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Philippines' Bureau of Customs (BOC) and the Department of Finance (DOF) have signed Customs Administrative Order (CAO) 5-2017 establishing Authorized Economic Operator (AEO) program.
The program gives incentives to stakeholders with high level of compliance with customs rules and regulations. It covers the processes, mechanism, and benefits of an AEO-accredited stakeholder.
The program has three components namely: cargo security system which will ensure the integrity and security of the imported good; trade clearance system that enables highly compliant stakeholders to clear their goods with minimum customs border intervention; and mutual recognition arrangement (MRA) which sets process to implement and maintain mutual recognition between two or more customs administrations.
Under the CAO, stakeholders who may apply for accreditation are: importers; exporters; Customs Bonded Warehouse (CBW) and Customs Facility Warehouse (CFW); Customs brokers; Non Vessel Owning Common Carrier (NVOCC); local and international freight forwarders with offices in the Philippines; Shipping lines or airlines and their agents;, authorized agent banks (AAB); local transport operators; and foreign suppliers, manufacturers, and other entities in the logistics and international supply chain accredited as AEO by another country with which the Philippines has a Mutual Recognition Arrangement.
CAO 5-2017 serves as the implementing rules and regulations of Section 1227 and 1228 of Republic Act 10863 otherwise known as the Customs and Modernization and Tariff Act (CMTA).
The CAO is effective next month or after 15 days after its publication. It has been published last Aug. 23.
