Philexport raises concern on trade facilitation issues in Customs Modernization Act

MANILA, Philippines – The country’s largest export group has raised concern over some provisions in the implementing rules and regulations (IRR) of the newly-signed Customs Modernization and Tariff Act (CMTA) which it sees affecting trade facilitation.

While it lauded the recent signing of CMTA into law, the Philippine Exporters Confederation Inc. (Philexport) said certain provisions in the IRR may defeat the law’s goal of faster shipment processing and improving ease of doing business.

One of the issues identified by the group is the need to lodge and amend goods declaration at designated Bureau of Customs (BOC) offices within office hours.

Philexport president Sergio Ortiz-Luis Jr. said this “defeats the purpose of the BOC’s complete customs modernization efforts,” pointing out traders have to be given 24/7 access to the system.

Another issue raised by Philexport involves the plan to make export products conform to standard grades.

“Complying with product standards and markings is more the concern of the receiving country and more so by the buyer abroad,” said Ortiz-Luis, noting that making grading a part of the export clearance process is bound to cause delays.

Aside from the two concerns specified, Philexport said there are other issues in the law which the group is hoping to be addressed in the IRR.

Ortiz-Luis said now is the perfect time for the group to voice out its concerns given that the IRR is currently being completed and is targeted to be finished in time for the change in political leadership on June 30.

Last May 30, President Aquino signed RA 10863, An Act Modernizing the Customs and Tariff Administration that updates the Tariff and Customs Code of the Philippines and overhauls BOC operations.

The CMTA is expected to simplify, harmonize and align BOC’s laws and policies with international standards and best practices.