REPUBLIC OF THE SFL IPPIBE Department of Finance: HUEAU OF CLSFOMS Manila 10! Customs Adiisiistvative Order No. 38 e ROOT ACCREDITATION, ESTABLISHMENT, AND- OPERATION OF CUSTOMS VALUE ADDED SERVICE PROVIDERS (VASP) TO: ALL DEPUTY COR SSIUMERS ALL SERVICE DIRECTORS ALL DISTRICT. COLT ECTO! ALL DEPUTY COLEPCTORS [i ALL IMPORTERS EXPORTERS/BROELRS ALLPORT AND WAREHOUSE OPERA TC ALL SHIPPING LINES/AIRLINES/AGENTS T CONSOLIGATORSFORWARDERS VALUE ADDED SERVICE PROVIDERS ALL OTHERS CONCERNED | DECLARATION OF POLICY In fine with Ihe @-Customs (ASYCUDA World) Project, and given the government's thrust of conlimuousl y providing better. efficient and refiable front-fine services lo che fadiey community thraugh parinership wilh the private sector, the BOC shall adhere to world’s best practice of using « Customs Value Added Service Provider (VASP) 2s a link tu deliver werid-class-ymality frontend customs 1CT services to ROCs growing (rensacting public . 2. OBIECTIVE Given the foregoing declaration of policy, hs order shall lave the following, - objectives: S.A, Toesiabligh the administrative and operational stmoiures for the activation, operatio SP, a defined in the Bureau af Customs (80)C) Tenis of Reference for the e-Cusioms Project 2.2, To implement the criteria set by the VASP Accreditation Committee (WAC) to select and accredit qualified! IY companies to become VASPs age Vo 3 f a? fy : Xutho = we} and provide acvessery guidelines far the arcte-litotion, establishment, ane! operation of VASPs, 23. To hamess the teclinical expestice and mavinize the participation of the private seetar in tie delivery af world-class-quality frontend custome ICT services nf the BOL 24. Formanege the nse ef VASES hy importers exportare, custome brokers and other siakelebiers im the provessies cf impact and export entries, registration ated other value added services ofieted ty tlre Irensacting public 2.5. Ty promote Ue implementation of Cuciams hest practices towards the achievement of the UL"s key result nroas in trade Facilitatinn, revenue generation, enforceinent, professionalizaiion of personnel, and qu corporate life devel spent 2.6 To provide a mote! for th pivate sector for ollier gavermment apencies volving Mational Single Winky systean as provided by Paecanive Order 482 dated December 27, 2005 — Croaing the Natioval Single Window Task co for Carnes Ci=at ance, dlelivery of Guntline ICT services by the 2.9. To provide fie e smooth Gansiticn from the existing Entry Encoding ‘Cemter (EEC) systern to an internet/ wireless based fodgment and clearance recess far import ancl export entries 3 SCOPE 31 This Order shall spply vat collection districts, including a other BOC offices nationwide. ‘This shall alsa cover all types of tran: provided by the WASPS, namely, hy ports, and lions on imports and exports to be Regisitalion of HOT Cliems b. Ladgment of (mpoit Declarations (Consumption, Warchousing. Transhipiont, and Informal) &. Ledgment ef peut Declarations aL Transmission of Raw Materials Liquidation teformaltion ©. Transmission of Surety Bands Information {Transmission of Payment Informstijn ‘Transmission of Online Release Infor Other services n¢ mi yy the Commi ioner oF BOC4 : A : 2AS.2 2] 9 4, ADMINISTRATIVE PROVISIONS, ALL Accreditation of VASP 4.1.1 VASP Accreditation Committee ‘The VASP Accreditation Committe created by the BOC to ensure the successfull Implementation of e-Customs Projet. shail perfor the allan, a) Facilitate and fast-track the averedstation moeess to elTect the uansition of service offered hy the cunem Entry lo the VASPs. coding, center b) Recommend relevent policies, responsibilities snd liabi VASP, rulesand processes related to all issues su accteditation of VASPs ) Recommend evaluation criteria, Iuisiness model and timeframes for accrediation of VASPs for approval of the Commissioner of Customs. 4) Publish am] hol informational campaigns to enare widest circulation of the VASP program in partnership with the accredited WASPS. 4.1.2 Accreditation Criteria ‘The VASE Accreditation Committee shall observe the publised scerevilation criteria and shall recommend any ameniments thereto to the Commissioner lor approval e 41a Acert tion Process a. Th hihe VAC, BOC issues invitation for a Letler of hitent from select ICT companies in the Philippines. ‘This also includes the Eligibility Requirements that inferested caruliclates emat meet in order to be cfigible for participating the accreditations pracess. b. The VAC reviews the documents submitted by the candidate companies that pass the eligibility requirements and qualilied 10 oceed (o the next stage © BOC releases the Term of Releienee, along with the Nea Disclosure Understanding ts be signet by the candidate VASP.pnical propesaly asa! financial requirements (lor Hinancia’ propose). late VASP prepare and sufmit their teclnisal ad financial proposals, Ps shall also start with the development of the VASP eyston: faced on the sysiere requirements issued by BOC. AL this polar BEC aelsares iis Tests: Criteria ther wll be used a5 guide for & stem of tiie candidaiecenpanies £ Using the agreed Testing Criteria as reference, NOC organizes a Quality Asewance Team, evinposed of technical experts fiom MISTG which will determine the compliance of the candidate company w the system requirements, The testing shall also inchide. amang others, checks lor user-tiiendliness of the system 2 Aller the conduct of test anal site visits, BOC shall now Memify suceess{ial canditlates that will be accredited fo become VASP is. h, BOC shall pre-qualify VAS Candidates i. BOC shall reinase tonne of teFeronce: j. VASP shall submit tec ‘cal and financial proposal 4 i. WASP shall develop the System Application. ® [BOC shall fest for quality assurance the YASP System Application im. BOC shall select and accredit ths VASP. ALA Conditions dor Accreditation 4.141 SLUT and NDU shall sign 1 Service a Hon Disclosure -Lndertal evel Unik (NBO 4142 Accreditation Fees A one time aceveditatinn for of PLP 20000.00 (first year) and am anmal fe of Phi 50,000.00 (socarid. year ‘oneanels) shall be imposedden -2-9067 ie maar Thy accredited VASPs shall post a Performance Band, issued by a NOC-accredited surety company, amounting 10 Five lillinn Pesos (PhP Sif), which shall be fouieited in favor of BOC in the event it is established that the selected VASP is in detaui in any of ils obiigations. 4.LA4 Probationary period The accredited VASPs shall undergo a six (6) probationary period (technical evaluation} alter which the BOC yhulf decide whether or aot it will grant fall accretlitalion sintus to the VASP 4.145 Perive and renewal of Accreditation The selected| VASI’s shall be given accreditation status for a period of three (3) years, inclusive of the probationary periced, and will be renewable yearly thereaRer subject to the Evaluation of the qualily of thelr pertormanee as measured by the Service Level Underiaiing (SLU), and compliance to Eligohlity vequirements, 4S) Other Conditions a. ROC anay se-cumduct the accreditation process if there is only one (1) company aceredijed within subject period b BOC may camry out finther accrelitation processes aller three (3) years of uperation of the initiaily accredited V ASUS 4 Affer the six-mouth probationary period (where a rainimomt of PhP 5 Million paid up capital was required upon submission ot Application), the minizmmn paid up cxpital shall be increased to PhP Lo Million 4. VASPs snust successtilly pass the technical seceplance tests including sysiems integration, dala security and integtity, communications, and performance) that wall be conducied by the Managemen Information Systems and ‘Technology Group of the HOC fer the initial, the post probationmy and the yearly technical evaluation and validation, to qualify for continuaus accreditation:4.4.6 Pre-termination BOC may preterminate its Agroement wilh the selected VASP for any of the Following, + Vielatian of the provisions of this Order and related sues andl regulations, including SLU and PITY + Viekwion of the Leriff avd Custom: Code Of the Philippines, e-Commerce Act and other relatedt Ins. + Actions inimical to the secu Custesnis eperations ty anu integrity of the BOC e. = Other-violations as may be determined by (te Commissioner oP BOL : DOG reserves he rigit to change any of the accreditation as may be deemed necessary by the Commissioner. 4.2 Schedule of Fees Payable to VASP by the transactine: public The VASUs will determine their respective fee structures based on several factors such as market condisiuns and systems sustainability requirements, among elliers ‘The BOC shall ust culcet thae fees in belalf of the VASPs. OPERATIONAL PROVISIONS 5.1 Systems for Import and J2xport entrics ioneh VASES Whe ascrsdited WASPS, under existing, agremments andlor regulations, shall develop the WASP fruntend ICT sysiem and establish necessary inirastracture and telecommunications facilities to allow electronic transactions as ineutioned in Section 3.2 herera The BOC-VASP Gateway (operated ly {he BOC) shall be the sole connectivity of VASP ta the BOC e-Castoms System for this purpose. The OC clients shall be connected to the BUC-VASP Gateway via accredited! VASP of their choice, which has the feility for the processing. of import anid export entries ‘The VASP facitity shall be available to duly renistered importers, exporters and their designated brokers.7 CAd Lei 52. VASP Implementation The BOC shell implement the VAS? in phases in order to effectively manage the teclinical requirements and cushion the impact for change particulaely among the esteraal and internal stakeholders. BOC shall define the schedule, pants, andi types of transactions that will be covered in each phase, 6 ADDITIONAL Gi ES The Commissioner of Customs is hereby authorized to issue additional and/or amendatory suidetines far the eftective, efficient and appropriate implementation of all initiatives to establisivand operate the VASPs, 7. REPEALING CLAUSE All orders, memrranda, cireulars and such oliter issumnces inconsistent herewith are hereby repealed andor deemed’ moslitied accordingly 3, SEPARATILITY ChAUSE any partor provision ef this Order is later nn deelaved invalid or illegal, the remarring portion shall remain valid and unatiec el 9. EPFECTIVITY CLAUS! This Order shall take effect immediately. ae RNAPOLES ‘ay MORALES: Conpsésiner, See ee Approved: TEES wild) B.TEVES costa JouUol Date signed: