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

Code of Ethics for Customs Brokers

Republic of the Philippines

Professional Regulation Commission

Manila

BOARD FOR CUSTOMS BROKERS

Resolution No. 02

Series of 2005

CODE OF ETHICS FOR CUSTOMS BROKERS

Pursuant to Section 7 (a), Article II and Section 32, Article IV of R.A. No. 9280, the “Customs Brokers Act of 2004”, the Board subject to approval by the Professional Regulation Commission hereby adopts and promulgates the hereunder Code of Ethics for Customs Brokers prescribed and issued by the Chamber of Customs Brokers and the Professional Regulation Commission pursuant to Section 31, Article IV of the said law.

ARTICLE I

GENERAL PROVISIONS

Section 1. A Customs Broker is a professional imbued with public service so that financial rewards are subordinate considerations. 

Section 2. A customs broker by virtue of his/her profession has the responsibility in ensuring that lawful revenues due on the legal importation and/or exportation of goods/articles are properly declared inorder to protect the interest of the government and his/her client(s) which will redound to the general welfare.

Section 3. A customs broker’s relationship to his/her clients and fellow customs brokers is base mainly on the following considerations-COMPETENCE, RESPECT, INTEGRITY, JUSTICE, and FAIRNESS which must observe in all professional dealings.

ARTICLE II

DEALING WITH CLIENTS

Section 4. A customs broker shall hold inviolable the trust and confidence reposed on him by his clients. 

4.1 A custom broker shall not take advantage of his/her client’s innocence, ignorance, and credulity. Neither will he/she prod of coach the client(s) into committing illegal acts by evading or minimizing the payment of duties and taxes under the guise of cost cutting; nor will he/she abet illegal acts tending to defraud the government.

4.2 He/she shall exercise due diligence over documents and of the cargoes entrusted to him/her for clearance from the customs custody till the delivery thereof to the final destination. The needs of the clients shall always be served above par.

4.3 He/she shall not overcharge or undercharge his/her clients on the professional services he/she renders. Charges shall be base d strictly on the professional standard rates as established by the Professional Regulatory Board for Customs Brokers. Neither charges shall be based on a scheme called “package deal” where charge are based on the individual package or per container, a practice tolerating cut-throat competition among members of the profession. 

4.4 He/she shall not reveal any trade secret or confidential information of his/her clients, past or present, which may consequently be detrimental to said clients.

4.5 He/she shall exercising prudence and utmost caution in dealing with walk-in clients.

ARTICLE III

DEALING WITH ANY GOVERNMENT AGENCY

Section 5. In dealing with any government agency, a customs broker shall conduct himself/herself with the highest norm of professionalism.

5.1 He/she shall, representing his/her clients, be knowledgeably prepared on his case, be properly attired, and shall conduct himself/herself with dignity and proper decorum. 

5.2. He/she shall not commit act or acts that may obstruct or destruct the objectives and functions of any government agency, especially in the area of revenue collections.

5.3 He/she shall not attempt or commit acts which may tend to influence government officials/employees and which may give rise to the facilitation or accommodation of transaction that consequently is detrimental to the government.

ARTICLE IV

PROFESSIONALISM AND RELATIONSHIP

WITH FELLOW CUSTOMS BROKER

Section 6. A customs broker shall strictly observe the primary objectives, tenets, and principles of the Code of Ethics for Customs Brokers – COMPETENCE, RESPECT, INTEGRETY, JUSTICE and FAIRNESS.

6.1. He/she shall obey the laws of the Republic of the Philippines and shall defend its constitution. 

6.2 He/she shall continuously evaluate and improved his/her professional competence to enhance his/her ability to provide quality services and to be globally competitive. He/she shall participate actively in Continuing Professional Education for Customs Brokers as mandatedby the law. 

6.3 He/she shall not allow himself/herself to be used as a dummy by any individual, corporation, firm, association or entity. 6.4 He/she shall not charge professional fee outside the customs brokers professional standard fees established by the Professional Regulatory

Board for Customs Brokers.

6.5 He/she shall not enter into a contract with his/her clients whereby professional fees and other charges are base merely on per package or per container shipments in order to avoid cut-throat competition.

6.6 He/she shall not abet breaches/violations of the law and shall be morally obligated to report such violations or infractions. 

6.7 He/she shall actively participate in the activities and programs of the accredited professional organization of customs brokers.

6.8 He/she may be a member of associate/affiliate professional association/s of customs brokers despite his/her mandatory membership in the accredited professional organization of customs brokers.

6.9 He/she shall not attempt to discredit any member of the customs broker profession for the purpose of gaining access with member’s client.

6.10 He/she shall not be a party to any plan which would permit any person not registered in good standing with the Board of Customs Brokers and the PRC to practice as a Customs Broker.

ARTICLE V

CUSTOMS BROKERS IN GOVERNMENT SERVICE

Section 7. A Customs Broker in a government services shall adhere to the General Principles enunciated in this Code of Ethics and shall endeavor to perform his/her official duties diligently, faithfully, and efficiently, ever conscious that a public office is a public trust.

7.1 Being in government service, he/she is uniquely situated in such a position that he/she is subject to the government Code of Ethics and Ethical Standards as a public servant at this Code of Ethics as a professional. Any infraction of the government Code of Ethics and Ethical Standards involving integrity, moral issues, and other related issues that tend to affect his standing as professional shall also be dealt with in accordance with this Code of Ethics.

7.2 Being in government service, he/she shall, at all times, comply with Civil Service Rules, as well as with regulations prescribed by the duly constituted authorities.

ARTICLE VI

CUSTOMS BROKER IN EDUCATION INSTITUTION

Section 8. A customs broker in education shall aim to contribute to the attainment of the academic objectives and policies of the institution.

8.1 As an academician, he/she has the responsibility of achieving professional competence as a teacher or administrator.

8.2 As an academician, he/she shall have the heart the welfare of the students, stimulating in them a deep interest in their studies, exposing them to meaningful experiences in life, and inculcating in their young minds the ideas of honor, justice, and morality.

8.3. As an academician, he/she shall contribute to the effectiveness, enrichment, and dignity of the teaching profession. 8.4 As an academician, he/she shall accept a reasonable degree of responsibility for leadership in research in professional matters, and in co-curricular affairs in the institution.

ARTICLE VII

CUSTOMS BROKERS’S SOCIAL RESPONSIBILITES

Section 9. As a responsible citizen, a customs broker shall accept his/her social responsibilities and participate in activities for community progress, betterment, and national well-being.

ARTICLE VIII

PENALTIES AND FINAL PROVOSIONS

Section 10. A registered and licensed Customs Brokers who violates any provision of this Code of Ethics shall be meted out with disciplinary action of either revocation of his/her certificate of registration or his/her suspension from the practice of his/her profession.

ARTICLE IX

AMENDMENTS

SEPERABILITY CLAUSE, AND EFFECTIVELY

Section 11. Amendments to the Code of Ethics may be carried out by the Professional Regulatory Board for Customs Brokers in coordination with the Accredited Professional Organization of Customs Brokers, subject to approval by the Professional Regulation Commission.

EFFECTIVITY

Section 12. If any provision or part thereof shall be declared unconstitutional or invalid, such judgment shall neither invalidate nor impair any other provision or part thereof. 

Section 13.this Code of Ethics shall take effect after fifteen (15) days following its full and complete publication in the Official Gazette or any newspaper of general circulation. Done in the City of Manila, this 2nd day of March 2005.

George M. Jereos

Chairman, Board for Custom Brokers (interim)

Constantino L. Calica (Sgd.) Anthony A. Cristobal

Member

Rodolfo R. Salazar Edgardo B. Abon

Member

Attested:

Carlos G. Almerol

Secretary, Professional Regulatory Boards

Approved:

Leonor Tripon-Rosero

Chairperson

Avelina A. De la Rea ( Vacant )

Commisioner Commisioner

Republic Act 9280

Republic of the Philippines

Congress of the Philippines

Metro Manila

Twelfth Congress

Third Regular Session

Begun and held in Metro Manila, on Monday, the twenty-eight day of July, and two thousand three.

Republic Act No. 9280            

March 30, 2004

AN ACT REGULATING THE PRACTICE OF CUSTOMS BROKERS PROFESSION IN THE PHILIPPINES, CREATING FOR THE PURPOSE A PROFESSIONAL REGULATORY BOARD FOR CUSTOMS BROKERS, AND APPROPRIATING FUNDS THEREFOR

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

ARTICLE I

TITLE, DECLARATION OF POLICY, OBJECTIVES, AND DEFINITION OF TERMS

Section 1. Short Title. – This Act shall be known as the "Customs Brokers Act of 2004."

SEC 2. Declaration of Policy. – It is hereby declared the policy of the State to give priority attention and support to professional zing the practice of customs brokers profession in the Philippines which will be beneficial to the country in general and to the economy in particular.

Pursuant to the national policy, the government shall provide a program to set up a climate conducive to the practice of the profession and maximize the capability and potential of our Filipino customs Brokers.

SEC. 3. Objectives. – This Act provides for and shall govern:

(a) The standardization and regulation of customs administration education;

(b) The examination and registration of customs brokers; and

(c) The supervision, control and regulation of the practice and customs broker profession.

SEC. 4. Definition of Terms. – For purposes of this Act, the following terms are hereby defined:

(a) "Customs Broker" - is any person who is bona fide holder of a valid Certificate of Registration/Professional Identification Card issued by the Professional Regulatory Board and Professional Regulation Commission.

(b) "Commission" – as used in this Act shall refer to the Professional Regulation Commission.

(c) "Board" – as used as this Act shall refer to the Professional Regulatory Board for Customs Brokers.

ARTICLE II

PRFESSIONAL REGULATORY BOARD FOR CUSTOMS BROKERS

SEC. 5. Creation and Composition of the Professional Regulatory Board for Customs Brokers. – There is hereby created a Professional Regulatory Board for Customs Brokers, hereinafter referred to as the Board, under the supervision and administrative control of the Professional Regulation Commission, hereinafter referred to as the Commission, to be composed of a chairman and two (2) members who shall be appointed by the President of the Philippines from among the list of three (3) recommended for each position submitted by the commission from a list of five (5) nominees for each position submitted by the accredited professional organization of customs brokers. The new Board shall be constituted within three (3) months from the effectivity of this Act.

SEC. 6. Scope of the Practice of Customs Brokers. – Customs Broker Profession involves services consisting of consultation, preparation of customs requisite document for imports and exports, declaration of customs duties and taxes, preparation signing, filing, lodging and processing of import and export entries; representing importers and exporters before any government agency and private entities in cases related to valuation and classification of imported articles and rendering of other professional services in matters relating to customs and tariff laws its procedures and practices.

A customs brokers and shall be considered in the practices of the profession if the nature and character of his/her employment in private enterprises requires professional knowledge in the field of customs and tariff administration. He/She is also deemed in the practice of custom Broker profession if he/she teaches customs and tariff administration subjects in any university, college or school duly recognized by the government.

SEC. 7. Power and Functions of the Board. - The Board shall the following powers and functions:

(a) Promulgate, administer and enforce rules and regulations, including the Code of Ethics and Code of Technical Standards of customs brokers necessary for carrying out the provisions of this Act;

(b) Supervise and regulate the licensure, registration and practice of customs brokers profession;

(c) Determine and evaluate the qualifications of the applicants for registration with or without the prescribed licensure examinations and for the issuance of special or temporary permits;

(d) Prepare and modify the questions for examination and prescribe the syllabi of the subjects for examination and their relative weight;

(e) Register successful examinees in the licensure examination and issue the corresponding Certificate of Registration and Professional Identification Card;

(f) Issue special or temporary permits to foreign customs brokers for specific projects and for specific duration of time;

(g) Look into the conditions affecting the practice of customs brokerage, adopt measures for the enhancement of the profession and the maintenance of high professional, technical, and ethical standards, and conduct ocular inspection of places where customs brokers practice their profession;

(h) In coordination with the Commission on Higher Education (CHED), examine the prescribed facilities of the universities or colleges seeking permission to open the course or programs of customs administration in order to ensure that standards and essential requirements for a qualified dean and faculty adequate budget are properly complied with and maintained;

(i) Investigate violations of this Act, its implementing rules and regulations, and the Code of Ethics for Customs Brokers.

(j) Issue subpoena and subpoena duces tecum to secure the attendance of respondents or witnesses or the production of documents relative to the investigations conducted by the commission;

(k) Prepare guidelines for the continuing professional Education (CPE) in coordination with the accredited professional organization; and

(l) Perform such other powers, functions and duties as may be necessary to effectively implement this Act.

The policies, resolutions, rules and regulations, order or decisions issued or promulgated by the Board shall be subject to the review and approval of the Commission. However, the Board’s decisions, resolutions or orders which are not interlocutory, rendered in an administrative case, shall be subject to review only if on appeal.

SEC. 8. Qualification of the Chairman and Members of the Board. – The chairman and members of the Board must, at the time of their appointment:

(a) Be a citizen and resident of the Philippines

(b) Be of good moral character and must not have been convicted of any crime involving moral turpitude;

(c) Be a member in good standing of the accredited professional organization of customs brokers;

(d) Be a graduate of Bachelor’s Degree in Customs Administration or a holder of a Master of Degree in Custom Administration conferred by a college or university duly recognized by the government, or registered and licensed customs broker before the effectivity of this Act;

(e) Be registered and licensed customs broker with a valid of Certificate of Registration and Professional Identification Card, with at leased ten (10) years of experience prior to his appointment;

(f) Not be a member of the faculty, whether full-time or part-time, of any school , college or university with a regular and/or review course in customs administration is taught, nor shall have any pecuniary interest in such institution; and

(g) Not be an incumbent officer of the accredited national organization of customs brokers.

SEC. 9. Term of Office. – The members of the Board shall hold office for a term of three (3) years or until their successors shall have been appointed and qualified. They may, however, be reappointed for a second term. Any vacancy in the Board shall be filled for the unexpired portion of the term only. Each member shall take an oath of office prior to the assumption of duties.

The incumbent chairman and members of the Board shall continue to serve until their replacements shall have been appointed and qualified.

SEC. 10. Compensation and Allowances of the Chairman and Member of the Board. – The chairman and the members of the Board shall receive the compensation and allowances comparable to the compensation and allowances receive by the chairman and members of other professional regulatory Boards.

SEC. 11. Suspension and Removal of the Chairman and Member of the Board. – The chairman or any member of the Board may be suspended or removed by the President of the Philippines upon recommendation of the Commission for neglect of duty, abuse of power, oppression, incompetence, unprofessional, unethical, immoral or dishonorable conduct, commission or toleration of irregularities in the conduct of examination or tampering of the grades therein, or for any final judgment or conviction of any criminal offense involving moral turpitude by the court after having been given the opportunity to defend himself in a proper administrative investigation.

SEC. 12. Supervision of the Board, Custodian of its Records, Secretariat and Support Services. – The Board shall be under the general supervision and administrative control of the Commission. All record of the Board, including application for examination, examination papers and results, minutes of deliberations, administrative and other investigative cases involving customs brokers, shall be kept by the Commission.

The Commission shall designate the secretary of the Board and shall provide the secretariat and other support services to implement the provisions of this Act subject to the usual government accounting and auditing rules and regulations.

SEC. 13. Annual Report. – The Board shall, at the close at each calendar year, submit an annual report to the Commission, giving a detailed account of its proceedings and accomplishments during the year and recommending measures to be adopted with the end in view of upgrading and improving the condition affecting the practice of customs broker profession in the Philippines.

ARTICLE III

"LICENSURE EXAMINATION AND REGISTRATION"

SEC. 14. Licensure Examination. – Every applicants seeking to be registered and licensed as professional customs broker shall undergo an examination as to provided for in this Act. Examinations for the practice of customs broker profession in the Philippines shall be given by the Board at least once every year in such places and dates as the Commission may designate in accordance with the provisions of Republic Act No. 8981.

SEC. 15. Scope of Examination. – A written examination shall be given to the licensure applicants for customs broker profession, which shall include but not limited to the following:

(a) Customs Laws and Implementing Rules and Regulations;

(b) Tariff Laws and International Trade Agreements;

(c) Practical Computation of Customs Duties, Taxes and Other Charges;

(d) Documentations, Professional Ethics, Customs Procedures and Practices; and

(e) Warehousing and Cargo Handling Operations.

To conform with technological and modern changes, the Board may recluster, rearrange, modify, add or exclude any of the foregoing subjects as the need arises.

SEC. 16. Qualifications of Applicants for Examinations. – In order to be admitted to the licensure examination for customs broker profession, a candidate shall at the time of filing his/her application, establish to the satisfaction of the Board that:

(a) he/she is a citizen of the Philippines or of a foreign country qualified to take the examination as provided in the reciprocity provision of this Act;

(b) he/she is a holder of a Bachelor’s Degree in Customs Administration: Provided, That a holder of a master’s degree in Customs Administration shall be allowed to qualify within five (5) years from the effectivity of this Act; and

(c) he/she is of good moral character and must not have been convicted of any crime involving moral turpitude.

SEC. 17. Ratings of Examination. – In order that a candidate may be deemed to have successfully passed the examination, he/she must have obtained an average of at least seventy-five percent (75%) in all subjects, with no rating below sixty percent (60%) in any subject.

SEC. 18. Release of the Results of Examination. – The results of the Licensure Examination shall be released by the Board within ten (10) days from the last of the examination.

SEC. 19. Issuance of the Certificate of Registration and Professional Identification Card. – A Certification of Registration shall be issued to examinees who pass the licensure examination for customs broker profession subject to payment of fees prescribed by the Commission. The Certificate of Registration shall bear the signature of the Chairperson of the Commission and the Chairman and members of the Board, stamped with the officials seal of the Commission, indicating that the person named therein is entitled to practice the profession of customs broker with all the benefits and privileges appurtenant thereto: Provided, That he/she shall be allowed to practice the profession in any collection district without the need of securing another license from the Bureau of Customs. The Certificate of Registration shall remain in full force and effect until revoked or suspended in accordance with this Act.

A professional Identification Card bearing the registration number. Date of issuance, expiry date, duly signed by the Chairperson of the Commission , shall likewise be issued to every registrant upon payment of the required fees, The Professional Identification Card shall be renewed every three (3) years and upon satisfying the requirements of the Board.

SEC. 20. Refusal Register. – The Board shall not register and issue a Certification of Registration to any successful examinee who has been convicted by a court of competent jurisdiction of any criminal offense involving moral turpitude or has been found guilty of immoral of dishonorable conduct after investigation by the Board, or has been declared to be unsound mind. The reason for the refusal shall be set forth in writing.

SEC. 21. Revocation of Suspension of the Certificate of Registration, Professional Identification Card or Cancellation of Temporary/Special Permit. – The Board may, after giving proper notice of hearing to the party concerned, revoke the Certificate of Registration and Professional Identification Card of a Professional Customs Broker or suspend him/her temporary/ special permit for any of the causes of grounds under Section 20 or upon unprofessional or unethical conduct, malpractice, or violation of any of the provisions of this Act, its implementing rules and regulations, and a Code of Ethics for Professional Customs Brokers.

SEC. 22. Reinstatement, Reissuance or Replacement of Certificate of Registration, Professional Identification Card and Temporary/Special Permit. - The Board, may, after two (2) years from the date of revocation of Certificate of Registration reinstate any revoked Certificate of Registration and reissue a suspended Professional Identification Card.

A new Certificate of Registration or Professional Identification Card or temporary/Special permit may be issued to replace lost, destroyed or mutilated ones subjects to such rules as may be promulgated by the Board.

SEC. 23. Roster of Professional Customs Brokers. – The Board, in coordination with the accredited professional organization, shall prepare, update and maintain a roster of professional customs brokers which shall contain the names of registered professional customs brokers, their residence and office addresses, dates of registration or issuance of certificates, and other data which the Board may deem pertinent.

SEC. 24. Issuance of Special or Temporary Permit. – Upon application and payment of the required fees, and subject to the approval of the Commission, the Board may issue special or temporary permits to professional customs brokers from foreign countries whose services are urgently needed in the absence or inadequacy of local professional customs brokers for the purpose of promoting or enhancing the practice of the profession in the Philippines.

ARTICLE IV

PRACTICE OF CUSTOMS BROKER PROFESSION

Sec. 26. Oath. – All successful examinees qualified for registration shall be required to take an oath of profession before any member of the Board or any government official authorized by the Commission or any person authorized by law to administer oaths prior to entering into the practice of customs broker profession.

SEC. 27. Acts Constituting the Practice of Customs Brokers Profession. – Any single act or transaction embraced within the provision of Section 6 hereof shall constitute an act of engaging the practice of customs broker profession. Import and export entry declaration shall be signed only by customs broker under oath based on the covering documents submitted by the importers.

SEC. 28. Prohibition Against the Unauthorized Practice of Customs Broker Profession. – No person shall practice or offer to practice the customs broker profession in the Philippines or offer himself/herself as customs broker, or use the title, word, letter, figure, or any sign tending to convey the impression that one is a customs broker, or advertise or indicate in any manner whatsoever that one is qualified to practice the profession unless he/she has satisfactory passed the licensure examination given by the Board, except as otherwise provided in this Act, and is a holder of a valid Certification of Registration and Professional Identification Card or a valid special/temporary permit duly issued to him/her by the Board of Commission.

SEC. 30. Prohibition Against Financing Activities By Customs Brokers. – No Customs Brokers shall advance and finance on behalf of their client-importers the payment of duties and taxes, arrastre charges, wharfage dues, storage fee and other port charges.

SEC. 31. Accredited Professional Organization. – All professional customs brokers shall have one national organization, which shall be recognized by the Board of the Commission as the one and only accredited professional organization of customs brokers. A professional customs broker duly registered with the Board shall automatically become a member of the accredited professional organization of customs brokers and shall receive the benefits and privileges appurtenant thereto. Membership in the accredited professional organization of customs brokers shall not be a bar to membership in other associations of customs brokers.

SEC. 32. Code of Ethics for Customs Broker Profession. – The Board shall adopt and promulgate the Code of Ethics and Code of Technical Standards which shall be prescribed and issued by the accredited professional organization of customs brokers.

SEC. 33. Vested Right: Automatic Registration of Customs Brokers. – All customs brokers who are registered and licensed at the time this Act take effect shall automatically be registered.

ARTICLE V

PENAL AND FINAL PROVISIONS

SEC. 34. Penal Provisions. – Any violation of this Act, including violation of implementing rules and regulations, shall be meted the penalty of a fine of not less than Fifty Thousand pesos (50,000.00) nor more than Five hundred thousand pesos (500,000.00), or imprisonment of not less than six (6) years, or both such fine and imprisonment upon the discretion of the court.

SEC. 35. Appropriations. – The Chairperson of the Professional Regulation Commission shall immediate include in the Commission’s program the implementation of this Act, the funding of which shall be included in the annual General Appropriation Act and thereafter.

SEC. 36. Transitory Provision. – The existing Board of Customs Brokers shall continue the function in the interim until such time that the new Board shall be constituted pursuant to this Act.

SEC. 37. Implementing Rules and Regulations. – The Board, subject to the approval by the Commission, in coordination with the accredited professional organization, shall issue and promulgate the rules and regulations, including the Code of Ethics for customs broker profession needed to implement the provision of this Act.

SEC. 38. Separability Clause. – If any clause, sentence, paragraph or part of this Act shall be declared unconstitutional or invalid, such judgment shall not affect, invalidate or impact any other part of this Act.

SEC. 39. Repealing Clause. – Section 3401 to Section 3409 of Republic Act No. 1937 are hereby repealed and all laws decrees, executive orders, memorandum orders, and other administrative issuances and parts thereof which are inconsistent with the provisions of this Act are hereby modified, superseded or repealed accordingly.

SEC. 40. Effectivity. - This Act shall take effect fifteen (15) days following its publication in the Official Gazette or in a major newspaper of general circulation in the Philippines.

Approved,

FRANKLIN DRILON

President of the Senate

JOSE DE VENECIA JR.

Speaker of the House of Representatives

This Act which is a consolation of House Bill No. 5957 and Senate Bill No. 2684 was finally passed by the House of Representatives and the Senate on February 2, 2004 and January 30, 2004, respectively.

OSCAR G. YABES

Secretary of Senate

ROBERTO P. NAZARENO

Secretary General

House of Represenatives

Approved: March 30, 2004

GLORIA MACAPAGAL-ARROYO

President of the Philippines