Monday, May 16, 2011

Executive Order 168

MALACAÑANG PALACE

Manila

BY THE PRESIDENT OF THE PHILIPPINES
EXECUTIVE ORDER NO. 168
MODIFYING THE RATES OF DUTY ON CERTAIN IMPORTED ARTICLES AS PROVIDED UNDER THE TARIFF AND CUSTOMS CODE OF 1978, AS AMENDED, IN ORDER TO IMPLEMENT THE PREFERENTIAL TARIFF RATES ON CERTAIN PRODUCTS UNDER THE ASEAN INDUSTRIAL COOPERATION (AICO) SCHEME
        WHEREAS, the Philippines is a Contracting Party to the Basic Agreement on the AICO Scheme signed in Singapore on 27 April 1996;
        WHEREAS,  the AICO Scheme seeks to improve the competitive position of ASEAN Companies in the global and ASEAN markets by providing the means to apply the principles of economies of scale and scope in the manufacturing process, supported by preferential import duties to enhance across ASEAN border transactions;

        WHEREAS,  the Philippines is a participating country in the approved AICO Scheme of Isuzu Philippines Corporation, along with Thailand;
        WHEREAS, under the Isuzu AICO Agreement, it was agreed that the Philippines (Isuzu Philippines Corporation) will import diesel engine from Thailand (Isuzu Engine Manufacturing Co., Ltd.) as intermediate part for the original equipment manufacture (OEM) of TBR 54 Series public transport-type passenger motor vehicle.  In exchange, Thailand (Isuzu Motors Co., Ltd.) will import transmission from the Philippines (Isuzu Autoparts Manufacturing Corporation) for the OEM of TFR 54 and TFS 55 Series;

        WHEREAS, in consonance with Articles 5 and 7 of the Basic Agreement on the AICO Scheme, participating companies in the approved Isuzu Arrangement shall qualify for 0-5% preferential tariff rate to be extended by the Philippines and Thailand as participating countries, effective within 60 days from the date of issuance of the Certificate of Eligibility by the ASEAN Secretariat;
        WHEREAS, AICO Certificate of Eligibility No. Isuzu/1999/1 was issued on 24 February 1999 in favor of the participating companies in the Isuzu AICO Arrangement.

        NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Philippines, pursuant to the powers vested in me under Section 402 of the Tariff and Customs Code of 1978, as amended, do hereby order.

        SECTION 1.   The article specifically listed in Annex "A" hereof, as classified under Section 104 of the Tariff and Customs Code of 1978, as amended, shall be accorded the AICO rate of 3% as specified in Column 6 thereof.
        SEC. 2.   The AICO rate provided in "Annex A" shall be accorded to the AICO entity in Thailand (Isuzu Engine Manufacturing Co., [Thailand Ltd.]) effective from 24 February 1999.

        SEC. 3.   In the event that any subsequent changes are made in the basic (MFN) Philippine rate of duty on the article listed in Annex "A" to a rate lower than the AICO rate prescribed in Column 6 thereof, such article shall automatically be accorded the corresponding reduced rate of duty.   Effective 1 January 2003, the final CEPT rate on the subject article shall apply.
        SEC. 4.  Upon the effectivity of this Executive Order, the article specifically listed in the aforesaid Annex "A" which is entered or withdrawn from warehouses in the Philippines for consumption shall pay the applicable AICO preferential tariff rate specified under Section 1 hereof, subject to qualification under the Rules of Origin for the CEPT, as evidenced by the Certificate of Origin - Form "D".
        SEC. 5.    Any revision/s to the part numbers appearing in Column 4 of Annex "A" shall be communicated immediately to the Bureau of Customs by the Board of Investments within five (5) days after receipt of the official copy of the revised part numbers from the ASEAN Secretariat.

        SEC. 6.  This Executive Order shall take effect immediately.
        Done in the City of Manila, this 18th day of October, in the year of Our Lord, nineteen hundred and ninety nine.
By the President:


(sgd.)RONALDO B. ZAMORA

Executive Secretary
 ANNEX "A"
ARTICLES GRANTED PREFERENTIAL TARIFF UNDER THE APPROVED

AICO SCHEME OF ISUZU MOTORS ASIA


HS CODEMODEL/TYPEPRODUCT DESCRIPTIONPART NO.SOURCE COUNTRY (COMPANY)APPLICABLE AICO PREFERENTIAL TARIFF
(1)(2)(3)(4)(5)(6)
8702.90 10TBR 54 Series/
Public Transport-Type Passenger Motor Vehicle
Diesel Engine897911-5100Thailand Isuzu Engine Mfg. Co. (Thailand) Ltd. (IEMT)3

Wednesday, May 11, 2011

Franklin Baker to export cocowater to US

May 10, 2011, 7:27pm
MANILA, Philippines — Wholly-owned Filipino firm Franklin Baker Company of the Philippines (FBCP) has asked for tax incentives for its project as new export producer of cocowater concentrate. Based on its application with the Board of Investments (BoI), FBCP has proposed to put up a processing plant in San Pablo City in Laguna worth P88.682 million to produce 1,290 metric tons annually of cocowater concentrate of which 85 percent would be exported to the US and Brazil. The project will qualify for BoI incentives on a non-pioneer status under the sub-heading of the 2010 Investment Priorities Plan on Export Activities – Production and Manufacture of Export Products.
The cocowater concentrate with sweetness of 600Brix is considered as a ‘non-traditional export product’ pursuant to Part I, Rule I, Section 1(x) of the Implementing Rules and Regulations (IRR) of EO 226. At present, the firm is producing desiccated coconut and other high-value coconut products. The company has proposed to use raw coconut water (with sweetness of 40Brix) as starting/basic raw material. This proposed project intends to make use of 19.5 million kilogramd or 16.466 million liters of raw coconut water per year, which is just wasted in the firm’s existing desiccated coconut plant in San Pablo City. Since the source of raw material is its existing desiccated coconut plant in Laguna, this new plant will also be located adjacent to firm’s existing desiccated coconut plant in San Pablo City.
However, the two projects will operate independent of each other. There would be no sharing of facilities. The project is expected to employ 62 people. Already, the firm has requested for advanced authority to import capital equipment. In its letter dated May 2, 2011, the firm requested BoI to issue advanced authority to import capital equipment saying they need to place the order as soon as possible to be able to meet the project’s timetable. (BCM)
Source: manila bulletin

Monday, April 25, 2011

Sample Application for Certificate of Exemption

  COMPANY’S LETTER HEAD
Application for Certificate of Exemption
                                                                                  
                                                                                                        _______________________    
                                                                                                                            Date

SENEN M. PERLADA
Director-in-Charge,
International Coffee Organization Certifying Agency
DTI-International Bldg.
375 Sen. Gil Puyat Ave., Makati City

Dear Sir:
We would like to request for a Certificate of Exemption from the issuance of
Coffee Export Clearance and Certificate of Origin  for our sample size coffee
shipment for promotional/personal/other purpose of the following coffee products;
Coffee Form : ________________________________
Brand (if any) : ________________________________
Net Weight
( 60 kgs GBE or less ) : ________________________________
Sender’s Name : ________________________________
Company : ________________________________
Address : ________________________________
Name of Consignee : ________________________________
Company : ________________________________
Address : ________________________________
________________________________

Country of Destination : ________________________________

Attached is our invoice/packing list to support our application. (Optional)
Thank you for your assistance.

Very truly yours,

______________________________  
Name & Position

PROCEDURES FOR ACCREDITATION OF COFFEE EXPORTERS

1. Applicant submits letter of Application for Accreditation together with Business Name or
SEC Registration, BIR Registration, Mayor’s Permit, and Latest Audited Financial
Statement.
2. ICOCA evaluates the application and conducts a plant/factory and/ or plantation visit.
3. ICOCA prepares Evaluation Report and assigns an exporter’s ICO identification code
number.
4. ICOCA approves and releases the exporter’s Certificate of Accreditation.
5. ICOCA orients the newly-accredited exporter on the systems, rules, and procedures of
exporting coffee.
PROCEDURES FOR COFFEE EXPORT DOCUMENTATION
(Pre-loading stage)
1. Applicant submits duly accomplished Export Declaration (ED) form together with Letter
of Credit (LC) or Export Contract and Sales Invoice.
2. ICOCA evaluates, approves, and releases the Certificate of Clearance.
(Post-loading stage)
1. Applicant submits a copy of the signed Bill of Lading (B/L) or Airway Bill and validated
ED for verification and recoding of shipment data.
2. ICOCA prepares, approves, and releases the Certificate of Origin for submission to and
countersigning of the Bureau of Customs (BoC).
3 Applicant returns photocopy of Original, Green and Blue copy of validated CO to ICOCA
for submission to ICO-London.
PROCEDURES FOR CERTIFICATE OF EXEMPTION
ON SAMPLE SIZE COFFEE SHIPMENT
1. Applicant submits letter-request for Certificate of Exemption for small quantities of coffee
export parcels with the following weight equivalent:
Green beans   –   60kg
Roasted beans –  23 kg.
Instant/soluble –120 kg
2. May also submit the Invoice List or Packing List
3. ICOCA evaluates, approves, and releases the Certificate of Exemption. This shall be valid
for one shipment to one consignee only.

REQUIREMENTS FOR ACCREDITATION OF COFFEE EXPORTERS

1. Letter of Application for Accreditation (Click for a sample form letter for Application for 
Accreditation)
2. Business Name or SEC Registration
3. BIR Registration
4. Mayor’s Permit
5. Latest Audited Financial Statement/Certificate of Capitalization (for established 
companies) or Balance Sheet (for newly established firms)
6. Authorization of official representatives to transact business with ICOCA (for 
corporations)
REQUIREMENTS FOR COFFEE EXPORTATION
1. Exporter must be duly accredited by ICOCA. (Please see Procedures for Accreditation).
2. For pre-loading of coffee shipment: 
a. Duly accomplished Export Declaration (ED) Form (Click ED for Coffee Export)
b. Sales Invoice/Pro-forma Invoice
c. Letter of Credit (LC) or Sales Contract (optional) 
3. For post-loading of coffee shipment:
a. Copy of the signed Bill of Lading (B/L) or Airway Bill
b. Validated ED 
REQUIREMENTS FOR SAMPLE SIZE COFFEE SHIPMENTS
1. Letter request for a Certificate of Exemption from the issuance of Coffee Export Clearance 
and Certificate of Origin (Click for a sample  form letter for Application for Certificate of 
Exemption) for sample and parcels of up to a maximum net weight of 60kg. of green coffee 
or the equivalent thereof, namely:
a. 120 kg. of dried cherry; or
b 75kg. of parchment coffee; or
c. 50.4 kg. of roasted coffee; or
d. 23 kg. of soluble or liquid coffee
2. Invoice/packing list (optional)  

EXPORT PROCEDURES


Exporting is both challenging and rewarding. Export procedures are simple and the export documentation required has been lessened.
Build your knowledge and develop skills on the dynamics of exporting by attending seminars/training courses on the basics of exporting, letters of credit, negotiating with the foreign buyers, etc., The Philippine Trade Training Center offers courses on these topics.

If you are not yet in business and would like to set up an export company, register with the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC); with the city or the municipality where you intend to operate the business; and with the Bureau of Internal Revenue.

However, business registration by itself does not ensure success unless the basic foundations for a viable export enterprise are present. These are:
  • Organization Readiness - Management is willing to commit resources of the enterprise.
  • Product Readiness - Product meets foreign buyer’s requirements in both quality and price.
 

GENERAL EXPORT PROCEDURES

  1. Upon receipt of a purchase order from a foreign buyer, immediately send him a proforma invoice for confirmation. An order is confirmed when the proforma invoice is signed and returned to you by the buyer.
       
  2. Payment for exports is normally made through the banks. The foreign buyer?s interest in the Philippines is represented by a local authorized agent bank, which is designated by the foreign buyer’s bank. The local Authorized Agent Bank (AAB) will assist you in negotiating the collection of the payment for your exports.
  3. The AAB will explain to you all the instructions concerning your shipment to ensure its acceptability for payment. Make sure that you understand all the instructions provided by the bank.  If the instructions are written in a foreign language, ask the bank to give you an official translation in English or ask the bank to officially recognize a translation of the instructions, if the translation was made by someone other than the bank.
  4. Exporters may be paid through banks by means letters of credit (L/C), documents against payment (D/P), documents against acceptance (D/A), open account (O/A), cash against documents (CAD), prepayment/export advance, inter-company open account, offset arrangement, consignment, or telegraphic transfer.
  5. You may or may not need outside financing to produce export products ordered by the buyer. Should you, however, find the need for outside financing, you can either tap the assistance of government or non-government financial institutions.  

EXPORT DOCUMENTATION
  1. When you are ready to ship, fill up an Export Declaration (ED) form. Sample ED forms are available at BETP, DTI Provincial offices, BOC Processing Units, OSEDCs and PHILEXPORT offices.
  2. Secure an export commodity clearance/export permit from the proper government commodity office, if your product is included in the list of regulated products for exportation or if the buyer requires.
  3. With the required supporting documents, submit the accomplished ED form to the BOC Processing Unit for the approval of the Authority to Load (AL).

SENDING SAMPLE SHIPMENTS
Follow steps 1, 2, and 3, of Export Documentation.

LOADING IN MANILA
Cargoes to be transported by air are inspected by the BOC at the NAIA. Conventional cargoes, whether containerized or non-containerized, to be transported by ship are inspected by the Customs Container Control Division and the Piers and Inspection division, respectively, after payment of the wharfage fee and arrastre charges. Wharfage fee and arrastre services may be paid at South Harbor or MICP.
However, for BOI and PEZA registered companies, stamping or exemption from payment of wharfage fee may be done at the PPA Unit of OSEDC-Manila at Roxas Boulevard. Loading can either be at the North or South Harbor.





LOADING AT PROVINCIAL PORTS

Documentation (steps 1-3) may be done in Manila. After approval of the Authority to Load, BOC sends message to BOC at the Port of Loading.
You can also process documents and secure Authority to Load from the local OSEDC (now in Clark, Davao, Baguio, General Santos, Iloilo, Cebu, Cagayan de Oro, and Subic Bay Special Economic Freeport Zone).

After loading, the BOC issues the following documents upon request:
  1. Certificate of Origin, Form A (for export products covered by the Generalized System of Preferences (GSP). You can inquire about the GSP from DTI Bureau of International Trade Relations or Bureau of customs.
  2. General Certificate of Origin (for export products not availing of preferences under GSP).
  3. Certificate of Origin, Form D (for export products covered by the ASEAN Common Effective Preferential Tariff Scheme).
  4. Certificate of Shipment.
Furnish the AAB, for record purposes, a copy of the duly accomplished ED form together with other shipping documents, if export negotiation or payment is coursed through them.

For shipments that are prepaid, send the original commercial and shipping documents to the buyer.  



Republic Act 1482 - Export Control Law

REPUBLIC ACT NO. 1482 - AN ACT TO AMEND SECTION ONE, THREE, FOUR AND FIVE OF REPUBLIC ACT NUMBERED SIX HUNDRED THIRTEEN, OTHERWISE KNOWN AS THE EXPORT CONTROL LAW, AS RE-ENACTED AND AMENDED BY REPUBLIC ACTS NUMBERED EIGHT HUNDRED TWENTY-FOUR AND NINE HUNDRED NINETY-NINE


Section 1.    Section one of Republic Act Numbered Six hundred thirteen as amended, otherwise known as the Export Control Law, is hereby further amended as follows:

"Section 1.    In order to promote economic and industrial development and to safeguard national security, it shall be unlawful for any person, association or corporation to export, re-export or tranship, or to attempt to export, re-export or tranship to any point outside the Philippines uranium and other atomic energy materials, machineries and their spare parts, scrap metals, medicines, foodstuffs, abaca seedlings, gasoline, oil, lubricants and military equipment or supplies suitable for military use, and such other items as may be deemed essential for industrialization and economic development without a permit from the President which may be issued in accordance with the provisions of the next succeeding section: Provided, however, That all other items not otherwise specifically enumerated in this Act the exportation, re-exportation or transshipment of which is prohibited by the President in pursuance of the provisions of this Act shall be reported to both Houses of Congress which may, by joint resolution, lift the prohibition of any or all of such items herein contemplated."  

Section 2.    Section three of the same Act, as amended, is hereby amended to read as follows:

"Section 3.    The President is hereby authorized to control, curtail, regulate and/or prohibit the exportation or re-exportation of such materials, goods and things referred to in the preceding section upon the recommendation of the National Economic Council and issue rules and regulations as may be necessary to carry out the provisions of this Act."

Section 3.    Section four of Republic Act Numbered Six hundred thirteen, otherwise known as the Export Control Law, is hereby further amended to read as follows:

"Section 4.    In case of violation of this Act or the regulations promulgated thereunder, such violator or violators shall, upon conviction, be punished by a fine of ten thousand pesos to twenty thousand pesos, or by imprisonment of from five to ten years, or both, in the discretion of the Court and if the violator is an alien he shall be deported after service of sentence: Provided, That if the violation is committed by the manager, representative, director, agent, or employee of any natural or juridical person in the interest of the latter the same shall render the said natural or juridical person amenable to the penalties corresponding to the particular offense: Provided, further, That in case of any violation committed in the interest of a foreign corporation legally doing business in the Philippines by its agent, manager, representative or director, such violation shall, in addition to the penalties mentioned above, serve as a ground for the immediate revocation of its license to do business: Provided, still further, That the fact that an article or articles not covered by the necessary clearance or permit are found at the port preparatory to, or in the process of, loading, whether or not concealed in or mixed with other items for export, or that there is an excess over the quantity appearing on the clearance or permit shall constitute prima facie evidence of a violation of this Act: And, provided, finally, That the materials intended for export in violation of this Act and the rules and regulations thereunder shall be confiscated by and forfeited to the Government. Acquittal in a prosecution for violation of this Act shall not be a bar to proceedings pursuant to Articles XIX and XX of Chapter 39 of the Revised Administrative Code in separate and distinct proceedings."  

Section 4.    Section five of Republic Act Numbered Six hundred thirteen is hereby amended to read as follows:

"Section 5.    The authority granted in this Act shall terminate on December thirty-one, nineteen hundred and fifty- nine unless sooner terminated by concurrent resolution of Congress, except that as to offenses committed, or rights or liabilities, incurred prior to such repeal or termination, the provisions of this Act and of the rules and regulations issued thereunder shall be treated as remaining in effect for the purpose of sustaining any suit, action, or prosecution with respect to such rights, liabilities or offense."

Section 5.    This Act shall take effect upon its approval.

Approved: June 16, 1956 

Wednesday, March 23, 2011

Customs Memorandum Order No. 13-290

Customs Memorandum Order

No. 13-290
       
       Subject: Procedures for the Implementation of E2M Customs System - Phase 4
                    Informal Entry of Commercial Goods in all Customs Sea Ports Nationwide
1.      Objectives
         1.1   To implement the Electronic to Mobile (E2M) Customs System - Phase 4:
                Informal Entry for commercial goods in all Customs Sea Ports nationwide
         1.2   To provide detailed instructions to declarants, brokers, importers, warehouse
                 operators, shipping lines, forwarders, transit storage facilities, authorized agent,
                 banks (AABs), accredited Value-Added Service Providers (VASPs), government 
                 agencies issuing licenses and clearances, the concerned Department of Finance
                 (DOF) offices issuing Tax Exemptions and Tax Debit Memos and personnel of
                 the Bureau of Customs System Phase 4.
        1.3    To effect smooth transition from the current manual procedures to the intended
                customs procedures under the e2m Custom System.
2.     Scope

        The following components of the E2M Customs System must have been implemented at
        the time of Informal Entry implementation:
        >  Client Profile Registration System (CPRS)
        >  Electronic Manifest System (EMS)
        >  Payment Abstract Secure System version 5.0 (PASS5)
        >  Other Settlement Modes (OSM) consisting of Tax Exemptions
        >  Online Release System (OLRS)
        >  License and Clearance System (ICS) for government agencies that are already
           connected to the National Single Window (NSW)
        Separate Customs Memorandum Orders (CMOs) shall be issued for Informal Entry
        Shipments of Personal Effects for single consignment or consolidated shipments.

3.     General Provisions

        3.1.1  Informal Entry Declarations must be lodged electronically using the 
                Single Administrative Document (SAD) of the E2M Customs System.
        3.1.2  E2M Customs System shall allow the shipment to be declared under
                Informal Entry if the following criteria are met:
                     >  Total Customs Value is below US$500
                     >  Total Gross Weight is less or equal 300 kilograms
                     >  Total number of packages is less or equal 12
                     >  The shipment volume is less or equal (1) cubic meter
                     >  The consignee is registered in CPRS as an individual entity.
       3.1.3   All informal entry declarations have to be lodged through the VASPs. The 
                  printed copy of the SAD in the required number of copies and all other
                  supporting documents must be submitted to the BOC.
       3.1.4   Only customs brokers and consignees registered with CPRS pursuant to 
                 CMO 39-2008 shall be allowed to submit informal entry declarations in
                 E2M Customs system through the VASP.
      3.1.5   The consignee may register himself as a Once-A-Year Importer in
                 Accordance with CMO 44-2009 titled “CPRS Registration of Once-a-Year
                 Importer(Previously First and Last Importation Scheme)”
3.1.6   If an exemption is claimed under Section 105 of the Tariff and Customs
                    Code of the Philippines (TCCP), such exemption code should be part of
                    the allowable list in Annex  A - “Additional Codes referring to Section 105
                    of the TCCP that are acceptable for use in Informal Entry.”
       3.1.7   Shipments that do not qualify for Informal Entry under the above criteria
                    Shall be lodged under Formal Entry  .
3.2    Licenses, Clearances and Permits
         3.2.1   The consignee/Customs broker is required to secure licenses or permits for
                    the covered commodities before the electronic lodgment of import
                    declarations, otherwise the system will reject the lodgment of the import
                    declaration.
         3.2.2   Separate CMOs  may be issued to cover the particular procedure to be 
                   followed by the consignee in acquiring the electronic license or permit in
                   each of the E2M Customs-ready issuing agency.
         3.2.3   For license and clearance issued by government agencies that are not yet
                   Connected to the NSW or not yet E2M Customs-ready, the same shall be
                   processed in the current procedure of tagging the import declaration into
                   the SELECTED channel to enable the verification of the license of 
                   clearance by  the BOC examiner .
3.3    Selectivity - Informal Entry declarations shall be subject to Selectivity.
3.4    Calculations of Duties, Taxes and Fees.
         3.4.1   Duties, taxes and fees shall be calculated using the taxation rules of E2M
                   Customs, which are aloe applicable to formal Entry declarations.
         3.4.2   The Import Processing Fee (IPF) shall be calculated similar to the formal
                    entry IPF.
3.5    Payment
          3.5.1   Duties and Taxes shall be settled using PASS5 for the automatic debit of
                     the amount from the Importer’s nominated bank account CAO 10-2008
                     and CMO 6-2009 are applicable to Informal Entry payments.
         3.5.3    The consignee shall acquire a Bank Reference Number after CPRS
                     Registration form his bank of choice. The Bank Reference Number is
                     Mandatory in the Informal Entry SAD.
         3.5.3    Other Modes of Settlement - Tax Exemptions are allowed as payments for
                     Duties and taxes.
4.   Operational Provisions
         4.1   The Informal Entry SAD shall be filled up accordance with CMO 27-2009  with
                additional guidelines in Annex B. Guidelines in the Fill up of the SAD for the 
                Informal Entry of Commercial Goods.
         4.2   The Informal entry processing shall mainly follow the Operational Provisions of 
                 CMO 27-2009 for Formal Entry Declarations with the following revisions:
                 4.2.1   The Consignee/Customs Broker shall submit one (1) copy of the SAD
                            including the Assessment Notice, printed form the VASP system, together
                            with the required supporting documents to the Entry Processing Unit
                            (FPU) on the date of electronic lodgment with E2M Customs System. If
                            lodgment was accepted by the System on date/time beyond BOC regular
                            office hours, the Informal Entry SAD and supporting documents shall be
                            submitted before
noon of the next BOC regular working day. The EPU
                            shall stamp “ Received” on the VASP-SAD, indicating the date and time of 
                            receipt, and then sign the same as evidence of receipt. The EPU shall
                            validate the Customs Reference Number indicated in the Informal Entry
                            SAD against the E2M Customs System. The EPU shall then forward the 
                            Submitted Informal Entry SAD and its supporting documents to the
                            Informal Entry Division/Section concerned.
               4.2.2     The Informal Entry Division/Section concerned shall follow the existing
                            Procedures specified for Update, Re-route, Assess except for informal
                            entries selected Red.
               4.2.3     When the informal entry shipment is selected RED, the procedures
                            described in the Memorandum Order titled. Supplemental Guidelines in
                            the implementation of CMO 27-2009 re: Examination of Shipments 
                            selected for
Red Lane or X-Ray Inspection shall apply.
4.3       Payment
             4.3.1   To ensure that an E2M Customs declaration is accepted and assessed   
                        successfully, all Other Settlement Mode (OSM) payments claimed in the
                        declarations should be existing in the E2M Custom Database before the
                        declaration making the reference is lodged. This is the responsibility of 
                        consignee and his designated broker.
             4.3.2   Payments for duties, taxes and other charges must comply with CAO 10-
                        2008 and CMO 6-2009.
             4.3.3   Utilization of a Tax Exemption Certificate shall follow the procedure
                        Under CMO 27-2009 Operational Provisions Item 4.6.
4.4    OLRS - The release for the Informal Entry Shipments shall follow the
         procedures stated in CMO 27-2009 Operational Provisions Item 4.11 and the
         procedures described below for special cases
        RED SHIPMENTS
        4.4.1   When an Informal Entry declaration is Post-Entry modified after the
                   examination results in adverse findings, payments of the additional duties
                   and leaves shall not initiate a release message in the Post Operator/transit
                   shed.
       4.4.2    A manual release instruction shall be printed from E2M Customs System
                   into a non-editable format (PDF) at the Office of the Collecter of the Port’s
                   official BOC e-mail address to a designated e-mail address of the Port
                   Operator .  Manual release instructions provided to the Port Operator by 
                   other means shall not be honored by the Operator.
5.       Administrative Provisions
          Informal Entry processing under E2M Customs shall be part of the implementation and
          Monitoring responsibility of the Port Implementation Task Force (PITF). All items of
          Provisions 5 CMO 27-2009 shall apply to Informal Entry Processing.
6.       Repeating Clause
          
All Customs Memorandum Order inconsistent with the provisions of the Order are
          hereby deemed modified and/or amended accordingly.
7.       Transitory Provisions
           7.1    The Commissioner of Customs shall announce the date of implementation (DOI)
                    of E2M Customs Informal Entry System in cash Port through a Memorandum
                    order addressed in the Collector of Customs of the Port, fifteen (15) days before
                    the implementation date.
           7.2    Dual Declaration System
                    Upon affectivity of this Order, Imports Assessment System (IAS) E2M Customs
                    System shall be made operational at the Port together with the current manual
                    process.
                    7.2.1    All shipment of personal effects (whether single consignments or 
                                Consolidated shipments) shall continue to be processed manually).
                    7.2.2    CMO 40-2009 Transitory Procedures Prior to Full Implementation of
                                E2M Customs System for Informal Entries and Transshipment/Transit
                                Declarations shall now apply only for shipments of personal effects.
8.       Effectivity
                           
This CMO shall make effect immediately
                                                         NAPOLEON MORALES
                                                              
Commissioner
                                                                                                                                       Annex A.
Additional Codes referring to Section 105 of the TCCP that are acceptable for use in informal Entry.
Code    Description

T00Sec 105(a) of the TCCP, Duty Exempt
T01Sec 105(a) of the TCCP, Duty Exempt ,Shipside
T10Sec 105(b) of the TCCP, Duty Exempt
T11Sec 105(b) of the TCCP, Duty Exempt, Shipside  
T13Sec 105(d) of the TCCP, Duty Exempt
T14Sec 105(d) of the TCCP, Duty Exempt, Shipside
T15Sec 105(e) of the TCCP, Duty Exempt
T16Sec 105(e) of the TCCP, Duty Exempt, Shipside
T17Sec 105(f) of the TCCP, Duty Exempt
T18Sec 105(f) of the TCCP, Duty Exempt, Shipside
T19Sec 105(I) of the TCCP, Duty Exempt
T20Sec 105(I) of the TCCP, Duty Exempt, Shipside
T21Sec 105(g) of the TCCP, Duty Exempt
T22Sec 105(g) of the TCCP, Duty Exempt, Shipside
T23Sec 105(g) of the TCCP, Duty Exempt
T24Sec 105(g-1) of the TCCP, Duty Exempt, Shipside
T25Sec 105(g-1) of the TCCP, Duty Exempt
T26Sec 105(h) of the TCCP, Duty Exempt, Shipside
T27Sec 105(h) of the TCCP, Duty Exempt
T28Sec 105(i) of the TCCP, Duty Exempt, Shipside
T30Sec 105(k) of the TCCP, Duty Exempt
T31Sec 105(k) of the TCCP, Duty Exempt, Shipment
T33Sec 105(L) of the TCCP, Duty Exempt
T34Sec 105(L) of the TCCP, Duty Exempt, Shipment
T35Sec 105(m) of the TCCP, Duty Exempt
T36Sec 105(m) of the TCCP, Duty Exempt, Shipment
T37Sec 105(n) of the TCCP, Duty Exempt
T38Sec 105(n) of the TCCP, Duty Exempt Shipment
T39Sec 105(p) of the TCCP, Duty Exempt
T40Sec 105(p) of the TCCP, Duty Exempt, Shipside
T41Sec 105(q) of the TCCP, Duty Exempt
T42Sec 105(q) of the TCCP, Duty Exempt, Shipside
T43Sec 105(r) of the TCCP, Duty Exempt
T44Sec 105(s) of the TCCP, Duty Exempt, Shipside
T45Sec 105(t) of the TCCP, Duty Exempt
T46Sec 105(t) of the TCCP, Duty Exempt, Shipside
T47Sec 105(u) of the TCCP, Duty Exempt
T50Sec 105(u) of the TCCP, Duty Exempt, Shipside
T51Sec 105(v) of the TCCP, Duty Exempt
T60Sec 105(v) of the TCCP, Duty Exempt, Shipside
T61Sec 105(w) of the TCCP, Duty Exempt
T70Sec 105(w) of the TCCP, Duty Exempt, Shipside
T71Sec 105(y) of the TCCP, Duty Exempt
T80Sec 105(y) of the TCCP, Duty Exempt, Shipside
                                                                                                                             Annex B.
Guidelines in the fill up of the Single Administrative Document (SAD) for Informal Entry of
Commercial Goods.
  Box Number                               Content

1 - Model of Declaration                 IE 4
33 -HS CodeActual                          HS Codes lifted from the tariff book
37 -Procedure Code                        4500 - Informal Entry Commercial Goods