customs clearance procedure for import and export
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CUSTOMS Clearance
PROCEDURES
By : Danna Nicole Maraña Louvie Dieron
Import Letter of Credit Informal Entry ProceduresFormal Entry Procedures a. Consumption Entry b. Warehousing entrySimplified Export Procedures
Points of Discussion
Letter Credit
basically a guarantee or promise by a bank on behalf of the buyer to pay the seller a specified sum in the agreed currency, provided that the seller submits the required documents by a predetermined deadline.
Seller/Exporter
Beneficiary
Buyer / Importer
Application copy of L/C
FLOW CHART on IMPORT LETTER OF CREDIT ( L/C ) TRANSACTION
BPI Global City , Taguig
Applies L/C to Opening Bank
.
Opening / Issuing Bank
CITIBANK – New YorkAdvising / Negotiating Bank
Inquires the product & price lists …
INFORMAL ENTRY PROCEDURE
INFORMAL IMPORT DECLARATION AND ENTRY
Imported articles of a commercial in nature intended for sale, barter or hire
1. Which the dutiable value is PHP 2,000.00 or less ( Section 1302 TCCP) or Sample Items.
2. Personal and Household Effects or Articles not in commercial quantity and value :A. Imported articles in accompanied baggage by
passengers i. OFW ii. Returning ResidentsB. Consolidated shipments contained in balikbayan boxes thru an Int’l Freight Forwarding service.
The consignee may register himself / herself as a Once-A-Year Importer on accordance with CMO 44-2009 titled, “CPRS Registration of Once-A-Year Importer (previously First and Last Importation Scheme”)
Documents Required
Clearance of Single Consignee’s Shipment pursuant to CMO 10-91.Philippine Passport of an IndividualCertificate of Exemption, (letter of request to DOF ).
Clearance of Consolidated Shipment under CMO 54-89 and CMO 79.90.
Bill Of LadingPacking List
Packing List
Bill of Lading
.Permit to Deliver Imported Goods (B.C. Form No. 194.
Permit to Deliver Imported Goods (B.C. Form No. 194.
Informal Import Declaration and Entry (B.C. Form No. 177.
Single consignment
Consolidated
Office Documentation
Customs Brokerage
Receives shipping documents:Bill Of Lading, Packing List Verification of vessel’s arrival ,registry number , and inquire for freight charge Preparation of informal entry declaration – lodgment at VASP (for consignee’s information only )Checks the CPRS of the consignee
If shipment to single consignment, prepares letter of request address to Secretary of Finance, Mabuhay Lane Office for Tax Exemption Certificate.
Procedure
Customs Broker Office
VASP(Value Added
Service Provider) consignee only
Chief- Informal Entry Division
Principal Appraiser
BOC - EPU (Entry
Processing Unit)
COO III
Liquidation & Billing Unit
Assessment Chief
District Collector
ARRASTRE / WHARFAGE CFS warehouse
Pay duties and taxes to land bank
Delivery
FORMAL ENTRY PROCEDURE
Formal entry declaration ( consumption )
Formal Entry•Articles of a commercial nature intended for sale, barter, or hire, the dutiable value of which is more than P2,000.00•Articles for, which the Collector may, upon the recommendation of the Tariff Commission for the protection of a local industry, or the revenue, require formal entry regardless of value and whatever purpose and nature of the importation.
2 types of formal entry :ConsumptionWarehouse
Import Entry and Internal Revenue Declaration(IEIRD) Commercial Invoice Packing List Bill of Lading Licenses/Permits/Clearance
Temporary Assessment Notice
Documents Required
Office Documentation
Customs Brokerage
Importer sends original documents toCustom Broker
Payment of D/T
Customs Broker
Bank - AAB
Prepare Entry Declaration:•Lodgment of IEIRD Entry (SAD),at CEDEC, EKONEK or I-Commerce (VASP) •Print Temporary Assessment Notice
Verification of Vessel’s Time Arrival
and Registry numberInquire for freight charge Computes D/T
Speedier Clearance
Streamlined Procedures
Unprecedented RevenueCollection
C h a n g e I m a g e
E2M SYSTEM
VASPValue Added Service ProvidersPrivately-owned and reputable IT Company accredited by the Bureau of CustomsExtends the services being offered by the Bureau by being the first line of contact of BOC clients for most business transactions
• CARGO DATA EXCHANGE CENTER, INC. (CDEC)www.cdec.com.phTel. 851-8978 and 8539434
• E-KONEK PILIPINAS, INCwww.ekonek.comTel. 879-8310 and 879-8485
• INTERCOMMERCE NETWORK SERVICES, INC. (INS)www.intercommerce.com.phTel. 843-2792 and 845-0509
Eligible VASP
Procedure on BOC
VASP EPD
Release of cargo
FED
Entry Processing Division
Formal Entry Division Collection
division
ARRASTRE/ Wharfage FCL Warehouse
GREEN LANE
YELLOW LANE
RED LANE
ARRASTRE/ Wharfage LCL Warehouse
CY CFS
WAREHOUSING
WA R E H O U S E
A warehouse is a commercial building for storage of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses, customs, etc.
Types of Warehouses
Public Customs Bonded WarehousePrivate Customs Bonded Warehouse
Example of public warehouse
Customs Bonded Manufacturing Warehouse
Office of Customs Broker
Verify vessel’s arrival and vessel’s registry number ; receives bill of lading, commercial invoice, packing list , import permit Computation of duties and taxes Lodgment of Single Administrative Document
Broker CPRS -Client
profile registration
system VASP- Value Added Services Provider
Warehouse Assessment Division -
EPU
Procedure
Warehouse Assessment Division
EPU
GREEN LANE YELLOW LANE RED LANE
WAD –Examination &Appraisal
BONDS DIVISION
Pier and Inspection Division
ARRASTRE / WHARFAGE
Transfer of Goods
Operating DivisionMBWD/PBWD/GMBWD
Warehousing Assessment Division Entry Processing Unit
Receives, records, segregate documents for processing and forwards verified hard copies to Forwards to WAD sections
Warehouse Assessment Division- EPU
Appraiser
Re- routes it to Green to enable Payment process
“Prints Statement of settlement of duties and taxes and Final Assessment Notice”
Examiner
Conducts document appraisal, amendment of warehousing entry Perform examination based on selectivity color.
Bonds division
Processes entry, charge slip and charge bond.
Prepares bond application and collection of additional charges .
Receives original copy of warehousing entry for safekeeping and future retrieval
System of monitoring, recording and filing of reports .
Recording system of all transactions of the Operating Division
Warehousing Documentation And Records Division
PERMIT
SHIPSIDE
It is a written authority to discharged cargoes to shipside unto lighter/barge as per order of the Collector of Customs. The permit shall be forwarded directly to the Customs Inspector onboard the carrying vessel.
“cruise ship” Passengers Boarded from Lighters
1. Explosive or dangerous cargoes, flammable cargoes or combustible liquids in any quantity including gasoline.
2. Cargoes which are considered fire hazards like raw cotton and paper cutting.
Kinds of imported articles to be given preference in allowing to be discharged under SHIPSIDE:
3. Obnoxious cargoes, corrosive liquids, acids and dangerous poison.4. Shipment for the Republic of the Philippines and its instrumentalities, like gun powder, etc...
5. Heavy Lift Cargoes, when the ARRASTRE contractor has no adequate equipment to handle them or other cargoes which by their nature cannot be handled in the pier .
6. Bulk Cargoes,…i.e. a. Crude Oil, Petroleum productsb. Fertilizer (urea, ammonium sulfate)
c. Soda Ashd. Iron and Steel in bullets, beams, ingots and/or similar productse. Wheat and Flourf. Pulp, paper, paperboard and newsprint in rollsg. Soy, Cacao and cocoa beans h. Staple Wires in Bales
EXPORT
The theory of international trade and commercial policy is one of the oldest branches of economic thought. Exporting is a major component of international trade, and the macroeconomic risks and benefits of exporting are regularly discussed and disputed by economists and others.
Two views concerning international trade present different perspectives.
Background
EXPORT GROWTH STATISTICS
Dollar REMITTANCE
Remittances in Philippines increased to 1,980,320.70 USD Thousand in May of 2014 from 1,913,939.20 USD Thousand in April of 2014. Remittances in Philippines averaged 783,733.78 USD Thousand from 1989 until 2014, reaching an all time high of 2,154,956.20 USD Thousand in December of 2013 and a record low of 64,208 USD Thousand in February of 1989. Remittances in Philippines is reported by the Bangko Sentral ng Pilipinas.
Types of articles and various export terms
Traditional Types of Articles Non-Traditional Types of Articles
TRADITIONAL
TYPE OF ARTICLES
1
The Philippine economy has always depended on its exports for part of its foreign exchange needs. Traditionally, the country has exported mainly natural resource-based goods, usually in their raw, unprocessed forms. It was only during the last two decades that the country has seriously tried to increase the volume of finished or semi-finished export products relative to that of raw materials.
MINERALS RESOURCES
The Philippines is one of the highly mineralized countries
in the world with 9 million hectares considered
to have high mineral potential. According
to the Mines and Geosciences Bureau (MGB),
the country is ranked top five in the world
for overall mineral reserves, second in gold
and third in copper resources.
Gold
Coconut oil
RATTAN FURNITURES
ARTIFICIAL TREES
Also another source of Philippine export products demand for our country's rich marine product are always rising.
DRIED FISH AND OTHER FISH PRODUCTS
Drying food is the world's oldest known preservation method, and dried fish has a storage life of several years. The method is cheap and effective in suitable climate.
Garments
Finished products manufactured from imported raw materials.
The Philippine garment industry is one of the country’s success stories. Starting as a
cottage-type industry in early 1950s, it has expanded and strongly positioned
itself as the country’s leading non-traditional export.
N O N - T R A D I T I ON A L T Y P E
O F A RT I C L E S
2
SEMI-CONDUCTORS/ ELECTRONICS
The National Economic and Development Authority (NEDA) is expecting a further improvement in the exports of semiconductor despite its 23.2 percent decline in January this year.
Export Products of Philippines in 2010
Exporting
selling goods and services produced in the home country
to other markets.
Procedures on exportation
OFFICE EXPORTER/ BROKER’s PREPARATION OF EXPORT DOCUMENTS
Lodgement of Export Declaration
Certificate of Identification(CI) Certificate of
Inspection and Loading (CIL) and BOATNOTE
(BN) >> issued & processed by CBW
Export Declaration
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.
Export Declaration (ED)Commercial Invoice Packing List
Documents required :Certificate of Identification
Certificate of Inspection and Loading
Certificate of Origin Transfer note
Exporter : will provide Final booking number Commercial invoicePacking list Bill of Lading
IMPORT SECURITY
FILING (ISF) on US only
Broker
Receives : Bill of ladingCommercial Invoice Packing List
BUYERPURCHASE ORDER/ LETTER OF CREDIT (
LC) Prepares : Export Declaration (ED)
AEDS - Automated Export Documentation System
provides for automated capturing of exports transaction data that are reflected in the Export Declaration filed through the VASP.
Lodgement of Export Declaration Document through
VASP (E-KONEK, CDEC, Inter Commerce)
BUREAU OF CUSTOMS (BOC) for SEAFREIGHT
PHILEXPORT OSEDC/ NAIA
for AIRFREIGHT
Exporter: Stuffing/loading & delivery
To port of MICT/ POM
To forwarder’ s warehouse for
airfreight & LCL shipment
Buyer/bankPrepare final export documents as
required to be send to the buyer or bank negotiation for payment of the shipment.
Retrieve Orig. CI/CIL/Boat Note at BOC-CCCD for
Containerized and atForwarder for LCL/ AIR Shipments.
CBW/BOCLiquidation Bonds Cancellation & closing of Import Entries
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