GUIDELINES ON SUPER GREEN LANE PROCEDURES

Pursuant to customs administrative order no. 2-2000 and section 608,
tariff and customs code of the philippines, as amended, the following
rules and regulations are hereby promulgated:

I. OBJECTIVES

A.        To efficiently and effectively implement the Super Green Lane (SGL) facility for shipments of qualified importers;

B.        To define responsibilities among Bureau of Customs (BOC) offices involved in the SGL facility;

C.        To provide clear and transparent SGL operating procedures.

II. SCOPE

This Order shall initially cover shipments entered at the Port of
Manila (POM) and the Manila International Container Port (MICP) by
qualified importers for Super Green Lane transactions, as provided
hereunder.

III. ADMINISTRATIVE PROVISIONS

A.        Qualification Requirements – A shipment shall be accorded SGL treatment, if the following elements/criteria are established:

1.         The subject shipment is consigned to a holder of a
Certificate of Qualification (CQ) and is a BOC-Electronic Data
Interchange (EDI) facility registered user;

2.         The subject shipment does not contain prohibited commodities;

3.         The subject shipment, if a regulated commodity, is
covered by the relevant permits and/or clearances from the concerned
government agencies;

4.         The import entry is lodged/filed through the EDI facility; and

5.         The importer has paid the duties, taxes and other charges due on the shipment

B.        A Super Green Lane Task Group is
hereby created, to be headed by the Deputy Commissioner for Customs
Assessment & Operation Coordinating Group, and shall be composed of:

1.         An Accreditation Sub-Group(ASG) and

2.         An Import Compliance Sub-Group (ICSG).

C.        The Accreditation Sub Group (ASG) shall:

1.         Determine, on the basis of the list of importers by
revenue contribution, whether or not an importer qualifies for
accreditation under the following criteria:

a.         The importer is a duly BOC-registered/accredited importer;

b.    The importer is not and has not been subjected to any
disciplinary action or similar penalties for violation of the Tariff and
Customs Code of the Philippines;

c.    The intended importations are not prohibited;

d.    The intended regulated importations are/will be covered by the proper permits from the concerned government agency;

e.    The importer has been transacting with the BOC for at
least one (1) year and falls within the top 1000 importers in terms of
duties and taxes paid;

f.     The importer has submitted (or has obligated itself to
submit), for purposes of valuation and classification, the following
documents:

i)          the importers list of regular imports sufficiently described;
ii)         contracts of sale;
iii)         applicable import permits covering the shipments; and
iv)        such other documents deemed necessary for the accurate valuation and classification of imports.

g.    The importer is a duly registered EDI user or has
committed to register within ten (10) days from accreditation but before
the issuance of the Certificate of Qualification.

2.      Transmit immediately to the ICSG the required documents
for purposes of valuation and classification submitted by the importer;

3.      Consult and/or verify with other government agencies (e.g.
Bureau of Internal Revenue, Security and Exchange Commission, etc.)
information pertinent to the importer’s profile.

4.      Submit to the Head, SGL Task Group the result of its evaluation of each importer and its recommendations.

5.      Perform such other related functions as may be directed by higher authorities from time to time.

D.        The Import Compliance Sub Group (ICSG) shall:

1.      Determine the value and classification of an importer’s
regular imports based on the list submitted by the importer, and in the
process, hold consultations as necessary with the importer so as to aid
the latter in complying with BOC valuation and classification
regulations;

2.      Verify whether the declared values are within the established value ranges in the GATT Valuation Support System.

3.      Conduct   a post clearance check of declarations made
under the SGL and conduct inspections of imports as necessary; and

4.      Perform such other related functions as may be directed by higher authorities.

E.        The Management Information System and Technology Group (MISTG) shall be responsible for the following:

1.    Provide ASG with a list of importers by revenue contribution;

2.    Provide ICSG with a daily list of import entries processed through the SGL facility;

3.    Develop/install the necessary computer system to support the SGL Task Group/Sub Groups; and

4.    Register SGL-accredited importers to EDI Gateway and provide access thereto.

F.         The Head, Super Green Lane Task Group shall:

1.      Recommend the accreditation of the importer to the Commissioner for approval;

2.      Render a monthly report to the Commissioner on the progress of the SGL facility.

3.      Perform such other related functions as may be assigned by higher authorities.

G.        Certificate of Qualification –
The issuance of the Certificate of Qualification by the Commissioner of
Customs to qualified importers shall entitle the grantee to the
privileges under the SGL facility and require it to comply with the
obligations and conditions as provided for.

H.        EDI Facility – The remote
lodgment through EDI of importation covering SGL shipments shall be in
accordance with CMO 22-99 (General Procedures and Guidelines for the
Remote Lodgment of Import Entries), and the following shall be observed:

1.         Remote lodgment facilities at the BOC

a.      The Philippine Chamber of Commerce and Industries
(PCCI), as part of its trade facilitation efforts, shall provide the
necessary Gateway infrastructure and the communication facilities to
enable electronic lodgment of SGL entry declaration through EDI.

b.      The Gateway shall be the sole communication link to BOC-ACOS for this purpose.

The SGL qualified importer shall be connected to the Gateway via
accredited Value Added Network (VAN) service providers of their choice
which shall be responsible for the installation and the registration as
provided for in the Memorandum of Agreement (MOA) between the SGL
importer and BOC.

c.       The BOC recognizes that PCCI shall charge minimal fees
to cover the costs of these facilities as well as their continuous
maintenance and upgrade.

2.         EDI Client Registration – The EDI lodgment
facility shall be made available to duly registered SGL qualified
importers and their designated brokers. Procedures in the registration
of EDI clients shall follow the procedures provided in CMO 18-99 (Re –
registration Procedures for EDI/DTI Clients).

I.          Payment of Duties and Taxes through AAB –
The payment of duties and taxes shall be made at any authorized agent
bank (AAB) accepting Customs payment. The amount payable as shown in the
assessment notice shall be the amount paid (Refer to CMO 25-95 for
payment procedure).

J.         Document Submission and Payment of Fees

1.   The EDI generated entry declaration (hard copy) shall be in
the design/specification of the Import Entry and Internal Revenue
Declaration (IEIRD – BOC Form 236) .as described in CMO 1-96A and shall
be permitted in lieu of the normal IEIRD. The SGL qualified
importer/broker shall sign the hard copy of the EDI-generated Entry in
the spaces provided for, have it notarized, affix the required
documentary stamps and together, with the assessment notice and
supporting documents, submit it to the Entry Processing Unit (EPU) of
the port concerned, on the 2nd working day of the week following
electronic lodgment.

2.   Any fees related to the use of the IEIRD shall be included in
the payment for processing of the import document using EDI entry
declaration.

K         Support Measures

1.   Authorized Agent Bank (AAB) — upon receipt of
payment of the duties and taxes for SGL shipment, the concerned AAB
shall ensure the immediate transmission of the payment information to
BOC via the Payment Abstract Secure System.

2.   Arrastre Operator — The concerned arrastre
contractor shall provide the necessary infrastructure to facilitate the
delivery of SGL shipment to the importers.

3.   Shipping Lines (Agent)/Freight Forwarders (Consolidators)
— The concerned shipping line (agent)/freight forwarder (consolidator)
shall ensure the advanced submission to BOC of the electronic inward
cargo manifest of shipments consigned to SGL qualified importers prior
to the shipment’s arrival at the concerned port.

IV. PROCEDURAL PROVISIONS

The importation of SGL qualified importers shall be processed according to the following procedures:

A.        Prior Arrival/Prior Release of Cargo

1.      The importer shall electronically lodge its import entry
declaration with the BOC-ACOS system by EDI through the BOC Gateway
facility.

2.      BOC-ACOS shall evaluate the importer’s declaration,
assessing the duties and taxes due thereon and automatically assign the
declaration to the Super Green Lane Channel. Such assessment shall be
electronically transmitted to the importer via the same EDI facility as
in item 1 above.

3.      Upon receipt of the BOC-ACOS assessment, the importer
shall then make payment of the duties and taxes due with the Authorized
Agent Bank (AAB).

4.      Upon receipt of the payment by the importer, the AAB shall
then transmit electronically the payment information to the BOC.

5.      The BOC-ACOS shall then verify whether the payment made
matches the amount assessed. If matched, the BOC-ACOS system shall
generate and transmit an electronic cargo release message to the
arrastre operator authorizing the release of the shipment to the duly
authorized representative of the consignee.

For purposes of identifying the SGL shipment of the importer for
release from the arrastre operator, the EDI entry generated in the
course of remote lodgment shall be presented.

B.        After Release of Cargo

1.         Inspection of SGL Shipments

a.      The inspection of the released SGL shipment shall be
covered by a Mission Order issued by the Commissioner of Customs or his
duly authorized representative and duly undertaken on the basis of:

i.          the result of a selection process generated by the Automated Customs Operation System (ACOS); and/or

ii.          the submission of derogatory intelligence information against the shipment of the importer; and/or

iii.         a directive of the Head of the SGL Task Group

The Mission Order shall, among others, specify the extent of the
inspection to be done and the number of containers to be inspected, if
the shipment consists of multiple containers.

b.      The Import Compliance Sub-Group (ICSG) Leader shall assign
a team to implement the Mission Order to conduct inspection of
shipments at the consignee’s premises during offloading or container
stripping. The importer shall extend full cooperation and assistance to
the inspecting team.

c.       The ICSG Leader shall monitor the conduct of the
inspection and shall require from the assigned team the submission of an
after-mission report within one (1) working day from the completion of
the mission.

The Report shall include, among others, the following information:

i.     The Mission Order, specifying the purpose of the inspection
ii.    Date/Time started and completed
iii.   Findings
iv.    Recommendations
v.     Reason for delay in completion, if any
vi.    Selection Process utilized
vii.   Signed declaration from an authorized officer of the
corporation attesting to the orderly conduct of the inspection.

2.         Post Entry Validation

a.         The importer/broker shall submit to the EPU of the
concerned port the hard copy of its electronic declaration along with
other supporting documents on the second working day of the week
following electronic lodgment.

b.         Failure to submit the entry documents on the second
working day of the following; week without prior notice to the BOC shall
result to the immediate cancellation of importer’s EDI registration.

c.         The EPU shall process the hard copy in accordance with
existing regulations but forward the working copy together with the
supporting documents to the ICSG.

d.         The ICSG shall check completeness of the entry document and conduct a documentary check using ACOS.

e.         The ICSG shall check the correctness of the declared value and classification.

f.          The ICSG shall submit a post-clearance validation
weekly report to the Head, SGL Task Group, copy furnished the concerned
District Collector detailing; the importer’s compliance to SGL rules and
regulations, including discrepancies in valuation and classification,
if any and a report on the SGL entry declaration which has not been
submitted on the second working day of the week following the electronic
lodgment.

g.         If upon ICSG post-verification, deficiencies in the
payment of duties and taxes are established, the concerned District
Collector shall immediately send the necessary demand letter to the
importer for the collection of additional duties and taxes.

V. DURATION AND REVIEW OF THE CERTIFICATE OF QUALIFICATION

A.        As a general rule, an importer’s Certificate of
Qualification (CQ) shall remain valid until suspended, canceled or
revoked by the BOC.

B.        The BOC may suspend/cancel/revoke an importer’s CQ, on the following grounds:

1.      When the importer fails to submit the necessary documents requested, within the period set by the ICSG;

2.      When the importer is suspected of having committed fraud
through anomalous electronic declarations which are found not in
conformity with the shipments actually received by the importer, upon
recommendation of the ICSG; and/or

3.      When the importer fails to pay (within the prescribed
period) of the additional duties/taxes arising from the
post-verification conducted by the ICSG.

C.        Upon proper investigation of the Inspection Team’s report,
the ASG shall recommend the cancellation or revocation of the
importer’s CQ where there is a finding of fraud.

D.        In any case, all CQs granted shall be subject to periodic review by the BOC.

VI. REPEALING CLAUSE

All Orders, Memorandums, Circulars or parts thereof which are
inconsistent with this Memorandum are hereby deemed repealed and/or
modified accordingly.

VII. EFFECTIVITY

This order shall take effect upon signing.

Adopted: 31 Mar. 2000

(SGD.) RENATO A. AMPIL
Acting Commissioner