Automation of the Automation of the

Application and Issuance of theApplication and Issuance of the SPS Import ClearanceSPS Import Clearance

Francis Norman LopezPresident

Francis Norman LopezPresident

Agenda Agenda

• Introduction

• BOC e2m Import Procedures

• DA Automated SPS Import Clearance

• National Single Window

• Moving Forward

• Q & A

About InterCommerceAbout InterCommerce

• IT, Value Added Network Services company

– with more than 22 years experience in B2B transactions, and

– more than 12 years in eCustoms Services – accredited as EDI VAN in 1998 and nownow AccreditedAccredited 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

• InterCommerce . . . YOURYOUR Value Added Service Partner Value Added Service Partner

PEZA

Local Focus – Global Reach !Local Focus – Global Reach !

Department of Agriculture

BAIBPI

BFAR

Pan Asian eCommerce AlliancePan Asian eCommerce Alliance

Established in 2000

12 Members VASP accredited by respective Customs authorities; INS – 12th Member

Legal framework, PKI mutual recognition, and secure cross border transaction service

BrokerBroker

ImporterImporter

Invoice,BL/AWB

BOC Response:

AssessmentFinal/Temporary

VASPGateway

Import Entry Workflows – e2m IASImport Entry Workflows – e2m IAS

BAP/PASS5BAP/PASS5AABAAB

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

NationalSingle Window

BRN + Auto Debit Agreement (ADA)

InternetInternet

Airline/Shipping Line

Forwarder/Consolidator

Manifest/BL (BOL, GEN CTN)

e2m IAS

Certificate of Registration/CCN

Importers’Online Visibility:Import Entry,AssessmentStatement of SettlementOf Duties and Taxes (SSDT)

Arrastre, Whse, CY-CFS

Arrastre, Whse, CY-CFS

Release Instruction

CPRS

Approved

COR w BOC CCN

VASPVASP

SPS Import Clearance Data

Application to Import ClearanceDA: BAI, BPI, BFAR

Role of Value Added Service Provider -Role of Value Added Service Provider -VASPVASP

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 ImplementationVASP 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)

Import Workflows – eg BAI Import Workflows – eg BAI

Start

End

SCM: PO, Proforma Invoice

BAI: Import PermitClearance

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, PermitBAI 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, SignNotarize

Import Clearance

BAI Application Form Harmonize

Forms

Pre-QualifyImporter, Products

Reduce Cycle Time

Reduce Costs

Automated Import Permit ModelAutomated 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 - OverviewDA SPS Import Clearance - Overview

Importer,AuthorizedRep/Broker

BPI Plant, Plant Products

BAI Live Animal

BAI AnimalProducts

BAI Veterinary& Biologicals

BFAR, Fisheriesand Aquatic Resources

BPI, BAI, BFARQuarantine Offices

DA ITCAF(System Administrator)

DA Trade System

Internet

Importer Procedures Importer Procedures

Registration UtilizationApplication

• 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 Agency Procedures

Registration QuarantineProcessing

• 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 ProceduresChanges 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

BenefitsBenefits

• 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

Importers : Next StepsImporters : 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

QQuestions and uestions and AAnswersnswers

Unit 2203, 88 Corporate CenterSedeno St., Salcedo Village

Makati City 1227Telephone: +02 843 2792

Fax: +02 843 8160Email: marketing@intercommerce.com.ph

www.intercommerce.com.ph

Registry of ImportersRegistry of Importers

Online Registration of ImporterOnline Registration of Importer

List of Importables of ImportersList of Importables of Importers

Importer Access to InterCommerceImporter Access to InterCommerce

Select WebCWS ApplicationSelect WebCWS Application

Preparation of the Application for SPSPreparation of the Application for SPS

Select AgencySelect Agency

Confirm Importer DataConfirm Importer Data

Add Purpose and Supplier DataAdd Purpose and Supplier Data

Add Import Shipping DataAdd Import Shipping Data

Add ItemAdd Item

Add Item DetailsAdd Item Details

Attach Support DocumentsAttach Support Documents

Submit SPS ApplicationSubmit SPS Application

Monitor Balance of Advances with AgencyMonitor Balance of Advances with Agency

Application Received by AgencyApplication Received by Agency

Login as ReviewerLogin as Reviewer

Select Application for ReviewSelect Application for Review

View DetailsView DetailsAdd ConditionsAdd Conditions

Login for Endorsement to DirectorLogin for Endorsement to Director

Select SPS ApplicationSelect SPS Application

View Details,View Details,Conditions andConditions andEndorseEndorse

Login as Director for ApprovalLogin as Director for Approval

Select SPS ApplicationSelect SPS Application

View Details,View Details,and Approveand Approve

WTO NoticeWTO Notice WORLD TRADE

ORGANIZATION G/SPS/GEN/1001 8 March 2010

(10-1233)

Committee on Sanitary and Phytosanitary Measures Original: English

PILOT IMPLEMENTATION OF THE INS TRADE SOFTWARE SYSTEM

Communication from the Philippines The following communication, received on 3 March 2010, is being circulated at the request of the Delegation of the Philippines.

_______________ 1. The Philippine Department of Agriculture has adopted a procedural shift from manual to automated application and issuance of Sanitary and Phytosanitary (SPS) Import Clearance. It has started the pilot implementation of the INS Trade Software System which automates the application and issuance of SPS Import Clearance since 16 December 2009 until the month of March 2010. SPS Import Clearance is a document that shall be used by the selected pilot importers to undertake importations with their foreign suppliers, replacing the Veterinary Quarantine Clearance (VQC), Plant Quarantine Clearance (PQC), and Import Permit (IP) issued by the Bureau of Animal Industry (BAI), Bureau of Plant Industry (BPI), and Bureau of Fisheries and Aquatic Resources (BFAR), respectively.

2. One of the highlights of this activity is the pilot dry run/test of the system where the selected pilot importers will do live transactions from application, processing, approval of the SPS import clearance, up to the arrival and inspection of the imported commodity at the port.

3. In this regard, we would like to inform the entire membership of the WTO that the SPS Import Clearance issuing agencies, i.e., BAI, BPI, and BFAR and pilot importers shall be using the attached harmonized forms1 of the SPS Import Clearance for the entire duration of this exercise. Please note, however, that while the system is in pilot mode, import permits issued to other importers through the manual processing and issuance procedure are still valid for importation and inspection.

4. Furthermore, we would also request the cooperation of WTO Members in informing their relevant agencies and suppliers of this exercise, in order to facilitate and ensure the smooth implementation of this activity.

_______________

1 In English only.

Back to BAI Procedures

Login as Quarantine Officer at PortLogin as Quarantine Officer at Port

View Approved SPS Import ClearanceView Approved SPS Import Clearance

View SPS View SPS DetailsDetails

Tag SPS Tag SPS as Usedas Used

Input Data on Actual Inspection Input Data on Actual Inspection

Record of Actual InspectionRecord of Actual Inspection

Importer Registration with InterCommerceImporter Registration with InterCommerce

1. Importer registers with InterCommerce online (www.intercommerce.com.ph), 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

FREEFREE 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

FREEFREE access to eCustoms Services: CPRS preparation, submission, Online Visibility on trade transactions, download SSDT and

Management Reports eg Monthly Statement of VAT payments

QQuestions and uestions and AAnswersnswers

Unit 2203, 88 Corporate CenterSedeno St., Salcedo Village

Makati City 1227Telephone: +02 843 2792

Fax: +02 843 8160Email: marketing@intercommerce.com.ph

www.intercommerce.com.ph