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Updates on the BOC E2M P4 Export Module, EU ENS, CO Francis Norman O. Lopez President Slide 2 Agenda Introduction EU Import Control System BOC E2M Export Module Certificate of Origin: Self-Certification Q&A Slide 3 About PEZA Local Focus Global Reach ! Department of Agriculture BAI BPI BFAR 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 BFAR A 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 2010 Member, 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 integrity InterCommerce... your Value Added Service Partner ! Slide 4 InterCommerce.. networking to the World European Union 27 Member States Asia Japan, Korea, China, Hongkong, Macau, Taipei, Thailand, Malaysia, Singapore, Indonesia Americas United States 1987 2008 2010 Slide 5 InterCommerce NOW Linked to EU Customs European Union 27 Customs Administrations Multiple formats Pan Asian eCommerce Alliance: PAA Network Japan, Korea China Taipei, Hongkong, Macau Thailand, Malaysia, Indonesia, Singapore ENS, eCO, SPS Certificate, etc. Advanced Declaration ENS Slide 6 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 data Pre-arrival security data for the purposes of risk management Slide 7 EU Community Customs Code reform: The entry summary declaration Article 87 CCC and 183 CCIP A declaration shall be made electronically and authenticated by the person making it. 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 All goods brought into the EU Customs Territory shall be covered by an entry summary declaration, except those covered by Article 181 c. Scope : All goods brought into the EU Customs Territory shall be covered by an entry summary declaration, except those covered by Article 181 c. Slide 8 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 Slide 9 Annex 30 A of the CCIP (Annex III of regulation (EC) no. 1875/2006) 1/2 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. Slide 10 2/2 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. Slide 11 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 declaration 2 - Modification 3 - Diversion request 4 - Arrival notification Slide 12 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 UnacceptableAcceptable Agricultural productsOranges, Fish, Rice, Bread Auto PartsAutomobile brakes, Windshield Glass for Automobiles Leather ArticlesSaddles, Leather Handbags, Leather Jackets Machine partsPumps, Seals, Engines VehiclesBoats, Cars, Bicycles Slide 13 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 arrival Maritime 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-off Long-haul flights at least four hours before arrival Rail and inland waterways at least two hours before arrival Road 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 Slide 14 Grace Period Import Control System Grace Period Effective 28 February France UK Ireland Hungary Malta Netherlands Romania Spain Germany: End February ? Belgium: End February ? Sweden: End April Italy: End May Portugal Greece Slide 15 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 Slide 16 Case: Transshipment Philippine: Outbound to Europe Main Vessel and Feeder Vessel: Main vessel: Assume responsibility for lodging the ENS for all goods VesselVOY N ManilaETAConnecting Vessel VOY N ETDPort in EU CSCL NAPOLI 0107N01/19-2002/05 Hongkong XIN OU ZHOU0052W02/0703/04 HAM 03/06 RTM RESOURC EFUL 34407/28-2908/03 Singapore NYK OCEANUS 01608080825 RTM 0828 HAM What 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 ? Slide 17 Can other supply chain operators perform this formality instead of the carrier? Yes: With the presumption of carriers consent Article 183 of the CCIP carrier has given his consent under contractual arrangements and that the lodging has been made with his knowledge. 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. Slide 18 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) Slide 19 Article 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 Services Inter http://ec.europa.eu/ecip/help/faq/index_en.htm Slide 20 European Union 27 Customs Administrations Multiple formats OPERATOR 1 FORWARDER Export Declaration e2m Phase 4 e-Export Doc (e-EDS) SPS Certificate EXPORTER Q1 2011 Q3 2011 Japan, Korea, China, Macau, Hongkong, Taiwan, Thailand, Malaysia, Singapore Indonesia, Philippines InterCommerce Conex Services Inter PEZA Slide 21 E2M Exports Implementation Schedule February 28 - MICP, Port of Manila and Port of Batangas March 21 - Subic, Clark, San Fernando, Limay, Legaspi April 4 - Cebu/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 Declaration implementation deferred indefinitely BOC E2M Export Declaration implementation deferred indefinitely Slide 22 E2M Export System Implementation Requisites Registration of Exporters in the BOC E2M Export System: Client Profile Registration System (CPRS) Registration of Exporters in the BOC E2M Export System: Client Profile Registration System (CPRS) - Accreditation with government agencies: BOI, PEZA, CDC, SBMA, CESA, ZEZA, AFAB - PhilExport (Manila and regional chapters) - Submission of exporter profile data thru VASPs - Exporter to get BRN from banks - Electronic Lodgment of Export Declaration/Single Administrative Document thru BOC-Accredited Value Added Service Providers (VASPs) Electronic Lodgment of Export Declaration/Single Administrative Document thru BOC-Accredited Value Added Service Providers (VASPs) - Online preparation of ED/SAD - Electronic submission - Automated BOC E2M response - Online Printing of the ED/SAD Slide 23 CPRS for E2M Export Procedures CMO 39-2008 as Amended by BOC Memo 07Mar 2011 1. Exporter Accreditation - Government Agencies: - Board of Investments - Phil Economic Zone Authority - Ecozone 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 Bataan - Private Organizations - Philippine Exporters Confederation (Manila): - Bonded Warehouse Operators - Data to be submitted by Accreditation agency to BOC - TIN, Name, Address, Contact Number 2. Exporter to submit CPRS Profile Data thru VASPs, and upload to the E2M OGA Server Slide 24 CPRS for E2M Export Procedures CMO 39-2008 as Amended by BOC Memo 07Mar 2011 3. BOC MISTG: - Accredit, Approve and Activate Exporter CPRS - E2M generates/emails Exporter COR and CCN 4. Exporter to Secure Bank Reference Number BRN from AAB, for payment of export related fees - Submit COR with CCN to AAB - AAB issues BRN to Exporter - Transmits Exporter BRN to BOC e2m thru PASS5 Slide 25 CPRS for Exporters March 11, 2011 Agencies (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 March 25, 2011 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 Slide 26 Mandatory Exporter CPRS Data (Partnership, Corporation) Name of Company Nature of business (BIR Certificate of Registration) Citizenship Address Contact Info Tax Identification Number VASP CCN No. SEC Registration No. Authorized Capital Stock Paid-in Capital Broker (Exporter Representative) Plant Address Company Logo - Scanned logo Major Stockholder - Name, TIN, Position - Contact info including email, phone - Scanned Stockholder photo, Signature Principal Officer - Name, TIN, Position - Contact info including email, phone - Scanned Stockholder photo, Signature Responsible Officer - Name, TIN, Position - Contact info including email, phone - Scanned Stockholder photo, Signature Slide 27 Exporter CPRS Mandatory Data (Individual) Registered Business Name Nature of Business (DTI Certificate of Registration) Citizenship Address Contact Info Tax Identification Number VASP CCN No. Broker (Exporter Representative) Plant Address Business Name/Logo - Scanned logo Principal Officer - Name, TIN, Position - Contact info including email, phone - Scanned Stockholder photo, Signature Responsible Officer - Name, TIN, Position - Contact info including email, phone - Scanned Stockholder photo, Signature Slide 28 Recent Directives on Export Procedures Customs Memorandum Orders - CMO - CMO 49-2010 : E2M Export Declaration thru the OSEDC Manila - CMO 54-2010 : E2M Export Declaration Joint Memorandum Orders - JMO - JMO 1-2010 BOC-SBMA Implementation of AEDS for Subic Freeport Locators - JMO 4-2010 BOC-PEZA Implementation of AEDS for PEZA Locators - JMO 6-2010 BOC-AFAB Implementation of AEDS for AFAB Locators CDC Memorandum Circular - CDC MC dated 3 December 2010 on Electronic Export Documentation EEDS New CMOs on BOC E2M Export Declaration to amend CMO 54, JMO with PEZA New CMOs on BOC E2M Export Declaration to amend CMO 54, JMO with PEZA Slide 29 Broker Importer Invoice, BL/AWB BOC Response: Assessment Final/Temporary VASP Gateway VASP Gateway BOC E2M Import Entry Workflow BAP/PASS5 AAB IED, Import Entry SAD (Formal/Wrhouse) BOC Final Payment Instruction (Net: duties, taxes, fees IPF, CSF, others) AAB Final Payment Confirmation Debit from Importer Account BRN + ADA Internet Airline/ Shipping Line Forwarder/ Consolidator Airline/ Shipping Line Forwarder/ Consolidator Manifest/BL COR/CCN Importers Online Visibility: Import Entry, Assessment Statement of Settlement Of Duties and Taxes (SSDT) Arrastre, Warehouse, Arrastre, Warehouse, Release Instruction CPRS Approved COR w BOC CCN VASP OGAs Permit Import Permit National Single Window National Single Window eIP, eTAP, SPS IC, eCAI Data OGA w Automated Processes : -PEZA, CDC, SBMA -DA: BAI, BPI and BFAR -BOI OGA w Automated Processes : -PEZA, CDC, SBMA -DA: BAI, BPI and BFAR -BOI Slide 30 Exporter Invoice, BL/AWB BOC Response: Selectivity, Assessment VASP Gateway VASP Gateway BOC E2M Export Declaration Workflow BAP/PASS5 AAB Export Declaration SAD BOC Payment Instruction: P115.00 Doc Stamp AAB Payment Confirmation Debit from Exporter Account BRN + ADA Internet Exporter Representative Forwarder Exporter Representative Forwarder COR/CCN Exporters Online Visibility: Export Declaration BOC Export Division Wharfinger BOC Export Division Wharfinger Export Release CPRS Approved COR w BOC CCN VASP OGAs Permit Export Permit, Clearance National Single Window National Single Window Permit Slide 31 PEZA/SEIPI AEDS (Pilot) Electronic lodgment of Export Declaration to Asycuda, using system generated Export Declaration SAD form, with barcode Reduced Customs requisites - No more Tally Sheet, Boatnote and underguarding Additional procedures - 30 minute window for PEZA Zone to inspect cargo - Barcode scanning upon exit from ecozone - Barcode scanning upon arrival at airline warehouse (since this is not done, PEZA does not have closure on export shipments) Slide 32 BOC E2M Export Declaration/SAD Exporter registration BOC E2M CPRS for Exporters VASP for Exporters and Exporter Representative (forwarder) Electronic Lodgment Export Clearance, Permit prior to lodgment Export Declaration Code (eg. EX1-1, EX2-1) Export Declaration Form: Single Administrative Document (Export SAD) Selectivity screens : Red, Yellow and Green Payment of P115.00 documentary stamps, thru PASS5 Issuance of Authority to Load (Export Release) Slide 33 Why NOT pay doc stamps via PASS5 ? Assessment of doc stamps after examination Regular banking hours: Mon-Fri, 9:00am 3:00pm Alternative 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 Slide 34 Export Declaration Processes Frame Relay AEDS Export Server 1. Manual Procedures 2. Electronic AEDS 3. BOC E2M AEDS Exporter/Forwarder BOC E2M Export Module VAS P Exporter/ Exporter Representative Internet Export Documents : Export Declaration Invoice AWB/BL Export Tally Sheet BoatNote Mission Order, Underguarding Export Documents : Export Declaration - SAD Invoice AWB/BL Export Documents : Export Declaration - SAD Invoice AWB/BL Manual encoding of data in ED at ecozone Manual, paper-based processes 1-3 days cycle time Poor data quality, additional manual work to compile and analyze data, generate reports, statistics Costly to exporters, government Requires manual data entry, with paper-based processes Automated ED lodgment via proprietary, online systems System requires periodic data maintenance Online submission of ED/SAD to BOC E2M, thru VASPs Automated E2M processing, with selectivity Online printing of ED/SAD Exporter Online Visibility, Reports Customs, OSEDC Slide 35 Export Declaration Processes Frame Relay AEDS Export Server 1. Manual Procedures 2. Electronic AEDS 3. BOC E2M AEDS Exporter/Forwarder BOC E2M Export Module VAS P Exporter/ Exporter Representative Internet Export Documents : Export Declaration Invoice AWB/BL Export Tally Sheet BoatNote Mission Order, Underguarding Export Documents : Export Declaration - SAD Invoice AWB/BL Export Documents : Export Declaration - SAD Invoice AWB/BL Manual encoding of data in ED at ecozone Manual, paper-based processes 1-3 days cycle time Poor data quality, additional manual work to compile and analyze data, generate reports, statistics Costly to exporters, government Requires manual data entry, with paper-based processes Automated ED lodgment via proprietary, online systems System requires periodic data maintenance Online submission of ED/SAD to BOC E2M, thru VASPs Automated E2M processing, with selectivity Online printing of ED/SAD Exporter Online Visibility, Reports Customs, OSEDC Slide 36 Pilot Implementation of AEDS at PEZA AEDS (ACOS) AEDS (ACOS) PEZA Exporter PEZA Exporter BOC PEZA VASP - E PEZA VASP - E Slide 37 JMO 4-2010: PEZA and BOC PEZA AEDS PEZA AEDS PEZA Exporter PEZA Exporter BOC E2M AEDS BOC E2M AEDS PEZA VASP -A PEZA VASP -A PEZA VASP - E PEZA VASP - E Memo Circular implementing PEZA AEDS Slide 38 Definition of Terms Automated Export Documentation System - Refers 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 VASP - Expanded for use in Subic, and recently thru issuance of JMO, in Bataan and for other PEZA registered exporters - AEDS Fee (Pilot for SEIPI members) : P75.00 per ED, with revenue share to SEIPI E2M Automated Export Declaration System - Refers 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 Liquidation Slide 39 CDC Electronic Export Documentation CDC EEDS CDC EEDS Clark Freeport Exporter Clark Freeport Exporter BOC CDC VASP - E CDC VASP - E CDC VASP -I CDC VASP -I OSEDC R3 Slide 40 CDC Electronic Export Documentation and E2M Export Declaration CDC EEDS CDC EEDS Clark Freeport Exporter Clark Freeport Exporter BOC E2M AEDS BOC E2M AEDS CDC VASP - E CDC VASP - E Slide 41 CDC Electronic Export Documentation Eliminate CDC Export Documentation form Use ED SAD, with the CDC Ref Number and barcode on ED SAD Box 44 Electronic submission of Export Documentation data Online preparation of the CDC Export Doc using the Export SAD template Export SAD is submitted to CDC Export System for automated processing CDC response would indicate CDC Export Doc reference number Online printing of the Export SAD, with the CDC Ref Number and barcode on ED SAD Box 44 Electronic submission of Export SAD to BOC E2M Either create Export Declaration SAD from CDC approved EEDS, or Automated transmission to BOC E2M upon receipt of response from CDC Slide 42 JMO vs CMO JMO on AEDSCMO on E2M Export Exporter 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 E2M Slide 43 Updates Summary BOC E2M Exports BOC Meeting re CPRS for Exporters 17 February BOC Meeting re CPRS for Exporters 17 February - Defer implementation of E2M Export Declaration - Agencies, PhilExport to submit accredited exporters and members of good standing - Exporters to register thru VASPs (mandatory data only) EDC Networking Committee Meeting 22 February EDC Networking Committee Meeting 22 February - BOC 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 others - Draft CMO/JMO re lodgment of Export Declaration of Clark Freeport and PEZA Locators to BOC E2M Slide 44 APEC Self-Certification Self-Certification Exporters to do Self-Certification in lieu of securing Certificate of Origin (CO) from BOC or PCCI APEC Pilot - Malaysia-Singapore-Brunei - Pre-selection of pilot companies (Certified Exporter) - Prior notification to importing country - Invoice 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 2012 Requires legislation, to be inserted in draft Customs Modernization Bill Slide 45 New Services in Q1 2011 EU Advanced Declaration ENS - Economic Operator Registration and Identification (EORI) - ENS Web Application BOC E2M - P4: Informal, Transshipment, Exports Declaration, eManifest Dept of Agriculture - BAI 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 2011 PEZA - E-LOA, EIPS and Transfer for Logistics Enterprises: on-going pilot implementation Slide 46 National Single Window NSW Import Permit Processes NSW BOC e2m OGA (Auto) OGA (Auto) OGA (Manual) OGA (Manual) Importer Broker Online Registration Online Submission Import Permit Application Data Manual Submission of NSW Import Permit Application Form + Support Docs, Payment of Fees Import Permit Status Online Submission of Import Permit Application Data + Support Docs Autodebit Payment of Fees Approved Import Permit Data Online Lodgment of Import Entry Declaration Slide 47 Q & A : Slide 48 WebCWS: Export Declaration Slide 49 Slide 50 Slide 51 Slide 52 Slide 53 Slide 54 Slide 55 Slide 56 Slide 57 Slide 58 Slide 59 Slide 60 Slide 61 Slide 62 Slide 63 Slide 64 Slide 65 Slide 66 Slide 67 Slide 68 Slide 69 Slide 70 Slide 71 CDC ED/SAD Print Out Slide 72 WebCWS: PEZA AEDS Slide 73 Slide 74 Slide 75 Slide 76 Without Exportables With Exportables Slide 77 Slide 78 Slide 79 WebCWS: CDC Export Documentation Slide 80 Slide 81 Slide 82 Slide 83 Slide 84 Slide 85 Slide 86 Slide 87 CDC ED/SAD Print Out