Customs Clearance Procedure for import and export

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customs clearance procedures in the Philippines . for : a bit of letter of credit import export overview on ship side

Text of Customs Clearance Procedure for import and export

  • 1. CUSTOMSClearancePROCEDURESBy : Danna NicoleMaLraouavie Dieron

2. Points ofDiscussionImport Letter of CreditInformal Entry ProceduresFormal Entry Proceduresa. Consumption Entryb. Warehousing entrySimplified Export Procedures 3. Letter Creditbasically a guarantee or promise by a bank onbehalf of the buyer to pay the seller a specifiedsum in the agreed currency, provided that theseller submits the required documents by apredetermined deadline. 4. FLOW CHART on IMPORT LETTER OF CREDIT ( L/C ) TRANSACTIONSeller/ExporterBeneficiaryBuyer /ImporterInquires the product & price lists Applicationcopy of L/CBPIGlobal City ,TaguigApplies L/C toOpening Bank.Opening /Issuing BankCITIBANK New YorkAdvising / Negotiating Bank 5. INFORMAL ENTRY PROCEDURE 6. INFORMAL IMPORT DECLARATION AND ENTRYImported articles of a commercial in nature intendedfor sale, barter or hire1. Which the dutiablevalue is PHP2,000.00 or less (Section 1302 TCCP)or Sample Items. 7. 2. Personal and Household Effects or Articles notin commercial quantity and value :A. Imported articles in accompanied baggage by passengersi. OFWii. Returning ResidentsB. Consolidated shipments contained in balikbayan boxes thru anIntl Freight Forwarding service. 8. The consignee may register himself /herself as a Once-A-Year Importer onaccordance with CMO 44-2009 titled,CPRS Registration of Once-A-YearImporter (previously First and LastImportation Scheme) 9. DocumentsRequiredInformal Import Declaration and Entry (B.C. FormNo. 177.Clearance of Single Consignees Shipment pursuant toCMO 10-91.Philippine Passport of an IndividualCertificate of Exemption, (letter of request to DOF ).Packing ListBill of LadingPermit to Deliver Imported Goods (B.C. Form No.194.Clearance of Consolidated Shipment under CMO 54-89 and CMO 79.90.Bill Of LadingPacking List.Permit to Deliver Imported Goods (B.C. Form No.194.SingleconsignmentConsolidated 10. OfficeDocumentationCustomsBrokerage 11. Receives shipping documents:Bill Of Lading, Packing ListVerification of vessels arrival ,registrynumber , and inquire for freight chargePreparation of informal entry declaration lodgment at VASP (for consignees informationonly )Checks the CPRS of the consigneeIf shipment to single consignment, prepares letter of request addressto Secretary of Finance, Mabuhay Lane Office for Tax ExemptionCertificate. 12. Procedure 13. Customs BrokerOfficeVASP(Value Added ServiceProvider) consignee onlyChief- Informal EntryDivisionPrincipal AppraiserBOC - EPU (EntryProcessing Unit)COO IIILiquidation & BillingUnitAssessment ChiefDistrictCollectorPay duties andtaxes to landbankARRASTRE /WHARFAGECFS warehouseDelivery 14. FORMAL ENTRY PROCEDURE 15. Formal entry declaration ( consumption ) 16. Formal EntryArticles of a commercial nature intendedfor sale, barter, or hire, the dutiable valueof which is more than P2,000.00Articles for, which the Collector may,upon the recommendation of the TariffCommission for the protection of a localindustry, or the revenue, require formalentry regardless of value and whateverpurpose and nature of the importation.2 types of formal entry :ConsumptionWarehouse 17. Documents RequiredImport Entry and InternalRevenue Declaration(IEIRD) Commercial Invoice Packing List Bill of Lading Licenses/Permits/ClearanceTemporary Assessment Notice 18. OfficeDocumentationCustomsBrokerage 19. Importer sendsoriginaldocuments toCustom BrokerCustoms BrokerVerification of Vessels Time Arrivaland Registry numberInquire for freight chargeComputes D/TPrepare Entry Declaration:Lodgment of IEIRD Entry (SAD),atCEDEC, EKONEK or I-Commerce(VASP)Print Temporary Assessment NoticePayment of D/TBank - AAB 20. C h a n g e I m a g eSpeedier ClearanceSt reaml inedProceduresUnprecedented RevenueCollectionE2M SYSTEM 21. VASPValue Added Service ProvidersPrivately-owned and reputable IT Companyaccredited by the Bureau of CustomsExtends the services being offered by the Bureau bybeing the first line of contact of BOC clients for mostbusiness transactionsEligible VASP CARGO DATA EXCHANGE CENTER, INC. (CDEC)www.cdec.com.phTel. 851-8978 and 8539434 E-KONEK PILIPINAS, INCwww.ekonek.comTel. 879-8310 and 879-8485 INTERCOMMERCE NETWORK SERVICES, INC. (INS)www.intercommerce.com.phTel. 843-2792 and 845-0509 22. Procedureon BOC 23. VASP EPDGREEN LANE YELLOW LANE RED LANERelease of cargoEntry Processing DivisionFEDFormal Entry DivisionCollectiondivisionARRASTRE/Wharfage FCLWarehouseARRASTRE/Wharfage LCLWarehouseCY CFS 24. WAREHOUSING 25. WA R E H O U S EA warehouse is a commercial building for storage of goods.Warehouses are usedby manufacturers, importers, exporters, wholesalers,transport businesses, customs, etc. 26. Types of WarehousesPublic Customs Bonded WarehousePrivate Customs Bonded Warehouse 27. Example of public warehouse 28. Customs Bonded Manufacturing Warehouse 29. Office of Customs BrokerVerify vessels arrival andvessels registry number ; receives bill of lading,commercial invoice, packinglist , import permitComputation of duties andtaxesLodgment of SingleAdministrative Document 30. BrokerProcedureCPRS -Client profileregistration systemVASP-Value AddedServices ProviderWarehouseAssessmentDivision -EPU 31. Warehouse Assessment DivisionEPUGREEN LANE YELLOW LANE RED LANEWAD Examination &AppraisalBONDS DIVISIONPier and InspectionDivisionARRASTRE /WHARFAGEOperating DivisionMBWD/PBWD/GMBWDTransfer ofGoods 32. Warehousing Assessment Division Entry Processing UnitReceives, records, segregatedocuments for processing andforwards verified hard copies toForwards to WAD sections 33. Warehouse Assessment Division- EPUAppraiserRe- routes it to Greento enable PaymentprocessPrints Statement ofsettlement of dutiesand taxes and FinalAssessment NoticeExaminerConducts documentappraisal, amendment ofwarehousing entryPerform examinationbased on selectivity color. 34. Bonds divisionProcesses entry, chargeslip and charge bond.Preparesbondapplicationand collectionof additionalcharges .Warehousing DocumentationAnd Records DivisionReceives original copy ofwarehousing entry forsafekeeping and futureretrievalRecording system ofall transactions of theOperating DivisionSystem of monitoring,recording and filing of reports. 35. SHIPSIDEPERMIT 36. It is a written authority to discharged cargoes to shipside untolighter/barge as per order of the Collector of Customs. Thepermit shall be forwarded directly to the Customs Inspectoronboard the carrying vessel.cruise ship PassengersBoarded from Lighters 37. Kinds of imported articles to be given preference in allowing to bedischarged under SHIPSIDE:1. Explosive or dangerous cargoes, flammable cargoes orcombustible liquids in any quantity including gasoline.2. Cargoes which are considered fire hazards like raw cotton andpaper cutting. 38. 3. Obnoxious cargoes, corrosive liquids, acids and dangerouspoison.4. Shipment for the Republic of the Philippines and itsinstrumentalities, like gun powder, etc... 39. 5. Heavy Lift Cargoes, when the ARRASTRE contractor has noadequate equipment to handle them or other cargoes which bytheir nature cannot be handled in the pier . 40. 6. Bulk Cargoes,i.e.a. Crude Oil, Petroleum productsb. Fertilizer (urea, ammonium sulfate)c. Soda Ashd. Iron and Steel in bullets, beams, ingots and/or similarproductse. Wheat and Flourf. Pulp, paper, paperboard and newsprint in rollsg. Soy, Cacao and cocoa beansh. Staple Wires in Bales 41. BackgroundThe theory of international trade andcommercial policy is one of the oldest branches ofeconomic thought. Exporting is a major component ofinternational trade, and the macroeconomic risks andbenefits of exporting are regularly discussed anddisputed by economists and others.Two views concerninginternational trade present different perspectives. 42. EXPORT GROWTHSTATISTICS 43. Dol lar REMITTANCERemittances in Philippines increased to1,980,320.70 USD Thousand in May of 2014 from1,913,939.20 USD Thousand in April of 2014.Remittances in Philippines averaged 783,733.78USD Thousand from 1989 until 2014, reaching anall time high of 2,154,956.20 USD Thousand inDecember of 2013 and a record low of 64,208USD Thousand in February of 1989. Remittancesin Philippines is reported by the Bangko Sentralng Pilipinas. 44. Types of articlesand various export termsTraditional Types of ArticlesNon-Traditional Types of Articles 45. 1TRADITIONAL TYPEOFARTICLESThe Philippine economy has alwaysdepended on its exports for part ofits foreign exchange needs.Traditionally, the country hasexported mainly natural resource-basedgoods, usually in their raw,unprocessed forms. It was onlyduring the last two decades that thecountry has seriously tried toincrease the volume of finished orsemi-finished export productsrelative to that of raw materials. 46. MINERALSRESOURCESThe Philippines isone of the highly mineralized countries in theworld with 9 million hectares considered tohave high mineral potential. According to theMines and Geosciences Bureau (MGB), thecountry is ranked top five in the world foroverall mineral reserves, second in gold andthird in copper resources. 47. GoldCoconut oil 48. RATTANFURNITURESARTIFICIALTREES 49. DRIED FISH AND OTHER FISHPRODUCTSDrying food is the world's oldestknown preservation method, anddried fish has a storage life ofseveral years. The method ischeap and effective in suitableclimate.Also another source ofPhilippine export productsdemand for our country'srich marine product arealways rising. 50. GarmentsFinished products manufactured from importedraw materials.The Philippine garment industry is one of thecountrys success stories. Starting as a cottage-typeindustry in early 1950s, it has expanded andstrongly positioned itself as the countrys leadingnon-traditional export.2N O N -T R A D I T I ON A L T Y P EO FA R T I C L E S 51. SEMI-CONDUCTORS/ ELECTRONICSThe National Economic andDevelopment Aut