No.

18-2021

CUSTOMS MEMORANDUM ORDER (CMO)

Date MAY 19 2021

SUBJECT: REVISED RULES AND REGULATIONS ON THE

OPENING AND UTILIZATION OF PREPAYMENT ACCOUNTS

Section 1. Objective. This Order is issued to provide an

alternative mode of payment of duties, taxes and other
charges for all goods declarations lodged through the
E2M.

Section 2. Coverage. The following goods declaration

shall be covered by this

Order:

2.1. Consumption (Formal);

2.2. Transit;

2.3. Warehousing;

2.4. Export;

2.5. Informal Entry; and

2.6. Transshipment.
General Provisions.

3.1. Any accredited importer or exporter is given an

option to open prepayment accounts from which
payments of duties, taxes and other charges may be
made as an alternative to the PASS5 system required to
be used by all E2M users.

3.2. Importer or exporter may open and maintain one or

more prepayment accounts in any Collection District from
which he/she will specify where payment should be made
on a per-transaction basis.

The prepayment account can be used to make payments

in any Collection District regardless of where it was
opened.

3.3. The following stakeholders can open prepayment

accounts for their respective goods declaration:

Type of Entry

Consumption (Formal) Transit (including shipments from

local ports to free zones)

Export

Page 1 of 4-CMO No. 18-2021

Warehousing
A Modernized and Credible Customs Administration That
is Among the World's Best Port A, Monda 100 8527-4537,
8577-1935beccarescos.oh

Section 3.

Accredited Importer

Accredited Importer

Accredited Exporter

Stakeholders

Accredited Importer

Type of Entry

Informal Entry

Section 4. Procedure for Opening a Prepayment Account.

4.1. An accredited importer or exporter shall download

and fill out a Prepayment Registration Form (PRF) (Annex
A).

collection district; or

4.2.2. Cashier - if in a sub-port.

4.2.1. Chief, Collection Division if in the main port of a

Stakeholders

Small Value Importer and Air Express Cargo Operators

4.2. A ticket shall be opened in the Customer Care Portal

System (CCPS) where the electronic Portable Document
Format (PDF) of the PRF shall be submitted to the
following:

4.3. The scanned copy of the PRF may be submitted

online or through Flash Drive (USB). Only PDF file type
shall be accepted and each document should be
submitted as a separate file. The resolution of the
electronic documents shall be at least 600dpi. The file
name format shall be as follows:

PREPAYMENT.PREPAYMENT REGISTRATION FORM

a. b. PREPAYMENT.CERTIFICATE OF REGISTRATION IN THE

CPRS AS IMPORTER/EXPORTER/DECLARANT

The same template shall be applied in case there are

other documents to be submitted.

4.4. Upon receipt of the filled out PRF, the chief of the
Collection Division or cashier, as the case may be, shall:

4.4.1. Download and print a copy of the PRF;

4.4.2. Assign a prepayment account reference number;
4.4.3. Create the prepayment account in the E2M
Customs

Prepayment System;

4.4.4. Sign the filled out PRF, with the Account Reference
Number filled out; and

4.4.5. Upload the signed PRF in the CCPS.

4.5. The accredited importer or exporter shall download

the signed PRF. He/she shall present the same to the
inhouse bank (Landbank) and make a deposit of any
amount into the prepayment account.

4.6. Upon deposit, the inhouse bank (Landbank) shall

issue a Bureau of Customs Official Receipt (BCOR)
evidencing deposit into the prepayment account.

Section 5. Utilization of Prepayment Account.

5.1. Upon lodgement of goods declaration, the declarant

shall fill out the prepayment account number in SAD Box
48 to indicate the utilization of prepayment account as a
mode of payment. The Bank Reference Number in SAD
Box 28 shall not be filled out.

5.2. In case where the amount deposited in the

prepayment account is insufficient to pay duties, taxes
and other charges, the assessment of the goods
declaration cannot be completed in the E2M System.
Thus, the Customs Operations Officer V (principal
appraiser) shall forward the notice of assessment through
the

CCPS in accordance with the template provided under

Annex B. 5.3. Once the account has been replenished, the
declarant shall notify the principal appraiser through the
CCPS after which the

processing of the goods declaration in the E2M shall

continue.

Section 6. Transferring Funds between Prepayment

Accounts. Funds in any prepayment account cannot be
withdrawn. However, they can be transferred from one
prepayment account to another prepayment account
which is also under the same holder's name.

Section 7. Checking Balance in a Prepayment Account.

Any importer or exporter can check the balance in his
prepayment account by inquiring at the Management
Information System and Technology Group (MISTG)-Site
Team through the CCPS or any other secured BOC
prepayment online query by providing the prepayment
account number and transaction dates or period covered.

Section 8. Monitoring System. The MISTG shall create a

Monitoring System

indicating the real time collection and utilization of the

prepayment account. The Monitoring System shall be
accessible to the Ports concerned, which shall likewise
bear the responsibility of ensuring the accurate recording
of the prepayment transactions.

Section 9. Payment Reconciliation. For purposes of

payment reconciliation, the Monitoring System shall
likewise be accessible to the Revenue Accounting Division
of the Bureau.

Section 10. Repealing Clause. CMO No. 27-2014 and all

orders, memoranda, circulars and issuances inconsistent
herewith are hereby repealed and/or deemed modified
accordingly.

CUSTOMS MEMORANDUM ORDER (CMO) NO. 20-2021

SUBJECT: IMPLEMENTATION OF THE AUTOMATED INVENTORY MANAGEMENT

SYSTEM (AIMS) BY ALL. REGISTERED CUSTOMS BONDED WAREHOUSES

Section 1. Objectives.

1.1. To effectively implement an Automated Inventory Management System

(AIMS) for Customs Bonded Warehouses (CBWs) by optimizing the use
of Information and Communication Technology (ICT) for a more
effective and transparent monitoring, supervision and control of CBW
operations.

1.2. To establish a tool that will assist the Bureau of Customs (Bureau) to
efficiently monitor the inventory of bonded goods from their entry into
the CBWs until liquidation of Warehousing Goods Declaration;
1.3. To protect against revenue loss caused by possible diversion of raw
materials, unauthorized withdrawals or ghost exportations;

1.4. To generate real time data on warehousing activities/operations for

prompt reporting to the Commissioner of Customs and other Bureau
officials; and

1.5. To establish a schedule of fees to be paid by CBW operators, accredited

members of Customs Common Bonded Warehouses (CCBW), Sub-
contractors and client/end-users for the maintenance and operations of
the AIMS.

Section 2. Scope. This Order shall provide the guidelines in the operations
and use of AIMS for imported raw materials entered into registered CBWs,
regardless of type or classification.

Section 3. Definition of Terms. For purposes of this Order, the following terms
are defined accordingly:

3.1. Accredited Member shall refer to a person or company accredited by the

Bureau, and jointly with the Garments and Textile Industry Development
Office (GTIDO) in case of garments/textile, to be a member of a CCBW.

3.2. Automated Inventory Management System (AIMS)-shall refer to the

automated system to be adopted by the CBW operator as a tool to determine
and monitor the stock inventory of bonded goods from the time of its entry
into the CBW up to liquidation of the goods declaration covered by the
Warehousing Single Administrative Document (W-SAD).

3.3. Authority to Transfer – shall refer to the document issued by the District
Collector to a CBW allowing transfer or sale of bonded raw materials, semi-
finished or finished products to another CBW, member of a CCBW,
cdients/end-users of an Industry Specific Customs Bonded Warehouse
(ICBW), subcontractor, or Freeport Zone locator for subsequent export.

3.4. Certificate of Identification (CI) shall refer to the document certifying

that the finished products to be exported is from a particular W-SAD, and
also to determine whether or not the bonded materials subject of a particular
entry is partially or fully consumed.

3.5. Certificate of Inspection and Loading (CIL) – shall refer to the document
issued by the Container Control and Cargo Division (CCCD) or equivalent unit
certifying the conduct of inspection of the cargo for export and its actual
loading on the exporting carrier.

3.6. Customs Bonded Warehouse (CBW) shall refer to a warehouse facility

licensed by the Bureau to import, receive, and store, without payment of
duties and taxes and under bond, goods, raw materials, accessories and
packing materials either for manufacture into finished products for export or
for storage for the account of authorized end-users or clients.

3.7. Formula of Manufacture (FOM) – shall refer to the document issued by

the duly authorized government institution to the CBW operator, determining
the raw material usage and wastages of a particular finished product for
export and subsequent liquidation. This is also referred to as Formula of
Conversion (FOC).

3.8. Liquidation of Raw Materials shall refer to the process of accounting the
usage of bonded raw materials, including wastages, in the manufacture of
finished products for export as against the importation of raw materials by
CBWs using the FOM.

3.9. Sub-contractor – shall refer to a person or company licensed by the

Bureau, and GTIDO in case of garments, to undertake or perform, for a
definite period, certain manufacturing operations or activities incidental to
the manufacture of bonded raw materials into finished products in behalf of a
licensed CBW in cases where the latter’s facilities are insufficient to address
its immediate requirements or due to lack of material time to meet export
commitments.

Section 4. Administrative Provisions.

4.1. All CBWs granted License to Operate by the Bureau shall implement the
AIMS of the service provider accredited by the Bureau.

4.2. Prior to the implementation of the AIMS, the following pre requisites
must be complied with to ensure the efficient operation of the said system:

4.2.1. Client profile of all active CBWs shall be transmitted by the Bureau to
the AIMS. All CBWs, including members of CCBW must have their own
assigned unique warehouse codes to ensure the accuracy of inventory of the
specific goods stored in the CBW;

4.2.2. All users shall be required to register in the AIMS to allow them to use
the system based on their respective roles or functions; and

4.2.3. The registered CBW operator or its authorized representative must

upload the following to the AIMS prior to the implementation or roll-out to all
ports of the said system to ensure efficient processing, accurate computation
of inventory, liquidation of raw materials, and generation of other required
reports:

a. Approved specific item code and product code for each importable
item based on the approved Statement of Monthly Raw Materials
Importation Requirements (SMRMIR);

b. Approved ITDI FOM/FOC;

 c. List of Accredited Members of CCBW with corresponding unique
warehouse codes, if applicable;

d. List of registered sub-contractor, clients/end-users of ICBW, if

applicable; and

e. Other documents as may be required.

4.3. The CBW operator or its duly authorized representative must upload the
latest inventory a day prior to the implementation/roll- out of the AIMS. The
latest inventory is critical to ensure the accuracy of the inveritory system as
well as the liquidation of raw materials.

4.4. The CBW operator or its duly authorized representative shall upload in
the AIMS all documents or attachments required by the Bureau in PDF
format. The size of the PDF format must not exceed 20 MB. In case the file is
more than the required size, uploading of PDF format may be done in
separate files.

4.5. The AIMS shall automatically update the account of the CBW operator
and its accredited member warehouse, Sub-contractor, and client/end-user, if
applicable, based on the actual approved transactions processed in the AIMS.

4.6. The AIMS withdrawal system is based on a first-in first-out (FIFO)

scheme. The FIFO scheme is critical in the monitoring of period of storage of
goods in the CBW warehouse, thus it must be strictly followed.

Section 5. Operational Provisions.

5.1. Direct Filing of Warehousing Goods Declaration at Port of Discharge.

5.1.1. The Electronic to Mobile (E2M) System automatically transmits to the

AIMS all Goods Declaration for Warehousing (W-SAD) with “Paid” status
where data is automatically populated to the AIMS.

5.1.2. The CBW operator or its duly authorized representative shall search
and select the transmitted E2M W-SAD using its reference number for the
creation of the Entry/Arrival Declaration-Raw Materials (EDRM) which is.
System generated and with its own reference number.

5.1.3. The CBW operator or its duly authorized representative shall edit the
Item Details in the EDRM by inputting the unit of measure (UOM) quantity
and specific item product code.

5.1.4. The following documents shall be uploaded by the CBW operator or its
duly authorized representative in the AIMS in PDF format:

a. W-SAD, all pages, including rider;

b. Bill of Lading/Air Waybill;

c. Packing List

d. Invoice

e. Import-Permits (if applicable);

f. Electronic Tracking of Containerized Cargo (E-TRACC) Upload Manifest,

if containerized; and
 g. Transfer Note (Boatnote), if Less Container Load (LCL).

5.1.5. The AIMS shall validate if the items declared is within the SMRMIR.

a. If the item is within the allowable quantity and the product code is
included in the List of Importables (LOI) as indicated in the SMRMIR,
the AIMS shall indicate that the “Declaration is Successfully Validated”
and the data is saved in the AIMS. The CBW operator or its duly
authorized representative will submit the EDRM in the AIMS.

b. If the quantity exceeds the remaining balance in the SMRMIR for a

particular product code, the AIMS issues a system generated remarks
informing of the excess. However, the information is still saved in the
AIMS with said Remarks reflected in the Header and Item Details page.
The CBW operator may still submit EDRM in the AIMS.

c. The system will not allow the saving of the EDRM if the item product
code is not found in the LOI or AIMS Product Masterlist. The Product
Masterlist contains the LOI and finished product of the CBW.

Item product code not found in the approved LOI shall be subject for
appropriate action of the Bureau in accordance with customs laws, rules and
regulations.

Item product code not found in AIMS Product Masterlist shall be updated by
the assigned account officer as long as the item product code is in the
approved or amended LOL.

5.1.6. The CBW Warehouseman shall retrieve the EDRM and the supporting
documents under Section 5.1.4. hereof and verify the declaration against the
actual shipment.
5.1.7. If there are remarks on the EDRM as reflected in the AIMS, the
Warehouseman shall require the CBW operator or its duly accredited
representative to pay the required duties, taxes and other charges due on
the MASTER CORY

Excess Items in accord accordance with the customs laws, rules and
regulations, and to amend the EDRM accordingly.

5.1.8. The CBW operator or its duly authorized representative shall lodge a
goods declaration for consumption (C-SAD) in the EZM System and pay the
required duties, taxes and other charges. The CBW operator shall upload a
copy of the C-SAD and the Statement of Settlement of Duties and Taxes
(SSDT) at the AIMS.

5.1.9. To amend the EDRM, the CBW operator shall input the actual quantity
entered for warehousing.

5.1.10. The Warehouseman shall verify the quantity declared in the C-SAD
with the reported excess in the SMRMIR before approving the amended
EDRM.

5.1.11. If the quantity is within the remaining SMRIR and product code in the
LOI, the Warehouseman shall tag the EDRM as “Completed”. The AIMS
automatically updates the current inventory of the CBW.

Once the EDRM is tagged “Completed”, subsequent transactions like

withdrawal, transfer, and liquidation can be performed already in the AIMS.

5.1.12. The reckoning date for the storage period will be the date the EDRM
has been tagged as “Completed” in the AIMS by the CBW Warehouseman.
The Warehouseman shall tag the W-SAD as completed when all the
containers covered by the particular W-SAD have arrived at the CBW and the
electronic customs seal attached on the last container has been disarmed
and has been reflected under the e-TRACC system as “Tagged Received”.

5.2. Lodgement of Transit Warehousing Goods from Customs Zone to CBW.

5.2.1. The EZM System automatically transmits to the AIMS all Goods
Declaration for Transit (covered by T-SAD) with “Paid” status where data is
automatically populated to the AIMS.

5.2.2. The CBW operator or its duly authorized representative shall search
and select the transmitted T-SAD using its reference number for the creation
of the EDRM which is system generated and with its own reference number.

5.2.3. The CBW operator or its duly authorized representative shall edit the
Item Details in the EDRM by inputting the unit of measure (UOM) quantity
and specific item product code.

5.2.4. The CBW operator or its duly authorized representative shall upload
the following documentary requirements in PDF format to the AIMS:

a. T-SAD, all pages, including rider;

b. Bill of Lading/Airway Bill;

c. Invoice;

d. Packing List;
 e. Import Permit, if applicable;

f. E-TRACC Upload Manifest, if containerized; and

g. Transfer note (Boatnote), if LCL

5.2.5. The AIMS shall validate if the items declared is within the SMRMIR.

a. If the item is within the allowable quantity and the product code is
included in the LOI as indicated in the SMRMIR, the AIMS shall indicate
that the “Declaration is Successfully Validated” and the data is saved
in the AIMS. The CBW operator or its duły authorized representative will
submit the EDRM in the AIMS.

b. If the quantity exceeds the remaining balance in the SMRMIR for a

particular product code, the AIMS issues a system generated remarks
informing of the excess. However, the data is still saved in the AIMS
with said Remarks reflected in the Header and Item Details page. The
CBW operator may still submit EDRM in the AIMS

c. The system will not allow the saving of the EDRM if the item product
code is not found in the LOI or AIMS Product Masterlist.

Item product code not found in the approved, LOI shall be subject for
appropriate action of the Bureau in accordance with customs laws, rules and
regulations.
Item product code not found in AIMS Product Masterlist shall be updated by
the assigned account officer as long as the item product code is in the
approved or amended LOI.

5.2.6. 1 Upon arrival, the Warehouseman shall tag the EDRM as “Completed”.

5.2.7. The reckoning date for the storage period will be the date the EDRM
has been tagged as “Completed” in the AIMS by the CBW Warehouseman.

5.2.8. The Warehouseman shall tag the EDRM as “Completed” when all the
containers covered by the particular T-SAD have arrived at the CBW and the
electronic customs seal attached on the last container has been disarmed
and has been reflected under the e-TRACC system as “Tagged Received”.

5.2.9. The CBW Warehouseman shall ensure that no stripping of container

van shall be done unless the Goods Declaration for Warehousing of the
transit goods has been filed, processed by Bureau and tagged “Paid” in the
E2M System.

5.3. Lodgement of Warehousing Goods Declaration Re-Entry.

5.3.1. The corresponding Goods Declaration for Warehousing re-entry must

be filed in the E2M System within (5) days from the date the Transit EDRM
was tagged as “Completed” in the AIMS.

5.3.2. Prior to the lodgement of W-SAD, the CBW operator shall check the
remarks reflected in the Header and Itern Details page of the Transit EDRM
for any excess in the allowable quantity for a particular product code and
whether the shipment is included in the LOI.

5.3.3. If there are remarks in the Transit EDRM, the CBW operator shall:
 a. Lodge a goods declaration for consumption on the excess shipment,
and those not included in the LOI; and

b. Lodge a goods declaration for warehousing for the items which are
within the approved SMRMIR.

5.3.4. Upon lodgement, the EZM transmits to the AIMS all W-SAD with “Paid”
status where data is automatically populated to the AIMS.

MASTER GOPY System automatically into

5.3.5. The CBW, operator or its duly authorized representative shall search
and select the transmitted E2M W-SAD using its reference number for the
creation of the EDRM which is system generated and with its own reference
number.

5.3.6. The CBW operator must ensure that the Transit EDRM Reference
Number must be indicated in the “Previous Document Field” of the
Warehousing EDRM. This is to enable AIMS to link the Transit EDRM to the
Warehousing EDRM.

5.3.7. The CBW operator or its duly authorized representative shall edit the
“Item Details” etails” in the EDRM by inputting the quantity and specific item
product code.

5.3.8. The CBW operator or its duty authorized representative shall upload all
pages of the W-SAD, including the rider, and all pages of the C-SAD,
including rider and SSDT, if applicable.
5.3.9. The AIMS will again validate if the declared quantity is still within the
remaining balance of the SMRMIR.

If the quantity is within the remaining balance of the SMRMIR and the item
product code is in the LOI, the AIMS shall indicate that the “Declaration is
Successfully Validated” and the data is saved. The CBW operator or its duly
authorized representative will submit the EDRM in the AIMS.

5.3.10. The Warehouseman shall retrieve the Warehousing EDRM and tag the
EDRM as “Completed” and subsequent transactions like withdrawal, transfer
and liquidation can be performed already in the AIMS.

5.3.11. If the Warehouseman still finds discrepancy during the unloading of

the goods, he/she shall reject the Warehousing EDRM and perform any of the
following:

a. Require the CBW operator to pay duties, taxes and other charges;

b. Recommend the issuance of Warrant of Seizure and Detention (WSD)

against the shipments; or

MASTER COPY

c. Any other action as may be warranted under the circumstances.

5.4. Withdrawal of Goods from the CBW for Production. The CBW operator or
its duly authorized representative shall, within the prescribed storage period,
apply for withdrawal of the bonded goods for production. The principle of
first-in-first-out (FIFO) system must be observed in the withdrawal of goods
for production.
5.4.1. The CBW operator or its duly authorized representative shall prepare
the Requisition Slip and upload it to the AIMS and create the Withdrawal
Declaration in the AIMS.

5.4.2. The CBW Warehouseman shall validate the documents uploaded by

the CBW operator or its duly authorized representative and check if the
goods being requisitioned are still physically stored in the warehouse.

5.4.3. The CBW Warehouseman shall act within twenty-four (24) hours from
receipt of the request, without prejudice to whatever administrative
sanctions that may be imposed against the Warehouseman for any delay in
the approval thereof to the detriment of the CBW operator.

5.4.4. Once approved, the CBW Warehouseman shall allow the release of the
goods from the CBW raw materials compartment to the production area.

5.4.5. The AIMS shall automatically update the inventory system upon
confirmation by the Warehouseman of the actual withdrawal.

5.4.6. Withdrawal of any raw materials, even for production, without the
approval of the Warehouseman shall constitute unauthorized withdrawal.

5.5. Withdrawal of Goods from CBW for Local Sales. Withdrawal of goods for
local or domestic consumption shall be allowed only upon approval by the
District Collector and after payment of duties and taxes.

5.5.1. The CBW operator or its duly authorized representative shall submit
the letter-request for the withdrawal of the goods to the District Collector
through the Operating Division concerned.

5.5.2. Once the letter-request is approved by the District Collector or

authorized Customs Officer, the CBW operator shall lodge the goods
declaration for consumption (C-SAD) in the E2M system and pay the
corresponding duties and taxes.

5.5.3. The CBW operator shall perform the following:

a. Create a Withdrawal Declaration-Local Sales in the AIMS;

b. Upload the approval of the District Collector or authorized official;

c. Upload all pages of the C-SAD; and

d. Submit the Withdrawal Declaration-Local Sales in the AIMS.

5.5.4. The CBW Warehouseman shall retrieve the Withdrawal Declaration-

Local Sales and check if the documents uploaded by the CBW operator are
complete.

5.5.5. The CBW Warehouseman shall only allow the withdrawal of the bonded
goods if the documents uploaded by the CBW Operator are complete and in
order.

5.5.6. The CBW Warehouseman shall confirm withdrawal in the AIMS by

tagging the said declaration as “Completed” to update the inventory.

5.6. Withdrawal of Bonded Goods from the CBW for Constructive Exportation.
5.6.1. The CBW operator or its duly authorized representative who intends to
sell the bonded goods to another CBW or to a Free Zone locator shall apply in
writing to the District Collector for issuance of authority to sell/transfer.

5.6.2. Upon approval of the request to sell/transfer by the District Collector or

authorized Customs Officer, the CBW operator or its duly authorized
representative shall create a Draft Declaration for Constructive Export in the
AIMS by searching the Constructive Export SAD transmitted by the E2M
System.

5.6.3. The CBW operator shall then upload the following documents in the
AIMS:

a. Packing List;

b. Approved Authority to. Transfer/Sell;

c. Signed Certificate of Identification;

d. Sales Contract/Purchase Order/Pro-forma Invoice; and.

e. Other documents as may be required.

5.6.4. The CBW Warehouseman shall retrieve the Declaration for

Constructive Export in the AIMS and check if the documents uploaded by the
CBW operator are complete.

5.6.5. The CBW Warehouseman shall only allow withdrawal of the bonded
goods if the documents uploaded in the AIMS system by the CBW operator
are complete and in order.

5.6.6. The CBW Warehouseman shall tag the said Declaration as

“Completed” once the goods have been actually released. After tagging, the
AIMS will automatically update the inventory.
5.6.7. The Constructive Export Declaration shall be manually created in the
AIMS in case the Constructive Export Declaration is not yet implemented in
the E2M System. The submitted Constructive Export Declaration in the AIMS
by the CBW operator shall be auto-approved by the AIMS.

5.7. Toll Manufacturing Process. A CBW operator may sub- contract the
processing of its imported materials in case of insufficiency of operational
facilities or lack of material time to meet export commitments. Provided, that
only duly accredited sub-contractors may undertake sub-contracting jobs.
Provided, further that the transfer of bonded goods to accredited sub-
contractors shall be subject to the approval of the District Collector or
authorized Customs Officer.

5.7.1. The CBW operator or its duly authorized representative shall create a
Toll Manufacturing Declaration Release in the AIMS. The submitted formula of
manufacture, the stages to be subcontracted shall, whenever practicable, be
specified. For garment manufacturer, unless otherwise approved by GTIDO,
only pre-cut or cut-to-pattem materials shall be transferred.

5.7.2. The AIMS system shall automatically check and allow the submission
of the Toll Manufacturing Declaration Release if the CBW has the Item in its
Product Master List.

5.7.3. The CBW Warehouseman shall retrieve the Toll Manufacturing

Declaration Release in the AIMS, validate and approve the Toll Manufacturing
Declaration Release by tagging it as “Completed” with remark “Released” In
the AIMS system upon actual release of the bonded goods from the CBW.

5.7.4. Once the declaration has been tagged as “Released”, AIMS shall
update the existing balance in the inventory.
5.7.5. Email notification shall be sent by the AIMS to the Chief, Operating
Division in case the sub-contracted items exceed the 30 days allowable
period to return the goods to the CBW of origin.

5.7.6. The accredited Sub-contractor shall file Withdrawal- Manufacturing

Declaration in the AIMS to withdraw the transferred raw materials. The
details to be encoded as to the quantity, UOM, description and product in the
Withdrawal-Manufacturing Declaration must correspond to the details in the
Toll Manufacturing Declaration Release.

5.7.7. The CBW Warehouseman shall approve the Withdrawal Declaration by

tagging it as “Completed” in the AIMS. The AIMS shall update the inventory
of the accredited Sub-contractor on the goods transferred to it for
production. The quantity indicated therein will be reflected as Work-In-
Progress Quantity in the AIMS Inventory Report.

5.8. Toll Manufacturing Return. When the sub-contracted goods are to be

returned by the accredited sub-contractors to the CBW, the following
procedures shall be followed:

5.8.1. The accredited Sub-Contractor shall create Entry of Finished Goods

Declaration in the AIMS after completion of the specific toll activity.

5.8.2. The CBW Warehouseman shall approve the Entry of Finished Goods
Declaration as “Completed” after verification on the existence of the finished
goods. Inventory of finished goods is automatically updated by the AIMS.
Once updated and the item withdrawal is completed, the inventory of the
goods from the Sub- contractor will then be deducted or reverted to zero.

5.8.3. The CBW shall file a Toll Manufacturing Declaration Return in the AIMS
for the return the goods from the Sub-contractor.
5.8.4. The AIMS shall automatically check and allow the submission of the
Toll Manufacturing Declaration Return if the accredited Sub-contractor has
the Item Code of the semi-finished goods in its Product Masterlist for finished
goods.

5.8.5. The CBW Warehouseman shall validate and approve the Toll
Manufacturing Declaration Return by tagging it as “Completed” in the AIMS.

5.8.6. The AIMS system shall automatically update the inventory of the CBW.
The Toll Manufacturing Return Report is created automatically that is
available for extraction in the AIMS system by the authorized user.

5.9. Transfer Declaration for Transfer of Bonded Goods Between Members of

Common Customs Bonded Warehouses (CCBWD). Transfer of bonded goods
between members of a CCBWD shall follow the following procedures for the
AIMS:

5.9.1. The CBW operator or its duly authorized representative who intends to
sell the bonded goods to to an accredited member of another CCBWD shall
apply in writing to the District Collector for issuance of authority to
sell/transfer;

5.9.2. Once the request to sell/transfer is approved by the District Collector

or authorized Customs Officer, the requesting accredited member or its duly
authorized representative shall create Transfer Declaration in the AIMS. The
accredited member shall also upload the Disposition Form and other
documentary requirements and submit the Transfer Declaration in the AIMS;

5.9.3. The CCBW Operator (Mother CBW) shall perform the first approval of
the Transfer Declaration by tagging it as “Completed” in the AIMS system;
5.9.4. The CBW Warehouseman of the CCBW of origin shall confirm the
release of goods from the accredited member-seller/transferror by tagging it
as “Completed” in the AIMS with remark as “Released”; and

5.9.5. The CBW Warehouseman of the receiving CCBW shall confirm the
receipt of goods by tagging it as “Completed” in the AIMS system with
remark as “Received”. The AIMS system shall automatically update the
inventory of both the releasing CGBW and the receiving CCBW.

5.10. Entry of Finished Goods Declaration.

5.10.1. The CBW Operator shall prepare a daily Production Report for finished
goods produced for real-time monitoring.

5.10.2. The CBW Operator shall create an Entry of Finished Goods

Declaration in the AIMS using the Excel File Format in the AIMS or manually
and submit the same in the AIMS.

The creation of the Finished Goods Declaration using the Excel File Format
shall no longer require the uploading of the Production Report since the same
will serve as the Production Report in the AIMS.

If the CBW operator opts to manually create the Entry of Finished Goods
Declaration, it must also upload the daily Production Report in the AIMS.

5.10.3. The CBW Warehouseman shall approve the Entry of Finished Goods
Declaration in the AIMS system by tagging it as “Completed”. Tagging the
Entry of Finished Goods Declaration as “Completed” will cause the automatic
update of the current inventory of the CBW Operator in the AIMS.

5.11. Export Declaration. The export declaration (Export SAD) tagged as

“Assessed/Paid” in the EZM. System, shall be transmitted to the AIMS in XML
file. The Export SAD transmitted is not yet considered as final unless the
supporting documents are uploaded to the AIMS by the CBW Operator.

5.11.1. The CBW Operator or its duly authorized representative shall create
Exit Declaration in the AIMS by selecting the Export-SAD uploaded to the
AIMS. It shall edit the Header and Item Details to input the Item Product Code
and upload the following documents in the AIMS:

a. Proforma Invoice;

b. Packing List;

c. Outward Bill of Lading/Airway Bill

d. E-TRACC Upload Manifest;

e. Export Clearance, if applicable;

f. Export Declaration SAD from EZM System; g. Signed Certificate of

Identification; and

g. Signed Certificate of Inspection and Loading.

5.11.2. After completing the Declaration, the CBW Operator or its duly
authorized representative shall submit it to the AIMS.

5.11.3. The AIMS shall check if the mode of transport is via SEA or via AIR.
5.11.4. If via SEA, the Exit Declaration shall be routed to the CCCD personnel
for approval. The CCCD personnel shall view the Declaration and perform the
necessary actions as well as input remarks. Once the Declaration is
approved, the Exportation Ledger will be updated.

5.11.5. If via AIR, the Exit Dedaration shall be routed to the AOD personnel
for approval. The AOD personnel shall view the Declaration and perform the
necessary actions. Additional instructions, observations, etc., if any, shall be
inputted under the Remarks Column. Once the Declaration is approved, the
Exportation Ledger will be updated.

5.11.6. In case the Declaration has been disapproved/rejected, the CBW

operator or its duly authorized representative will amend the Declaration and
will go through the same process.

5.12. Wastages, Rejects and By-Products.

5.12.1. The CBW operator or its duly authorized representative shall apply in
writing to the District Collector for payment of duties and taxes on the
wastages, rejects and by- products incurred in the production specifying the
following:

a. W-SAD Reference Number covering the raw materials source of the

waste material/by-products;

b. Description of waste material/by-products;

c. Quantity; and
 d. Percentage against the total quantity of imported raw materials
covered by the W-SAD.

5.12.2. The CBW-operator ortits duly authorized representative shall create

the Wastage Declaration in the AIMS.

5.12.3. The CBW operator or its duly authorized representative shall upload
the processed C-SAD and SSDT to the AIMS.

5.12.4. The Account Officer of the Operating Division shall process the
Wastage Declaration and manually tag the said declaration as “Completed”
or “Rejected”. The tagging as “Completed” will automatically update the
Liquidation and Withdrawal Ledger.

5.13. Liquidation of Warehousing Goods Declarations.

5.13.1. The CBW operator or its duly authorized representative shall ensure
that copies of the following documentary requirements are uploaded to the
AIMS:

a. Documents for Entry of Bonded Goods

h. Working copy of W-SAD;

ii. Bill of Lading/Air Waybill;

iii. Packing List/Commercial Invoice;

iv. Transfer Note (Boatnote), if applicable; and

v. Licenses, Permits and other documentations, if required by law.

b. Documents for Constructive Export.

i. Working copy of W-SAD;

ii. Approved Authority to Sell/Transfer;

iii. Invoice of the Seller;

iv. Transfer Note (Boatnote), if applicable;

v. Packing List;

vi. Certificate of Identification;

vii.Goods Declaration for Constructive W-SAD; and

viii.Customs EPZA Warehousing Entry (CEWE) and PEZA Form 8105 if the
buyer is a Free Zone locator.

c. Documents for Direct Export.

j. Outward Bill of Lading/Air Waybill;

ii. Certificate of Identification;

iii. Certificate of Inspection and Loading,

iv. Transfer Note (Boatnote) or E-TRACC Booking, whichever is applicable;

v. Export Declaration; and

vi. Invoice.

d. Documents for Payment of Wastages/Rejects or Buy-Products

h. Goods Declaration for Consumption filed for the Wastages/Rejects or

Buy-Products;

ii. Approval for payment of Wastages/Rejects or Buy-Products; and

iii. Proof of payment of duties and taxes on Wastages/Rejects or By-Products,

if applicable.

e. Signed Statement of Liquidation.

5.13.2. The CBW operator shall create the Liquidation Declaration in the AIMS
by selecting the Entry Declaration W-SAD to be liquidated in the AIMS. The
system will automatically map the completed Withdrawals, Transfers, and
Exports’ link to the W-SAD to be liquidated.

5.13.3. The CBW operator shall print the Liquidation Report from the AIMS of
the subject W-SAD, have it signed by the CBW Warehouseman, assigned
Account Officer and Chief of the Operating Division and upload the same in
the AIMS together with the submission of the Liquidation Declaration in the
AIMS.
5.13.4. The CBW Warehouseman, assigned Account Officer and Chief of the
Operating Division shall be given access to the AIMS for purposes of
validation and authentication of the printed Liquidation Report before they
shall sign the same.

5.13.5. The Liquidation and Billing Division (LBD) shall access the AIMS,
search the W-SAD submitted for liquidation and view the submitted signed
Liquidation Excel File Report to verify and check the entries reflected therein
against the Liquidation Declaration and its attachments.

If the Liquidation Dedaration and attachments are in order, the said

declaration and Liquidation Report shall be tagged “Completed” and is
updated. Once Liquidation Declaration is tagged “Completed”, the

Liquidation Report is updated and the W-SAD is tagged “Liquidated”.

MASTER COPY

In case of rejection, the LBD shall tag the Liquidation Declaration as

“Rejected” and provide the reason/s for rejection in the Remarks column.

Section 6. Fees Payable to the AIMS Service Provider.

6.1. The AIMS Service Provider shall charge a transaction fee of Php160.00
exclusive of VAT for every lodgement of the following declarations in the
AIMS:

No.

1
Process/Procedure Declaration

Type of Declaration/ Transaction

Entry Declaration (Direct Import and Constructive Import) (Raw Materials)

Entry/Arrival

Withdrawal Declaration

Withdraw Manufacture Declaration

Toll Manufacturing Declaration Release or Return

Transfer Declaration

Transfer Declaration from Mother Warehouse to Member

Travesfer Dedaration

Entry Declaration (Finished Goods) within the CBW or Arrival from Sub-
contractor

Entry/Arrival

Export
Exit Declaration

Withdraw-Local Sales Dedaration (Raw Materials, Semi-Finished, or Finished

Goods))

Withdrawal

Write off Declaration

Write off

Constructive Export

Constructive

Filing of Liquidation in the AIMS

Exportation

10

Liquidation

3
4

6.2. If the value of the shipment is less than Fifty Thousand Pesos
(Php50,000.00), the CBW operator/accredited member of CCBW shall only
pay for the creation of the entry declaration in the AIMS and the filing of
liquidation thereof.

6.3. Declarations made by accredited Sub-contractor in the AIMS shall not be

subject to any charges.

6.4. Generation from the AIMS of any other type of reports shall not be
subject to any charges.

6.5. The Bureau shall not collect any fees on behalf of the AIMS Service
Provider.

6.6. The Bureau shall collect from the Service Provider a service fee for
monitoring and supervision of AIMS equivalent to ten percent (10%) of the
fees collected exclusive of VAT in accordance with the published rate for the
use of the AIMS.

6.7. The VASP Accreditation Committee (VAC) shall conduct a review of the
fee structure every two (2) years and may recommend changes thereto,
subject to the approval of the Commissioner.

Section 7. Protection and Treatment of Electronic Data from the AIMS.

7.1. For purposes of customs procedures, electronic data coming from the
AIMS Service Provider shall be acceptable and shall have legal effect, validity
or enforceability as any other document or legal writing.

7.2. The AIMS Service Provider shall be fully compliant with the requirements
under the Data Privacy Act, particularly the appointment of a regular Data
Protection Officer and the submission of the electronic processing system to
the National Privacy Commission.

7.3. The AIMS Service Provider shall likewise be fully compliant with the
guidelines issued by the Philippine Competition Commission in so far as
processing of confidential business information are concemed.

7.4. Any information or by-products of said information collected by the AIMS

Service Provider arising from the implementation of the AIMS shall be the
exclusive property of the Bureau.

Section 8. Generation of Report.

8.1. The system should allow the user to search and retrieve Information and
historical data of the following which is downloadable in excel file format:
8.1.1. Importation Ledger,

8.1.2. Withdrawal Ledger;

8.1.3. Arrival and Transfer Ledger,

8.1.4. Exportation Ledger; 8.1.5. Current Inventory Report;

8.1.6. Toll Manufacturing Return Report; and

8.1.7. Liquidation Report.

8.2. The following CBW Dashboard Reports can also be viewed on a Per Port/
Per CBW basis:

8.2.1. Current Inventory Value Sheet;

8.2.2. Total Open Entries Value Sheet;

8.2.3. Total Abandoned Value Sheet;

8.2.4. Approved vs. Completed Declarations Sheet; and

8.2.5. Imports vs. Export Declarations Sheet.

Section 9. Sanctions and Penalties-

9.1. The AIMS Service Provider that is not able to meet its Service Level.
Agreement (SLA) target shall be subject to the penalties stated in the SLA,
without prejudice to the right of the Bureau to exercise its right to revoke or
pre-terminate the accreditation status.

9.2. Any person or entity who obstructs, or attempts to obstruct, the

implementation of this Order and its related rules and issuances, or who
assists in the same, or allows himself/herself to be used in the commission of
the same, shall be subject to the appropriate civil, criminal and/or
administrative penalties.

9.3. In addition to the sanctions under the CMTA, and Civil Service laws, rules
and regulations, any Bureau official and/or employee found to have violated
any of the provisions of this Order or commit acts prejudicial to the effective
implementation of this Order, shall be immediately relieved, transferred to
another office, or assigned to a less sensitive position in the Bureau.

9.4. The penalties as prescribed under Sections 1422, 1423, 1424, and 1430
of the CMTA, as may be pertinent or applicable shall be imposed for
violations of this Order and its related rules and issuances.

Section 10. Implementation Plan. The Deputy Commissioner, Assessment

and Operations Coordinating Group (AOCG), in consultation with the Deputy
Commissioner, Management Information and Systems Technology Group
(MISTG) shall issue the necessary Memorandum informing the
implementation of the AIMS for the different CBWs nationwide.

Section 11. Help Desk. A Help Desk shall be provided on a 24/7 basis by the
accredited Service Provider to address any concern or issue that may arise in
the course of the implementation of the AIMS.

Section 12. Separability Clause. If any part of this Order is declared

unconstitutional or contrary to the existing law, the other parts not so
declared shall remain in full force and effect.