BUREAU OF CUSTOMS

Customs Administrative Order No. 4-2009

Temporary Suspension of the Operational Provisions of
CAO 2-97 Governing the 150-day Allowable Dwell Time of
Foreign Containers in the Philippines
Adopted: 26 Oct. 2009
Date Filed: 18 March 2010
In view of the global economic downturn that has resulted to a steep decline in container
demand, a sudden surge of vessel lay-ups worldwide and a significant slowdown in the
movement and repositioning of empty containers in Asia, including the Philippines, the
operational provisions of CAO 2-97 subjecting foreign containers to payment of duties, taxes and
other charges in the event that their stay exceeds the 150-day dwell-time, is hereby temporarily
suspended subject to the following conditions:
1. the suspension shall apply to containers that arrived in January 2009 onwards but not later
than December 31, 2009; and
2. the suspension shall only be until December 31, 2009 unless extended further by the
Department of Finance upon meritorious grounds.
This Order shall take effect immediately.
(SGD.) NAPOLEON L. MORALES
Commissioner
APPROVED:
(SGD.) MARGARITO B. TEVES
Secretary of Finance
--o0o

BUREAU OF CUSTOMS
Customs Administrative Order No. 5-2009
Granting Temporary Relief to Distressed Exporters
Unable to Timely Liquidate Imported Raw Materials/Articles
Intended For Manufacture Into Finished Products for Export
Adopted: 23 Nov. 2009
Date Filed: 18 March 2010
I. OBJECTIVE:
1. To temporarily assist distressed legitimate local exporters who are unable to timely liquidate
imported raw materials/articles intended for the manufacture of finished products for export in this
time of worldwide financial crisis.
2. To provide parameters for the grant of such temporary relief.
II. SCOPE:
This Order shall cover only distressed legitimate exporters duly certified as such by the
Department of Trade and Industrys Bureau of Export Trade Promotions (DTI-BEPT) and deemed
qualified by the Bureau of Customs (BOC) as described in paragraphs 5 and 6 hereunder; and,
may be availed of by such exporters within a period of only one (1) year from effectivity hereof
unless otherwise extended by the Secretary of the Department of Finance (DOF).
III. ADMINISTRATIVE PROVISIONS:
1. As utilized in this Order, a distressed legitimate exporter is an importer of raw materials
intended for the manufacture thereof into finished products for export; but, can no longer export
said finished products to its intended buyer/client in view of the cancellation of the order or supply
contract, not for reasons of quality but brought about by the financial crisis being experienced
internationally.
2. Further, in view of such cancellation of the order or supply contract, the finished products
manufactured for export could no longer be supplied to the intended buyer/client or to any other
international buyer/client; nor, could said finished products be disposed by the exporter except
through the local market and after payment of duties and taxes due on the imported articles.
3. While such finished products have not been disposed of yet in any case as provided above,
except in case of sale to the local market after payment of duties and taxes due, the period for
storage and/or to liquidate the imported articles have already expired and the same are now
subject to the applicable fine, surcharge and/or penalty.
4. In the above case, the distressed legitimate exporter may apply with the Commissioner of
Customs, through the Collector of Customs concerned, for the compromise of the applicable fine,
surcharges and/or penalty as provided under Section 2316 of the TCCP, as amended.
5. Such application shall be supported by a certification issued therefor by the DTI-BEPT together
with such other documents which would establish the distressed status of the exporter as
provided above; and, shall be subject to scrutiny by the Office of the Deputy Commissioner for
Assessment and Operations Coordinating Group (AOCG), BOC which shall thereafter make its
recommendations thereon.

6. The Commissioner of Customs, upon receiving a favorable recommendation on the

application, shall then act accordingly on the same and transmit such to the Office of the
Secretary, DOF for approval of any authorized compromise together with the terms and
conditions thereof.
IV. AUTHORITY TO ISSUE RULES AND REGULATIONS:
The Commissioner of Customs shall issue the necessary rules and regulations to implement
this Order.
V. REPEALING CLAUSE:
This Order repeals or amends prior issuances inconsistent herewith.
VI. EFFECTIVITY:
This Order shall take effect upon its due publication and shall remain in force within one (1)
year thereafter, unless otherwise extended by the Secretary of the DOF.
(SGD.) NAPOLEON L. MORALES
Commissioner
APPROVED:
(SGD.) MARGARITO B. TEVES
Secretary
--o0o--

BUREAU OF CUSTOMS
Customs Administrative Order No. 6-2009
Transforming the Risk Management Group of the Bureau of
Customs Into the Risk Management Office Pursuant to
Executive Order No. 836, s. 2009
Adopted: 24 Nov. 2009
Date Filed: 18 March 2010
I. OBJECTIVE:
Recognizing the value of the Risk Management Groups (RMG) ever expanding
responsibility in risk management/assessment/profiling and in the updating of the Bureaus
Selectivity Screens, the RMG, pursuant to Executive Order No. 836, is transformed into the Risk
Management Office (RMO) under the Office of the Commissioner.
II. GENERAL PROVISIONS:
To ensure its integrity and autonomous character, the RMO is placed directly under the
Commissioner of Customs while its day to day operations shall be managed by the Deputy
Commissioner for the Intelligence Group, Bureau of Customs.
The Deputy Commissioner of the Intelligence Group, as manager of the RMO, may
recommend to the Commissioner of Customs new policies and organizational improvement to
enhance the efficiency and effectivity of the RMO.
A. Functions
The RMO shall perform the following functions:
1. Review and update the parameters of the Selectivity Screen of the Selectivity System of the
Bureau of Customs;
2. Ensure an efficient and secure pipeline of information from all sources to the RMO;
3. Conduct a continuing study/profile of importers, exporters and customs brokers;
4. Maintain a database on all smuggling cases and related information; and
5. Recommend to the Commissioner of Customs policies and programs aimed at increasing the
efficiency and effectivity of the BoCs Selectivity System to be at par with other Customs
administrations.
The Commissioner of Customs may impose additional functions to ensure that the aims and
objectives of Executive Order No. 836 are achieved.
B. Composition
The RMO shall be headed by a Chief of Office and shall be composed, aside from the
Administrative Staff, by the following units:
1. The Strategic Assessment Unit shall be responsible for:

The development and creation of policies for risk assessment which shall be
nationwide in scope. It shall identify or profile personalities and modus operandi of
those involved in the importation and distribution of smuggled goods.
2. The Research and Analysis Unit shall be responsible for:
The gathering of all information relating to the improvement of the Selectivity Screen
such as records of all shipments alerted, placed on hold, seized, forfeited, and/or
finally disposed off by BOC nationwide. To collate data pertaining to smuggled goods
apprehended by other law enforcement authorities outside the customs zone.
To develop a database support system and a computer based risk management
system for enforcement.
3. The Operational Risk Assessment Unit shall perform the following tasks:
To implement the policies created and developed by the Strategic Assessment Unit in every
port under the jurisdiction of the Bureau of Customs.
III. OPERATIONAL PROVISIONS
1. The RMO shall be in close coordination with all the Regional Risk Management Offices in order
that reports/recommendations can be acted upon immediately.
2. The reports and the findings shall be collated and shall be stored in the database of all
smuggling cases and related data.
3. All the data gathered shall be used in profiling personalities and entities and the modus
operandi of those involved in the importation and distribution of smuggled goods.
4. These profiles shall then drive the inspection, selectivity programs, through which the declared
data on shipment will be screened on the basis of identified risk parameters and consignments,
and depending on the selected risk level, goods and persons are routed through different
channels of Customs control;
5. All Orders, Memoranda, Reports and Requests for the Issuance of Alert/Hold Order in
connection with the provisions of this Order must be duly signed by the Chief, RMO and
concurred upon by the Deputy Commissioner, Intelligence Group, before the same is submitted
to the Commissioner for his signature. All other communications and documents must be signed
by the Deputy Commissioner, Intelligence Group; and,
6. The RMO shall submit a quarterly report of its work program and accomplishment to the
Secretary of Finance and the Office of the President of the Philippines.
IV. MISCELLANEOUS PROVISIONS
1. To ensure a smooth transition in the institutionalization of the Risk Management Office (RMO
for brevity), the incumbent officers and complement of the Risk Management Group shall function
as the interim staff pending the selection of qualified personnel for the permanent plantilla
positions of the Risk Management Office: They shall be augmented by personnel from various
units, as may be needed in the exigency of the service;
2. The RMO shall have the authority to require data and information relevant to its function from
all offices/personnel of the Bureau;

3. The Office of the Commissioner and the RMO shall have direct access to the computer
system as provided by MISTG for the Offices to autonomously and independently, implement the
selectivity alert and hold processes of the Office of the Commissioner and the RMO.
4. Nothing in this Order shall be construed as to diminish or limit the authority of the Bureau in the
enforcement of the general provisions, of the TCCP.
V. REPEALING CLAUSE
All Orders, Memoranda, Circulars or parts thereof, which are inconsistent with this Order are
deemed revoked, amended and/or modified accordingly.
VI. SEPARABILITY CLAUSE
If any part of this Order is declared by the Courts as unconstitutional or contrary to existing
laws, the other parts not so declared shall remain in full force.
VII. EFFECTIVITY
This Order shall take effect fifteen (15) days after publication in a newspaper of general
circulation.
(SGD.) NAPOLEON L. MORALES
Commissioner
APPROVED BY:
(SGD.) MARGARITO GARY B. TEVES
Secretary of Finance

Customs Memorandum Order No: 01-2009

CMO 01-2009
AMENDMENT TO SECTION VI. PAR. (4) OF CMO 32-2007
Republic of the Philippines
Department of Finance
BUREAU OF CUSTOMS
Manila 1099
22 December 2008
CUSTOMS MEMORANDUM ORDER
NO. 01- 2009
SUBJECT:
ADDITIONAL GUIDELINES FOR THEACCREDITATION OF INFORMATION
VALIDATIONSERVICE PROVIDER (IVSP)
SECTION 1. OBJECTIVES
1.1
To effectively implement CAO No. 07-2008 entitled, "Accreditation of Information
Validation Service Provider (IVSP) for Integration into BOC's Client Profile Registration
System";
1.2
To ensure that the interests of the government are amply protected by providing
procedures and guidelines for validation of client profile information;
1.3
To enhance the accreditation procedures for BOC stakeholders.
SECTION 2. SCOPE OF SERVICESThe scope of services to be outsourced to the
accredited IVSP shall include the following:
2.1
Design and implement an Information Validation System (IVS) which includes the
development of an Information Validation Report (IVR);
2.2
Develop and implement proce1ures for the validation of client profile information;
2.3
Develop a Client Risk Assessment System (CRAS);
2.4.
Develop a database to be used by BOC in periodic risk assessments on subject
importers/clients/stakeholders;
2.5.
Integrate the services and the systems developed as stipulated in paragraphs 2.1, 2.2, 2.3,
and 2.4 with the computerized e2m Customs System as specified by the MISTG;
2.6.
Perform such other services required by the BOC as defined in the Terms of Reference to
be prepared by the IVSP Accreditation Committee (lAC) subject to the approval of the
Commissioner.

SECTION 3. ADMINISTRATIVE PROVISIONSCommittee (lAC) is hereby created

which shall be composed of:
3.1
IVSP Accreditation Committee (lAC). The IVSP Accreditation
1
Deputy Commissioner, AOCG -Chairman
2.
Deputy Commissioner, MISTG-Vice Chair
3.
Deputy Commissioner, RCMG-Co-Vice Chair
4.
Director, Administration Office -Member
5.
Director, CIIS -Member -Member
6.
Director, Legal Service -Member
7.
Director, PSDS -Member
8.
Director, ESS -Member
9.
Executive Director, CAS -Member
3.2
Functions of lAC.The lAC shall have the following functions:
3.2.1.
Facilitate and fast-track the accreditation process to optimize, the impact of the
outsourcing activity;
3.2.2.
Recommend relevant policies, responsibilities and liabilities of IVSP, rules and processes
related to all issues surrounding the accreditation of IVSP;
3.2.3.
Recommend evaluation criteria and business model for accreditation of IVSP for
approval of the Commissioner of Customs;
3.2.4.
Meet regularly or as often as may be necessary to carry out its functions;
3.2.5.
Perform such other functions as may be assigned to it by the Commissioner.
3.3
IAC Quality Assurance Team. lAC Quality Assurance Team (QAT) is hereby created and
shall be composed of the technical experts from MISTG to check and test the necessary
infrastructure, computer system/facilities for the accreditation of IVSP.
3.2.1.
Facilitate and fast-track the accreditation process to optimize, the impact of the
outsourcing activity;
3.4
lAC Secretariat. The lAC shall be assisted and supported by the lAC Secretariat and

members thereof to be named in the Customs Personnel/Special Order for the purpose to
perform the following functions:
3.4.1.
Provide administrative and secretarial support to the lAC;
3.4.2.
Receive and check the completeness of applications;
3.4.3.
Establish a system for the effective monitoring and reporting of applications or matters
received and taken cognizance of by the lAC pursuant to this Order;
3.4.4.
Organize and make necessary arrangements for the lAC meetings;
3.4.5.
Prepare minutes of the lAC meeting, decisions/resolutions, and internal and external
communications, including the sending of notices when required;
3.4.6.
Keep and secure all pertinent documents handled by lAC;
3.4.7.
Perform such other functions as may be assigned to it by the lAC.
SECTION 4. ACCREDITATION CRITERIA
4.1
lAC shall formulate accreditation criteria for evaluation of applications pursuant to this
Order to be approved by the Commissioner;
4.2
The duly approved accreditation criteria shall be published by the lAC together with the
invitation for accreditation of IVSP.
SECTION 5. ACCREDITATION PROCESS
5.1
Pre-Qualification Process
5.1.1
Through the lAC, BOC shall publish in two (2) newspapers of general circulation an
invitation for accreditation from IVSP companies. The invitation includes the eligibility
requirements and the Terms of Reference that shall be determined by the lAC and
approved by the Commissioner.
5.1.2
After the issuance of the invitation to apply for accreditation of IVSP but before the date
for accepting the application for accreditation to be specified in the said invitation, the
lAC shall conduct a pre-qualification conference to clarify and/or explain any of the
requirements, terms and conditions for the accreditation of an IVSP.
5.1.3
A company who meets the eligibility requirements of this Order wishing to apply for
accreditation shall accomplish the Application Form which is hereto attached as ANNEX
"A". The complete application together with all the documentary requirements including
the BOC Official Receipt representing non-refundable payment of processing fee in the
amount of Fifty Thousand Pesos (P5O,OOO.OO) shall be submitted to the lAC
Secretariat on such date specified in the abovementioned invitation.

5.1.4
lAC Secretariat shall check the completeness of the application and the full payment of
the processing fee.
5.1.5
Upon instruction from the lAC, the QAT together with the lAC Secretariat shall conduct
site visits and inspection of the actual operation of the applicant for the purpose of prequalification. The QAT and lAC Secretariat shall submit its findings/recommendations to
lAC.
5.1.6
Upon the direction of the Chairman of the IAC, the Secretariat shall calendar the meeting
and issue the necessary notices to all members and interested parties.
5.1.7
The lAC shall pre-qualify not more than three (3) service providers from those who have
submitted their applications and have been determined as eligible. Only the top three (3)
among those determined as eligible shall be considered. The Committee shall issue a
Decision in writing approving or denying the application
5.1.8
The IAC shall notify the applicants whose applications have been denied attaching the
corresponding Decision with the information that subject Decision is final and nonappealable.
5.1.9
Similarly, the IAC shall inform the pre-qualified IVSP/s in writing of the initial approval
of its application and its qualification to proceed to the next stage of the process.
5.2.
Qualification Process
5.2.1.
The IAC shall schedule the conduct of a conference among the pre-qualified IVSPs to
discuss/clarify, among other things, the technical and financial requirements of the
accreditation of an IVSP and the Terms of Reference to be issued to them.
5.2.2.
Pre-qualified IVSPs shall submit their technical and financial proposals through the
Secretariat within the prescribed period identified during the abovementioned conference.
..'
5.2.3.
Through the IAC, BOC shall release to pre-qualified IVSPs the Terms of Reference
(TOR) and the Non Disclosure Understanding which will be signed by their authorized
officials.
5.2.4.
Upon instruction from the lAC, the QAT together with the lAC Secretariat shall conduct
site visits and inspection of the actual operation of the pre-qualified IVSPs for the final
phase of the accreditation process. Likewise, the QAT shall conduct a testing and
determination of the system requirements of the pre-qualified IVSPs which include,
among others, checks for user-friendliness of the system. The QAT and IAC Secretariat
shall submit its findings/recommendations to lAC.
5.2.5.
The IAC shall evaluate applications using the Quality-Cost Based Evaluation/Selection

(QCBE/S) to be adopted by the IAC and approved by the Commissioner. The IAC shall
issue a Decision in writing approving or denying the application for accreditation, stating
the reason and area of non-compliance in case of denial.
5.2.6.
BOC through the IAC shall select and accredit not more than three (3) IVSPs.
5.2.7.
The lAC shall notify the pre-qualified NSP/s whose applications have been denied
attaching the corresponding Decision with the information that subject Decision is final
and non-appealable.
5.2.8.
In case of approval and upon payment of an initial accreditation fee in the amount of
Php5O,OOO.OO (for the probationary accreditation), a Certificate of Accreditation shall
be issued by the lAC to the NSP/s indicating therein the Official Receipt Number and the
probationary status for six (6) month of such accreditation.
5.2.9.
After issuance of the Certificate of Accreditation, the lAC shall make an official
announcement and/or publish the accredited NSP/s for the information of the
stakeholders.
5.2.10.
The accredited NSP shall undergo the aforesaid six (6)-month probationary period
(technical evaluation) after which the BOC through the lAC shall decide whether or not it
will grant full accreditation status to the NSP.
5.2.11.
Upon granting of full accreditation status and payment of the remaining accreditation fee,
the applicant shall be issued an accreditation Certificate, indicating therein the Official
Receipt Number and the period of validity of such accreditation.
SECTION 6. CONDITIONS FOR ACCREDITATION
6.1
SLU and NDU. The selected NSP shall sign a Service Level Undertaking (SLU) and a
Non-Disclosure Undertaking (NDU) to be prepared by the lAC subject to approval by the
Commissioner.
6.2
Performance bonds. The accredited NSP shall post a Performance Bond, issued by a
BOC-accredited surety company, amounting to Ten Million Pesos (PhP 10M) and
maintain the same during the subsistence and validity of the accreditation, which shall be
forfeited in favor of BOC in the event it is established that the accredited NSP is in
defatllt of any of its obligations.
6.3
Technical Acceptance Tests. The accredited NSP must successfully pass the technical
acceptance tests (including systems integration, data security and integrity,
communications, and performance) that will be conducted by the Management
Information Systems and Technology Group of the BOC for the initial, the post
probationary and the yearly technical evaluation and validation, to qualify for continuous
accreditation.
6.4
Further Accreditation Process. BOC may carry out further accreditation processes after

three (3) years of operation of the initially accredited NSP.

6.5
Reservation to Change Accreditation Criteria. BOC reserves the right to change any of
the accreditation criteria as may be deemed necessary by the Commissioner.
SECTION 7. PERIOD AND RENEWAL OF ACCREDITATION
7.1
The selected IVSP shall be given accreditation status for a period of three (3) consecutive
years, inclusive of the probationary period, and will be renewable yearly thereafter.
7.2
An accredited IVSP desiring to continue his services with the BOC is enjoined to file his
accreditation renewal application with lAC at least thirty (30) days before the expiration
of its three-year accreditation or one-year accreditation, as the case may be, subject to the
evaluation of the quality of their performance as measured by the Service Level
Undertaking (SLU), and compliance to Eligibility requirements.
7.3
No application for renewal of accreditation shall be accepted if the certificate of
accreditation has been suspended or revoked during the time of its subsistence, unless
subsequently lifted by the lAC.
7.4
An application for renewal filed beyond the prescribed period for application for renewal
shall be considered a new application for the purpose only of charging the appropriate
processing fee mentioned in Section 4.1 of this Order.
SECTION 8. SCHEDULE OF FEES
8.1
Accreditation and Renewal Fees Payable to BOC by the Accredited IVSP. A one time
accreditation fee of PhP 300,000.00 (PhP 50,000.00 for probationary accreditation and
balance of PhP 250,000.00 upon approval of full accreditation status) good for three (3)
years and a yearly renewal fee of PhP 100,000.00 thereafter, shall be imposed.s
8.2
Fees Payable to IVSP by the transacting public. The IVSP will determine its respective
fee structures based on several factors such as market conditions and systems
sustainability requirements, among others, which shall be submitted in the financial
proposal. The schedule of fees as proposed shall be one of the bases for accreditation and
shall not be increased without the prior approval by the BOC and the Department of
Finance. The BOC shall not collect those fees in behalf of the IVSP.
SECTION 9. PRE- TERMINATlON OF AGREEMENT OR CANCELLATION OF
ACCREDITATION
9.1
BOC through the lAC may pre-terminate its Agreement with the accredited IVSP or
cancel IVSP's accreditation for any of the following:
9.1.1
Violation of the provisions of this Order and related rules and regulations, including SLU
and NDU.
9.1.2

Violation of the Tariff and Customs Code of the' Philippines, e-Commerce Act and other
related laws.
9.1.3
Actions inimical to the security and integrity of the BOC e-Customs operations.
9.1.4
Other violations as may be determined by the Commissioner of 80C.
SECTION 10. REPEALING CLAUSEAll orders, memoranda, circulars and such other
issuances inconsistent herewith are hereby repealed and/or deemed modified accordingly.
SECTION 11. SEPARABILITY CLAUSEIf any part or provision of this Order is later
on declared invalid or illegal, the remaining portion shall remain valid and unaffected.
Section 12. EFFECTIVITY CLAUSEThis Order shall take effect immediately.
SGD. NAPOLEON L. MORALES
Commissioner

Customs Memorandum Order No: 02-2009

CMO 02-2009
ADDITIONAL GUIDELINES FOR THE ACCREDITATION OF INFORMATION
VALIDATION SERVICE PROVIDER (IVSP)
Republic of the Philippines
Department of Finance
BUREAU OF CUSTOMS
Manila 1099
January 9, 2009
CUSTOMS MEMORANDUM ORDER
NO. 02- 2009
TO:
All Bureau Officials and Employees
SUBJECT:
Amendment to Section VI. par. (4) of CMO 32-2007
Section VI, par. 4 of CMO 32-2007 dated September 29, 2007 is hereby
amended to read, as follows:
"Section VI. Authority for Issuance of Reassignment/Designation Order:
4.
Reassignment and/or Designation Orders of ESS and CIIS personnel involving
movement within ESS and CIIS units in the different Ports/Subports below the District
Commander level, shall be approved by the Deputy Commissioner, Internal
Administration Group (lAG) upon recommendation of the Deputy Commissioner for
Intelligence and Enforcement Group (lEG). The appropriate Customs Personnel Order
shall be prepared and numbered by HRMD. "
Effective immediately.
SGD: NAPOLEON L. MORALES
Commissioner

Customs Memorandum Order No: 03-2009

CMO 03-2009
EXECUTIVE ORDER NO. 691, TEMPORARILY MODIFYING THE RATES OF
IMPORT DUTY ON CRUDE PETROLEUM OILS AND REFINED PETROLEUM
PRODUCTS UNDER SECTION 104 OF THE TCCP OF 1978 (P.O. NO. 1464), AS
AMENDED
22 January 2009
CUSTOMS MEMORANDUM ORDER
NO. 3 - 2009
SUBJECT:
Executive Order No. 691, Temporarily Modifying the Rates of Import Duty On Crude
Petroleum Oils and Refined Petroleum Products Under Section 104 of The TCCP of 1978
(P.O. No. 1464), as amended
Executive Order No. 691, which became effective on 14 January 2008 per CMC No. 222008 dated January 28, 2008, provides in Section 3 thereof that ..The MFN rates on crude
and refined petroleum products shall be reduced based on certain triggers indexed to oil
prices in the world marker'.
In its Certification dated December 16, 2008 (copy attached) the IDepartment of Energy
certified that:
"The Department of Energy (DOE) duly certifies that the trigger price levels in the
implementation of Executive Order No. 691, Temporarily Modifying the rates of Import
Duty on Crude Petroleum Oil and Refined Petroleum Products Under Section 104 of the
Tariff and Customs Code of 1978 (Presidential Decree No. 1464J, as amended, have not
been reached for the period December 1-15, 2008.
The average CIF price of Dubai crude and diesel, in the intemational market were
US$43.73 per barrel and $65.34 per barrel, respectively I during the period December 115, 2008. As such, pursuant to Section 4 of Executive Order No. 691, all import entries
corresponding to articles listed in Annex "An thereof, filed and received by the Bureau of
Customs (BOC), shall be levied 3% rate of duty, effective January 1, 2009.
This certification is issued on December 16, 2008.
(SGD) ANGELO T. REYES
Secretary"
For your information and implementation.
NAPOLEON L. MORALES
Commissioner

Customs Memorandum Order No: 04-2009

CMO 04-2009
EXECUTIVE ORDER NO. 691, TEMPORARILY MODIFYING THE RATES OF
IMPORT DUTY ON CRUDE PETROLEUM OILS AND REFINED PETROLEUM
PRODUCTS UNDER SECTION 104 OF THE TCCP OF 1978 (P.D. NO. 1464), AS
AMENDED
27 January 2009
CUSTOMS MEMORANDUM ORDER
NO. 4 - 2009
SUBJECT:
Executive Order No. 691, Temporarily Modifying the Rates of Import Duty On Crude
Petroleum Oils and Refined Petroleum Products Under Section 104 of The TCCP of 1978
(P.D. No. 1464), as amended
Executive Order No. 691, which became effective on 14 January 2008 per CMC No. 222008 dated January 28, 2008, provides in Section 3 thereof that "The MFN rates on crude
and refined petroleum products shall be reduced based on certain triggers indexed to oil
prices in the world market".
In its Certification dated January 22, 2009 (copy attached) the Department of Energy
certified that:
"The Department of Energy (DOE) duly certifies that the trigger price levels in the
implementation of Executive Order No. 691, Temporarily Modifying the Rates of Import
Duty on Crude Petroleum Oil and Refined Petroleum Products Under Section 104 of the
Tariff and Customs Code of 1978 (Presidential Decree No. 1464), as amended, have not
been reached for the period January 1-15, 2009.
The average CIF price of Dubai crude and diesel, in the international market were
US$47.477 per barrel and $64.928 per barrel, respectively, during the period January 115, 2009. As such, pursuant to Section 4 of Executive Order No. 691, all import entries
corresponding to articles listed in Annex "An thereof, filed and received by the Bureau of
Customs (BOC), shall be levied 3% rate of duty, effective February 1, 2009,
This Certification is issued on January 22.2009.
(SGD) ANGELO T. REYES
Secretary"
For your information and implementation.
NAPOLEON L. MORALES
Commissioner

Customs Memorandum Order No: 05-2009

CMO 05-2009
ABOLITION OF THE INTERIM SCANNING UNIT AND TRANSFER OF ITS
FUNCTIONS TO THE X-RAY INSPECTION PROJECT
04 February 2009
CUSTOMS MEMORANDUM ORDER
NO. 5 - 2009
TO:
All Deputy Commissioners, Service Directors, All Collectors, Division Chiefs, Section
Chiefs and All others concerned
SUBJECT:
Abolition of the Interim Scanning Unit and Transfer of Its Functions to the X-ray
Inspection Project
In the interest of the service, the Interim Scanning Unit, Office of the Commissioner is
hereby abolished and its functions are hereby transferred to the X-ray Inspection Project
(XIP), Office of the Commissioner. Henceforth, all x-ray operations and other scanning
matters of the Bureau will now be placed under the supervision and control of the XIPOCOM.
Accordingly, Customs Memorandum Order No. 6-97 dated 13 February 1997, "Creation
of an Interim Scanning Unit" signed by then Commissioner Guillermo L. Parayno. Jr. is
hereby revoked.
Pending issuance of a new operational guidelines' at the NAJA Customshouse, Clark
International Airport and Mactan International Airport and in order not to disrupt the
scanning operations of said Ports, the procedure under Customs Memorandum Order No.
21-98 dated 15 July 1998, "Guidelines on the Operation of the Interim Scanning Units"
signed by then Commissioner Pedro C. Mendoza shall continue to be enforced.
This CMO shall take effect immediately and shall last until revoked.
Please be guided accordingly.
NAPOLEON L. MORALES
Commissioner

BUREAU OF CUSTOMS
Customs Memorandum Order No. No. 44-2009
CPRS Registration of Once-A-Year Importer
(Previously First and Last Importation Scheme)
Adopted: 2 Oct. 2009
Date Filed: 18 March 2010
1. Objectives
1.1 To recognize the Once-A-Year Importer as a valid client under the Client Profile Registration
System (CPRS) of the Electronic to Mobile (e2m) Customs System
1.2 To provide detailed instructions to Once-A-Year Importers.
1.3 To explain the privileges and limitations of a Once-A-Year Importer in the e2m Customs
System clearance process
1.3 To facilitate the clearance of a Once-A-Year importation.
2. General Provisions
2.1 A Once-A-Year Importer is an individual, company, corporation or partnership who has a
single shipment covered by one Bill of Lading and one import entry declaration. The registration
of an importer under this order is limited only to one importation for the period of 365 days from
the date of approval by the District Collector of the port.
2.2
The Once-A-Year importation application shall be evaluated and recommended for
approval by the CIIS Officer-in-Charge (OIC) in every port and approved by the District Collector
of the port.
2.3
An importer previously accredited as a regular importer cannot avail of the provisions of
this order.
2.4
The payment of duties and taxes of a Once-A-Year importation shall follow the
provisions of CAO 10-2008 and CMO 6-2009 (PASS5).
2.5
Once-A-Year importations shall be processed under the Formal Entry (Consumption) or
Informal Entry Declarations, as appropriate.
2.6
The application for CPRS Registration of a Once-A-Year importer shall be filed with the
value Added Service Providers (VASPs). The Once-A-Year Importer CPRS Registration Form is
in Annex A*
3. Operational Provisions
3.1

Application for CPRS Registration

3.1.1 The Once-A-Year Importer applies for his CPRS Registration through VASP
using the form in Annex A.
3.1.2 The applicant presents his supporting documents to the CIIS OIC in the
concerned collection district port.

3.1.3 The following are the required supporting documents:

Corporation/Company
3.1.3.1
3.1.3.2
3.1.3.3
3.1.3.4
3.1.3.5

TIN of Company
SEC Registration Number/DTI Registration
Bill of Lading / Airway Bill of Lading
IEIRD
Notarized e2m CPRS Application Form

Individual
3.1.3.6
3.1.3.7
3.1.3.8
3.1.3.9

TIN of Applicant
Bill of Lading / Airway Bill of Lading
IEIRD
Notarized e2m CPRS Application Form

3.2 Evaluation and Approval Process

3.2.1 The CIIS OIC shall evaluate the application form and the required supporting
documents and accordingly recommend the approval or disapproval of the application.
3.2.2 The District Collector shall approve/disapprove the application, which shall be
tagged in CPRS.
3.2.3 MISTG shall activate the approved registration.
3.3 Client Receipt of the CPRS Feedback
3.3.1 Upon approval of the CPRS Registration, the Once-A-Year Importer shall
automatically receive an e-mail notification from the e2m Customs System with the
Certificate of Registration (COR) as attachment, in the e-mail address that he
indicated in his application for CPRS Registration.
3.3.1.1 If the Once-A-Year Importer fails to get his copy of the COR in the e-mail,
he forwards his notification e-mail of approval to the MISTG e-mail address
(cprs@customs.gov.ph) and request for a copy of his COR. The COR shall be re-sent
to the Once-A-Year Importers e-mail address. (Some e-mail providers and corporate
e-mail accounts do not accept e-mail attachments. The applicant should indicate an email address in his CPRS application that will not reject an e-mail attachment)
3.3.1.2 If the Once-A-Year Importer fails to get an e-mail notifying him of the
approval of his CPRS registration, but his name is listed in the Approved List of OnceA-Year Importers in the BOC website (www.customs.gov.ph), he corrects or replaces
the e-mail address in his CPRS record to where the e-mail notification and COR will be
sent. (This happens when the e-mail address provided is erroneous, non-existent or
inactive)
3.3.2 The List of Approved Once-A-Year Importers shall be published in the Customs
website
3.3.3 Disapproved applications for CPRS Registration may be corrected and re-lodged
at the VASP by repeating steps stipulated in Section 3.1.
3.4 Enrollment with Authorized Agent Bank (AAB)

3.4.1 The Once-A-Year Importer submits his COR to any of the AABs to enroll his
bank account, existing or new, from where his Customs duties and taxes shall be
debited. The list of AABs is available in the BOC website.
3.4.2 The AAB completes the enrollment process and provides the Once-A-Year
importer with his Bank Reference Number and electronically transmits the same to
e2m Customs System through the BOC-Bankers Association of the PhilippinesPhilippine Clearing House Corporation (BOC-BAP/PCHC) internet portal.
3.4.3 The Once-A-Year importer shall indicate the Bank Reference Number in his
once-a-year importation declaration
4. Repealing Clause
All Customs Memorandum Orders inconsistent with the provisions of the Order are hereby
deemed modified and/or amended accordingly.
5. Effectivity
This Order shall take effect immediately.
(SGD.) NAPOLEON L. MORALES
Commissioner
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BUREAU OF CUSTOMS
Customs Memorandum Order No. 46-2009
Amending Annex A of CMO 27-2009 Procedures for the
Implementation of e2m Customs System - Phase 3: Import
Assessment System (IAS) in all Ports Nationwide
Adopted: 09 Oct. 2009
Date Filed: 18 March 2010
Be it known to the public that the Annex A* of CMO 27-2009 shall be amended accordingly
as attached.
The said annex shall contain the additional codes that will recognize Conditionally Free
Importation like exemptions from duty, excise and/or VAT, and other uses.
This order shall take effect immediately.
(SGD.) NAPOLEON L. MORALES
Commissioner
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BUREAU OF CUSTOMS
Customs Memorandum Order No. 49-2009
Issuance and Signing of BOC Clearance
Adopted: 5 Nov. 2009
Date Filed: 18 March 2010
I. OBJECTIVES
1. To facilitate the processing of BOC Clearance for separated employees in accordance with
existing rules and regulations; and
2. To guide the separated employees and the concerned signatories the steps in signing BOC
Clearance.
II. SCOPE
The issuance of BOC Clearance (Form hereto attached) shall cover separated employees
due to retirement, resignation and transfer.
III. GUIDELINES
1. One (1) month before retirement, HRMD shall notify the retiring employee to submit to
Retirement and Benefits Section the duly accomplished requirements including the BOC
Clearance for processing of retirement benefits except for the Certificate of Last Payment which
shall be issued on the last day of his/her service by the concerned Disbursing Officer.
2. For resignation and transfer to other government agency, HRMD shall notify the employee
within a day upon receipt of letter of resignation and/or request for transfer to submit to
Retirement & Benefits Section the duly accomplished BOC clearance and other pertinent
requirements.
3. Prior to the processing of BOC clearance, service and/or port clearance shall be secured which
include a proper turn-over of accountabilities.
4. For clearances from other government agencies, HRMD shall submit a monthly list of
separated employees to the Land Bank of the Philippines, Philippine National Bank and Customs
Multi-Purpose Cooperative Canteen, HRMD for issuance of corresponding Certificate of
Clearance.
5. In the absence of the concerned signatories and for the continuous processing of the BOC
clearance, an alternate signatory for each port/service/division should be designated.
6. The signatories of concerned offices/services shall sign the BOC clearance within an hour
upon receipt of the same except for Legal Service and General Services which shall be signed
within (24) hours upon receipt.
7. On the last day of service of the employee, the RFID card shall be surrendered to HRMD for
OCOM and Administrative Divisions/Units for the ports, for immediate cancellation of their
account number in the Land Bank of the Philippines (LBP), copy furnished the concerned
Disbursing Officer.
IV. STEPS IN SIGNING THE BOC CLEARANCE

The following steps shall be followed in signing and issuing the BOC clearance:
Step 1 - As to Work Liability in the Office of the Assignment:
Proceed to the office of the District Collector/Director concerned
Step 2 - As to Money Accountability:
Proceed to the Disbursing Officer concerned
Proceed to the Manager, Provident Fund Inc. (2nd Flr., CRIC Bldg.)
Step 3 As to Other Financial Accountability:
Proceed to the Chief, Accounting Division (2nd Flr., OCOM, Bldg.)
Proceed to the Chief, Revenue Accounting Division (Grd Flr., CRIC Bldg.)
Step 4- As to Unliquidated Cash Advance:
Proceed to the Chief, Budget Division (2nd Flr., OCOM Bldg.)
Step 5 - As to Property Accountability:
Proceed to the Chief, General Services Division (Grd. Flr, OCOM Bldg.)
Proceed to the Chief, Systems Mgmt. Division, MISTG (2ND Flr., CRIC
Bldg.)
Step 6 As to Pending Administrative/ Criminal Case:
Proceed to the Director, Enforcement and Security Service (Grd Flr, ESS Bldg.)
Proceed to Director, Customs Intelligence and Investigation Service (Grd. Flr., CIIS
Bldg.)
Proceed to Director, Legal Service (4th Flr., Port of Manila Bldg.)
Step 7 As to Liability on Personnel Matter:
Proceed to the Chief, Human Resources Management Division (2nd Flr., OCOM
Bldg.)
Step 8 As to Approval of the BOC Clearance
Proceed

to

the

Director,

Administration

Office

(2nd

Flr.

OCOM

Bldg.)

Proceed to the Office of the Deputy Commissioner, Internal Administration Group

(Grd Flr. OCOM Bldg.)
V. EFFECTIVITY
This Order shall take effect immediately.
(SGD.) NAPOLEON L. MORALES
Commissioner
--o0o--

BUREAU OF CUSTOMS
Customs Memorandum Order No. 51-2009
Transformation of the Risk Management Group Into the Risk
Management Office Pursuant to E.O. No. 836 (s. of 2009)
and CAO No. 6-2009
Adopted: 9 Dec. 2009
Date Filed: 18 March 2010
Pursuant to Customs Administrative Order No. 6-2009, the following rules and regulations
are hereby promulgated:
I. OBJECTIVES
To duly inform all concerned stakeholders both within and outside of the Bureau of Customs
about the transformation of the Risk Management Group into the permanent Risk Management
Office which is tasked with the following functions:
1.) to primarily oversee the study and profiling of importers, exporters and customs brokers
authorized to operate in the Philippines;
2.) to regularly review and update the parameters of the BOCs Selectivity Screens in line with
implementation of the E2M IAS (Electronic to Mobile Assessment System);
3.) to ensure an efficient and secure pipeline of information from all sources to the RMO;
4.) to maintain a database of all smuggling cases and related data;
5.) to recommend, through the Deputy Commissioner of the Intelligence Group, to the
Commissioner of Customs policies and programs aimed at increasing the efficiency and
effectivity of the BOCs Selectivity System to be at par with other Customs organization
worldwide.
II. SCOPE
The Risk Management Offices (RMO for brevity) responsibility and scope of operations shall
cover all Customs Collection Districts in the Philippines.
III. ADMINISTRATIVE PROVISIONS
A. Rationale for the Transformation of the Risk Management Group into the Risk Management
Office
A common predicament encountered by Customs organizations worldwide is the challenge of
facilitating the movement of legitimate passengers and cargo while ensuring that sufficient
controls are in place to detect Customs fraud, transnational crimes and terrorism. The bulk of the
challenge lies in the physical impossibility of examining the high volume of passengers and cargo
that normally enter the country. The advent of the 21st century ushered in not only technological
breakthroughs but more importantly, new methods designed to systematize Customs procedures,
the intent of which is to strike a balance between trade facilitation and enhance risk management.
Crucial to the introduction of these new methods is the development of the Enhanced Selectivity
System.
Funded by the European Union under the Trade Related Technical Assistance II (TRTA) and
developed by the UNCTAD, the Enhanced Selectivity Systems core is Risk Management which
determines risks by comparing and evaluating data against predetermined standards, target risk

levels or other criteria aimed at facilitating the release of goods. It will soon be implemented
together with the E2M or Electronic-to-Mobile Customs Project.
In addition to the implementation of the Enhanced Selectivity System and the E2M Customs
Project, several systems are also being established such as the Imports and Assessment System
(IAS), the ASEAN Single Window (ASVV), the Revised Kyoto Convention and the JICA-funded
Philippine Customs Intelligence System (PCIS) all of which incorporates risk management
techniques thereby leading to more effective and efficient Customs transactions.
With the introduction and implementation of the above Systems, there is now an urgent need
for a regional analysis of importation data and its peculiarities in view of the fact that each region
has a different set of importers/brokers and nature of importation. This is the rationale behind the
necessity to design a Risk Management outfit that is free from the bondage of bureaucratic red
tape, one that can be elevated to a higher plane to be at par with other Risk Management
organizations of other Customs Administration.
Specific Functions
The different units of the RMO shall undertake the following tasks:
c.1 The Strategic Assessment Unit shall be responsible for the development of policies and
programs related to risk assessment . It shall also identify or profile personalities and
the modus operandi of those involved in importation and distribution of smuggled goods.
c.2 The Research and Analysis Unit shall be responsible for the gathering, collation and analysis
of information such as records of all shipments alerted, placed on hold, seized,
forfeited or finally disposed of by the Bureau nationwide as well as data on smuggled goods
apprehended by other law enforcement authorities. It shall likewise develop a database support
system and a computer-based risk management system for enforcement.
c.3 The Operational Risk Assessment Unit shall implement the policies and programs developed
by the Strategic Assessment Unit in every area under the jurisdiction of the Bureau of Customs.
Review and Update of the Parameters of the Selectivity Screen
The development of the Selectivity Screen shall make use of risk profiles which have been
established in a process of risk analysis and assessment. Risk profiles encompass various
indicators such as type of goods, compliance records of traders, value of goods and applicable
duties, destination and countries of origin, mode of transport, routes of transport based on
characteristics displayed by unlawful consignments and offenders. By selectively categorizing
goods and passengers for verification, a more rapid release and clearance can be achieved.
These profiles shall then drive inspection selectivity programs through which data declared
will be analyzed on the basis of the identified risk parameters and consignments.Depending on
the selected risk level, goods and persons are routed through different channels of Customs
control.
As far as practicable, the RMO may recommend to the Deputy Commissioner for Intelligence
the issuance of Alert Orders against a shipment or goods suspected to contain high-risk
commodities.
To continuously keep the Selectivity Screens up to date with global changes, the RMO is
empowered to obtain information from all sources and to regularly conduct a study / profiling of
importers, exporters and customs brokers in compliance with the policies and regulations of the
World Customs Organization.

IV. OPERATIONAL PROVISIONS

a. RMO shall be in close coordination with all the Regional Risk Management Offices in order that
reports/recommendations can be acted upon immediately;
b. The reports and the findings shall be collated and shall be stored in the database of all
smuggling cases and related data;
c. All the data gathered shall be used in profiling personalities and entities and the modus
operandi of those involved in the importation and distribution of smuggled goods;
d. These profiles then drive inspection selectivity programs, through which data declared will be
analyzed on the basis of the identified risk parameters and consignments, and depending on the
selected risk level, goods and persons are routed through different channels of Customs control;
e. All Orders, Memoranda, Reports and Requests for the Issuance of Alert / Hold Order in
connection with the provisions of this Order must be duly signed by the Chief, RMO and
concurred upon by the Deputy Commissioner, Intelligence Group, before the same is submitted
to the Commissioner for this signature. All other Communications and documents must be signed
by the Deputy Commissioner, Intelligence Group; and
f. The RMO shall then submit a quarterly report of its work program and accomplishment to the
Secretary of Finance and the Office of the President.
V. MISCELLANEOUS PROVISIONS
1. To ensure a smooth transition in the institutionalization of the Risk Management Office (RMO
for brevity), the incumbent officers and complement of the Risk Management Group shall function
as the interim staff pending the selection of qualified personnel for the permanent plantilla
positions of the Risk Management Office. They shall be augmented by personnel from various
units, as may be needed in the exigency of the service;
2. The RMO shall have the authority to require data and information relevant to its function from
all offices / personnel of the Bureau;
3. The office of the Commissioner and the RMO shall have direct access to the computer system
as provided by MISTG for the Offices to autonomously and independently, implement the
selectivity alert and hold processes of the Office of the Commissioner and the RMO.
4. Nothing in this Order shall be construed as to diminish or limit the authority of the Bureau in the
enforcement of the general provisions of the TCCP.
VI. REPEALING CLAUSE
Customs Memorandum Orders and other regulations inconsistent with this order are hereby
revoked or modified accordingly.
VII. EFFECTIVITY
This Order shall take effect upon effectivity of CAO 6-2009.
(SGD). NAPOLEON L. MORALES
Commissioner
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BUREAU OF CUSTOMS
Customs Memorandum Order No. 52-2009
Amending CMO 37-2009 entitled Submission of e-Manifest through
Value Added Service Providers (VASPs) and Implementing Guidelines
for Customs Administrative Order 1-2007"
Adopted: 10 Dec. 2009
Date Filed: 18 March 2010
CMO 37-2009 is hereby amended by adding paragraph 4.4.1.4 as part of the provisions
thereof on Manifest Amendment, to wit:
4.4.1.4 All amendments of the e-manifest should be cleared by the Office of the
Commissioner, before it could take effect in the POM and MICP. In all other Ports , to
avoid unnecessary delay in the release of the shipment and in the interest of trade
facilitation, the shipment may be released upon the written approval of the Deputy
Collector for Operations, however all such approved amendments and the
reasons thereto must be reported to the Commissioner on a weekly basis under
tentative liquidation pending clearance from the office of the Commissioner.
This Order shall take effect immediately
(SGD.) NAPOLEON L. MORALES
Commissioner
--o0o--