US T OM S A ZE T TE CThe Official Newsletter of the Bureau of Customs G Volume 3 Number 1 • May-June 2020

BOC hits revenue collection target in June as import volume improves Despite the effects of or P1.8 billion. The BOC were able to hit their Port of Aparri, and Port of Covid-19 on the overall collected a total of P42.539 respective targets, namely: Limay. trading environment and billion against the target of the Port of San Fernando La The BOC’s positive revenue the impact of the stringent P40.739 billion in June. Union, Port of Legaspi, Port of collection performance is community quarantine, the Based on the preliminary Cebu, Port of Tacloban, Port the result of intensified Bureau of Customs (BOC) report from the BOC-Financial of Cagayan De Oro, Port of collective effort of all ports surpassed its June 2020 Service, eleven of the , , and the gradually improving collection target by 4.4% seventeen collection districts Port of Subic, Port of Clark, volume of importation. (See more in page 14)

Port of Zamboanga seizes 124M The BOC-Port of Zamboanga, togeth- worth smuggled cigarettes and er with elements of (1) cigarette-making machines Police Station 8 and Joint Task Force Zamboanga and (2) with the lead of inter-agency anti-smuggling team, intercepted 124M-worth smuggled cigarettes and cigarette-making machines on May 26 and May 29, 2020 respectively. On May 26, 2020, 300 cases of assorted cigarettes bearing the brands Gundang Baru, Cannon White, Famous, BOC NAIA condemns 2 tons of unsafe (See more in page 3) medicines and meat products The Bureau of Customs NAIA condemned BOC prepares for the 'New Normal', 2 tons of seized medicines and meat pushes ICT Projects products int Trece Martires, Cavite on The Bureau of Customs (BOC) pushes May 22, 2020. Some of the shipments implementation of more Information and that were condemned are unregistered Communications Technology (ICT) projects medicines with an estimated weight of that will speed up trade, strengthen border 350 kilos. These medicines were seized security and protect government revenues for failure to obtain necessary clearances in response to the “new normal” brought from the Food and Drug Administration about by the COVID-19 pandemic. (FDA), rendering them unsafe for human consumption. (See more in page 10) (See more in page 6) BORDER 2 PROTECTION BOC seizes smuggled cigarettes and Chinese medicines The Enforcement and Security Service (ESS) intercepted the smuggled cigarettes and Chinese medicines in a warehouse located in Valenzuela City last April 30, 2020, and another warehouse in Manila on May 01, 2020. Said items were not cleared with the Food and Drug Administration (FDA). Upon serving the Letter of Authority (LOA) and mission order signed by Commissioner Rey Leonardo Guerrero to the owner of the subject Intelligence and Investigation seizure of 186.2 kilograms City and was misdeclared as warehouse, members of Service (IG-CIIS), Enforcement of unregistered medicines US$ 15 - worth of “Plastic BOC-ESS, Valenzuela PNP and and Security Service (ESS), in 3 separate operations, as Boxes” consigned to a male Barangay Officials discovered NBI-Special Action Unit (SAU) follows: 2.2 kilograms of Filipino with an address in 238 master cases of assorted and backed up by personnel medicines on April 27, 2020; Tondo, Manila. imported cigarettes and five of the Philippine Coast Guard 4 kilograms of medicines Lastly, on May 28, 2020, boxes of Chinese medicines (PCG). The combined on May 07, 2020; and 180 the BOC NAIA seized 180 containing 48,000 of operatives served a Letter kilograms of medicines on kilos of medicines with no FDA medicinal tablets. The goods of Authority (LOA) received May 28, 2020. clearance, with an estimated were seized and taken into by a Chinese national The April shipments value of Php700,000.00. The custody for failure of the representative of the were concealed in three 3 seized shipment from Xiamen, owner to present the required warehouse. Among the items separate packages to 3 Fujian, China was declared import documents. The found were boxes containing different consignees with the as “vitamin pills” and Bureau operatives also PPE, surgical masks, same shipper address. All consigned to a male learned that the tablets were medicines and other medical were found to be misdeclared individual from Muntinlupa Chinese medicines allegedly supplies. as “Resin Handicraft”. This is City. Upon physical a new modus in evading the examination of the goods, it being used to treat COVID-19. BOC NAIA intercepts In another operation, an required License to Operate was found that the shipment estimated Php 40 million unregistered and and Certificate of Product contained Chinese medicines worth of Chinese medicines misdeclared Chinese Registration from the Food which were imported without were discovered in a medicines and Drugs Administration on the necessary License to the importation of medicines. Operate and Certificate of warehouse located in The intensified anti The second shipment was Product Registration from Singalong, Malate, Manila City smuggling efforts of the BOC sent through air cargo to one the Food and Drugs by operatives from the BOC’s NAIA personnel resulted in the Intelligence Group - Customs of the warehouses in Pasay Administration (FDA). BOC intercepts fake cigarettes, raw tobacco materials, cigarette-machines worth more than Php 1.3 billion Operatives from the Bureau machines and 300 boxes of Philippine Drug Enforcement joint group of operatives on of Customs–Enforcement and tobacco raw materials stored Agency (PDEA) and Philippine board a vessel conducted Security Service (BOC-ESS) inside the subject warehouse. Marines K9 - unit of inspection upon its arrival intercepted various assorted The said goods were Western Command at Ensign Majini Pier. The fake cigarettes, raw tobacco immediately seized for lack (WESMINCOM) intercepted inspection resulted in the materials and cigarette of permit and violation of P55 million worth of seizure of 2,500 smuggled packing machines with an Customs laws, rules and smuggled cigarettes on board master cases. Members of estimated value of P1.3 regulations. a motor launch bound for the ESS are currently conducting billion in a warehouse in On May 31, 2020, the . an inventory of the Isabela on May 28, 2020. Customs Intelligence and The operation stemmed apprehended cigarettes which Inventory included roughly Investigation Service (CIIS) from an information that a shall be subject to seizure and 2,000 master cases of and Enforcement and motor launch from Indonesia condemnation procedures. assorted cigarettes, 10 units Security Service (ESS) field loaded with assorted of cigarette-making machines, offices in Zamboanga, in smuggled cigarettes was 12 units of cigarette packing coordination with the bound for Siasi, Sulu. The 3 BORDER PROTECTION

Port of Zamboanga seizes 124M worth smuggled cigarettes and cigarette-making machines From page 1 Port of Cebu seizes over Project, and the Philippine and May 1, 2020 and were Canyon, Berlin and Fort Php 76 million worth of Coast Guard, the shipment consigned to Vierport cigarettes were seized in smuggled cigarettes was confirmed to contain International Co. and Anikas Istanbak, Brgy. Lower Calarian, 1,522 master cases of Will Industry Corp. which were Zamboanga City. The smuggled The Port of Cebu seized one smuggled cigarettes. put on hold a day after arrival cigarettes with an estimated (1) container of suspected dates and examined on Friday, value of Php 10,125,000.00 fake Mighty and Marvels brand Port of Manila seizes May 8, 2020. The BOC-POM are believed to have come cigarettes with an estimated Php 52 million worth of then conducted 100% physical from Malaysia or Indonesia for street value of Php76 Million misdeclared and fake examination of the containers, distribution in ZAMBASULTA on 11 June 2020. The cigarettes together with the Philippine area. The operation stemmed shipment which was Drug Enforcement Agency The Bureau of Customs from the information received consigned to Giomab (PDEA). (BOC)-Port of Manila (POM) that certain individuals have Trading and misdeclared as For the fake Mighty and seized Php 34.7 million worth been engaged in cigarette “oval dish” arrived from China Marvels cigarettes, the of Two Moon brand cigarettes smuggling in Lower Calarian on Wednesday, 10 June 2020. shipment consigned to on May 8, 2020 in two near the Petron Depot. Prior to the seizure, a Mvetisery Industrial Supply containers, which were The other operation on May Pre-Lodgement Control Order which arrived from China on misdeclared as furniture 29, 2020 by the Zamboanga was issued on the shipment May 22, 2020 was placed and blinds; while on June Peninsula inter - agency on the basis of a on hold and was issued a 03, 2020, one (1) container anti-smuggling team was a derogatory report from IO3 Pre-Lodgement Control Order of fake Mighty and Marvels sequel to the previous raids in Carlo A. Bautista, Chief of last May 27, 2020 after a brand cigarettes with an the region. It yielded another Customs Intelligence and derogatory information was estimated worth Php 17.38 Php14 million worth of fake Investigation Service (CIIS), received by the POM from million was seized for unlawful and imported cigarettes and Cebu Field Station. During the the BOC-Enforcement Group importation. Php100 million worth of 100% physical examination (EG). After complete physical The alert for the misdeclared materials for manufacturing of conducted by Customs examination, the assigned shipments came from cigarettes. The previous raids Examiner Edy Neil D. Customs Examiner assessed derogatory information from on similar items resulted in the Camalongay, together with total duties and taxes the BOC-Enforcement Group confiscation of cigarettes and representatives from the CIIS, amounting to Php 9.96 million. (EG). The shipments from machines for the manufacture Enforcement and Security China arrived last April 27 of fake cigarettes. Service, X-Ray Inspection BORDER 4 PROTECTION Customs and NBI seized Php 25 million worth of smuggled food products in Pampanga

On June 11, the Bureau of Customs (BOC) and National Bureau of Investigation (NBI) seized more than P25 million worth of food items, including frozen Peking ducks which are banned because of the threat of bird flu, in a warehouse in Brgy. Anunas in Angeles, Pampanga. The teams composed of the Customs Intelligence and Investigation Services (CIIS) and the National Bureau of Investigation-Special Action Unit (NBI-SAU) with support from the Philippine Coast Guard (PCG) were acting under Letter of Authority (LOA) no. 06-10-041-2020 & Mission Order (MO) no. 06-10-2020-086 both issued by the Commissioner. The LOA was served to a certain Jimgold M. Tan, the representative of the warehouse owner upon arrival at the Port of Davao seizes smuggled cigarettes warehouse. Prior to the operation, coordination had been done with local Barangay and PNP worth Php 24 million units. The Bureau of Customs Intelligence General Manner to Avoid Proper The team found soy sauce, oil, and frozen food Group (IG), Enforcement Group (EG) Classification and Valuation,” but products such as Peking duck, fish balls, squid and Port of Davao’s strengthened also violated Section 117 of the balls, vegetables, pork meat, and others in the cooperation and coordination with Customs Modernization and Tariff warehouse. The initial count after inventory was the Interpol resulted in the seizure Act (CMTA) on import and export 1,149 boxes, each with at least 10 heads of of 1,325 boxes of illegally imported of regulated items like cigarettes,” Peking ducks with a total value of P23 million, President brand cigarettes from Abano said. while the other frozen goods worth P2 million. Vietnam, valued at P24, 843,750.00, Port of Davao District Collector, The products are believed to have been at the BOC-POD supervised Sub-port Atty. Erastus Sandino Austria warned smuggled into the country because of a ban of Dadiangas on June 3, 2020. importers and traders not to use his on importing poultry products from a number The operation was instigated port or any of his district’s of countries except the United States, Canada, by advance information from the supervised sub-ports for illegal and Australia. These imported poultry products shipment’s port of origin, prompting activities as he will never tolerate must necessarily pass stringent requirements the subsequent issuance of an alert any form of illicit trade in his district. and tests by Customs and other regulatory order on Vengeur International “The seizure of this illegal government agencies. Trading’s importation. The importation of cigarettes from misdeclaration was confirmed on Vietnam should serve as a warning June 3, 2020 during the 100% to importers and traders that with physical inspection of the 40-footer the strengthened cooperation with container van at the Philippine Ports international intelligence and Authority (PPA) container Yard 2. anti-crime organizations, we will be a According to sub-port of step ahead of whatever their future Dadiangas’ Collector Elenita Abano, plans are,” Austria said. of the shipment’s declared 25,000 Relatedly, Collector Austria had brand new corrugated boxes, only already issued a Warrant of Seizure 1,100 pieces of corrugated boxes and Detention (WSD) on Venguer were found inside the container van. International Trading shipment, with However, another 1,325 a recommendation for the filing misdeclared boxes of President of appropriate charges against all cigarettes were also discovered those involved in this foiled attempt inside the same container. to smuggle cigarettes into the “The shipment did not only violate country, including the suspension, if Customs Administrative Order (CAO) not cancellation, of the BOC 8-2007 or the “Description of accreditation of Venguer Imported Articles in Tariff Terms,” International Trading, as the as implemented in Customs importer/consignee of the said Memorandum Order Number (CMO) confiscated shipment. 28-2007 or “Goods Declared in 5 BORDER PROTECTION Customs Clark seizes Php 1.1 million worth of marijuana The Bureau of Customs-Port of Clark seized 966 grams of Marijuana with an estimated value of Php 1.1 million, which were subsequently turned over to the Philippine Drug Enforcement Agency (PDEA) Region III last June 18, 2020. The shipment declared as “art-work fine” from California, USA arrived on June 09, 2020, and was subjected to strict profiling of documents and x-ray examination. Physical examination on the subject shipment yielded two (2) vacuum-sealed clear plastic packs of suspected fine kush weeds. Said shipment was likewise subjected to K9 sniffing which indicated presence of illegal drugs. Thereafter, PDEA chemical analysis was conducted affirming the findings of BOC-Clark personnel. Also turned over to PDEA were two (2) other shipments containing separately one (1) bottle of CBD Oil and six (6) tobacco rolling papers which likewise positively resulted for presence of marijuana.

BOC-CIIS nabs Php 50 million worth of overpriced BOC seizes Php 1 medical supplies billion worth of counterfeit In line with the BOC’s mandate on The raid was conducted by the cigarettes and tax stamps border protection, the Bureau Customs Intelligence and Investigation As the Bureau of Customs (BOC) successfully seized on May 28, 2020 an Service (CIIS), with assistance of the intensifies its campaign against smuggled estimated P50 million worth of medical Philippine Coast Guard (PCG) and and counterfeit goods, its Quick Reaction supplies and equipment in warehouses National Bureau of Investigation (NBI). Team (QRT) in coordination with Isabela located in Wilson Street, Greenhills, San The authorities served the Letter of PNP, seized counterfeit cigarettes and tax Juan and in Malabon City, both owned by Authority and Mission Order signed by stamps in a warehouse in Victoria Alicia, Omnibus Biomedical System, Inc. BOC Commissioner Guerrero to the Isabela on May 30, 2020. The said company was recently tagged Chinese nationals present in the The operation is a follow-up to the in a Senate inquiry for selling overpriced warehouse. A case will be filed against implementation of Letter of Authority automatic extraction machines to the the company for failure to show proof of (LOA) No.05-28-040-2020 issued by BOC government and identified to be - un payment of duties and taxes. Commissioner Rey Leonardo B. Guerrero. der investigation for alleged smuggling Previous raids on a store or warehouse The raid resulted in the seizure of operations. Among the overpriced selling overpriced medical supplies have counterfeit cigarettes and tax stamps with medical supplies and equipment that led to the seizure of some P5 million an initial estimated value of Php1 Billion. the company is believed to be hoarding worth of PPE and medical supplies from The operation also uncovered the and selling are high-pressure stream a store in Binondo, Manila and alleged counterfeiting of foreign tax stamps sterilizer, blood bags, books, and medicines for COVID-19 in Singalong, indicating that the cigarettes were also real-time quantitative thermal cycler. Malate. being exported to other countries. BORDER 6 PROTECTION Philippine Ports Authority, National Bureau of Investigation, PNP - Criminal Investigation and Detection Group, Bureau of Fire and Protection, PNP Maritime Group and PNP Region 9. The confiscated cigarettes were drenched in water then crushed by a 40-ton forklift outside the Fast Cargo warehouse. Barte said that the destruction of these contrabands is pursuant to the instruction of Commissioner Rey Leonardo B. Guerrero to destroy smuggled cigarettes blinds. once the final decree of BOC NAIA condemns 2 tons of unsafe forfeiture is rendered. medicines and meat products BOC Zamboanga Barte expressed his destroys Php 245.8 appreciation to all law From page 1 2020, contained around million worth of enforcement agencies in The condemnation of the 21,830,000 sticks of the city for their continuous unregistered medicines is cigarettes worth 109.150 smuggled cigarettes support in the anti-smuggling part of Bureau of Customs million pesos. These had been The Bureau of Customs-Port drive of the Bureau of initiatives to protect the public stored within the Bureau’s of Zamboanga destroyed Customs. against unsafe medicines. premises prior to the disposal. at least Php 245.8 million He also thanked the City Along with the medicines, The destruction of the worth of smuggled cigarettes Government, led by Mayor expired food stuff and meat cigarettes, led by the on May 5, 2020 at Fast Beng Climaco thru Councilor products with no health Enforcement and Security Cargo Logistics Baliwasan, Josephine Pareja, who clearance were also seized. Service (ESS), was witnessed Zamboanga City. District provided the equipment, dump These were condemned using by Customs Commissioner Collector Segundo Sigmund trucks and the access to the the Themal Decomposer Rey Leonardo Guerrero and freud Z. Barte Jr., who led the sanitary landfill. Councilors (Pyrolysis) Facility of Deputy Commissioners, along destruction of the smuggled Pareja and John Dalipe the Integrated Waste with Mr. John Freda, CEO of cigarettes, was assisted by the also witnessed the said Management Inc. located in Japan Tobacco International CIIS, ESS and representatives destruction. Trece Martires City. The use (JTI). from the Philippine Navy, The crushed cigarettes of the thermal decomposer Just recently, the Port of Philippine Marines (MBLT-11), were then brought to the City will ensure the safety and no Manila seized cigarettes Philippine Coast Guard, Naval Sanitary Landfill, Brgy. Salaan, single waste item will find its worth 34.7 million pesos, Intelligence Support Group, Zamboanga City for disposal. way to the market. misdeclared as furniture and PNP Zamboanga City, The condemnation was coordinated with Food and Drug Administration (FDA), Department of Agricul- ture (DA), Bureau of Animal Industry (BAI), Bureau of Fisheries and Aquatic Resources (BFAR), and Commission on Audit (CoA). BOC destroys Php 109 million worth of illicit cigarettes The Bureau of Customs destroyed 2,183 master cases of illicit cigarettes by water dousing and crushing of a payloader on May 11, 2020. The 2,183 mastercases, seized from 2018 up to March 7 BORDER PROTECTION BOC Clark turns over forfeited and abandoned firearms, accessories to PNP The Bureau of Customs-Port of Clark turned over various forfeited and abandoned shipments of firearms and accessories to the Philippine National Police (PNP) last June 11, 2020. These shipments include 17 pieces of riflescope, four (4) pieces front and four (4) pieces rear sights, telescopic sights, airsoft knights SR-16 Carbine, 10 pieces Kevlar helmets, breast plates, eight (8) cans of pellets and gun magazine, bullet proof vest and assorted gun parts which were covered by Warrant of Seizure and Detention (WSD) and Abandonment Proceedings (AP). These were seized and forfeited for lack of Authority to Import from PNP-Firearms and Explosives Office, a violation of Section 117 of Republic Act (R.A.) No. 10863 (CMTA) and R.A. No. 10591 or the “Comprehensive Firearms and Ammunition Regulation Act.”

permits from the regulating agencies. BOC NAIA destroys more illegally imported products The Bureau of Customs NAIA destroyed another 1.5 tons of various seized imported goods, including an estimated 400 kilograms of Goree beauty products on June 11, 2020 in Trece Martires, Cavite. Among the condemned goods were several packages of medicines, cosmetics, Goree products which were imported into the BOC NAIA condemns another 8.7 Tons of unregistered and country without the necessary hazardous good permits and clearances from The Bureau of Customs-NAIA of the Integrated Waste 2020, the fifth condemnation the Food and Drug condemned 8.7 tons of Management Inc. (IWMI) to for year 2020. Administration (FDA). illegally imported medicines, make sure that these items The condemnation aims Under FDA Advisory No. cosmetics, cigarettes and will not be not sold in the to protect the public and 2017-289, the use and electronic goods in Trece market or made available to decongest the warehouses of distribution of Goree products, Martires, Cavite on May 29, the buying public. overstaying shipments. which have been found to 2020. The shipments were contain toxic mercury levels The hazardous goods arrived 11.2 tons of unsafe composed of medicines, beyond the limit set by the thru different warehouses goods destroyed in BOC chemicals and food products agency, are strictly prohibited. without proper permits and NAIA which have no Food and The harmful beauty products were burned and disposed clearances. The said goods The Bureau of Customs Drug Administration (FDA) of using the Thermal are unfit for consumption and NAIA, in its effort to clearances, thus deemed unfit Decomposer (Pyrolysis) cannot be sold thru public continue decongesting storage for human consumption of Integrated Waste auction. facilities, destroyed another For this year, BOC NAIA has Management Inc. (IWMI). The goods were destroyed 11.2 tons of unsafe imported already destroyed 28.1 tons using the Thermal goods not fit for human of unsafe goods imported Decomposer (Pyrolysis) Facility consumption on June 20, without clearances and Customs Clark seizes $54,215 US dollar bills inserted on pages of various magazines

The strict profiling of shipments and vigilance of Bureau of Customs-Port of Clark personnel led to the seizure of a total of US$54,215.00 Bills, which had been inserted in pages of various magazines, last June 05, 2020.

Said shipment declared as “Chinese Cook Book Recipes” arrived on 25 May 2020 from Hong Kong and was subjected to non-intrusive examination. Physical examination conducted on the subject shipment led to the findings of 540 pcs. $100 Bill, two (2) pcs. $50 Bill, four (4) pcs. $20 Bill, one (1) pc. $10 Bill and five (5) pcs. $5 Bill inside the pages of seven (7) different magazines. In sum, a total of USD$54,215.00 or equivalent to Php2.7-M was found and seized. Customs Clark seizes $54,215 US dollar bills inserted on pages of various magazines TRADE 10 FACILITATION BOC prepares for the 'New Normal', BOC to roll-out pushes ICT Projects Electronic Cargo From Page 1 Tracking System Foremost is the stabilization of the E2M system as a continuing The Bureau of Customs (BOC) has started modernization project of the Bureau. rolling-out the Electronic Tracking of Under the program ASYCUDA, the Containerized Cargo System (E-TRACC legacy component of E2M will be System) in various BOC ports nationwide. replaced by Trade Engine to ensure The E-TRACC System was established the fast system performance of the following the issuance of Customs existing system. As of May 1, 2020, Memorandum Order (CMO) 04-2020 which Trade Engine has been successfully implements Customs Administrative Order rolled out in all Collection Districts. (CAO) 15-2019 in relation to Sections 1418 Another on-going project the BOC to 1421 of the Customs Modernization and is the Online Inventory Management Tariff Act (CMTA). The System shall enable System for Off-Dock Container Yard/ Examiners. the Bureau to conduct real-time Container Freight Stations (CY/CFS) Last May 01, 2020, the BOC monitoring of inland movements of that will monitor the real-time status launched the Electronic Tracking containerized goods using an Information of import goods transferred, stored, of Containerized Cargo (E-TRACC) and Communications Technology-enabled and withdrawn. Through the system, System which enables real-time system such as the GPS-enabled tracking protection of government revenues monitoring of inland movements device to secure its transport to the against possible leakages arising of containerized goods using intended destination. from discrepancies and GPS-enabled tracking device to Cargoes covered by this system are the misdeclaration of quantity and gross secure transport to intended following: (1) Transit Containers bound for weight of imported goods is assured. destination. Observing the roll-out Economic Zones; (2) Transit Containers The BOC will likewise develop plan schedule, the next step is for bound for Free Zones; (3) Containers Bound an Online Inventory Management the System to undergo Quality for Customs Bonded Warehouse; (4) System for Customs Bonded Assurance Testing, according to the Containers Bound for Export; and (5) Reefer Warehouses (CBW) that will BOC-Assessment and Operations Containers bound for second border monitor real-time status and Group (AOCG). inspection. accounting of imported raw The loan negotiations between the Under CMO 04-2020, all container vans materials from the time of its Department of Finance and World covered in this order shall be affixed with transfer from the port of discharge to Bank on the Philippine Customs an Electronic Customs Seal (ECS) before the CBW destination, the Modernization Project, which was clearance to depart from the Port of withdrawal thereof either for approved last March 6, 2020 by the Discharge to the Port of Destination is production, transfer to another National Economic and given. ECS is a GPS-enabled sealing device CBW or to a free zone-registered Development Authority Investment or lock that is capable of physically securing enterprise up to the exportation of Coordination Committee Cabinet cargo and providing real-time location finished goods. It will also manage Committee (NEDA ICC CabCom), has information. the liquidation of the goods been on-going since May 12, 2020. The E-TRACC system software platform declaration filed for the imported raw The Customs Commissioner has shall be used by the BOC Piers Inspection materials. already signed the letter to the Division (PID) to track and monitor the An Online Payment Platform will Department of Budget Management movement of the cargo that is sealed with also be introduced this year which for issuance of the Forward the Electronic Customs Seal. It shall track will accept online payment of Obligation Authority (FOA) for the the goods in real-time and provide alarms customs fees such as processing Project, which is a requirement for in case of unauthorized trips, tampering fee for registration of importers and the loan negotiation. The BOC will of the device, deviation of the vehicle from customs brokers at the Account also issue a Customs Special Order, authorized routes, or other events that are Management Office (AMO). The said creating the Project Management deemed unusual based on criteria to be system will complement other online Unit (PMU) tasked to oversee the determined by the Bureau. transactions of the Bureau. implementation of the Project and The E-TRACC System rolled out in June Furthermore, a Passenger ensure that the project objectives, initially covering the Manila International Customs Clearance System will along with the specifications and Container Port, Port of Manila, and Port of be introduced at the BOC-NAIA. standards set are met during Batangas. This will be followed by Cebu, The electronic system will allow construction, deployment and Davao, Subic and Clark in July 2020. The passengers to fill out the Customs implementation of the project. A Bureau-wide roll-out and full Baggage Declaration Form using Special Bids and Awards implementation of the system in all ports is their mobile phones, making it more Committee shall also be constituted expected in August 2020. accessible to stakeholders and for the procurement of the different provide readily available data to BOC components of the project. 11 TRADE FACILITATION BOC partners with PayMaya for enhanced Payment System

The Bureau of Customs inked PayMaya QR payments, and Customs-Revenue Accounting The campaign is aimed at a Memorandum of Agreement Smart Padala Centers Bills Division, (BOC-RAD) based on weeding out unscrupulous on June 11, 2020 with the Payment. the detailed reports individuals who aim to use Bureau of the Treasury (BTr), The Agreement also covers generated / submitted by their acquired accreditation Development Bank of the the payment of client service PayMaya using its payment for illegal activities. ESS and Philippines (DBP), and fees specified under the MOA, collection service. CIIS personnel have been PayMaya for the as well as the arrangement tasked to physically visit and implementation of an online of depositing the collected BOC intensifies efforts verify registered offices and payment system for the BOC Fees and other payments to verify and cleanse warehouses. Coordination with collection, transmittal, and to the DBP. Additionally, the roster of Importers and local barangay units was also remittance of BOC Fees and obligations of each party are Brokers done to ascertain the other payments. set forth under the Agreement legitimacy of accredited The Bureau has intensified Under the MOA, PayMaya with the Bureau of Customs to stakeholders. the verification of shall accept payments from submit to the BTr Office, the Those who do not meet accredited importers and BOC clients of miscellaneous List of Deposited Collections the requirement or who brokers. Through the joint fees and charges, other than (LDC) Report of the daily were verified to have efforts of the Enforcement customs duties and taxes, remittance of collected BOC misrepresented information in Security Service (ESS), through PayMaya Payment Fees to BTr-BOC-PayMaya their accreditation may face Customs Intelligence and Solutions (PPS). The services Clearing Account wherein sanctions that may include Investigation Service (CIIS) will include: Online all collections / payments the revocation of their and Account Management Checkout that accepts accepted and deposited by accreditation with the BOC. Office (AMO), the BOC credit/debit cards for local PayMaya under the Agreement To-date, of the 3,175 is currently conducting and cross-border payments, shall be credited. The LDC consignees/importers listed verification, inspection and Bills Payment via PayMaya report shall be prepared by by AMO, 1,829 have been investigation of registered app, Pay by PayMaya, PayMaya the Collection District which inspected so far, of which brokers, importers, and One POS terminal that accepts issued Order of Payment and 212 were found to have warehouses throughout the credit/debit cards and validated by the Bureau of misrepresented information. nation. 12 IN THE NEWS

BOC Limay celebrates 12th Founding Anniversary BOC inspects cold storage amidst GCQ conditions facilities to check utilization With the restriction on public BOC Limay also visited MedTex Since the implementation of the Joint gatherings, the Bureau of Customs-Port Corporation (MedTecs Group) at the Administrative Order (JAO) 20-01 on April of Limay could not gather its officials, Freeport Area of Bataan (FAB) in 2020, the Bureau of Customs (BOC) employees and stakeholders to Mariveles. The company is the biggest through the Enforcement and Security celebrate its 12th founding manufacturer of face masks in the Service (ESS) has conducted physical anniversary under one roof because country. As part of its continuous inspection of at least twenty-three (23) of the COVID-19 pandemic. Instead, Corporate Social Responsibility (CSR), National Meat Inspection Service District Collector Michael Angelo DC the MedTecs Group donated 24,000 (NMIS)-listed cold storage facilities in Vargas led the commemoration with pieces of face masks to the Bureau on Metro Manila. meaningful activities on May 26, 2020, 28 April 2020. The inspections were done to determine the same day in 2008 that the Port of Moreover, certificates of appreciation the utilization of cold storage facilities and Limay was upgraded as a principal port were awarded to all men and women to check if it has any correlation with port of entry. of the Port of Limay and Subport of utilization to avoid congestion. As part of the celebration, the Port led Mariveles in recognition of the As per NMIS, there are 151 cold storage the donation of 1,000 pieces of face dedication, perseverance, and hard facilities nationwide, 45 of which are in masks to the San Roque Parish Church work at the Port, from home, and in the Metro Manila. ESS, BOC will continue in Brgy. Lamao, Limay, Bataan which field to fulfill their important duties as inspecting the remaining warehouses in was personally received by the Parish frontliners in providing quality customs the coming days to check on their status Priest, Rev. Fr. Norman E. de Leon. service in this time of global pandemic. and utilization. BOC conducts 3rd MSGC Plenary Meeting On June 19, 2020, the process of the Bureau’s a Second Gap - Analysis of Bureau of Customs, to include Bureau of Customs (BOC) held Transformation Program Trade Facilitation and the impact of JAO 20-01, the the 3rd Plenary Meeting of the adhering to the Governance adoption of the Revised Kyoto 10-Point Priority Program Multi - Sectoral Governance Culture Code, recommended Convention (RKC), and to the and the challenges faced Council (MSGC) and by the Governance World Customs Organization during the period of enhanced discussed transformational Sub-Committee and approved for the Mercator Program for community quarantine. efforts alongside its strategy by the Integrity the year 2021. The Baseline The Bureau was then roadmap. The semi-virtual Sub-Committee. The Culture Study was institutionalized commended by the Council meeting was held at the Code is the handbook of BOC to lead the Bureau towards for the achievements and Conference Room, Office of employees which highlights achieving conformance to efforts of the current the Commissioner in Manila. the mission, vision, core globally competitive best leadership despite the crisis. The meeting chaired by values, aspirations, and goals practices. Commissioner Guerrero Mr. Jesus Estanislao and of the Bureau. Lastly, the communication expressed his gratitude to the attended by selected Customs This was followed by plans in preparation for the Council and emphasized the Officers convened to focus on Baseline Study headed “new normal” including significant role of MSGC in the three recommendations by Former Commissioner the internal and assisting the Bureau of the Council geared towards Guillermo Parayno, Jr. The external communication were in confronting the achieving the goals of the BOC three main points of the discussed. challenges brought about by Strategic Roadmap. discussion under the study During the meeting, the the COVID-19 pandemic. The first topic discussed was were the recommendations MSGC were apprised by the the Pledge of Allegiance which addressed to the World Trade Commissioner on the Midyear is an internal cascading Organization (WTO), including Accomplishment Report of the 13 IN THE NEWS

BOC Clarifies Data on Imported Rice Tariff Collection The Bureau of Customs (BOC) closely monitors declared value of rice importations in view of the Bureau’s strict adherence to global published prices for rice which serves as a guide when the veracity of the declared values are under dispute. The BOC reported that importers of rice falling below the global published reference prices have availed of the Dispute Settlement and the remedy of release under Tentative Assessment. Under Section 425 of the Customs Modernization and Tariff Act (CMTA), importations under dispute settlement may be released under tentative assessment upon posting of cash bond or sufficient security to cover the applicable duties and taxes equivalent to the amount that is disputed. In case of adverse decision, the posted security shall be made to answer BOC conducts COVID-19 testing of personnel for the deficiency in duties and To ensure the safety of both employees “We also exercise all precautionary taxes. and stakeholders, the Bureau of Customs measures, such as wearing of face masks Further, the Customs (BOC), through its Medical and Dental and gloves, as well as the observance of Commissioner has recently issued Division and with the support of the physical distancing rules. We regularly a directive reiterating to all District Department of Health (DOH) and the disinfect our offices and we implement Collectors that all decisions on Philippine Red Cross, conducted rapid flexible working arrangements for our disputed valuation which are tests on 1,264 Customs employees. frontliners such as skeletal workforce adverse to the government shall From the test results, a total of 41 schedules and work from home options,” be automatically elevated to the asymptomatic COVID-19 cases in the Maronilla added. Customs Commissioner for his BOC were confirmed. There has been one As a safety measure, all transactions review. casualty at the Bureau since the start have been online since the start of the The BOC is also adopting of the pandemic, who was known to pandemic to avoid physical contact with measures and corrective actions have had an existing lung condition even the stakeholders. Manual transactions to ensure correct valuation of rice before the virus outbreak. Majority of the within the BOC premises were importations. True to its positive cases in the recent testing show discouraged to ensure the safety of both commitment, the BOC in no symptoms of the virus, according to stakeholders and Customs employees. implementing Republic Act No. BOC-Medical and Dental Division. “We are aware of how critical our role is 11203 also known as the Rice All employees who were found in this current pandemic and so, while we Import Tariffication Law, was able to positive for COVID-19, and those whom praise and thank our frontliners for their collect from January to May 2020 they had close contact with, were put dedicated and untiring service despite the a total of P7.955 billion pesos in under self-quarantine for 14 days. daily risks, we also would like to assure revenue. The BOC has a yearly Further, contact tracing activities for the the public that the Bureau of Customs’ target of P10 billion in rice tariff said confirmed cases were undertaken highest priority is the health and safety of collection for remittance to the Rice through the BOC Intelligence Group. our own employees and that of our Competitiveness Enhancement “All confirmed asymptomatic COVID-19 stakeholders. Protocols are in place and Fund (RCEF). The RCEF was cases, as well as suspected ones, are are strictly followed,” Maronilla stressed. created to help “palay” growers being handled consistently under existing COVID-19-related developments are and rice farmers’ cooperatives DOH protocols,” said BOC Spokesperson coordinated and reported to the transition to a new rice regime. and Assistant Commissioner Atty. Vincent Department of Finance and the Office of Philip Maronilla. the President. COLLECTION UPDATE

For the Month of May

COLLECTION DISTRICT TARGET ACTUAL (In Million Pesos) (In Million Pesos) P30.001 San Fernando 252.02 421.81 Port of Manila 4,738.39 2,891.44 Billion Total Collection for May 2020 MICP 9,533.63 9,071.30 NAIA 2,272.43 1,592.22 P34.695 Billion - Target Collection Batangas 8,251.96 5,405.34 Legaspi 29.60 3.76 For the Month of June Iloilo 167.01 245.83 BOC hits revenue collection Cebu 1,707.99 2,230.46 target in June as import Tacloban 69.65 73.45 volume improves Surigao 0.95 0.64 From Page 1 It can also be attributed to the Cagayan De Oro 1,577.04 1,473.29 government’s effort to ensure Zamboanga 226.44 310.43 unhampered movement of goods domestically and internationally, in Davao 1,459.73 2,258.01 the light of the pandemic situation. Along with this, the Bureau still Subic 1,564.86 1,768.67 maintained its enhanced control Clark 95.17 46.59 measures against undervaluation, misdeclaration and other forms of Aparri 11.76 11.37 technical smuggling to protect our borders and collect lawful revenues. Limay 2,736.94 1,883.63

EDITOR-IN-CHIEF: MGen. Bienvenido R. Datuin Jr. (Ret.) ASSOCIATE EDITORS: Karren April A. Noronio CUSTOMS GAZET TE Dexter A. Buted Jr. CUSTOMS GAZETTE, the official CONTRIBUTING EDITORS: Paolo L. Espineli John Emory D. del Pilar newsletter of the Bureau of Customs MANAGING DIRECTOR: Jessil F. Garlando is published by Public Information and PROJECT ASSISTANT: Joanne D. Agudo Assistance Division (PIAD) with editorial DESIGN: Jelyn Antoinette Berja office at Rm. 103 OCOM Bldg., 16th St. CIRCULATION STAFF: Angelito H. Espiritu South Harbor, Port Area, Manila 1009 PHOTOGRAPHER: Jerome L. Monta Ermie P. Macasieb 15 REVENUE COLLECTION BOC marks Php 7.7 billion liters of fuel since start of Fuel Marking Program The Bureau of Customs marked for 20% and Visayas, 4%. 135,441,776 liters of fuel Spearheaded by the Department during the period of quarantine of Finance, Bureau of Customs restrictions, which manifests its and Bureau of Internal Revenue, unrelenting effort in implementing the Fuel Marking Program was the fuel marking program and officially launched in August 2019 collecting the proper revenue with the intention of putting a that is needed to support various halt to illegal importation, assistance programs by the manufacturing and other Government in this time of crisis. fraudulent activities relating to Participated in by 20 petroleum the use and sale of petroleum companies, the Bureau of products in the country. Customs and Bureau of Internal With the Program, marking of Revenue marked 7,705,434,076 refined, manufactured, and liters of fuel nationwide from imported gasoline, diesel and September 2019 up to May 21, kerosene, including those 2020. Of the total volume of withdrawn from freeport zones to marked fuel, Luzon accounted for be used in the domestic market, 76% while Mindanao accounted has become mandatory.

BOC generates Php 487 million from Post Clearance Audits The Bureau of Customs (BOC) goods declaration resulting in a through the Post Clearance Audit deficiency in duties and taxes on Group (PCAG) has collected P487 past importations are disclosed million additional revenue as a earlier to lessen the gravity of an result of the post-clearance audits offense or mistake made. on importers to ensure that From January to 05 June 2020, proper duties and taxes are the PCAG-Compliance Assessment collected even after the shipments Office (CAO), through its five (5) have already been released. Audit Divisions, had served As provided under Sec. 1000 of twenty (20) Audit Notification the Customs Modernization and Letters (ANLs) signed and issued Tariff Act (CMTA) and Customs by the Commissioner of Customs. Administrative Order 01-2019, These ANLs were issued against the BOC-PCAG may conduct Customs Bonded Warehouse audit examination, inspection, operators and their members verification, and investigation of suspected to have violated records pertaining to any goods the provisions of Customs declaration generally within Administrative Order No. 13-2019 three (3) years from the date in relation to Customs of final payment of duties and Memorandum Order No. taxes or customs clearance. 26-2011. The BOC collected These are being done to P19,755,564.47 from the audit determine the correctness of the findings on five (5) companies/ goods declaration and the liability importers. of the importer for duties, taxes Additional revenue of and other charges, including any P160,027,224.51 was also fine or penalty, to ensure collected from 24 companies compliance with the regulations of that applied for the PDP program the Bureau. covered by existing ANLs and However, importers may avail of P307,237,733.72 from 12 the Prior Disclosure Program (PDP) companies not covered by any wherein errors and omissions in existing ANL.