Francis Norman Lopez President Francis Norman Lopez President

Agenda Introduction BOC e2m Import Procedures DA Automated SPS Import Clearance National Single Window Moving Forward Q & A

About InterCommerce IT, Value Added Network Services company –with more than 22 years experience in B2B transactions, and now Accredited –more than 12 years in eCustoms Services – accredited as EDI VAN in 1998 and now Accredited by Customs, PEZA, Clark and Subic Freeports, the Board of Investment and the Department of Agriculture: BAI, BPI and BFAR - 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 YOUR Value Added Service PartnerInterCommerce... YOUR Value Added Service Partner PEZA Local Focus – Global Reach ! Department of Agriculture BAI BPI BFAR

Pan Asian eCommerce Alliance  Established in 2000  12 Members VASP accredited by respective Customs authorities; INS – 12 th Member  Legal framework, PKI mutual recognition, and secure cross border transaction service

Broker Importer Invoice, BL/AWB BOC Response: Assessment Final/Temporary VASP Gateway Import Entry Workflows – e2m IAS BAP/PASS5 AAB IED, Import Entry SAD (Formal/Wrhouse) BOC Final Payment Instruction (Net: duties, taxes, fees – IPF, CSF, others) AAB Final Payment Confirmation ? Debit from Importer Account National Single Window BRN + Auto Debit Agreement (ADA) Internet Airline/ Shipping Line Forwarder/ Consolidator Manifest/BL (BOL, GEN CTN) e2m IAS Certificate of Registration/CCN Importers’ Online Visibility: Import Entry, Assessment Statement of Settlement Of Duties and Taxes (SSDT) Arrastre, Whse, CY-CFS Arrastre, Whse, CY-CFS Release Instruction CPRS Approved COR w BOC CCN VASP SPS Import Clearance Data Application to Import Clearance DA: BAI, BPI, BFAR

Role of Value Added Service Provider - VASP  Enabler for electronic transactions with Customs and other government agencies –Provide front-end ICT systems available to registered importers, exporters and designated brokers, and infrastructure and telecommunications facilities, to allow electronic transactions with back-office system of Customs and OGAs, –Conduct orientation and user training –Provide customer support and helpdesk  Adopt to global best practices to facilitate trade, particularly cross border information exchange

VASP Role in SPS IC Implementation InterCommerce enabling the importers –Orientation on automated permit processes and requirements, and assistance for compliance to agency requirements –Provision of an online system (24/7) for the preparation of the permit application to agency accredited importers –Hands-on user training and initial implementation –Integration of data for other trade processes and generation of reports –Technical support and Helpdesk (8:00am to 10:00pm, Monday to Sunday)

VASP Role in SPS IC Implementation InterCommerce support to Agency –Development and configuration of INS Trade System Data requirements Criteria, conditions for processing and approval of permit Generation of reports, statistics Interface to the National Single Window –Conduct orientation and training to agency officers –Integration of Trade System data to other agency systems Technical support and Helpdesk (8:00am to 10:00pm, Monday to Sunday) –Enhancements and development of additional applications –Optional: Hosting or co-location services

Import Workflows – eg BAI Start End SCM: PO, Proforma Invoice BAI: Import Permit Clearance BIR: ATRIG BOC: Import Entry, Release Accreditation of regular importer of import products regulated by DA Agencies Import product may require registration or be subject to laboratory tests and BFAD Certificate Copy of approved Import Permit submitted to supplier as a requisite prior to export (BAI) Ship-out date must be within 60 days after Import Clearance approval Import Permit/Clearance and Certificate required by BIR for issuance of ATRIG (BAI) Import Permit/Certificate and ATRIG required by BOC for processing import entry and release of goods

BAI Import Clearance, Permit Application Forms –NVQS Import Clearance –AFSD Import Permit –LSD-VBSS Permit BAI Product Groups –Animal and Animal Products Live animals, Animal by-products, Animal products –Feeds and Feedstuff Feed ingredients and components, Veterinary drugs and products –Veterinary Biological Products Cycle Time –Average 3 days Fees –P100, P125, P200, P250 and P500 Other Expenses –Man-hours –Transportation –Other expenses due to delays in the approval of the permit Submit Application Pay Import Permit/Clearance Fee BAI Review, Process, Endorse Print Import Clearance for Approval/Signature Approve, Sign Notarize Import Clearance BAI Application Form Harmonize Forms Pre-Qualify Importer, Products Reduce Cycle Time Reduce Costs

Automated Import Permit Model Accreditation and Registration –Importers and respective products –Online repository, database and maintenance Electronic Processing by Agency –Automated validation of mandatory data eg only accredited importers and registered importables –Automated/online review, endorsement and approval –Autodebit payment of agency/permit fees –Online printing of approved permits with reference number and barcode

DA SPS Import Clearance - Overview Importer, Authorized Rep/Broker BPI Plant, Plant Products BAI Live Animal BAI Animal Products BAI Veterinary & Biologicals BFAR, Fisheries and Aquatic Resources BPI, BAI, BFAR Quarantine Offices DA ITCAF (System Administrator) DA Trade System Internet

Automated DA SPS Import Clearance Features: 1.Online preparation and submission, 24 / 7 2.Electronic submission, processing, payment and transmission of approved SPS Import Clearance 3.System generated SPS Import Clearance

Importer Procedures RegistrationUtilizationApplication Registration with DA Agency Submission of the List of Importables Remittance of Advances for SPS Fees to DA Agency Cashier Send copy of SPS Import Clearance to supplier (origin) Submit SPS IC + Certification to BIR for ATRIG Attach SPS import Clearance doc to Import Entry Declaration Online preparation, via Internet/INS Electronic submission of SPS Application Receipt of BAI Response Printing of the Approved SPS Import Clearance, Import Certificate

Agency Procedures RegistrationQuarantineProcessing Approve importer registration Approve the List of Importables Receipt of Advances for SPS Fees, issuance of Official Receipt Quarantine Officer access to approved SPS Import Clearance Validate SPS document vs approved SPS online, cargo Approve clearance and release of cargo Automated validation of data Review of application, determine other conditions of import Autodebit payment of SPS Fee Endorsment and Approval Agency transmits response to Importer and approved SPS data to NSW

Changes in Procedures Use of online forms for preparation, support documents (scanned documents) attached to application, 24 / 7 Harmonized SPS Import Clearance form for BAI, BFAR and BPI Eliminate manual steps: –Submission of application form and support documents –Manual, over the counter payment of SPS Fees –Manual typing of NVQS Import Clearance, AFSD Import Permit, LSD-VBSS Permit and BAI Certificate for BIR ATRIG –Physical signature on document –Notarization of Import Permit Electronic submission of approved SPS data to NSW for Customs automated validation vs import declaration Advanced information on approved SPS Import Clearance to Quarantine Officer

ACOS Workflows – Import Clearance, Release (Old Procedures) Invoice, Packing List Pre-Alert AWB/BL Compute CDT Start End, Goods Delivered Cycle Time : Permit Process IEIRD Preparation, CDT Payment, Lodgment Process Customs Clearance, Release Process OLRS/Release Cashier Verification Additional Duties, Tax Payment IST Verification Assessment Examination Online Lodgment Manifest Verification Advance Payment Of Duties, Taxes IEIRD Import Permits Encode/Print IEIRD Importer Approve CDT estimate Docs Complete ? Submit Application Pay Import Permit/Clearance Fee BAI Review, Processing Print Import Clearance for Approval/Signature Approve, Sign Notarize Import Clearance BAI Application Form Quarantine

e2m Workflow – Import Clearance, Release (New Procedures) Invoice, Packing List Pre-Alert AWB/BL SPSSAD Lodge Manual Assess FAN Auto Assess AWB/BL Encode Pre-Assessment/ Importer Approval Print IEIRD/SAD Docs Complete Start End, Goods Delivered INS AAB NSW PASS5 Examine Cycle Time: Permit Process eg SPS Imp Clearance IEIRD Preparation : 5 mins (one item) Customs Assessment : 5 mins (G) CDT Payment : (10+mins) SSDT, OLRS Release :1 min OLRS Online Preparation Electronic Submission BAI Review, Payment, Processing & Approval Printing of Approved SPS Import Clearance Quarantine

Benefits Agency –Focus on substantive functions, less clerical tasks –Faster cycle time on processing and issuance of permit –Advance information to quarantine officers assigned at ports –Online databases, real time reports and statistics Importer –Faster, predictable response time to permit applications –Improved compliance to policies and procedures –Less clerical task and document handling –Cost savings on trade processes

Q & A

1. Application Reviewed 2. SPS Fee Paid DA Agency NSW Processes National Single Window (NSW) BOC e2m IAS NSW with Automated SPS Import Clearance 3. SPS Import Clearance Approved Importer

DA Trade Automation - Moving Forward Adapt electronic SPS Import Clearance for other Agencies with the Department of Agriculture –Sugar Regulatory Authority- SRA –National Food Authority - NFA –Fertilizer and Pesticide Authority - FPA Adapt the same model for export processes ie export clearance, SPS Certificate –BAI, BPI, BFAR –Philippine Coconut Authority Cross border Information exchange with foreign agencies –Supplier profile eg AEO –Sanitary/Phytosanitary Certificates –Certificate of Origin

Importers : Next Steps With DA –Accreditation with respective agencies –Registration of importables for agency approval –Advances for SPS Import Clearance Fee With InterCommerce –Registration for DA SPS IC Services, Online Visibility –Attend User Training of online preparation and submission of SPS Import Clearance, Online Visibility (Transactions with DA and Customs) –Advances for INS Transaction Charges

Q uestions and A nswers Unit 2203, 88 Corporate Center Sedeno St., Salcedo Village Makati City 1227 Telephone: Fax:

Registry of Importers

Online Registration of Importer

List of Importables of Importers

Importer Access to InterCommerce

Select WebCWS Application

Preparation of the Application for SPS

Select Agency

Confirm Importer Data

Add Purpose and Supplier Data

Add Import Shipping Data

Add Item

Add Item Details

Attach Support Documents

Submit SPS Application

Monitor Balance of Advances with Agency

Application Received by Agency

Login as Reviewer

Select Application for Review

View Details Add Conditions

Login for Endorsement to Director

Select SPS Application

View Details, Conditions and Endorse

Login as Director for Approval

Select SPS Application

View Details, and Approve

WTO Notice Back to BAI Procedures

Login as Quarantine Officer at Port

View Approved SPS Import Clearance

View SPS Details

Tag SPS as Used

Input Data on Actual Inspection

Record of Actual Inspection

Importer Registration with InterCommerce 1.Importer registers with InterCommerce online ( providing UserID, password 2.Submit accomplished and submits Registration for CPRS and Online Visibility 3.Upon validation, InterCommerce activates UserID, password With registration with InterCommerce, importers have FREE FREE access to eCustoms Services: CPRS preparation, submission, Online Visibility on trade transactions, download SSDT and Management Reports eg Monthly Statement of VAT payments With registration with InterCommerce, importers have FREE access to eCustoms Services: CPRS preparation, submission, Online Visibility on trade transactions, download SSDT and Management Reports eg Monthly Statement of VAT payments

Q uestions and A nswers Unit 2203, 88 Corporate Center Sedeno St., Salcedo Village Makati City 1227 Telephone: Fax: