CCBI: Automated Import Processes

Updates on the BOC E2M P4 Export Module, EU ENS, CO

Francis Norman O. LopezPresidentAgendaIntroductionEU Import Control SystemBOC E2M Export ModuleCertificate of Origin: Self-CertificationQ&A

About

PEZALocal Focus Global Reach !

Department of AgricultureBAIBPIBFAR

IT, Value Added Network Services company established in 1987 with more than 23 years experience in B2B transactions, and more than 12 years in eCustoms Services accredited as EDI VAN in 1998 and as Value Added Service Provider (VASP) by Customs, PEZA, Clark and Subic Freeports, the Board of Investment and the Department of Agriculture: BAI, BPI and BFARA distributor of GXS (formerly GE Information Services), the largest global B2B eCommerce services provider since 1987, and CONEX SA (France), EU Customs Service Provider, in 2010Member, Pan Asian eCommerce Alliance (PAA)Independent IT Company - No Affiliation with any logistics company (brokerage, forwarder, warehouse operator), nor with importer, exporter or trader. No potential conflict of interest with client logistics providers, ensuring data confidentiality and integrityInterCommerce . . . your Value Added Service Partner !3InterCommerce . . networking to the World

European Union27 Member StatesAsiaJapan, Korea, China, Hongkong, Macau, Taipei, Thailand, Malaysia, Singapore, IndonesiaAmericasUnited States198720082010

InterCommerce NOW Linked to EU Customs

European Union27 Customs AdministrationsMultiple formats

Pan Asian eCommerce Alliance: PAA NetworkJapan, Korea ChinaTaipei, Hongkong, MacauThailand, Malaysia, Indonesia, SingaporeENS, eCO, SPS Certificate, etc.

Advanced DeclarationENS

WCO SAFE Framework of Standards adopted worldwide

New world context post 9/11/2001 - Anticipation and prevention - Fight against terrorism

Starting date : 2011, January 1st

ICS : security dataPre-arrival security data for the purposes of risk management

EU Community Customs Code reform:

The entry summary declarationArticle 87 CCC and 183 CCIP A declaration shall be made electronically and authenticated by the person making it.

Statement of required data: Annex 30 A CCIP

Article 181 B CCIP

Scope : All goods brought into the EU Customs Territory shall be covered by an entry summary declaration, except those covered by Article 181 c.

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Except where otherwise provided for in the regulation, all goods brought into the customs territory of the Community shall be covered by an ENS.

However, an ENS shall NOT be required in respect of the following goods:Electrical energy,Goods entering by pipeline,Letters, postcards, and printed matter, including on electronic medium,Goods moved under the rules of the Universal Postal Union Convention,Goods covered by Customs clearance declarations confirming their EU customs status,Goods contained in travellers personal luggage,Goods for which an oral Customs declaration is permitted,Goods covered by ATA and CPD Carnets,Goods moved under cover of NATO procedures,Goods carried on board vessels of regular shipping services,Goods carried under cover of Diplomatic procedures.

EU ENS Product Coverage

8Annex 30 A of the CCIP(Annex III of regulation (EC) no. 1875/2006)1/2X = The data element concerned is required at the goods item level.Y = The data element concerned is required at the header level.

Z = The data element concerned is required at the conveyance report level. X-Y-Z = Data can be requested for the procedure or declaration described in the corresponding column at any of the levels concerned.

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X = The data element concerned is required at the goods item level.Y = The data element concerned is required at the header level.

Z = The data element concerned is required at the conveyance report level. X-Y-Z = Data can be requested for the procedure or declaration described in the corresponding column at any of the levels concerned.

Steps for ICS

Description of the various possible exchanges between an operator&one of the 27 European Union Customs Administrations

1- Creation and lodgement of an ICS declaration2- Modification3- Diversion request4- Arrival notification

Annex 30A, as included in the implementing provisions of the Customs code by Regulation1875/061 provides that goods description for summary declarations is "a plain language description that is precise enough for Customs services to be able to identify the goods.

General terms (i.e. consolidated, general cargo or parts) cannot be accepted.

Description of goods

UnacceptableAcceptableAgricultural productsOranges, Fish, Rice, BreadAuto PartsAutomobile brakes, Windshield Glass for AutomobilesLeather ArticlesSaddles, Leather Handbags, Leather JacketsMachine partsPumps, Seals, EnginesVehiclesBoats, Cars, Bicycles

Article 184 A

Time limits for lodging the ENS pre-entry summary declaration

Shipping goods via...ENS to be submitted to 1st EU country of entry Maritime containerised cargoat least 24 hours before loading at the port of departure Maritime bulk/break bulk cargo at least 4 hours before arrivalMaritime sea voyages of less than 24 hours at least two hours before arrival Short-haul flights:less than 4 hours duration at the time of actual take-offLong-haul flights at least four hours before arrivalRail and inland waterways at least two hours before arrivalRoad traffic at least one hour before arrival

Article 184 D of the CCIP

Establishes the maximum amount of time allowed for the administration to reply

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Import Control System Grace PeriodEffective 28 FebruaryFrance UKIrelandHungaryMaltaNetherlandsRomaniaSpainGermany: End February ?Belgium: End February ?Sweden: End AprilItaly: End MayPortugalGreece

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Who will be responsible for lodging the ENS message?Article 36 b of the CCC

Refers to the transporter or the person assuming responsibility for the carriage of the goods as lodger of the ENS message.

Article 181 b of the CCIP

Carrier means the person who has concluded a contract, and issued a bill of lading or air waybill, for the actual carriage of the goods into the customs territory of the Community

Case: TransshipmentPhilippine: Outbound to Europe

Main Vessel and Feeder Vessel:Main vessel: Assume responsibility for lodging the ENS for all goods

VesselVOY NManilaETAConnecting VesselVOY NETDPort in EUPort in EUCSCL NAPOLI0107N01/19-2002/05HongkongXIN OU ZHOU0052W02/0703/04HAM03/06RTMRESOURCEFUL34407/28-2908/03SingaporeNYK OCEANUS01608080825RTM0828HAMWhat happens to the export cargo which has been transshipped thru Hongkong for delivery to EU Member State,if the EU Customs responded with a Do Not Load message ? Ship back to the Philippines ? 16

Can other supply chain operators perform this formality instead of the carrier? Yes:With the presumption of carriers consent

Article 183 of the CCIP

Where an entry summary declaration is lodged by a person referred to in Article 36b(4) of the Code, the customs authorities may assume, except where there is evidence to the contrary, that the carrier has given his consent under contractual arrangements and that the lodging has been made with his knowledge.This mandate makes it possible to define the declarant as being responsible for the contents of the entry summary declaration.

Goods from Philippines transhipped thru Hongkong or Singapore

Carrier in Hongkong or Singapore responsible in lodging ENS before loading in main vessel

Feeder or Forwarder in Philippines may lodge ENS before loading into feeder vessel

- Complete and timely lodgment of ENS

- Ensure that main vessel/carrier is duly informed on Movements Reference Number (MRN), Arrival Notice (ARN) and any Deviation Notice (DN)18Article 184 c of the CCIP

Specifies the consequences when the entry summary declaration has not been lodged:

Application of penalties laid down in the national legislation of the Member State of first entry (fines, quarantine, delays, etc.)

Non Compliance to ICS regulation -Failure to lodge the entry summary declaration

Loading of goods despite receiving a Do Not Load

InterCommerce Conex ServicesInterhttp://ec.europa.eu/ecip/help/faq/index_en.htm

European Union27 Customs AdministrationsMultiple formats

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OPERATOR1FORWARDER

Export Declaratione2m Phase 4e-Export Doc (e-EDS)SPS Certificate

EXPORTER

Q1 2011Q12011Q3 2011Japan, Korea, China,Macau, Hongkong, Taiwan,Thailand, Malaysia, SingaporeIndonesia, Philippines

InterCommerce Conex ServicesInter

PEZA20E2M Exports Implementation ScheduleFebruary 28MICP, Port of Manila and Port of Batangas

March 21Subic, Clark, San Fernando, Limay, Legaspi

April 4Cebu/Mactan, Davao, Cagayan de Oro/MICT, Iloilo

April 18- Tacloban, Zamboanga, Surigao, NAIA* Per Memo issued by Depcom Arevalo, BOC MISTG, dated 19 January 2011 BOC E2M Export Declarationimplementation deferred indefinitelyE2M Export System Implementation RequisitesRegistration of Exporters in the BOC E2M Export System: Client Profile Registration System (CPRS)Accreditation with government agencies: BOI, PEZA, CDC, SBMA, CESA, ZEZA, AFABPhilExport (Manila and regional chapters)Submission of exporter profile data thru VASPsExporter to get BRN from banks Electronic Lodgment of Export Declaration/Single Administrative Document thru BOC-Accredited Value Added Service Providers (VASPs)Online preparation of ED/SADElectronic submissionAutomated BOC E2M responseOnline Printing of the ED/SAD CPRS for E2M Export ProceduresCMO 39-2008 as Amended by BOC Memo 07Mar 2011Exporter AccreditationGovernment Agencies:Board of InvestmentsPhil Economic Zone AuthorityEcozone and Freeport Authorities: Clark Development Corporation, Subic Bay Metropolitan Authority, Cagayan Special Economic Zone Authority, Zamboanga Special Economic Zone Authority, Authority on Freeport Area of BataanPrivate OrganizationsPhilippine Exporters Confederation (Manila): Bonded Warehouse OperatorsData to be submitted by Accreditation agency to BOCTIN, Name, Address, Contact NumberExporter to submit CPRS Profile Data thru VASPs, and upload to the E2M OGA Server

CPRS for E2M Export ProceduresCMO 39-2008 as Amended by BOC Memo 07Mar 2011BOC MISTG: Accredit, Approve and Activate Exporter CPRS E2M generates/emails Exporter COR and CCNExporter to Secure Bank Reference Number BRN from AAB, for payment of export related fees Submit COR with CCN to AABAAB issues BRN to Exporter Transmits Exporter BRN to BOC e2m thru PASS5

CPRS for ExportersAgencies (BOI, PEZA, CDC, SBMA, AFAB, etc.), PhilExport and Bonded Warehouses to provide BOC with their respective List of Accredited Exporters and Members, not later than March 11, 2011- CDC, AFAB, BOI and PhilExport have submitted initial list Exporters to submit profile data thru VASPs, for submission to BOC E2M not later than March 25, 2011- CDC, AFAB, BOI and PhilExport have submitted initial list

Mandatory Exporter CPRS Data (Partnership, Corporation)Name of CompanyNature of business (BIR Certificate of Registration)CitizenshipAddressContact InfoTax Identification NumberVASP CCN No.SEC Registration No.Authorized Capital StockPaid-in CapitalBroker (Exporter Representative)Plant AddressCompany LogoScanned logo

Major StockholderName, TIN, PositionContact info including email, phoneScanned Stockholder photo, Signature

Principal OfficerName, TIN, PositionContact info including email, phoneScanned Stockholder photo, Signature

Responsible OfficerName, TIN, PositionContact info including email, phoneScanned Stockholder photo, SignatureExporter CPRS Mandatory Data (Individual)Registered Business Name Nature of Business (DTI Certificate of Registration)CitizenshipAddressContact InfoTax Identification NumberVASP CCN No.Broker (Exporter Representative)Plant AddressBusiness Name/LogoScanned logo

Principal OfficerName, TIN, PositionContact info including email, phoneScanned Stockholder photo, Signature

Responsible OfficerName, TIN, PositionContact info including email, phoneScanned Stockholder photo, SignatureRecent Directives on Export ProceduresCustoms Memorandum Orders - CMOCMO 49-2010 : E2M Export Declaration thru the OSEDC ManilaCMO 54-2010 : E2M Export DeclarationJoint Memorandum Orders - JMOJMO 1-2010 BOC-SBMA Implementation of AEDS for Subic Freeport LocatorsJMO 4-2010 BOC-PEZA Implementation of AEDS for PEZA LocatorsJMO 6-2010 BOC-AFAB Implementation of AEDS for AFAB LocatorsCDC Memorandum CircularCDC MC dated 3 December 2010 on Electronic Export Documentation EEDS

New CMOs onBOC E2M Export Declarationto amend CMO 54, JMO with PEZA

BrokerImporterInvoice,BL/AWBBOC Response:AssessmentFinal/Temporary

VASPGatewayBOC E2M Import Entry Workflow

BAP/PASS5AABIED, Import Entry SAD(Formal/Wrhouse)BOC Final Payment Instruction (Net: duties, taxes, fees IPF, CSF, others)AAB Final Payment ConfirmationDebit from Importer Account

BRN + ADA

InternetAirline/Shipping LineForwarder/ConsolidatorManifest/BL COR/CCNImportersOnline Visibility:Import Entry,AssessmentStatement of SettlementOf Duties and Taxes (SSDT)

Arrastre, Warehouse,Release InstructionCPRSApproved COR w BOC CCNVASP

OGAs

Permit

Import Permit

NationalSingle WindoweIP, eTAP, SPS IC, eCAI Data

OGA w Automated Processes:PEZA, CDC, SBMADA: BAI, BPI and BFARBOI

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ExporterInvoice,BL/AWBBOC Response:Selectivity,Assessment

VASPGatewayBOC E2M Export Declaration Workflow

BAP/PASS5AABExport Declaration SADBOC Payment Instruction: P115.00 Doc StampAAB Payment ConfirmationDebit from Exporter Account

BRN + ADA

InternetExporterRepresentativeForwarderCOR/CCNExportersOnline Visibility:Export Declaration

BOC Export DivisionWharfingerExportRelease CPRSApproved COR w BOC CCNVASP

OGAs

Permit

Export Permit,Clearance

NationalSingle WindowPermit

30PEZA/SEIPI AEDS (Pilot)Electronic lodgment of Export Declaration to Asycuda, using system generated Export Declaration SAD form, with barcodeReduced Customs requisites- No more Tally Sheet, Boatnote and underguardingAdditional procedures30 minute window for PEZA Zone to inspect cargoBarcode scanning upon exit from ecozoneBarcode scanning upon arrival at airline warehouse (since this is not done, PEZA does not have closure on export shipments)

BOC E2M Export Declaration/SADExporter registration BOC E2M CPRS for ExportersVASP for Exporters and Exporter Representative (forwarder)Electronic LodgmentExport Clearance, Permit prior to lodgmentExport Declaration Code (eg. EX1-1, EX2-1)Export Declaration Form: Single Administrative Document (Export SAD)Selectivity screens : Red, Yellow and GreenPayment of P115.00 documentary stamps, thru PASS5Issuance of Authority to Load (Export Release)

Why NOT pay doc stamps via PASS5 ?Assessment of doc stamps after examination Regular banking hours: Mon-Fri, 9:00am 3:00pmAlternative for exporters to have a cash bond, to avoid delay in loading of export cargo; nonetheless payment will be thru PASS5. Procedures for refund of cash bond?Doc stamps required for Export Declaration is P115.00; Bank charges for ePayment via PASS5 =P120-500 per transaction Total expenses due to payment of doc stamps via PASS5: P115 + P115 + P300 = P530.00

Export Declaration Processes

FrameRelayAEDSExport Server1. Manual Procedures2. Electronic AEDS 3. BOC E2M AEDS Exporter/ForwarderExporter/Forwarder

BOC E2M Export ModuleVASPExporter/Exporter RepresentativeInternetExport Documents:Export DeclarationInvoiceAWB/BLExport Tally SheetBoatNoteMission Order, Underguarding

Export Documents:Export Declaration - SADInvoiceAWB/BL

Export Documents:Export Declaration - SADInvoiceAWB/BL

Manual encoding of data in ED at ecozoneManual, paper-based processes1-3 days cycle timePoor data quality, additional manual work to compile and analyze data, generate reports, statisticsCostly to exporters, governmentRequires manual data entry, with paper-based processesAutomated ED lodgment via proprietary, online systemsSystem requires periodic data maintenanceOnline submission of ED/SAD to BOC E2M, thru VASPsAutomated E2M processing, with selectivityOnline printing of ED/SADExporter Online Visibility, Reports

Customs,OSEDC

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Export Declaration Processes

FrameRelayAEDSExport Server1. Manual Procedures2. Electronic AEDS 3. BOC E2M AEDS Exporter/ForwarderExporter/Forwarder

BOC E2M Export ModuleVASPExporter/Exporter RepresentativeInternetExport Documents:Export DeclarationInvoiceAWB/BLExport Tally SheetBoatNoteMission Order, Underguarding

Export Documents:Export Declaration - SADInvoiceAWB/BL

Export Documents:Export Declaration - SADInvoiceAWB/BL

Manual encoding of data in ED at ecozoneManual, paper-based processes1-3 days cycle timePoor data quality, additional manual work to compile and analyze data, generate reports, statisticsCostly to exporters, governmentRequires manual data entry, with paper-based processesAutomated ED lodgment via proprietary, online systemsSystem requires periodic data maintenanceOnline submission of ED/SAD to BOC E2M, thru VASPsAutomated E2M processing, with selectivityOnline printing of ED/SADExporter Online Visibility, Reports

Customs,OSEDC

35Pilot Implementation of AEDS at PEZAAEDS(ACOS)PEZAExporterBOCPEZAVASP - E

JMO 4-2010: PEZA and BOCPEZAAEDSPEZAExporterBOC E2MAEDSPEZAVASP -APEZAVASP - EMemo Circular implementing PEZA AEDS

Definition of TermsAutomated Export Documentation SystemRefers to pilot e-lodgment of Export Declaration by PEZA registered exporters (SEIPI members); e-lodgment of Export Declaration to an independent deployment of the Asycuda System maintained by other VASPExpanded for use in Subic, and recently thru issuance of JMO, in Bataan and for other PEZA registered exportersAEDS Fee (Pilot for SEIPI members) : P75.00 per ED, with revenue share to SEIPI

E2M Automated Export Declaration SystemRefers to e-lodgment of Export Declaration thru VASPs to BOC E2M Export System Provisions for interface to the PASS5, National Single Window and the Bonds Management/Raw Material LiquidationCDC Electronic Export DocumentationCDC EEDSClark FreeportExporterBOCCDCVASP - ECDCVASP -IOSEDC R3

CDC Electronic Export Documentation and E2M Export DeclarationCDC EEDSClark FreeportExporterBOC E2MAEDSCDCVASP - E

CDC Electronic Export DocumentationEliminate CDC Export Documentation formUse ED SAD, with the CDC Ref Number and barcode on ED SAD Box 44Electronic submission of Export Documentation dataOnline preparation of the CDC Export Doc using the Export SAD templateExport SAD is submitted to CDC Export System for automated processingCDC response would indicate CDC Export Doc reference numberOnline printing of the Export SAD, with the CDC Ref Number and barcode on ED SAD Box 44Electronic submission of Export SAD to BOC E2MEither create Export Declaration SAD from CDC approved EEDS, orAutomated transmission to BOC E2M upon receipt of response from CDC

JMO vs CMOJMO on AEDSCMO on E2M ExportExporter or representative, CPRS not required

Streamlined process

Exemption from payment of doc stamps (PEZA), manual payment of DST for non-exempt

Lodgment to Asycuda/ACOS (?)Exporter and Customs broker (Declarant), CPRS required

Selectivity screens

Payment of P115.00 thru PASS5 + payment of bank charges (P120-500)

Lodgment to BOC E2MUpdates Summary BOC E2M ExportsBOC Meeting re CPRS for Exporters 17 FebruaryDefer implementation of E2M Export DeclarationAgencies, PhilExport to submit accredited exporters and members of good standingExporters to register thru VASPs (mandatory data only)

EDC Networking Committee Meeting 22 FebruaryBOC issued internal Memo re deferred implementation of the E2M Export Declaration and Automated Bonds Management/Liquidation Amendment to CMO 54, to include alternative to payment of P115.00 documentary stamps thru PASS5, among othersDraft CMO/JMO re lodgment of Export Declaration of Clark Freeport and PEZA Locators to BOC E2M APEC Self-CertificationExporters to do Self-Certification in lieu of securing Certificate of Origin (CO) from BOC or PCCIAPEC PilotMalaysia-Singapore-BruneiPre-selection of pilot companies (Certified Exporter)Prior notification to importing countryInvoice Declaration Statement -The Exporter of the product(s) covered by this document (Certified Exporter No. ___) declares that, except where otherwise clearly indicated, the products satisfy the Rules of Origin to be considered as ASEAN Originating Products under ATIGA (ASEAN Trade in Goods: ___ (Exporting Country) with origin criteria ____ (eg. 40% RVC)Philippines Commitment to ASEAN Self-Certification by 2012Requires legislation, to be inserted in draft Customs Modernization Bill

New Services in Q1 2011EU Advanced Declaration ENSEconomic Operator Registration and Identification (EORI)ENS Web ApplicationBOC E2M P4: Informal, Transshipment, Exports Declaration, eManifestDept of AgricultureBAI BFAR and BPI SPS Import Clearance (mandatory)BAI SPS Import Clearance for one-time importer of pets (dogs and cats)BOI Motor Vehicle Development Program (MVDP)e-Certificate of Authority to Import, effective 3 March 2011. Briefing to Cebu-based MVDP participants on 10 March 2011PEZAE-LOA, EIPS and Transfer for Logistics Enterprises: on-going pilot implementation

45National Single Window NSW Import Permit ProcessesNSWBOC e2mOGA(Auto)OGA(Manual)ImporterBrokerOnline RegistrationOnline Submission Import Permit Application DataManual Submission of NSW Import Permit Application Form + Support Docs,Payment of FeesImport PermitStatusOnline Submission of Import Permit Application Data + Support DocsAutodebit Payment of FeesApproved Import Permit DataOnline Lodgment of Import Entry Declaration46Q & A :WebCWS: Export Declaration

CDC ED/SAD Print OutWebCWS: PEZA AEDS

Without ExportablesWith Exportables

WebCWS: CDC Export Documentation

CDC ED/SAD Print Out