MICP- 12 October POM – 12 OctoberMICP- 12 October POM – 12 October

BoC CMO 27-2009BoC CMO 27-2009: :

Implementing E2M IASImplementing E2M IASand PEZA eIPSand PEZA eIPS

@ PORTS@ PORTS ‘09‘09

Francis Norman LopezPresident

AgendaAgenda

• Introduction

• BOC e2m Import Assessment System, CM0 27-2009: IAS Rollout to All Ports

– CPRS: Client Profile Registration System as applicable to PEZA locators

– NSW: National Single Window and the PEZA eIPS

– 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 ServicesInterCommerce 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

Customs EDI VAN (1998)PEZA VASP (2006), CDC VASP (2006), BOC VASP (July 2007)BOI VASP (Jan 2009)

1st1st

About InterCommerceAbout InterCommerce

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

PEZA

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

Department of Agriculture

BAIBPI

BFAR

ChinaChina

HongkongHongkong

MacauMacau

ThailandThailand

MalaysiaMalaysia

SingaporeSingaporeAustraliaAustralia

PhilippinesPhilippines

Chinese TaipeiChinese Taipei

JapanJapan

KoreaKorea

. . . PAA Members accredited by respective Customs Administration,. . . PAA Members accredited by respective Customs Administration,provides the network infrastructure and legal framework provides the network infrastructure and legal framework

for a secure and reliable information exchangefor a secure and reliable information exchange

. . . PAA Members accredited by respective Customs Administration,. . . PAA Members accredited by respective Customs Administration,provides the network infrastructure and legal framework provides the network infrastructure and legal framework

for a secure and reliable information exchangefor a secure and reliable information exchange

IndonesiaIndonesia

Pan Asian eCommerce Alliance - PAAPan Asian eCommerce Alliance - PAA

CMO 27-2009 – e2m IAS ImplementationCMO 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)Client Profile Registration System (CPRS)– eManifest SystemeManifest System– Formal Entry System (FES)Formal Entry System (FES)– Warehouse Entry System (WES)Warehouse Entry System (WES)– Payment Abstract Secure System v5.0 (PASS5)Payment Abstract Secure System v5.0 (PASS5)– Other Settlement Modes (OSM)Other Settlement Modes (OSM)– Online Cargo Release (OLRS)Online Cargo Release (OLRS)

• Implementation of e2m Customs System -P3 IAS in all Customs Port Offices – nationwide before end Dec 2009

• Scope– Client Profile Registration System (CPRS)Client Profile Registration System (CPRS)– eManifest SystemeManifest System– Formal Entry System (FES)Formal Entry System (FES)– Warehouse Entry System (WES)Warehouse Entry System (WES)– Payment Abstract Secure System v5.0 (PASS5)Payment Abstract Secure System v5.0 (PASS5)– Other Settlement Modes (OSM)Other Settlement Modes (OSM)– Online Cargo Release (OLRS)Online Cargo Release (OLRS)

Transshipment and Informal Entries still under ACOS procedures.Transshipment and Informal Entries still under ACOS procedures.

IAS Customs Clearance WorkflowIAS Customs Clearance Workflow

NWSBIR: ATRIG, DOF: TEC

PEZA eIPS

Shipping Lines,Forwarder/Consolidators

ImportersBrokers

AuthorizedAgent Banks - AAB

BAP/PCHCBAP/PCHC

CY/CFSOperators

NSWNSW

• Validation- CPRS- NSW- Manifest

• Selectivity-SGL-Green-Yellow-Red

• Assessment

• PASS5

• OLRS

VASP

Client Profile Registration SystemClient 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

• 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 ElementsCPRS 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 WebApplicationInterCommerce CPRS WebApplication

1. Importer registers with InterCommerce online (www.intercommerce.com.ph), providing user name, password

2. Submit accomplished Information Services Agreement 3. InterCommerce activated user name4. Importer inputs all required information including digital

pictures and scanned signatures5. Importer clicks on “Submit” for transmission to BOC

- and receives either a “Sent” or “Error” message

6. BOC sends email Alert Notification- ie. Stores, Approved or Disapproved, Activated

Client Profile Registration SystemClient 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’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

Locators automatically approved if endorsed by PEZA to BOCLocators automatically approved if endorsed by PEZA to BOC

PEZA ‘Accreditation’ and BOC RegistrationPEZA ‘Accreditation’ and BOC Registration

• All PEZA Registered Enterprises are deemed “Accredited”

• PEZA Registered Enterprises are exempted from the annual BOC Accreditation – CASRIM

• With compliance to the BOC CPRS ie “Registration”, the PEZA locator provides information about the company and updates the e2m IAS database

• BOC will issue the Customs Client Number – CCN only upon compliance to the CPRS requirements

• PEZA Locator needs the CCN to be able to get a Bank Reference Number – BRN from its authorized bank

Locator’s CPRS/CCN needed in Entry Declaration validation and payment of BOC fees (IPF, Doc Stamps, CSF, etc.)Locator’s CPRS/CCN needed in Entry Declaration validation and payment of BOC fees (IPF, Doc Stamps, CSF, etc.)

Pre-Lodgement e2m IAS RequisitesPre-Lodgement e2m IAS Requisites

BrokersBrokersBrokersBrokers

ImportersImportersImportersImporters

Airlines,Airlines,Shipping Shipping

LinesLines

Airlines,Airlines,Shipping Shipping

LinesLines

WarehouseWarehouseOperatorsOperators

WarehouseWarehouseOperatorsOperators

BankBankAABsAABs

PCHC/B A P

PCHC/B A P

CPRS

CCN

eManifest

Accreditation as BOC AAB, PAS5 Compliant

NSW/LCS

BOC NSW and PEZA eIPSBOC NSW and PEZA eIPS

• BoC requires agencies to transmit import permit/clearance data electronically – to be used for the automatic validation of required permits as part of the processing of the import declaration

• PEZA eIPS data to be transmitted to BOC upon its approval– eIPS now applicable to all imports, including “regulated” or

controlled products and machineries and capital equipment

PEZA compliance to NSW will be mandatory upon implementation of e2m IAS Transshipment Entry

PEZA compliance to NSW will be mandatory upon implementation of e2m IAS Transshipment Entry

PEZA eIPS and Transshipment EntryPEZA eIPS and Transshipment Entry

Locator

Broker

Online eIPS,Entry Preparation

eIPS Lodgement (1)

Transshipment EntrySAD Lodgement (2)

Dec Code 8-8

Approved eIPSPEZA transmissionof eIPS data to BOC

eIPS,SAD Online Printing of

eIPS, SAD

Submission ot eIPS SAD to CPCO/BOC

Bu of Customs

Approved Entry SAD+

Assessment Notice

InterCommerce provides Locators online visibility on PEZA, Customs transaction, and download management reports

InterCommerce provides Locators online visibility on PEZA, Customs transaction, and download management reports

Nominating InterCommerce as VASPNominating InterCommerce as VASP

• Submit nomination letter to PEZA Zone Administrator/Manager

– Designate InterCommerce as VASP

– Authorize the uploading of the same list on importables in the InterCommerce eIPS database

• Online registration and designating authorized brokers

• Set up of advanced deposit (if applicable)

September 25, 2009

Subject: Nomination of VASP for eIPS Dear Zone Administrator/Manager

We are pleased to nominate InterCommerce Network Services, Inc. as our value-added service provider (VASP) for the electronic Import Permits.

The list of importables to be used/for uploading will be the same as those earlier submitted and approved. Any additional importable shall be submitted online.

Very truly yours,

President/CEO/GM

MBLMBLExistExistMBLMBLExistExist

ValidatesValidatesManifestManifestValidatesValidatesManifestManifest

Manifest(IFM, Master)

Arrival Schedule

Shipping / Air Lines

Consolidators/Forwarders

Consol Manifest(GEN, BOL, CTN)

RegistersRegistersManifestManifestRegistersRegistersManifestManifest

eManifest WorkfloweManifest Workflow

BOC e2m IASManifest Processes

Manifest to be submitted 12 hours prior to vessel arrivalManifest to be submitted 12 hours prior to vessel arrival

BrokerBroker

ImporterImporter

Invoice,BL/AWB

BOC Response:

AssessmentFinal/Temporary

VASPGateway

Import Entry Workflows – e2m IASImport Entry Workflows – e2m IAS

BAP/PASS5BAP/PASS5AABAAB

IED, Import EntrySAD

BOC Final Payment Instruction (Net: duties, taxes, fees)

AAB Final Payment Confirmation? Debit from

Importer Account

NationalSingle WindowGateway

BIRDoFinance

PEZA

BIRDoFinance

PEZA

BRN + Auto Debit Agreement (ADA)

ATRIG, Tax Exemption Certificate (TEC)

eIPS

InternetInternet

Airline/Shipping Line

Forwarder/Consolidator

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

Arrastre, Whse, CY-CFS

Arrastre, Whse, CY-CFS

Release Instruction

Major Changes - LodgmentMajor 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 ProcessingMajor 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 CDTMajor 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

SSDTSSDT

• 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 BenefitsBOC 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 CMOsBOC e2m IAS Implementing CMOs

• CMO 39– 2008 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 ProceduresAdditional 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 Schedulee2m IAS Implementation Schedule

• Port of Batangas : 21 March 200921 March 2009• Ports of Limay, Mariveles* : 10 Aug10 Aug• Manila International Container Port : 12 Oct 12 Oct (17 Aug)

• Port of Manila : 12 Oct 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 * Port of Mariveles “LIVE” as of 03 August 2009, import entry lodged by broker for Total Philippines thru InterCommercelodged by broker for Total Philippines thru InterCommerce

E2M IAS @ MICP, POM DOI moved to 12 October 2009E2M IAS @ MICP, POM DOI moved to 12 October 2009

Key Areas needing ResolutionKey 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 & AQ & A

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