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Presentation for the

National Export Congress


Marriott Hotel, Pasay City
December 3, 2015

Trade Facilitation
Initiatives at the
Bureau of Customs
Cielito F. Habito
Chief of Party
Trade-Related Assistance for
Development (TRADE) Project

OVERALL PROJECT MISSION


TRADE assists the Philippine government (especially
through the DTI and BoC) make good in and make
the most of its trade relationships, particularly
through its membership in key trade agreements.

KEY INITIATIVES AT CUSTOMS


Customs Regulated Imports List (CRIL)
Trade Transactions Process Analysis
Other Initiatives (AEO, ATA Carnet, Advance
Ruling)

Customs Regulated Imports List (CRIL)


Developed by BOC with USAID-TRADE assistance

Lists 7,422 regulated products with corresponding


import regulations and required permits
Includes frequently imported products regulated by
23 trade-regulatory government agencies (TRGAs)
Released in April 2015, updated in October 2015
Institutionalized as the single reference of BOC in
enforcing all import permit requirements at the
border
Currently Excel-based; new database management
system to be implemented by BOC starting in 2016

Rationale for CRIL


Before, there was no single authoritative source of
information for import permit requirements
Not clear for importers what permits to apply for
BOC frontline officers made mistakes in requiring
wrong or unnecessary documents from importers
CRIL now makes import permit requirements
transparent for importers & BOC frontline officers
CRIL must constantly be up-to-date, hence requires
close and continuing coordination between BOC
and TRGAs

CRIL SAMPLE SCREEN


(Sorted by Agency)
Type of
permit
needed

Regulatory
Agency that
issues permit

Link to
regulation
& forms

Info if product
needs permit
from another
agency
Product that
requires
permit

CRIL: Observations
Most regulated products need only one type of
import permit from a specific agency

Some need 2-3 types of import permits from


different agencies, e.g.
- Chocolate bars (2-3 permits): FDA, BAI, BPI
- Color Printers: BPS (appliance), NBI (possible use
to counterfeit currency), NTC (if Wi-Fi enabled)
Unduly large number of permits required by TRGAs,
with duplicating/overlapping or unnecessary ones
Need to review and rationalize policies on import
permits (e.g., thru NCCs Project Repeal)

Trade Transactions Process Analysis


WHAT IS TTPA?

Analysis of the end-to-end trade process chain, from


off-loading of cargo from the vessel, through clearance
processes, to exit from the port or warehouse.
OBJECTIVES

Document actual border procedures and identify


bottlenecks
Time the procedures and analyze reasons for delays
along the process chain (at BOC, TRGAs & service
providers)
Assess formal and informal costs incurred
Suggest improvements

Scope of Analysis

TTPA : Cargo Movement vs CARGO


Clearance
PORT OPERATOR
SHIP CAPTURES
BERTHS BERTH INFO

PHYSICAL
EXAMINATION
(RED CARGO)

PAYMENT
OF PORT
CHARGES

PORT OPER
NOTIFIES
IMPORTER

CARGO MOVEMENT

GATE OUT,
CARGO
LEAVES
PORT

END

IF RED, PHYSICAL
EXAM IS DONE AT
PORTS DESIGNATED
EXAM AREA
IMPORTER
GETS
ACCREDITED

IMPORTER
OBTAINS
PERMITS
IMPORTER
PREPARES
DOCS

CARGO CLEARANCE
IMPORTER
LODGES
ENTRY
BOC
ACCEPTS
LODGMENT
& ASSESS

RE-ASSESS
IF NEEDED
SELECTI
VITY
MANUAL
SUBMIT
ENTRY DECL

BOC EXAM
(FOR RED &
YELLOW)
IF GREEN

PAYMENT
OF TAXES &
DUTIES

END

CUSTOMS
CLEARS
CARGO,
ISSUES
RELEASE

IMPORTER
RECEIVES
CARGO

BREAKDOWN OF IMPORT ENTRIES BY


SELECTIVITY COLOR
(Post-CRIL)

(Pre-CRIL)
SELECTIVITY PROFILE (NOV 2014)

SELECTIVITY PROFILE (JUNE 2015)

GREEN

YELLOW

RED

BLUE

GREEN

YELLOW

RED

BLUE

15%

53%

24%

8%

40%

33%

19%

8%

8%

15%

24%
53%

19%

8%
40%
33%

Green Lane Cleared for Release


Yellow Lane For Document Inspection (e.g., permits, etc.)
Red Lane Requires Physical Inspection
Blue Lane Expedited Release (Super Green Lane)

AVERAGE PROCESSING TIME PER PORT


Sample Results
NOV 2014

AVERAGE PROCESSING TIME (MEDIAN)


MICP

POM

BATANGAS

CEBU

DAVAO

ILOILO

CDO

NAIA

GREEN

8 20:48

4 03:28

1 07:18

4 23:01

4 20:56

2 08:05

YELLOW

7 11:00

4 11:31

3 00:47

4 06:02

3 20:29

3 23:50

6 22:07

3 21:35

RED

7 04:32

5 06:30

3 22:08

5 22:56

4 00:01

4 23:01

5 05:24

3 16:08

BLUE

8 02:18

4 04:06

0 19:28

7 21:25

5 05:51

2 01:40

1 13:30
JUNE 2015

AVERAGE PROCESSING TIME (MEDIAN)


MICP

POM

BATANGAS

CEBU

DAVAO

ILOILO

CDO

NAIA

HARBOUR

GREEN

2 01:45

2 16:31

1 04:19

4 04:27

2 09:03

5 20:07

2 08:38

2 00:51

3 20:04

YELLOW

2 20:22

3 00:23

5 04:15

5 00:49

3 21:37

6 14:28

3 06:14

4 00:17

7 02:19

RED

2 08:29

4 00:37

4 07:59

6 00:26

3 04:10

8 08:09

5 05:38

2 07:28

6 18:43

BLUE

3 05:08

2 20:09

1 01:43

4 23:56

3 03:42

1 01:08

6 00:45

CLEARANCE TIME Sea Ports


Sample Results
NOV 2014

CLEARANCE TIME / ACTOR - SEA

ACTORS
Importer /
Broker;
BOC;
TRGAs

GREEN YELLOW

RED

BLUE

JUNE 2015

CLEARANCE TIME / ACTOR -SEA


ACTORS

GREEN YELLOW

RED

BLUE

0 00:00 4 00:44 0 22:39 0 00:00

Importer /
Broker;
BOC;
TRGAs

0 00:00 0 12:19

PCHC
AABanks

1 20:40 0 12:39 3 02:26

0 01:15

PCHC
AABanks

0 15:07

Port
Operator

4 20:34 1 09:45 2 04:42 6 17:40

Port
Operator

2 05:55 2 00:03 0 10:48 1 20:22

0 12:07 0 00:37 1 04:07

+ 4 03:13

+ 4 03:13

Est Cargo Exam Time (Red Only)

Est Cargo Exam Time (Red Only)

Relative to:

Relative to:

AVERAGE
CUSTOMS
CLEARANCE
TIME

AVERAGE
CUSTOMS
CLEARANCE
TIME

6 17:15

2 17:22 0 00:00

5 23:10 6 05:48 6 18:55

2 21:02 3 00:30 3 04:48 3 00:29

CLEARANCE TIME Airport


Sample Results
NOV 2014

CLEARANCE TIME / ACTOR - AIR


ACTORS

GREEN YELLOW

RED

BLUE

ACTORS

GREEN YELLOW

RED

BLUE

Importer /
Broker;
BOC;
TRGAs

0 00:00 1 01:25

0 17:21

PCHC
AABanks

1 01:10

0 00:18 0 20:08

Port
Operator

0 23:40 0 02:04 0 19:41 0 03:46

Importer /
Broker;
BOC;
TRGAs

0 00:00 0 02:15

PCHC
AABanks

0 00:26 0 03:48 1 09:18

Port
Operator

0 03:56 3 15:31

2 06:31 0 00:00

Relative to:

Relative to:

AVERAGE
CUSTOMS
CLEARANCE
TIME

AVERAGE
CUSTOMS
CLEARANCE
TIME

0 04:22 3 21:35

JUNE 2015

CLEARANCE TIME / ACTOR - AIR

3 16:08

1 13:30

2 00:51

0 17:52 0 00:00

2 20:47 0 17:50

4 00:17 2 07:24

0 21:20

1 01:07

TTPA: Observations
Green Lane entries sometimes took longer than Red
Lane entries

Customs gets a bad rap; much delays occur outside


of BoCs part in the process chain
In many cases, longest delays happen with TRGAs,
authorized agent banks and/or port operator
Theres scope for streamlining BoC clearance
procedures

CRIL has made a definite improvement in flows


National Single Window would help speed up delays
with TRGA clearances/permits

Maraming Salamat Po

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