Comm. Nepomuceno’ support for ‘SGL’ results to economic efficiency

NEWLY-appointed Bureau of Customs (BOC) Commissioner Ariel F. Nepomuceno has started his administration by giving the country a boon to counter its current economic woes– the “reinforcement” of the Super Green Lane (SGL) Program.

The reintroduction and expansion of the program–inviting nearly four hundred (400) potential SGL candidates—comes as no surprise, since Commissioner Nepomuceno’s initiative to provide a more efficient, transparent, and secure trading environment in the Philippines is backed by the intellectual chops of Deputy Commissioner for Assessment and Operations (AOCG) Atty. Agaton Teodoro O. Uvero, a recognized and published expert in the field of international trade, tariffs, and customs.

But what is the SGL Program and how does this create a better trading environment for the Philippines?

The SGL Program in broad strokes

First introduced through Executive Order No. 230 in 2000, the Super Green Lane (SGL) Program serves as an incentive mechanism for highly compliant and reputable importers.

Under the program, the BOC enters into partnership with select importers, referred to as SGL Members, who maintain a consistent record of compliance, including the absence of pending cases or derogatory findings and the attainment of a certain import valuation threshold.

SGL Members are then rewarded with certain benefits that allow for greater ease when transacting with the BOC such as expedited or advanced clearance, reduced inspections, and exemptions from value clearance.

This means that SGL Members enjoy faster processing and release for their importations because they need to comply with fewer documentary requirements and minimal customs intervention when their shipments reach Philippine ports. In turn, this means that they get to move their goods faster from the ports to the markets.

As trusted partners of the BOC, SGL Members undergo fewer physical and documentary inspections. Moreover, their shipments are exempt from review by the BOC’s Imports and Assessment Service (IAS), allowing direct assessment and release without additional clearance. This significantly shortens cargo dwell time, minimizing warehousing delays and reducing storage and demurrage costs.

Another notable benefit is perpetual accreditation—SGL status remains effective unless suspended, cancelled, or revoked by the BOC Commissioner based on proper recommendation. So long as the importer remains compliant, they continue to enjoy these operational advantages.

How does this help the economy?

While, at first glance, it may seem like the SGL Program only benefits its members, the program actually serves more as a carrot for big importers to chase–incentivizing compliance with customs regulations. After all, beyond its valuation, an importer also needs to be identified as highly compliant to qualify as an SGL Member.

Being an SGL Member also does not mean that qualified importers get a pass to disregard customs regulations and the payment of duties entirely. The SGL Program only ensures quicker turnarounds for shipments when they arrive; however, after such goods are released, SGL Members will still be subject to a post-clearance audit, thus giving the BOC a check against possible abuse of the program.

In sum, the efforts of Commissioner Nepomuceno and Depcomm. Uvero pave the way for a more efficient, transparent, and secure trading environment in the Philippines by rewarding compliant importers through the SGL Program and incentivizing others to follow suit.