Trade Facilitation Initiatives at the

Bureau of Customs

Trade-Related Assistance for Development (TRADE) Project

Cielito F. Habito

Chief of Party

Presentation for theNational Export Congress

Marriott Hotel, Pasay CityDecember 3, 2015

OVERALL PROJECT MISSION

TRADE assists the Philippine government (especially through the DTI and BoC) make good in and make the most of its trade relationships, particularly through its membership in key trade agreements.

KEY INITIATIVES AT CUSTOMS

Customs Regulated Imports List (CRIL)

Trade Transactions Process Analysis

Other Initiatives (AEO, ATA Carnet, Advance Ruling)

Customs Regulated Imports List (CRIL)

Developed by BOC with USAID-TRADE assistance

Lists 7,422 regulated products with corresponding import regulations and required permits

Includes frequently imported products regulated by 23 trade-regulatory government agencies (TRGAs)

Released in April 2015, updated in October 2015

Institutionalized as the single reference of BOC in enforcing all import permit requirements at the border

Currently Excel-based; new database management system to be implemented by BOC starting in 2016

Before, there was no single authoritative source of information for import permit requirements

Not clear for importers what permits to apply for

BOC frontline officers made mistakes in requiring wrong or unnecessary documents from importers

CRIL now makes import permit requirements transparent for importers & BOC frontline officers

CRIL must constantly be up-to-date, hence requires close and continuing coordination between BOC and TRGAs

Rationale for CRIL

CRIL SAMPLE SCREEN (Sorted by Agency)

Info if product needs permit from another

agencyRegulatory

Agency that issues permit

Product that requires permit

Type of permit needed

Link to regulation

& forms

Most regulated products need only one type of import permit from a specific agency

Some need 2-3 types of import permits from different agencies, e.g.

- Chocolate bars (2-3 permits): FDA, BAI, BPI- Color Printers: BPS (appliance), NBI (possible use

to counterfeit currency), NTC (if Wi-Fi enabled)

Unduly large number of permits required by TRGAs, with duplicating/overlapping or unnecessary ones

Need to review and rationalize policies on import permits (e.g., thru NCCs Project Repeal)

CRIL: Observations

Trade Transactions Process AnalysisWHAT IS TTPA?

Analysis of the end-to-end trade process chain, from off-loading of cargo from the vessel, through clearance processes, to exit from the port or warehouse.

OBJECTIVES

Document actual border procedures and identify bottlenecks

Time the procedures and analyze reasons for delays along the process chain (at BOC, TRGAs & service providers)

Assess formal and informal costs incurred

Suggest improvements

Scope of Analysis

TTPA : Cargo Movement vs CARGO Clearance

CUSTOMS CLEARS CARGO, ISSUES

RELEASE

PORT OPERNOTIFIES

IMPORTER

GATE OUT, CARGOLEAVES

PORTSHIP

BERTHS

PORT OPERATORCAPTURES BERTH INFO

IMPORTERLODGES ENTRY

BOCACCEPTS

LODGMENT & ASSESS

SELECTIVITY

BOC EXAM (FOR RED &

YELLOW)PAYMENT

OF TAXES & DUTIES

PAYMENT OF PORT

CHARGES

PHYSICAL EXAMINATION(RED CARGO)

IF RED, PHYSICAL EXAM IS DONE AT

PORTS DESIGNATED EXAM AREA

END

END

IMPORTERGETS ACCREDITED

5

IMPORTEROBTAINS PERMITS

MANUAL SUBMIT

ENTRY DECL

IMPORTERPREPARES DOCS

RE-ASSESS IF NEEDED

CARGO MOVEMENT

CARGO CLEARANCE

IMPORTERRECEIVES

CARGO

IF GREEN

BREAKDOWN OF IMPORT ENTRIES BY SELECTIVITY COLOR

SELECTIVITY PROFILE (NOV 2014)

GREEN YELLOW RED BLUE

15% 53% 24% 8%

SELECTIVITY PROFILE (JUNE 2015)

GREEN YELLOW RED BLUE

40% 33% 19% 8%

15%

53%

24%

8%

40%

33%

19%

8%

Green Lane Cleared for Release Yellow Lane For Document Inspection (e.g., permits, etc.)Red Lane Requires Physical Inspection Blue Lane Expedited Release (Super Green Lane)

(Pre-CRIL) (Post-CRIL)

AVERAGE PROCESSING TIME PER PORTSample Results

AVERAGE PROCESSING TIME (MEDIAN)

MICP POM BATANGAS CEBU DAVAO ILOILO CDO NAIA

GREEN 8 20:48 4 03:28 1 07:18 4 23:01 4 20:56 2 08:05 2 01:40

YELLOW 7 11:00 4 11:31 3 00:47 4 06:02 3 20:29 3 23:50 6 22:07 3 21:35

RED 7 04:32 5 06:30 3 22:08 5 22:56 4 00:01 4 23:01 5 05:24 3 16:08

BLUE 8 02:18 4 04:06 0 19:28 7 21:25 5 05:51 1 13:30

NOV 2014

AVERAGE PROCESSING TIME (MEDIAN)

MICP POM BATANGAS CEBU DAVAO ILOILO CDO NAIA HARBOUR

GREEN 2 01:45 2 16:31 1 04:19 4 04:27 2 09:03 5 20:07 2 08:38 2 00:51 3 20:04

YELLOW 2 20:22 3 00:23 5 04:15 5 00:49 3 21:37 6 14:28 3 06:14 4 00:17 7 02:19

RED 2 08:29 4 00:37 4 07:59 6 00:26 3 04:10 8 08:09 5 05:38 2 07:28 6 18:43

BLUE 3 05:08 2 20:09 1 01:43 4 23:56 3 03:42 - - 1 01:08 6 00:45

JUNE 2015

CLEARANCE TIME Sea PortsSample Results

CLEARANCE TIME / ACTOR - SEA CLEARANCE TIME / ACTOR -SEA

GREEN YELLOW RED BLUE GREEN YELLOW RED BLUE

0 00:00 4 00:44 0 22:39 0 00:00 0 00:00 0 12:19 2 17:22 0 00:00

1 20:40 0 12:39 3 02:26 0 01:15 0 15:07 0 12:07 0 00:37 1 04:07

4 20:34 1 09:45 2 04:42 6 17:40 2 05:55 2 00:03 0 10:48 1 20:22

6 17:15 5 23:10 6 05:48 6 18:55 2 21:02 3 00:30 3 04:48 3 00:29

Importer /

Broker;

BOC;

TRGAs

PCHC

AABanks

Port

Operator

AVERAGE

CUSTOMS

CLEARANCE

TIME

NOV 2014 JUNE 2015

Relative to: Relative to:

Importer /

Broker;

BOC;

TRGAs

PCHC

AABanks

Port

Operator

AVERAGE

CUSTOMS

CLEARANCE

TIME

ACTORS ACTORS

+ 4 03:13Est Cargo Exam Time (Red Only)

+ 4 03:13Est Cargo Exam Time (Red Only)

CLEARANCE TIME AirportSample Results

CLEARANCE TIME / ACTOR - AIR CLEARANCE TIME / ACTOR - AIR

GREEN YELLOW RED BLUE GREEN YELLOW RED BLUE

0 00:00 0 02:15 2 06:31 0 00:00 0 00:00 1 01:25 0 17:52 0 00:00

0 00:26 0 03:48 1 09:18 0 17:21 1 01:10 2 20:47 0 17:50 0 21:20

0 03:56 3 15:31 0 00:18 0 20:08 0 23:40 0 02:04 0 19:41 0 03:46

0 04:22 3 21:35 3 16:08 1 13:30 2 00:51 4 00:17 2 07:24 1 01:07

NOV 2014 JUNE 2015

AVERAGE

CUSTOMS

CLEARANCE

TIME

Importer /

Broker;

BOC;

TRGAs

PCHC

AABanks

Port

Operator

AVERAGE

CUSTOMS

CLEARANCE

TIME

Relative to:Relative to:

Importer /

Broker;

BOC;

TRGAs

PCHC

AABanks

Port

Operator

ACTORSACTORS

Green Lane entries sometimes took longer than Red Lane entries

Customs gets a bad rap; much delays occur outside of BoCs part in the process chain

In many cases, longest delays happen with TRGAs, authorized agent banks and/or port operator

Theres scope for streamlining BoC clearance procedures

CRIL has made a definite improvement in flows

National Single Window would help speed up delays with TRGA clearances/permits

TTPA: Observations

Maraming Salamat Po