Title
PEZA import shipment transfer rules
Law
Customs Memorandum Order 29-2005
Decision Date
Jul 6, 2005
Customs Memorandum Order 29-2005 establishes streamlined procedures for the tax and duty-free transfer of import shipments to PEZA-registered economic zone enterprises, including the creation of Customs-PEZA Clearance Offices and the implementation of electronic systems for monitoring and confirming shipment ownership and delivery.
customs procedure
import shipment
economic zone

Issuance, date, effectivity

  • Customs Memorandum Order 29-2005 is adopted on 06 July 2005.
  • The Order takes effect immediately.
  • The Order is issued as a procedure/rules and regulation on the transfer of import shipments under a BOC–PEZA framework.

Coverage: shipments and eligible enterprises

  • Section 2 applies to tax and duty free import shipments of PEZA-registered economic zone locator enterprises arriving at and discharged from seaports for delivery to economic zone locations.
  • The transfer from the port of discharge to economic zone locations is governed through Transit-IEIRDs covered by the Order’s procedure.

Customs-PEZA clearance system (CPCO)

  • A Customs-PEZA Clearance Office (CPCO) is established in each seaport where the Order is implemented.
  • The CPCO is responsible for processing Transit-Import Entries and Internal Revenue Declarations (Transit-IEIRDs) and for approving release and transfer to economic zone locations, as prescribed in JMO No. 1-2001.
  • The CPCO is manned by BOC and PEZA officials and personnel.
  • The CPCO is under the direct supervision and control of the BOC Deputy Collector for Operations, who is responsible for efficient monitoring and accounting of import shipments processed, released, and transferred from the port of discharge to economic zone locations.
  • The CPCO must be equipped with ACOS workstations, an electronic broadcasting facility, and an automated system confirming actual delivery at the economic zone locations.

Transit-IEIRDs and required substitutes

  • The transfer of import shipments is covered by Transit-IEIRDs instead of the Transshipment Permit.
  • Transit-IEIRDs must conform with the requirements for a full declaration and be coded as Transit for PEZA procedure, which makes the following documents unnecessary:
    • Customs EPZA Warehousing Entry (CEWE),
    • Transshipment Permit,
    • Transit Cargo Manifest,
    • Boatnote,
    • Mission Order, and
    • Telegram.
  • PEZA-registered enterprises lodge Transit-IEIRDs at the Entry Encoding Center (EEC) or through a Direct Trader Input (DTI) remote lodgement facility.
  • The Transit-IEIRD-Transit must be accomplished pursuant to CMO 20-2004 dated June 30, 2004.
  • PEZA-registered enterprises must furnish the particular Import Permit reference number in Box #44 of the IEIRD or SAD form.
  • Model of Declaration depends on filing method:
    • Use "8 DT8" for remote lodgement facility filings.
    • Use "8 8" for EEC filings.
  • For DTI lodgement, no separate printed Transit-IEIRD is required; the Single Administrative Document (SAD) generated and signed by the duly designated official of the PEZA-registered enterprise (or its representative) serves as the Transit-IEIRD.

Import permits and verification

  • Import shipments must be covered by Import Permit (IPs) issued by PEZA through its Electronics Import Permit System (EIPS).
  • Customs must verify the PEZA-Import Permit against the Transit IEIRD through an online verification process:
    • Customs scans the bar-coded Import Permit to authenticate and verify contents in one action.
  • The Electronic Import Permit must be compatible with the Transit-IEIRD regarding information content.
  • Import shipments without a verifiable Electronic Import Permit are subject to physical inspection by a Customs officer.
  • Verification of a presented Import Permit must use other means to establish authenticity, including phone verification, manual text messaging, fax, document verification, and others.

Ownership confirmation via e2m broadcasting

  • BOC must develop and implement an Electronic to Mobile Broadcasting (e2m-Broadcasting) facility to verify ownership of import shipments attributed to PEZA-registered enterprises.
  • Using the facility, BOC informs registered enterprises of all import shipments attributed to them and the status of each including the moment cleared for release.
  • Filing the Transit-IEIRD at the CPCO triggers sending e-mail and/or SMS messages to enrolled contact details of the PEZA-registered enterprise to which ownership is attributed.
  • Upon receipt, PEZA-registered enterprises must acknowledge or confirm ownership using pre-formatted text e-mails/SMS messages.
  • Denial of ownership causes the shipment to be subject to an immediate Hold and Alert Order.
  • Failure to acknowledge/confirm ownership causes the shipment to be held and released only after ownership is established.
  • Failure to acknowledge/confirm within 12 hours causes the shipment to be subject to an appropriate Hold and Alert Order.
  • PEZA-registered enterprises must enroll with BOC and PEZA the authorized e-mail addresses and cellular phone numbers for receipt of e2m-Broadcasting messages.
  • A subsequent CMO will govern implementation of the e2m broadcasting.
  • During the period before the e-broadcasting facility is set up, CPCO uses other means to verify ownership, including phone verification, manual text messaging, fax, document verification, and others.

Cashless processing fees and bond requirements

  • PEZA-registered enterprises must post General Transportation Bonds (GTBs) to cover all taxes and duties of import shipments while in transit through the customs territory—from the port of discharge to economic zone locations.
  • The GTB is an annual bond equivalent to twice the amount of taxes and duties due on an average import shipment discharged and released at the seaport using this formula:
    • Amount of GTB = 2 x (Total taxes and duties due on all import shipments made via the seaport during the preceding year ÷ Total No. of Import shipments during the preceding year)
  • The outstanding GTB must not be less than the total duties and taxes for the import shipment being filed.
  • GTBs must be registered at the BOC Bonds Division in the respective ports where import shipments are discharged and released.
  • The Bonds Division must provide the CPCO a copy of the list of authorized PEZA-registered enterprises with sufficient bonds.
  • The BOC must provide the CPCO with electronic GTB data as soon as the Automated Bonds Management System is operational.
  • Only GTBs issued by surety companies duly accredited by the BOC at the time of filing of the Transit-IEIRD (pursuant to CMO No. 22-2003) are honored.
  • BOC must implement an Auto-Debit Processing Fee Payment System and other cashless Electronic to Mobile Payment systems (e2m-Payment) to automatically transfer payments for processing fees from enterprise accounts to corresponding BOC and PEZA accounts.
  • Auto-Debit Processing Fee Payment System implementation must adhere to CMO 8-2005 - Guidelines on the implementation of the Automated Collection of Cargo Transfer Fees for PEZA Shipments under JMO 1-200.

Cargo transfer and fee amounts

  • For every import shipment processed and released from the port of discharge, BOC collects a total of P1,015.00, consisting of:
    • P710.00 Cargo Transfer Fee (CTF),
    • P40.00 Cost of Transit-IEIRD Form,
    • P265.00 Cost of Documentary Stamps,
    • Total: P1,015.00.
  • For transit-IEIRD encoded at the EEC, the fee is P710 per transaction, with the cost of the IEIRD (P40) and the documentary stamps (P265) previously collected by the BOC Cashier issuing the forms.
  • For DTI-lodged transshipments, the assessment is P1,015, which already includes the cost of the IEIRD and the documentary stamps.

Delivery confirmation and real-time monitoring

  • BOC must develop and implement an Electronic to Mobile Delivery Confirmation System (e2m-Delivery Confirmation) to allow real-time monitoring of actual delivery of shipments released to PEZA-registered enterprises at their economic zone locations.

Step-by-step operational procedures

  • A PEZA enterprise must file an application for a Transit-IEIRD covering its import shipments, attaching:
    • Bill of Lading,
    • Commercial Invoice,
    • Packing List,
    • Import Permit.
  • After encoding transit data into the ACOS, the electronic copy of the Transit-IEIRD must be transmitted to the CPCO for document processing.
  • The system must automatically broadcast shipment information to authorized e-mail addresses and/or cellular phones of the PEZA-registered enterprise to which shipment is attributed.
  • The BOC Officer must wait for the PEZA enterprise response confirming ownership of the subject shipment.
  • Receipt of:
    • the e2m-Broadcasting response confirming ownership, and
    • e2m payment confirmation,
      triggers the On-line Release System (OLRS) to process and issue a release message to the Arrastre operator.
  • Customs Gatekeepers must check or tally the information on the gate pass and the marks and numbers of the shipment and ensure the transit shipment is transferred by accredited personnel of the PEZA enterprise.
  • Upon arrival of the transit shipment at the PEZA zone, BOC and PEZA must check that container seals are intact and untampered.
  • BOC and PEZA must acknowledge receipt by signing on the delivery copy of the IEIRD; that copy must be returned within twenty-four (24) hours to the CPCO by the PEZA enterprise representative.
  • BOC and PEZA zone officers must submit their reports of receipt of shipment through the e2m Delivery Confirmation System.
  • The Office of the Deputy Collector for Operations for the port of discharge monitors:
    • delivery confirmation from the Delivery Confirmation System, and
    • pending shipments (released from customs port of discharge but not yet arrived at the destination PEZA zones as reflected in the system).
  • If shipments do not arrive at the destined PEZA zone within a reasonable period, the Office of the District Collector, endorsed by the Office of the Deputy Collector for Operations, must conduct an immediate investigation to determine the cause of failure.
  • Shipments with broken or tampered seals are subject to an immediate Hold Order.

Reporting requirements

  • Each CPCO must prepare and submit monthly reports to its respective Deputy Collector for Operations, including:
    • a list of registered PEZA enterprises and basic profile (address, line of business, products),
    • copies of accreditation of PEZA enterprise representatives (with specimen signatures and company identification cards),
    • a list of accredited truckers and their registered transport vehicles.
  • Each CPCO must also prepare and submit daily reports to the Deputy Collector for Operations, including:
    • import permits issued and processed,
    • a list of open transshipment processed.

Repealing clause

  • All rules and regulations inconsistent with Customs Memorandum Order 29-2005 are deemed repealed, superseded, or modified accordingly.

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