or recommendations, the Chief, ECD must assign an Evaluating Officer from ECD and/or the Export Division concerned for provincial ports (Section IV.4).
The Evaluating Officer must check documents and, if necessary, conduct a plant/factory visit to validate information submitted by the exporter-applicant (Section IV.4).
The Evaluating Officer must make a recommendation within five (5) working days, and the Chief, ECD must approve or disapprove within five (5) working days (Section IV.4).
A written notice of approval or disapproval must be given to the exporter-applicant within two (2) days from the Chief, ECD’s approval/disapproval, with a copy furnished to the Deputy Commissioner, AOCG (Section IV.4).

Retro-verification request handling and outcomes

All communications related to retro-verification requests must be forwarded to ECD with a copy furnished to the Deputy Commissioner, AOCG (Section IV.6).
The Chief, ECD, in coordination with the Export Division concerned, is given 15 days to draft the official reply to the retro-verification to be signed by the Deputy Commissioner, AOCG (Section IV.6).
When CO procurement involves deceit, misrepresentation, machination, or fraud, the Chief, ECD may recommend referral to the Investigation Prosecution Division and the Legal Service for possible filing of administrative, civil, and criminal cases against the culprits (Section IV.7).

Delegation limits and export declaration processing

The ECD’s authority includes oversight and pre-evaluation for CO issuance purposes while authorizing delegation of CO issuance to Export Divisions only when pre-approvals exist (Section III.2).
ECD must not process Export Declarations due to concentration on oversight, monitoring, databases, and related functions (Section III.9).
ECD supervision of the One Stop Export Declaration Center (OSEDC) remains part of its responsibilities (Section III.9).

Administrative penalties and sanctions

Failure to comply with the Order results in a warning for the first offense (Section V).
Subsequent non-compliance can subject the erring exporter/importer to sanctions imposed under existing Customs laws, rules and regulations (Section V).
Subsequent non-compliance can also subject concerned BOC officials and/or employees to administrative sanctions under existing civil service laws, rules and regulations (Section V).

Repeal, separability, and operative effect

All Orders, Rules, Regulations, and other issuances inconsistent with the Order are revoked and/or modified accordingly (Section VI).
If any provision of the Order is declared invalid or unconstitutional, the remaining provisions continue in full force and effect (Section VI).