Customs agrees to status quo

CEBU, Philippines - After fighting for the suspension of the implementation of Memorandum Order 2-2010, which strengthens and centralizes all functions of the Export Coordination Division (ECD) in BOC Manila, the BOC has granted the plea of Cebuano exporters of a status quo.

“We scored well with that position paper. BOC agreed to keep status quo and to decentralize evaluation of certificate of origin to Cebu export division,” reported PhilExport-Cebu executive director Fred Escalona yesterday.

Through a position paper, Cebuano exporters through PhilExport-Cebu asked for the suspension and amendment of a new memorandum order from the BOC, which traders believe will gravely affect the predominantly export-based sectors in the region.

The memo changes the existing processes in the rules of origin of products, a prerequisite in obtaining their certificates of origin, a vital document for exporters to be able to send their products abroad.

It supposedly seeks to “[implement] an effective internal control system through oversight function and setting up a system at the BOC.”

Immediately, after the BOC port of Cebu reported this new memo, the PhilExport-Cebu led by president Venus C. Genson submitted a position paper to BOC commissioner Napoleon Morales to re-consider to amend the new memo.

In its one-page position paper, signed by PhilExport-Cebu president Venus C. Genson, and presidents of different sub-sectors in the export industry, the group pleaded 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 it’s district offices,” reads the position paper which was submitted few days after the announcement of the memo.

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 recently, 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 have 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. 

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.

Escalona said the export industry in Cebu has greatly appreciated BOC’s move to favor their request, saying this will be the start of a more harmonious relationship between exporters and the bureau of customs.