Customs Adopts New Accreditation Procedure

21 August 2012

The Bureau of Customs, the government's second largest revenue generating agency, is adopting a new procedure that could enhance its partnership with the private sector through trade facilitation.

Customs Commissioner Rozzano Rufino B. Biazon said that they will adopt the Authorized Economic Operator Program (AEO), designed to create an accreditation procedure that offers some benefits and incentives to certain economic operators considered as the agency's trusted allies.

Customs Administrative Order No. 1-2012, establishing an Authorized Economic Program, was recently approved by Finance Secretary Cesar V. Purisima.

The approval is pursuant to the commitment made by the Philippines to implement the World Customs Organization Framework of Standards to Secure and Facilitate Global Trade (WCO-SAFE), as well as the Revised Kyoto Convention on the Harmonization and Simplification of Customs Procedures.

"The order will also reduce processing periods, last priority in post entry audits, recognition as a low risk company, reduced inspection or expedite clearance if covered by mutual recognition programs under bilateral/multilateral arrangements, and other trade facilitation benefits which Customs may give under existing laws and regulations," Biazon said.

Under CAO 1-2012, the accredited companies will have the responsibility of updating the Customs when there are significant changes in their security profile and information, and of providing information on any non-conformity with the program guidelines.

The AEO program will first be implemented inside the Clark Freeport Zone that are within the jurisdiction of the Port of Clark and upon consultation with the private sector and stakeholders, the program shall cover exporters in other selected air or sea ports.