BoC CMO 27-2009: Implementing E2M IAS @ 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 1st Customs EDI VAN (1998) PEZA VASP (2006), CDC VASP (2006), BOC VASP (July 2007) BOI VASP (Jan 2009)

About InterCommerce Local Focus – Global Reach ! 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 China Japan Hongkong Macau Chinese Taipei Philippines Thailand 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 NSW Validation - CPRS - NSW - Manifest Selectivity SGL Green Yellow Red Assessment PASS5 OLRS Shipping Lines, Forwarder/Consolidators VASP Importers Brokers CY/CFS Operators BAP/PCHC Authorized Agent Banks - AAB

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 Importer registers with InterCommerce online (www.intercommerce.com.ph), providing user name, password Submit accomplished Information Services Agreement InterCommerce activated user name Importer inputs all required information including digital pictures and scanned signatures Importer clicks on “Submit” for transmission to BOC - and receives either a “Sent” or “Error” message 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 CPRS Brokers CCN Warehouse Operators Airlines, Shipping Lines eManifest NSW/LCS Accreditation as BOC AAB, PAS5 Compliant Bank AABs PCHC/ B A P

Manifest to be submitted 12 hours prior to vessel arrival eManifest Workflow Arrival Schedule BOC e2m IAS Manifest Processes Shipping / Air Lines Validates Manifest Manifest (IFM, Master) MBL Exist Registers Manifest Consol Manifest (GEN, BOL, CTN) Consolidators/ Forwarders Manifest to be submitted 12 hours prior to vessel arrival 14

Import Entry Workflows – e2m IAS ATRIG, Tax Exemption Certificate (TEC) eIPS National Single Window Gateway BIR DoFinance Airline/ Shipping Line Forwarder/ Consolidator Manifest/BL (BOL, GEN CTN) IED, Import Entry SAD Internet BOC Response: Assessment Final/Temporary Broker e2m IAS Importers’ Online Visibility: Import Entry, Assessment VASP Gateway Release Instruction Invoice, BL/AWB Statement of Settlement Of Duties and Taxes Arrastre, Whse, CY-CFS Importer Certificate of Registration/CCN ? Debit from Importer Account BOC Final Payment Instruction (Net: duties, taxes, fees) AAB Final Payment Confirmation AAB BAP/PASS5 BRN + Auto Debit Agreement (ADA)

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 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 : 21 March 2009 Ports of Limay, Mariveles* : 10 Aug Manila International Container Port : 12 Oct (17 Aug) Port of Manila : 12 Oct (01 Sept) Ports of Subic, Clark : TBA Ports of Cebu, Mactan : TBA Port of NAIA : TBA Port of Davao : TBA Port of Cagayan de Oro : TBA Other Ports : TBA * 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: marketing@intercommerce.com.ph www.intercommerce.com.ph