THE Practicing Customs Brokers Association of the Philippines (PCBAPI) and other waterfront stakeholders welcomed the pronouncement of Bureau of Customs (BOC) Commissioner Ariel F. Nepomuceno that extends the validity of registration of customs brokers and importers to three years.
“We thank Commissioner Nepomuceno for giving importance to our long-standing call that we made since Commissioner Bienvenido Rubio became commissioner (in February 2023),” said Rey Soliman, a licensed customs broker and chair of the PCBAP.
Soliman made his group’s reaction known as soon as Nepomuceno announced the revision last July 21.
In a statement, the Customs Chief said the change is also in compliance to stakeholders’ sentiment and the order of President Marcos Jr. to improve ease of doing business in the agency.
“The change will not only reduce the administrative burden on importers but also simplify the process, allowing them to focus more on their operations rather than annual renewals.
“This shift is expected to lead to smoother trade transactions, reducing unnecessary delays and fostering a more predictable regulatory environment for businesses,” the Commissioner explained.
He added the BOC legal team is already reviewing the draft of the proposed changes to Customs Administrative Order (CAO) 07-2022, before submission to Department of Finance (DOF) Secretary Ralph Recto for his final approval.
Nevertheless, among the expected changes is the increase in the processing fee for accreditation from P2,000 to P5,000 to also help the BOC better manage the growing demands and enhance the accreditation system’s efficiency.
Additionally, the application form will be updated to include additional fields, ensuring more accurate data collection and improving compliance monitoring.
To maintain transparency and accountability, the amendment will also require importers to submit an annual reportorial compliance 30 days before the anniversary of their accreditation.
This report will summarize any updates to business documents or information, ensuring that the BOC is consistently up to date on the status of accredited importers.
In response to stakeholders’ feedback, the proposal also outlines clear guidelines for the automatic renewal of accreditations, simplifying the process for eligible importers.
Review CMO 12-2021
While expressing support to the new customs administration, Soliman also urged Commissioner Nepomuceno to review Customs Memorandum Order (CMO) 12-2021, issued by his predecessor, Commissioner Rey Leonardo Guerrero last March 18, 2021, during the height of the COVID-19 pandemic.
The CMO, ‘Guidelines on the Imposition of Penalties Relative to the Customs Accreditation of Importers and Brokers,’ refers to the immediate suspension of the customs registration of importers and customs brokers suspected of involvement to smuggling.
The “suspicion” can come in the form of an WSD (warrant of seizure and detention) against a shipment, “derogatory information” or “discovery of breach of an importer or broker’s responsibilities.”
Under the CMO, a suspension of up to 90 days can be imposed against the suspect importer or broker by the Commissioner of Customs, based on the recommendation of the Deputy Commissioner for Intelligence.
Soliman said they also appealed to Commissioner Rubio to review the CMO and also has a pending request with the Department of Justice (DOJ) for the issuance of a legal opinion since April 15, 2024 but their requests to Rubio and the DOJ remain unanswered.
Soliman claimed they are questioning CMO 12-2021 on the ground that it deprived them of the right to due process and deprived them of their right to earn a living.