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    New port rules questioned
    By VG Cabuag
    Reporter

    Port users and freight forwarders have sought an audience with the Bureau of Customs (BOC) to clarify a proposal which requires entities facilitating shipments to submit full-year financial statements before they are allowed to transact with the government.

    According to an industry player, both the Port Users Confederation (PUC) and a number of air and sea freight forwarders have expressed their desire to sit down with BOC Commissioner Napoleon Morales within the next two weeks as the deadline for the renewal of BOC-accredited customs brokers looms.

    The PUC is also seeking a BOC decision regarding the financial statement requirement before end of February as accreditation proceedings will end by March.

    The source, who sits at the PUC board, said that the group, along with other practitioners, will try to question the new requirement, imposed by the Chamber of Customs Brokers Inc. (CCBI), an accredited organization by the Professional Regulation Commission. If approved, submission of a full-year financial statement is required before they secure a certificate of good standing.

    The said certification is one of the requirements under the Customs Administrative Order No. 3 2006-A, the implementing rules and regulation of RA 9280, or the Customs Brokers Act.

    Since customs brokers are employed by companies since they do not have individual statements, the move requires corporations to submit their respective W-2 documents, which is a record of taxes withheld from employee salaries.

    The said law also provides that “no firm, company, or association may be registered or licensed as such for the practice of customs broker profession.” CAO 3-2006-A, however, gave authority to customs brokerage corporations and freight forwarding firms to lodge customs entries and/or use their employee-customs representatives to transact business at the BOC.

    “The BOC should decide on the use of the financial statement. The requirement is unreasonable and makes it impossible for brokers of corporations to get accreditation from the BOC despite recent rulings from the court maintaining status quo at the BOC,” the official said.

    Earlier, the Professional Regulatory Board for Customs Brokers, whose members all came from CCBI, had prohibited customs brokers from being employed by corporations as this will impair their independence. Although opposed by a group of logistics companies, it was nevertheless affirmed by the CCBI. “Why should CCBI be given this power to issue a certification that prevails over the license issued by Professional Regulation Commission to practice the customs broker profession?” the source said. “This requirement should be scrapped considering the time constraints in the completion of all accreditation papers.”
    Meanwhile, the issue may spill over to ecozone transactions since the same customs procedures are observed at all ecozones nationwide, the source said.

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