@ PORTS

MICP- 12 October POM – 12 October

‘09

BoC CMO 27-2009

:

Implementing E2M IAS

Francis Norman Lopez President

Agenda

• • • Introduction BOC e2m Import Assessment System, CM0 27-2009: IAS Rollout to All Ports – – –

CPRS: Client Profile Registration System eManifest e2m Import Workflows: Formal, Warehouse, Transshipment, Informal

– – –

PASS5: ePayment of duties, taxes, fees OLRS: BOC Release Instruction to warehouse and port operators SSDT: Statement of Settlement of Duties and Taxes

Q & A

InterCommerce eCustoms Services

•

From Value Added Network (VAN) to Value Added Service Provider (VASP)

–

Customs EDI VAN from July 1998 –June 2007

– –

First Customs VASP in July 2007 PEZA Ecozones, Clark Freeport, Subic Freeport, Board of Investments

•

eCustoms Services

–

Lodgment of Import Entry Declaration: Consumption/ Formal, Super Green Lane, Warehouse, Transshipment

–

eManifest submission by forwarders

– – – –

ePayment of Customs Duties and Taxes Online Cargo Release Export Declaration Alert Messages to importers via SMS/Text and Email

1 st Customs EDI VAN

(1998)

PEZA VASP

(2006),

CDC VASP

(2006),

BOC VASP

(July 2007)

BOI VASP

(Jan 2009)

About InterCommerce

• • • • •

IT, Value Added Network Services company

– –

with more than 22 years experience in B2B transactions, and more than 10 years in eCustoms Services – accredited as EDI VAN in 1998 and now accredited by Customs, PEZA, Clark and Subic Freeport and BOI as Value Added Service Provider (VASP) A distributor of Global Exchange Services – GXS, the largest global B2B eCommerce services provider Member, Pan Asian eCommerce Alliance (PAA) Independent IT Company - No Affiliation with any logistics company (broker, forwarder, warehouse operator), thus no potential conflict of interest with client logistics providers, and ensuring data confidentiality and integrity InterCommerce . . . YOUR Value Added Service Partner PEZA Department of Agriculture

BPI BAI BFAR

Local Focus – Global Reach !

Pan Asian eCommerce Alliance - PAA

Korea Hongkong China Japan Macau Chinese Taipei Thailand Philippines Indonesia Malaysia Australia Singapore . . . PAA Members accredited by respective Customs Administration, provides the network infrastructure and legal framework for a secure and reliable information exchange

CMO 27-2009 – e2m IAS Implementation

• Implementation of e2m Customs System -P3 IAS in all Customs Port Offices –

nationwide before end Dec 2009

•

Scope

– – – – – – –

Client Profile Registration System (CPRS) eManifest System Formal Entry System (FES) Warehouse Entry System (WES) Payment Abstract Secure System v5.0 (PASS5) Other Settlement Modes (OSM) Online Cargo Release (OLRS)

Transshipment and Informal Entries still under ACOS procedures.

IAS Customs Clearance Workflow

NWS BIR: ATRIG, DOF: TEC Shipping Lines, Forwarder/Consolidators Importers Brokers CY/CFS Operators Authorized Agent Banks - AAB NSW VASP BAP/PCHC

• Validation

-

CPRS - NSW - Manifest • Selectivity -SGL -Green -Yellow -Red • Assessment • PASS5 • OLRS

Client Profile Registration System

•

Mandatory for Customs brokers, Importers, other Customs stakeholders

–

including PEZA Accredited Locators

•

Importer needs the CCN of Broker and VASP* in its CPRS

•

Banks need copy of COR/CCN for the issuance of the Bank Reference Number_ BRN

*InterCommerce CCN (VASP):

VA0000000116

CPRS Data Elements

      Basic Company Profile Registered Name (with SEC, BIR, PEZA) TIN Address Board of Directors: Top 5 Board of Directors ie Chairman, President, Corporate Secretary, Treasurer, etc. Principal Officers : Top 5 Operating Officers ie President, Executive Vice-President, Sr. Vice-President, etc Responsible Officers : Officers that interacts/interface with BOC, eg Purchasing, ImpEx or Logistics Manager Nominated Customs broker with CCN Nominated VASP with CCN

InterCommerce CPRS WebApplication

1. Importer registers with InterCommerce online ( www.intercommerce.com.ph

), providing user name, password 2. Submit accomplished Information Services Agreement 3. InterCommerce activated user name 4. Importer inputs all required information including digital pictures and scanned signatures 5.

Importer clicks on “Submit” for transmission to BOC and receives either a “Sent” or “Error” message 6. BOC sends email Alert Notification - ie. Stores, Approved or Disapproved, Activated

Client Profile Registration System

• Steps in CPRS – email Alert Notification

– – –

Stored Complete Approved or Disapproved

• If Approved, the COR/CCN is attached as pdf file • If Disapproved, CPRS automatically deleted – – –

Activated Amended Expired

• Registration of Certificate of Registration/CCN with the Authorized Agent Banks (AABs)

–

AAB issuance of the Bank Reference Number _ BRN

CPRS ‘Errors’

• • • •

"Disapproved" due to the following reasons:

– Different business address as per CAS record.

– Suspended or expired accreditation, or not yet Accredited as per CAS record – Incomplete or different business name, as per BIR or SEC Registration – Wrong TIN, invalid TIN, different TIN or no TIN per BIR Record – No picture of responsible officer, or unacceptable picture (size, quality) – Different name (broker) in PRC Record

COR/CCN not attached in “Approved” email Alert No “Activated” email alert Expired CAS Accreditation

Pre-Lodgement e2m IAS Requisites

Importers Brokers Warehouse Operators Airlines, Shipping Lines Bank AABs CPRS CCN eManifest NSW/LCS Accreditation as BOC AAB, PAS5 Compliant PCHC/ B A P

eManifest Workflow

Arrival Schedule Shipping / Air Lines Manifest

(IFM, Master)

BOC e2m IAS Manifest Processes Validates Manifest MBL Exist Registers Manifest Consol Manifest

(GEN, BOL, CTN)

Consolidators/ Forwarders

Manifest to be submitted 12 hours prior to vessel arrival

Import Entry Workflows – e2m IAS

Broker

Invoice, BL/AWB

BIR DoFinance Airline/ Shipping Line Forwarder/ Consolidator

IED, Import Entry SAD BOC Response: Assessment Final/Temporary Manifest/BL (BOL, GEN CTN)

Internet

Importers’ Online Visibility: Import Entry, Assessment Statement of Settlement Of Duties and Taxes

Importer

Certificate of

?

Debit from Importer Account ATRIG, Tax Exemption Certificate (TEC) eIPS Release Instruction

National Single Window Gateway VASP Gateway Arrastre, Whse, CY-CFS

BOC Final Payment Instruction (Net: duties, taxes, fees) AAB Final Payment Confirmation

BAP/PASS5

BRN + Auto Debit Agreement (ADA)

AAB e2m IAS

Major Changes - Lodgment

• Import Entry Declaration - IED

– Electronic lodgment thru VASP, prior to opening of Letter of Credit – PASS5/auto debit payment of Advanced Duties to be settled within 7 days

• Import Entry – Consumption, Warehouse

– Use of C-SAD Form ie InterCommerce’ WebCWS • No more encoding of IEIRD serial number in Box 28; Use importer’s bank reference number -

BRN

– PASS5/auto debit payment of Customs duties and taxes, based on Final Assessment • No more over the counter, advanced payment thru banks; No O/R • No check writing and PAS4 file name • No additional payment at the Port of Discharge – Automated matching of payment vs Final Assessment, automatically triggering the Release Instruction to arrastre, warehouse or CY/CFS – Automated issuance of Statement of Settlement of Duties and Taxes, upon receipt of AAB confirmation

Major Changes – Customs Processing

• Validation of SAD – CPRS registration of importer and broker - CCN – Use of valid Bank Reference Number - BRN – eManifest data - eg multiple containers, details – National Single Window - NSW • • •

BIR

Authority To Release Imported Goods (ATRIG)

DOF

Tax Exemption Certificate

PEZA eIPS ??

• Selectivity –

no changes

• Assessment – Automated response to entries within 10-20 minutes • Final Assessment Notice for SGL and Green Lane • Temporary Assessment Notice for Yellow and Red Lane

Major Changes – Payment of CDT

• Bank Reference Number

– AAB to issue BRN to importer upon presenting the COR/CCN and nominating account for autodebit arrangement – AAB to transmit importer BRN to BOC

• Payment of duties, taxes and fees via PASS5

– Autodebit payment of advanced duties prior to opening of L/C based on Final Payment Instruction from BOC to AAB – Autodebit payment of duties, taxes and fees based on final Assessment and Final Payment Instruction from BOC to AAB • Net of advanced duties, TDM – Use of C-SAD Form eg. online printout from InterCommerce’ WebCWS • No more encoding of IEIRD serial number; Use importer’s bank reference number – PASS5/auto debit payment of Customs duties and taxes, based on Final Assessment • No more over the counter, advanced payment thru banks; No O/R • No check writing and PAS4 file name • No additional payment at the Port of Discharge

SSDT

• – – – – – – BOC system generated Statement of Settlement of Duties and Taxes which serves as proof of payment on duties, taxes and fees –

CUD

: Customs Duties

VAT

: 12% Value Added Tax

FIN:

BOC fines, penalty, other charges

IPF

: Import Processing Fee

CSF

: Container Security Fee

CTF

: Cargo Transfer Fee

TCC

: Tax Credit Certificate • • Bank may issue official receipt on the total amount paid for CDT and fees.

BOC to officially advise BIR on the issuance of said SSDT; BIR to verify details from BOC e2m system

BOC e2m IAS Benefits

• •

Cost Savings : clerical, transport and other expenses

– Broker preparation and Customs processing of documents – Processing of payment - MC, PAS4 encoding and transmission, “forced matching by BOC Cashier – Electronic lodgment with response within 30 minutes – Demurrage, Storage charges

Reduced Cycle Time – from 3 days to 30 minutes

– Electronic lodgment – Automated approval process – Autodebit of payment for duties and taxes – Automated matching of payment vs assessment – Automated Release Instruction •

Transparency of Processes

– Importers

Online Visibility

via InterCommerce website: Declaration, Assessment, SSDT and Management Reports

BOC e2m IAS Implementing CMOs

• • • • • • •

CMO 39 – 2008

CPRS Database Build-up

CMO 6-2009

Procedures for the payment of Advance Duty Deposit and Final Payables

CMO 27-2009

Procedure for the implementation of e2m IAS in all Ports

CMO 30-2009

Procedures for the accreditation of CBW and CY/CFS

CMO 38-2009

Supplemental Guidelines (Assessment) to CMO 27-2009

CMO 37-2009

Submission of electronic manifest through VASP’s

CMO 40-2009

Manual Discharge of Informal and Transshipment BL’s

Additional Policies and Procedures

• Advance payments of CDT prior to ‘date of e2m IAS implementation’ at Port • First and last importer, importation • Tentative release • Short shipment • Post Entry Amendments, Modifications • Additional payment of CDT resulting from Post Entry • SSDT as an official document as importer’s proof of payment of duties, taxes and fees (in lieu of O/R)

e2m IAS Implementation Schedule

• Port of Batangas • Ports of Limay, Mariveles* • Manila International Container Port • Port of Manila • Ports of Subic, Clark • Ports of Cebu, Mactan • Port of NAIA • Port of Davao • Port of Cagayan de Oro • Other Ports :

21 March 2009

:

10 Aug

: : : :

12 Oct

:

12 Oct

(01 Sept) : TBA : TBA : TBA TBA TBA TBA (17 Aug)

* Port of Mariveles “LIVE” as of 03 August 2009, import entry lodged by broker for Total Philippines thru InterCommerce

E2M IAS @ MICP, POM DOI moved to 12 October 2009

Key Areas needing Resolution

• • • • • • • •

Importer CPRS/CCN and BRN

– Only 5,000+ importers ?

– PEZA, CDC, SBMA registered enterprises

eManifest

– Manifest data on ACOS and e2m IAS – Timing on e-manifest lodgment by forwarders

NSW: BIR ATRIG, DOF TEC

– 3-5 days prior to entry lodgment

IED and Advanced Duty Payment

– Input previous payments to e2m

E2m IAS Process

– Updated tariff tables eg JPEPA rates – Final Assessment Notice for R/Y Lanes

Release instruction to arrastre, CY-CFS

– Data accuracy

PASS5 Final Payment Instruction

– Breakdown: Duties, VAT, Others ?

Statement of Settlement of Duties, Taxes, Fees

– Acceptable to BIR as proof of VAT payments

Q & A

Unit 2203, 88 Corporate Center Sedeno St., Salcedo Village Makati City 1227 Telephone: +02 843 2792 Fax: +02 843 8160 Email: [email protected]

www.intercommerce.com.ph