CMO NO. 5-2012CMO 5 – 2012 SIMPLIFIED

CLEARANCE PROCEDURES FOR CONSUMPTION ENTRIES

CUSTOMS POLICIES:To comply with the international

standards set by the WCO and RKC;To automate section assignment

based on tariff classification;To enhance revenue collection; andTo enhance trade facilitation

OBJECTIVES: To prevent familiarization and collusion

between customs brokers and customs personnel;

To reduce face to face transaction;To eliminate redundant procedures;To reduce opportunities for rent-seeking;

andTo improved documentation compliance on

the part of customs brokers and importers

SCOPE:Applied for the Formal Entry Division both

in the POM and MICP;Establishment of Broker’s Lounge; andThe MISTG shall develop the

simplification process for the Informal Entry Division

ADMINISTRATIVE PROVISIONS:The MISTG shall enable the automation of

the Division and Section assignment for each entry filed thru E2M system;

ADMINISTRATIVE PROVISIONS:“ADARS” Automated Division Assignment

Routing System which shall take into account the value, weight and volume of the importation

“ASARS” Automated Section Assignment Routing System which shall take into account the tariff heading and the value of importation;

ADMINISTRATIVE PROVISIONS:In ports where there is only an

Assessment Division is operational, only the “ASARS” shall be activated;

ADMINISTRATIVE PROVISIONS:Creation of FED Receiving Section, to be

manned by the Administrative Aides;

The Chief, HRMD shall determine the competent needed in the receiving section;

ADMINISTRATIVE PROVISIONS:The EPU shall be abolished pursuant to

Rationalization Plan under E.O. 366; and

The HRMD shall prepare a changed management plan for the implementation of this CMO

OPERATIONAL PROVISIONS:Upon lodgment of Formal Entry through

the VASP, the E2M system shall automatically determine the SELECTIVITY, DIVISION AND SECTION ASSIGNMENT;

Selectivity either SELECTED (yellow or red lane) or GREEN LANE;

OPERATIONAL PROVISIONS:Division assignment whether the entry

lodge may course through FORMAL ENTRY or INFORMAL ENTRY;

Section assignment as indicated in the SAD / TAN or AN, such as SECTION 1A, 1B, 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14 or 15 where the import entry being process.

OPERATIONAL PROVISIONS: SECTION ASEAN HARMONIZED TARIFF NOMENCLATURE 1A - 01 TO 12; 16 TO 21; 23 2 - 50 TO 63 4 - 85 5 - 87.03 6 - 84.01 TO 84.23 7 - 84.24 TO 84.68 8 - 84.69 TO 84.85 9 - 72 TO 76 10 - 25 TO 26; 68 TO 71; 77 TO 83 11 - 27 TO 29 12 - 13; 38 TO 39 13 - 15; 22; 24; 30 TO 36 14 - 41 TO 43; 47 TO 49; 95 TO 97 15 - 14; 37; 40; 44 TO 46; 64 TO 67; 90 TO 94

OPERATIONAL PROVISIONS:Automated sectioning shall be based on

the following:

SINGLE COMMODITY – shall be based on the tariff heading;

OPERATIONAL PROVISIONS:MULTIPLE COMMODITIES:DIFFERENT TARIFF HEADING – shall be based on the

commodity with the HIGHEST VALUE;

DIFFERENT TARIFF HEADING, SAME VALUE – shall be based on the commodity with the higher rate of duty;

DIFFERENT TARIFF HEADING, SAME VALUE, SAME RATE OF DUTY – shall be based on the commodity with the tariff heading that comes later.

OPERATIONAL PROVISIONS: Upon lodgment and with good response, Customs Broker shall submit to

the FED receiving section with the following requirements: SAD and TAN/AN print out; I.E.I.R.D. hardcopy SDV Bill of Lading Commercial Invoice Packing List Processing Report Form (PRF) Certificate of Origin (AFTA/ACFTA, etc), if applicable Insurance Policy/Certificate, if applicable (non-CIF) Duty/Tax exemption, if applicable (from DOF) Other Import Permits, if applicable (DTI-BPS/DA-BAI SPS/BIR-ATRIG)

OPERATIONAL PROVISIONS:The concern COOIII shall verify the

electronic permits through the NSW website;

The Receiving Administrative Aides from FED shall not accept INCOMPLETE set of documents;

OPERATIONAL PROVISIONS:Photocopies document shall be signed certified

true copy by the issuing office and it is the responsibility of the COO III for the checking of authentication and veracity of the photocopies documents

The Receiving Administrative Aides shall transmit the complete set of import entry documents to the Assigned Section for processing;

OPERATIONAL PROVISIONS:The COO V shall assigned the first available COO III;The Customs Brokers shall wait the result of initial

documentary check by the assigned section at the BROKER’S LOUNGE;

The area of the FED shall be OFF-LIMITS to the Brokers and Importers;

In situation when verification is needed or necessary, it must be done only at the designated Conference Area at the Port.

OPERATIONAL PROVISIONS:Status updates of the import entries shall

be flashed in the monitors at the Broker’s Lounged to inform the stakeholders of the following:

Entry Number;Status;TimeRemarks, such as AO, PE, XI, ADT, R or V

OPERATIONAL PROVISIONS:Once the entry is registered the concern COO III

shall determine the action to be taken in the import entry the following remarks:

For Hold/Alert Order (AO)For Physical Examination (PE)For X-Ray Inspection (XI)For imposition of Additional Duties and Taxes

(ADT)For Release (R)For Verification (V)

OPERATIONAL PROVISIONS:The COO III shall encode his remarks on the

computer, and in order for the Customs Broker to confer with the assigned COO III if necessary for the documentation check and further discussion and it must be done only at the designated conference area of the Port.

OPERATIONAL PROVISIONS:The status of For Verification (V) shall serve as

catch of all status and the possibilities of Tentative Release or Provisional Release.

Every end of working day, the Section shall transmit to Transaction Audit Division (TAD), Liquidation and Billing Division (LDB) or equivalent unit all import entries release on that day.

OPERATIONAL PROVISIONS:The report shall contain the following:

Entry #ConsigneeBrokerDiscrepancy as stated in the Inspection Act

The Transmittal Report shall also made available to the Risk Management Office (RMO) for profiling purposes.