The Bureau of Customs (BOC) and the Department of Finance (DOF) signed Customs Administrative Order (CAO) 5-2017 concerning the establishment of Authorized Economic Operator (AEO) program.
CAO 5-2017 serves as the implementing rules and regulations of Section 1227 and 1228 of Republic Act 10863 otherwise known as the Customs and Modernization and Tariff Act (CMTA).
AEO program gives incentives to stakeholders with high level of compliance with customs rules and regulations. This CAO covers the processes, mechanism, and benefits of an AEO-accredited stakeholder.
The program has three components namely: cargo security system which will ensure the integrity and security of the imported good; trade clearance system that enables highly compliant stakeholders to clear their goods with minimum customs border intervention; and mutual recognition arrangement (MRA) which sets process to implement and maintain mutual recognition between two or more customs administrations.
Under the CAO, stakeholders who may apply for accreditation are the following:
(1) Importers;
(2) Exporters;
(3) Customs Bonded Warehouse (CBW) and Customs Facility Warehouse (CFW);
(4) Customs Brokers;
(5) NVOCC, local and international freight forwarders with offices in the Philippines;
(6) Shipping lines or airlines and their agents;
(7) Authorized Agent Banks (AAB);
(8) Local transport operators; and
(9) Foreign suppliers, manufacturers, and other entities in the logistics and international supply chain accredited as AEO by another country with which the Philippines has a Mutual Recognition Arrangement.
“Applicants must meet the standard of reliability and trustworthiness, which shall be measured by its level of risk, the nature of the business and the conduct of its importation as against customs revenue, compliance, and cargo security,” the CAO provided on the accreditation criteria of the interested applicants.
Some of the benefits provided in the CAO are the exemption from renewal of accreditation, processing and selectivity lane for AEO shipment with no documentary, physical and non-intrusive examination, advance cargo clearance, one-time exemption certificate, and the expedition of customs clearance for exports.
The CAO provided that any false or misleading information in the documents submitted as well as the commission of customs laws violation shall be grounds for denial of the application.
The bureau calls on all credible and honest stakeholders who are qualified to the said program to submit their applications.
The CAO has been published on August 23 and shall be effective 15 days after said publication. ## | BOC-PR
