Exporters ask BOC to amend new memo

CEBU, Philippines - Cebuano exporters, through the PhilExport-Cebu, formally handed yesterday its position paper requesting some amendments to the new Bureau of Customs (BOC) Memorandum Order (CMO-2-2010) to Customs commissioner Napoleon Morales.

Morales released recently the CMO-2-2010 to strengthen the functions of the export coordination division (COO) under the office of the Assessment Operations Coordinating Group (AOCG).

But the controversial directive has created a major opposition from the Cebuano export players with them saying most of the orders are aimed not to shorten the customs rules and export-import procedures but to lengthen the already complicated bureaucratic red tape within the agency.

In its one-page position paper signed by PhilExport-Cebu president Venus C. Genson and the presidents of different sub-sectors in the export industry, the group pleads with BoC to conduct a thorough review of CMO-2-20-10.

“In the interest of trade facilitation and efficiency and the spirit of the Revised Kyoto Convention (RKC), we exporters of Cebu, pray that the BOC conduct a thorough review of the directive; hold in abeyance the implementation of said CMO during the review period; decentralized the pre-evaluation of CO applications to the provincial district’s Export Services Divisions; tighten control measures in archiving exporters’ product data and right-size the personnel complement of its district offices,” reads the position paper submitted to Morales yesterday.

Republic Act 7844, otherwise known as the Export Development Act of 1994, mandates all government agencies, whose actions affect exporters, to simplify procedures in order to minimize bureaucratic red tape.

During the BOC open forum with new BOC-Cebu District Port Collector Ronnie Silvestre held last week, the exporters raised their concerns pertaining to the issuance by the Commissioner of Customs of Customs Memorandum Order No. 2-2010 (CMO 2-2010) which aims to strengthen the functions of the Export Coordination Division (ECD) as well as the internal controls of the BOC pertaining to the rules of origin especially when the Philippines has signed several Free Trade Agreements (FTAs) with its neighbors in the Asia-Pacific region.

The exporters were told by the Customs officials of BOC-Cebu that, in line with the CMO 2-2010, pre-evaluation of applications for issuances of COs will be centralized at the BOC’s ECD in Manila.

They openly objected when they were told that the new procedure will add a minimum of 5 working days to around 22 working days for COs to be pre-evaluated and approved by the BOC. This long delay (compared to the current 2-3 hours processing time) is totally unacceptable.

They also voiced their concerns on the security of the information or trade secrets they are required to divulge to the BOC based on documentary requirements (a certified cost breakdown of the value of foreign and local raw materials including direct and indirect labor cost). We have experienced leakage of sensitive information in the past.

The new directive has brought exporters anxiety to exporters over the fact that the BOC may not have the right personnel complement to pre-evaluate their applications, considering that exporters may have hundreds of product lines and models in their inventories notwithstanding the fact that there is already a shortage of CO signatories in the provincial ports.

“We see a huge layer of red tape here. We should fight against this new CMO together. This will cause a lot of delay [to our businesses],” said Export Development Council (EDC) private sector representative and former PhilExport-Cebu president Alan Suarez.

“We can’t afford any delay. Please do not disable us by putting those barriers. Are you trying to help us? Or derail us?,” said Mactan Export Zone representative Dondon Montesclaros.