TRANSITORY PROCEDURES PRIOR TO FULL IMPLEMENTATION OF E2M CUSTOMS SYSTEM FOR INFORMAL ENTRIES AND TRANSSHIPMENT/TRANSIT DECLARATIONS

1. Objectives:

1.1 To define the transitory procedures concerning the informal
entries and transshipment/transit declarations prior to full
implementation of the e2m Customs System

1.2 To expedite release of legitimate informal & transit cargoes upon arrival in the Philippines.

1.3 To facilitate trade

2. Scope:

This covers informal entries and transshipment permits/transit declarations.

This order does not cover the following:

1.1 Transshipment/Transit of all Alcohol or Tobacco Products
subject to all applicable taxes, duties, charges, including excise tax
pursuant to Section 12 of the BIR Revenue Regulations No. 3-2006 dated
January 3, 2006 and CMC 70-2006, pursuant to RA 9334

1.2 Transfers to CY-CFS/Off-Dock Terminals

3. General Provisions:

3.1 Unlike the Formal Entry System (FES) and Warehousing Entry System
(WES) where the e2m Customs Systems automatically writes-off the bill
of lading in the e-manifest, bills of lading corresponding with Informal
Entries or Transshipment/ Transit Declarations shall be manually
written-off

3.2 The automated and the manual write-off of house bill of lading
shall ensure the validity of the abandonment process and shall provide
the BOC with the correct and exact inventory of shipments that have
arrived, and those that are entered, unentered or abandoned.

3.3 The e-Manifest shall also be accessible to the Informal Entry
Division and the Office of the Deputy Collector for Operations. These
two offices shall be responsible for the manual discharge of the bill of
lading record corresponding with the import declaration in the
e-manifest. Under this order, manual discharge of the bill of lading is
defined as the process by which the pertinent data corresponding to the
shipment are encoded by the concerned BOC officer and the bill of
lading entry from the e-manifest is written-off.

3.4 The Deputy Collector for Operations shall ensure that the
transfer of cargo from the port to the CY-CFS/Off-Dock terminals shall
not result in the manual discharge of the bills of lading record.
Shipment transferred to CY-CFS/Off-Dock Terminals shall only be
written-off in the e-manifest after completion of clearance process of
the appropriate declaration e.g. formal (consumption and warehousing),
informal and transshipment/ transit declaration.

4. Operational Provisions:

4.1 For Informal Entries

4.1.1 The current procedure in the manual processing of the informal
entry using the BOC-Informal Import Declaration and Entry form shall
continue.

4.1.2 After the Informal Entry Division or equivalent unit has
examined and assessed the shipment covered by the informal entry, the
importer/customs broker shall proceed to the In-House Bank to pay the
duties and taxes due as indicated in the Order of Payment Form (OPF,
Sample in Annex A^[*]). The OPF shall be prepared by COO III and duly signed by the COO V of the Informal Entry Division or equivalent unit.

4.1.3 The In-House Bank shall accept the payment and issue a BOC
Official Receipt (BCOR). The In-House bank enters the details of payment
in e2m Customs System using the Cash Payment module. The In-House bank
shall generate and print the e2m Customs Receipt (ECR, Annex B^[*]). The e2m Customs Receipt Number (ECRN) must be indicated in the BCOR.

4.1.4 The importer returns to the COO III to present his BCOR with
the ECR attached. The COO III shall log-in to e2m Customs System and
confirm through appropriate menu in the e2m Customs Cash Payment module
that the ECR is valid and correct.

4.1.5 After verifying that the appropriate payment has been
collected, the COO III retrieves the data corresponding to the house
bill of lading of the particular Informal Entry. The COO III shall
select from the e-manifest menu the operation “Manual Discharge” to
perform manual write-off of the said house bill of lading.

4.1.6 On the “Manual Discharge Screen” of the e-manifest, the
assigned COO III shall encode the following data corresponding to the
said shipment:

4.1.6.1 Consignee Name

4.1.6.2 Broker Name

4.1.6.3 Registration Serial – The value is always (I), which stands for Informal Entry

4.1.6.4 Registration Number – The assigned number (Entry No.) of the manual Informal Entry form

4.1.6.5 Transit Shed Code – The code for the Location of Goods assigned to the Port Operator/Arrastre

4.1.6.6 Reference Year – The year of the Informal Entry registration

4.1.6.7 Declaration Office Code – Customs office code of the port

4.1.6.8 Commodity Code – Defaulted by system to spaces

4.1.6.9 Total Number of Packages

4.1.6.10 Packaging Type

4.1.6.11 Total Gross Weight

4.1.7 In cases of consolidated informal entry where one entry is
lodged for a maximum of ten (10) house bills of lading, each house bill
of lading in the import declaration will have to be manually
discharged/written-off by the COO III. The entry number of the
consolidated informal entry shall be repeated for every house bill of
lading included in the entry.

4.2 For transit Cargoes

4.2.1 Manual processing of Transshipment Form for transit cargoes shall continue.

4.2.2 After the Transshipment Permit/ Transit Declaration has been
signed by the Deputy Collector for Operations or his authorized signatory, the designated officer retrieves the data corresponding to the house
bill of lading of the particular Transshipment/Transit Declarations.
The Deputy Collector for Operations or designated officer shall select
from the e-manifest menu the operation “Manual Discharge” to perform
manual write-off of the said house bill of lading.

4.2.3 The following data are to be encoded in the “manual discharge screen” of the EMS:

4.2.3.1 Consignee Name

4.2.3.2 Broker Name

4.2.3.3 Registration Serial – The value is always (T) which stands for Transit Cargo.

4.2.3.4 Registration Number – The permit number of the Transshipment Form

4.2.3.5 Transit Shed Code – The code for the Location of Goods assigned to the Port Operator/Arrastre

4.2.3.6 Reference Year – The year of the Transshipment approval

4.2.3.7 Declaration Office Code – Customs office code of the port

4.2.3.8 Commodity Code – Defaulted by system to spaces

4.2.3.9 Total Number of Packages

4.2.3.10 Packaging Type

4.2.3.11 Total Gross Weight

5. Sanctions:

Failure by the concerned parties to comply with the foregoing
provisions shall subject erring parties to the imposition of appropriate
sanctions, administrative, civil, and/or criminal, as warranted by the
circumstances.

6. Repealing Clause:

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

7. Separability Clause:

If any part or provisions of this Order is later on declared invalid
or illegal, the remaining portion shall remain valid and unaffected.

8. Effectivity:

This Order shall take effect immediately but shall be implemented in ports already implementing CMO 27-2009

Adopted: 4 Sept. 2009

(SGD.) NAPOLEON L. MORALES
Commissioner

^[*] Not Filed with ONAR.