HB 1653 Presentation (CCBI July 07, 2011)

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HB 1653 and Its Impact toHB 1653 and Its Impact toCustoms BrokersCustoms Brokers

by:by:

Atty. FERDINAND A. NAGUE Atty. FERDINAND A. NAGUE

Chairman, Professional RegulatoryChairman, Professional RegulatoryBoard for Customs BrokersBoard for Customs Brokers

July 07, 2011July 07, 2011



OVERVIEWOVERVIEW

What are Customs Brokers?What are Customs Brokers?

RA 9280 & RA 9853RA 9280 & RA 9853

HB 1653HB 1653 Crazy RationaleCrazy Rationale

Amendatory Provisions Amendatory Provisions

Impact to the CB ProfessionImpact to the CB Profession PRBCB PlansPRBCB Plans

Concerted Actions NeededConcerted Actions Needed



Customs Broker Customs Broker - - Any Person who Any Person who

is a bona fide holder of a valid is a bona fide holder of a valid CR/PIC issued by the PRBCR/PIC issued by the PRB- -CB and CB and

PRC. (RA 9280)PRC. (RA 9280)

Customhouse Broker Customhouse Broker- - A customs A customs

broker who is accredited by CAS broker who is accredited by CAS- -

Customs Legal Service to practiceCustoms Legal Service to practice

in the Bureau of Customs. (CAO3in the Bureau of Customs. (CAO3- -

2006)2006)



PracticingPracticing ProfessionalProfessional - - Any Any

person person whowho isis engaged engaged inin thethe practice practiceof of his/her his/her respectiverespective profession profession or or isis

performing performing actsacts or or activities,activities, whether whether

regularly regularly or or occasionally occasionally,, including including thosethose holding holding positions positions inin thethe

government government or or private private firms,firms, whosewhose

dutiesduties requirerequire knowledgeknowledge and and applicationapplication of of their their respectiverespective

professions professions asas defined defined inin variousvarious

professional professional regulatory regulatory lawslaws..



RA 9280 as amended by RA 9853RA 9280 as amended by RA 9853

RARA 92809280 CUSTOMS BROKERS ACT OFCUSTOMS BROKERS ACT OF20042004 Regulating the Practice of CustomsRegulating the Practice of CustomsBroker Profession in the Philippines.Broker Profession in the Philippines.

RA 9853RA 9853 -- Amending Sec. 27 & Sec. 29 of Amending Sec. 27 & Sec. 29 ofRA 9280RA 9280

-- Sec. 27. Acts Constituting the Practice of CBSec. 27. Acts Constituting the Practice of CB

-- Sec. 29. Prohibition Against Corporate PracticeSec. 29. Prohibition Against Corporate Practice(now: Admission to Professional Practice)(now: Admission to Professional Practice)



Effectivity of RA 9280/9853 & IRREffectivity of RA 9280/9853 & IRR

EFFECTIVITY OF RA 9280EFFECTIVITY OF RA 9280 April 21, 2004. April 21, 2004.

PRBCB RESOLUTION NO. 03, S. 2005PRBCB RESOLUTION NO. 03, S. 2005-- took effect ontook effect onMarch 27, 2005.March 27, 2005.

CA0 3CA0 3--20062006-- A A-- took effect in 2006took effect in 2006

EFFECTIVITY OF RA 9853EFFECTIVITY OF RA 9853 -- Dec. 15, 2009Dec. 15, 2009

(During the 14(During the 14THTH CONGRESS).CONGRESS).

PRBCB RESOLUTION NO. 01PRBCB RESOLUTION NO. 01-- took effect on April 22,took effect on April 22,2010.2010.

BOC yet to issue CAO implementing RA 9853BOC yet to issue CAO implementing RA 9853



RA 9280 provisions amended byRA 9280 provisions amended by

RA 9853RA 9853 SEC. 27SEC. 27.. ACTS CONSTITUTING THE PRACTICE OF ACTS CONSTITUTING THE PRACTICE OF

CUSTOMS BROKERS.CUSTOMS BROKERS.

Import and export entry declaration shall be signedImport and export entry declaration shall be signedonly by customs broker under oath based on theonly by customs broker under oath based on thecovering documents submitted by the importers.covering documents submitted by the importers.

NowNow:: ImportImport entryentry shallshall bebe signedsigned byby aa customscustomsbrokerbroker andand thethe consignee/owner/importerconsignee/owner/importer underunder oathoath

basedbased onon thethe coveringcovering documentsdocuments submittedsubmitted byby thetheimportersimporters:: Provided,Provided, That That exportexport declarationdeclaration shallshall bebesignedsigned byby thethe exporterexporter oror at at hishis option,option, delegatedelegate thethesigningsigning andand processingprocessing of of thethe document document toto hishisdesignateddesignated customscustoms brokerbroker oror authorizedauthorized

representativerepresentative.. (Sec(

Sec.. 11,, RARA 98539853))



Meaning of ³Meaning of ³Engaging in the Engaging in the

Business of Customs BrokerageBusiness of Customs Brokerage´́

Meaning of:Meaning of:

MakingMaking representationsrepresentations onon behalf behalf

of of importerimporter--clientsclients inin thethe BureauBureau of of CustomsCustoms andand otherother government government agenciesagencies::

Provided,Provided, That That suchsuch corporationscorporations engagedengagedinin thethe businessbusiness of of customscustoms brokeringbrokering shallshall

havehave aa minimumminimum paidpaid--upup capitalcapital of of PHPPHP11MMbeforebefore theythey areare accreditedaccredited byby thethe BOCBOC..[[SecSec.. 22 ((22ndnd parpar..),), RARA 98539853]]



RA 9280 provisions amended byRA 9280 provisions amended by

RA 9853RA 9853 SEC. 29SEC. 29.. PROHIBITION AGAINST CORPORATEPROHIBITION AGAINST CORPORATE

PRACTICE.PRACTICE.

The practice of customs broker is a professional service, The practice of customs broker is a professional service,

admission to which shall be determined upon the basis of admission to which shall be determined upon the basis of individual and personal qualifications. No firm, company, orindividual and personal qualifications. No firm, company, orassociation may be registered or licensed as such for theassociation may be registered or licensed as such for thepractice of customs broker professionpractice of customs broker profession..

NowNow:: ADMISSION ADMISSION TOTO PROFESSIONALPROFESSIONAL PRACTICEPRACTICE..However,However, nothingnothing inin thisthis Act Act shallshall prevent prevent aa corporationcorporation fromfrombeingbeing registeredregistered forfor thethe purposepurpose of of engagingengaging inin thethe businessbusinessof of customscustoms brokeragebrokerage asas longlong asas thethe corporationcorporation shallshall engageengageoror hirehire thethe servicesservices of of at at least least oneone ((11)) customscustoms brokerbroker.. (Sec(Sec..

22,, RARA 98539853))



Amendator y Provisions of Amendator y Provisions of

PRBCB Resolution No. 01PRBCB Resolution No. 01--20102010RARA 98539853:: Provided,Provided, That That exportexport declarationdeclaration shallshall bebe

signedsigned byby thethe exporterexporter oror at at hishis option,option, delegatedelegate thethesigningsigning andand processingprocessing of of thethe document document toto hishis

designateddesignated customscustoms brokerbroker oror authorizedauthorizedrepresentativerepresentative .. (Sec(Sec..11))

PRBCBPRBCB ResRes.. NoNo.. 0101--20102010:: That That exportexport declarationdeclarationshallshall bebe signedsigned byby thethe exporterexporter oror at at hishis option,option, delegatedelegate

thethe signingsigning andand processingprocessing of of thethe document document toto hishisdesignateddesignated customscustoms brokerbroker oror authorizedauthorizedrepresentativerepresentative whowho shallshall bebe aa fullfull timetime regularregular

exportersexporters employeeemployee knowledgeableknowledgeable inin customscustomsandand tarifftariff.. (Sec(Sec.. 22))




PRBCB Resolution No. 01PRBCB Resolution No. 01--20102010RARA 98539853:: However,However, nothingnothing inin thisthis Act Act shallshall prevent prevent aa corporationcorporationfromfrom beingbeing registeredregistered forfor thethe purposepurpose of of engagingengaging inin thethebusinessbusiness of of customscustoms brokeragebrokerage asas longlong asas thethe corporationcorporation shallshallengageengage oror hirehire thethe servicesservices of of at at least least oneone ((11)) customscustoms

brokerbroker.. (Sec(Sec.. 22))PRBCBPRBCB ResRes.. NoNo.. 0101--20102010:: However,However, nothingnothing inin thethe RULESRULES

shallshall prevent prevent aa corporationcorporation fromfrom beingbeing registeredregistered forfor thethepurposepurpose of of makingmaking representationrepresentation onon behalfbehalf ofofimporterimporter--clientsclients inin thethe BureauBureau ofof CustomsCustoms andand otherother

governmentgovernment agenciesagencies asas longlong asas thethe corporationcorporation shallshallengageengage oror hirehire thethe servicesservices of of at at least least oneone ((11)) customscustoms brokerbrokerinin hishis professionalprofessional capacitycapacity.. ToTo avoidavoid confictconfict ofofinterestinterest aa customscustoms brokerbroker maymay notnot enterenter inin totoengagementengagement withwith moremore thanthan oneone ((11)) corporationcorporation..

(Sec (Sec.. 22))




PRBCB Resolution No. 01PRBCB Resolution No. 01--20102010 Meaning of Making Representation inMeaning of Making Representation in

Behalf of the ImporterBehalf of the Importer--Clients in the Clients in the Bureau of Customs:Bureau of Customs:

ShallShall referrefer onlyonly toto activitiesactivities otherother thanthanthosethose inin SecSec.. 66,, Article Article IIII of of RARA 92809280 andand SecSec..66,, RuleRule IIII of of thethe IRRIRR whichwhich enumerateenumerate thethe scopescope

of of thethe customscustoms brokerbroker profession,profession, asas suchsuch onlyonlythethe namename ofof thethe ProfessionalProfessional CustomsCustomsBrokerBroker shallshall appearappear inin thethe importimport entryentry forforlodgment lodgment withwith thethe BOCBOC.. [Sec[Sec.. 22 ((22ndnd parpar..),), RARA98539853



Scope of CB Practice under Scope of CB Practice under

RA 9280RA 9280 ConsultationConsultation

Preparation of customs documentsPreparation of customs documents

Declaration of customs duties and taxes;

Declaration of customs duties and taxes;

Preparation, signing, filing, lodging andPreparation, signing, filing, lodging andprocessing of IMPEX entries andprocessing of IMPEX entries anddocumentsdocuments

Representing importers and exporters before anyRepresenting importers and exporters before any

government agency and private entities in casesgovernment agency and private entities in casesrelated to valuation and classification of importedrelated to valuation and classification of imported

articlesarticles



Cont.Cont.

Rendering of other professional services inRendering of other professional services inmatters relating to customs and tariff matters relating to customs and tariff laws, its procedures and practice.laws, its procedures and practice.

Private employment requiring professionalPrivate employment requiring professionalknowledge in customs and tariff.knowledge in customs and tariff.

Teaching Customs Administration subjectsTeaching Customs Administration subjectsin HEIs.in HEIs.



HB 1653 and its crazy RationaleHB 1653 and its crazy Rationale

By allowing any person doing business asBy allowing any person doing business asIIMPORTERS/EXPORTERSMPORTERS/EXPORTERS to exercise some to exercise some of the functions of CBs (of the functions of CBs (except except

CONSULT

ATIONS

/TEACH

INGS):C

ONSULT A

TIONS /

TEACH

INGS):

-- Trade transactions are simplifiedTrade transactions are simplified

-- Eliminate Red TapeEliminate Red Tape

-- Reduce Cost Reduce Cost

-- PHL Products more competitivePHL Products more competitive



By allowingBy allowing AUTHORIZED AUTHORIZEDREPRESENTATITVES ofREPRESENTATITVES ofimporter /exporterimporter /exporter to sign Importto sign Importentry and Export Declaration:entry and Export Declaration:

-- AVOID RED T APE AVOID RED T APE



Questionable Wisdom of Questionable Wisdom of

HB 1653H

B 1653 Author is not aware of RA 9853 since Dec 2009. Author is not aware of RA 9853 since Dec 2009. HB 1653 was filed during the 15HB 1653 was filed during the 15thth Congress while RACongress while RA

9853 was already a law during the 149853 was already a law during the 14thth Congress.Congress. Importers/Exporters may now becomeImporters/Exporters may now become professional professional

smugglerssmugglers under HB 1653.under HB 1653. They seem to forget that CB is a regulated professionThey seem to forget that CB is a regulated profession

acquired through individual and personal qualificationacquired through individual and personal qualificationwith degree requirement and professional ethics.with degree requirement and professional ethics.

Business pursuit requires no professional, educationalBusiness pursuit requires no professional, educational

and ethical standards.and ethical standards. Government is shortchanged and revenue isGovernment is shortchanged and revenue is

compromised.compromised. Smuggling will flourish even more.Smuggling will flourish even more.



PRBCB PLANSPRBCB PLANS

A A BIGBIG NONO TOTO HB 1653!HB 1653!

CLOSE MONITORING OF EVENTS IN CONGRESS (i.e., publicCLOSE MONITORING OF EVENTS IN CONGRESS (i.e., publichearings and consultations).hearings and consultations).

CONTINUOUS CONSULTATIONS WITH THE CHAIR OF THECONTINUOUS CONSULTATIONS WITH THE CHAIR OF THEHOUSE MOTHER COMMITTEE ON CIVIL SERVICE ANDHOUSE MOTHER COMMITTEE ON CIVIL SERVICE AND

PROFESSIONAL DEVELOPMENTS.PROFESSIONAL DEVELOPMENTS. MEETING/BRIEFING WITH CONG. RUFUS RODIRGUEZ.MEETING/BRIEFING WITH CONG. RUFUS RODIRGUEZ.

CONTINUOUS CONSULTATIONS WITH CCBI.CONTINUOUS CONSULTATIONS WITH CCBI.

ACTIVE PARTICIPATION IN CONGRESSIONAL hearingsACTIVE PARTICIPATION IN CONGRESSIONAL hearings ..

SUBMIT POSITION PAPER AGAINST HB 1653.SUBMIT POSITION PAPER AGAINST HB 1653.

SOLICIT THE SUPPORT OF PRC.SOLICIT THE SUPPORT OF PRC.

CAMPAIGN AGAINST HB 1653.CAMPAIGN AGAINST HB 1653.



DATA NEEDED

SOMEBODY HAS TO CHAMPION THE ECONOMIC ACTI VITY AND FIN ANCI AL IMPACT (FOR

IMPORTERS /EXPORTERS) IN VOL VED IN ENG AGING THE SERVICES OF A CUSTOMS

BROK ER (If any negative impact); and

PREPARE A MEANINGFUL AND VER Y GOOD POWERPOINT PRESENT ATIONS ABOUT THE

FUNCTIONS AND ESSENCE OF CUSTOMS BROK ERS IN THE BOC, COLLECTION OFREVENUE AND PREVENTION OF SMUGGLING

AND ANTI-SOCI AL GOODS.



Q & A



THANK YOUTHANK YOUandand

GOD BLESSGOD BLESSCUSTOMS BROKERS!CUSTOMS BROKERS!

Documents

HB 1653 Presentation (CCBI July 07, 2011)