1. Customs Modernization & Tariff Act: Brief Overview and Update
Agaton Teodoro O. Uvero
2Q GMM, PHILEXPORT
New World Hotel, Manila
September 19, 2017

2. Outline Background of CMTA (RA 10863) Latest Update and Next Steps
Main Features
new policies / provisions
revised provisions
Conclusion: CMTA and customs reforms

3. Background of the CMTA

4. Background of the CMTA (RA 10863)
Initial work started in 2007 to implement the Revised Kyoto Convention (RKC)
RKC: WCO Convention on the Simplification and Harmonization of Customs Procedures
In 2008, bill filed in Congress under the 14th Congress
In 2010, several bills were filed under the 15th Congress
In 2012, Bill was passed on 3rd reading under the 15th Congress
In 2013, new versions of the bill were refiled under the 16th Congress
Consolidate bill ratified by the House and Senate in January 21, 2016

5. Background of the CMTA (RA 10863)
CMTA signed into law as RA on May 30, 2016
CMTA (with 315 provisions) is based on RKC, WTO Trade Facilitation Agreement (WTO TFA), customs reform agenda and private sector inputs
Thereafter, DOF and BOC created an internal working group to draft the IRR
Draft IRR subject of ongoing public consultations; Several CAOs issued on:
De Minimis Rule on Importations
Balikbayan Boxes / Returning Residents (Conditionally-Free Importation)
Advance Ruling
Baggage of Travelers and Crew
Clearance of Postal Items

6. Main Features

7. New Concepts and Policies
expansion of the customs mandate to include trade facilitation: sec 202
promotion of ‘paperless’ transactions through use of information and communication technology: sec 109
legal interest of 20% for unpaid taxes and duties: sec 104
relief consignment, tax and duty free status during a state of calamity: sec
Free Zone to harmonize rules in PEZA zones and freeports: sec 102,

8. New Concepts and Policies
advance ruling/dispute settlement (protest) to allow early resolution of customs issues even if there is no actual importation involved: sec , 1106
“alerts”, to harmonize and simplify rules on apprehension of shipments, to make process transparent, and to prevent abuse: sec
provision for summary remedies such as distraint on personal property and levy on real property to collect duties, taxes and other charges arising from a customs audit: sec
forfeiture fund for the purpose of outsourcing customs functions, facilitating processes, capacity building, and modernization through automation: sec 1151

9. Revisions
redefinition of the term ‘declarant’, to allow importers to transact with bureau, directly or through authorized representatives / 2 year option provision on SPA: sec 106
prohibited, regulated and restricted imports: sec
majority of DepComs are organic: sec 200
transfer of assessment officers after 3 years: sec 201
assignment within the bureau: sec 209
additional conditions for the exercise of the power to visit and inspect commercial establishments by non-customs personnel: sec 224

10. Revisions
procedure allowing submission of provisional goods declarations in cases of incomplete documents or information necessary to file entry: sec 403
CBW and CFW (customs facilities and warehouses): sec
period of storage CBWs (1 year / 3 months), may be extended: sec 811
settlement (redemption and fine): sec 1124
redefinition of “abandonment” / reclaim of shipment: sec
surcharge in misclassification, misdeclaration and undervaluation, penalty is 250% and 500%: sec 1400

11. Provisions on ‘Exports’
Free Zone to harmonize rules in PEZA zones and freeports: secs 102,
Authorized Economic Operator (AEO): secs 102, 1227
redefinition of the term ‘declarant’, to allow importers to transact with bureau, directly or through authorized representatives / 2 year option provision on SPA: sec 106
Bureau or any designated govt agency may issue Certificate of Origin; exporter may adopt customs-accredited self-certification system; sec 503
transit vs. transshipment: secs

12. CONCLUSION

13. Conclusion CMTA provides for less discretion
international best practices
clear and simplified rules
less penalties for errors and omissions (sec. 108)
increased penalties for fraud / smuggling
CMTA and the customs reform agenda

14. Thank you

15. About the Speaker
Agaton Teodoro O. Uvero is an international trade, indirect tax and supply chain practitioner. He is the Editorial Board Chairman of Asia Customs & Trade, Senior Partner at Worldtrade Consultants, Inc., and Chairman of Grupo Uvero, Inc.
Mr. Uvero began his career at PricewaterhouseCoopers (PwC) Consulting, and continued his consulting career by working on technical assistance programs funded by the Asian Development Bank, United States Agency for International Development, and Japan International Cooperation Agency. He has served the Philippine government from 2013 to 2016: as Deputy Commissioner of the Bureau of Customs, Department of Finance, and as Chairman of the Asia-Pacific Economic Cooperation Sub-Committee on Customs Procedures (2015).
Throughout his career, Mr. Uvero has complemented his private and public sector pursuits with stints in education. He has lectured at the Ateneo Graduate School of Business-Center for Continuing Education and BayanTrade Academy on International Supply Chain Management, and currently lectures at the UP Law Center (MCLE Program) on international trade, tariff and customs.
Mr. Uvero has provided advisory services and training for many of the Top 1000 Philippine corporations, professional and industry associations, and business chambers. He is a regular speaker in local and international conferences. Mr. Uvero has degrees in Philosophy and Law from the University of the Philippines and is an alumnus of East West Center (Hawaii).