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2021 CUSTOMS DOCUMENTATION, CLEARANCE & PROCEDURES REVIEW – DAY 7

SPECIAL PROCEDURES
Prof. JERALD D. SOLLANO, CB, MCA

SPECIAL PROCEDURES
What are the importations that may be subject to Special Procedures?
a. Relief Consignment under Declaration of State of Calamity;
b. Traveler and Passenger Baggage;
c. Postal Mails;
d. Express Shipments of Air Express Operators;
e. Authorized Economic Operators (AEO);
Shipments falling under these instances will be subjected to simplified procedures as promulgated by the Commissioner of
Customs duly approved by the Secretary of Finance.

Relief Consignments (DOF-DSWD-DFA-DOH-DA-DND-DEPED-BOC-NDRRMC JAO 1-2020)

Salient Terms and Phrases
Relief - shall refer to the act of providing interventions to alleviate, ease and/or mitigate a distressed and/or critical situation
affecting persons, families, groups or communities.
Relief Consignment - shall refer to the importation of relief goods no subject to duties and taxes, such as but not limited to
food, medicine, equipment and materials for shelter, vehicles and other means of transport, donated or leased to government
institutions and accredited private entities for distribution to the affected population or for use during relief and rescue
operations in disaster-affected areas.
Donation - shall refer to an act of liberality whereby a person or organization disposes gratuitously of a thing or right in favor of
another who accepts it.
Donated Relief Consignment - shall refer to the importation of relief goods no subject to duties and taxes, such as but not
limited to food and medicine donated to the government institutions or accredited private entities for distribution to the affected
population.
In-Kind Donations - shall refer to relief goods (food packs and non-food items), equipment or other aid commodities such as
but not limited to clothing, mats, blankets, malongs, mosquito nets, kitchen/cooking wares, water container, medicines,
medical supplies, medical equipment, health kits, hygiene kits, and medical and health related products to be given directly to
victims and responders of disaster/emergency.
State of Calamity - shall refer to a condition involving mass casualty and/or major damages to property, disruption of means
of livelihoods, roads, and normal day of life of people in the affected areas as a result of the occurrence of natural or human-
induced hazard officially declared by the appropriate authority pursuant to Section 16 of RA 10121.

Conditions for Availment.

In order to avail of the privilege, the donations for relief consignments must satisfy the following conditions:
For food, medicines, medical supplies, clothing and other in-kind donations:
a. It must be donated to a Qualified-Donee;
b. It must be imported during a state of national or local calamity; and
c. It must be for free distribution or use of the affected population or calamity victims in the area.
For equipment and materials for shelter:
a. It must be intended for a specific calamity or disaster-affected area during relief and rescue operations; and
b. It must be leased to government institutions or registered, licensed or accredited private entities in relation to Section
7 of this JAO.

Regulated Relief Consignment

Entry of Regulated Relief Consignments shall be allowed subject to clearance by the concerned regulatory agencies.
Prohibited and restricted importation sent as Relief Consignments, however, shall be automatically seized and proceeded
against in accordance with existing customs laws, rules and regulations.
Philippine International Humanitarian Assistance Reception Center One-Stop-Shop (PIHARC-OSS) Facility
The PIHARC-OSS Facility created under NDRRMC Memorandum Circular No. 158, series of 2017 is adopted as the
facilitation center for relief consignment.
The PIHARC-OSS shall be directly responsible for the facilitation of the issuance of permits, licenses, documentations and
entitlement of entry as Relief Consignments including their expedited release from customs custody. Further, the
representatives of DOF-RO of the PIHARC-OSS shall be directly responsible for the facilitation of the grant of the tax and duty
exemption of relief consignments.
In addition to the functions provided under the NDRRMC Memorandum Circular 158, series of 2017, the Head of PIHARC-
OSS shall coordinate with other government agencies concerned in the processing and documentation of the relief
consignment to effect the expedited release from customs custody.

Prof. JERALD D. SOLLANO, CB, MCA

Page 1 of 14
 PEDREZA CUSTOMS & TARIFF WEBINARS
410 Burke Street, Brgy. 290, Binondo, Manila
Globe: 09063811016 / 09068172757 Landline: 82423398
Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

Unless otherwise determined by PIHAC, the main PIHARC-OSS shall be set up at NAIA. Satellite OSS facilities may also be
established in ports of entry having the facilities to receive the shipments and in close proximity to the area where the state of
calamity exists.
Within 24 hours from the activation of the PIHARC-OSS, the difference government agencies concerned must send their
authorized representatives to the port where the PIHARC-OSS facilities are identified to operate.
The operations of PIHARC-OSS shall be on a 24-hour basis, 7 days a week during the response period and with fun
personnel complement.

Prohibited Donations
The following shall not be allowed for donations:
a. Used clothing, unless authorized by the DSWD;
b. Infant formula, breast milk substitute, except milk used for therapeutic purposes, feeding bottles and artificial nipples
and teats, unless with approval of DOH per EO 56 s. 1986;
c. Those coming in directly or indirectly from tobacco industries whether in cash or in kind;
d. Vehicles except special purpose vehicles to be used for relief, search and rescue operations; and
e. Other goods that may be ineligible for donations under existing laws or regulations.
Processing and Clearance of Relief Consignment during a National State of Calamity

Processing at PIHARC-OSS
1. Prior to approval of the shipment, the Donor, Donee, or authorized representatives shall inform in writing the
PIHARC-OSS thru the DFA of the incoming donation.
2. The following requirements shall be submitted to the PIHARC-OSS for evaluation:
a. Deed of Donation or Letter of Intent to Donate the Goods;
b. Deed of Acceptance by the accredited Donee;
c. Copy of the SAD;
d. Bill of Lading or Airway Bill;
e. Itemized Packing List (for foodstuff and medicines, include expiry dates);
f. Commercial or Non-Commercial Invoice or equivalent document (Statement of Value Invoice) e.g. Pro forma
Invoice, Consignment Invoice, if available;
g. Written undertaking to re-export temporarily admitted goods;
h. English translation of the product description;
i. Standard Operating Procedures for Regional Standby Arrangements and Coordination of Joint Disaster
Relief and Emergency Response Operations (SASOP) Form, if applicable; and
j. Other documents that may be required by the OSS

3. Amendment of the inward foreign manifest especially in the name of consignee must be made prior to submission of
the requirements to the PHIARC-OSS.
4. Upon the receipt of the documentary requirements, the PIHARC-OSS shall issue a completed Relief Consignment
Supplemental Form (Annex A). The form serve as proof of entitlement to tax and duty exemptions and clearance for
release in case of regulated and restricted goods.
In case a shipment does not qualify as Relief Consignment, the same shall be subject to regular customs clearance.
5. It shall be the responsibility of the Donee to secure the necessary permit, license, clearance, or authority of donated
regulated goods from the concerned government agency.
6. The Donee of Relief Consignments or his authorized representative shall submit to the Bureau a fully endorsed Relief
Consignment Supplemental Form prior to release of goods.

Simplified Cargo Clearance Process for Relief Consignments

Within 24 hours from the receipt of Relief Consignment Supplemental Form, the Bureau shall process the release of
Relief Consignment under the following simplified clearance procedure:
1. Relief Consignments shall be covered by a GD and shall be processed at IED of the port or unit concerned. The
Bureau shall assign a procedure code specifically for Relief Consignments.
1. Lodging, registering and checking of the GD and supporting documents may be done prior to arrival of goods.
2. A provisional or incomplete GD may also be subject to completion of the said declaration within the specified
period.
2. Relief Consignments may be cleared beyond the designated business hours and outside customs premises when so
required under circumstances. Any corresponding penalties and surcharges arising from the importation may be
compromised on post facto confirmation of the Secretary of Finance.

Prof. JERALD D. SOLLANO, CB, MCA

Page 2 of 14
 PEDREZA CUSTOMS & TARIFF WEBINARS
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3. Examination of goods may only be allowed in exceptional circumstances such as when the shipment is covered by an
Alert Order. Non-intrusive inspection may also be conducted when a shipment is subject to derogatory information.
Unless the PIHARC-OSS is activated by the NDRRMC, processing of Relief Consignments entered during a Local State
of Calamity as declared by the local sanggunian shall follow regular procedures in the processing of donations, including
application for the requisite permits and licenses from the concerned regulatory agencies and the TEI from DOF.

Treatment of Leased Equipment for Relief and Rescue Operations

Leased equipment used directly for relief and rescue operations during the state of calamity shall be temporary allowed entry,
without payment of duties and taxes, subject to the following conditions:
1. The equipment shall be from foreign governments or international humanitarian organizations;
2. The lessee-consignee shall be a Philippine Government Institution or Agency, or accredited private entities
involved in humanitarian assistance;
3. The lessor and lessee-consignee shall submit a joint written commitment to re-export the leased equipment after
the relief and rescue operations, provided that the period for its temporary entry shall not exceed one year.
Provided further, That in case the lessee-consignee is an accredited private entity involved in humanitarian
assistance, a Security in an amount equivalent to the duties, taxes and other charges shall be posted, subject to
applicable rules and regulations.
4. The equipment shall be fully operational and comply with the National Safety Standards;
5. The equipment shall be re-exported within the prescribed period after termination of the rescue and relief
operations for which they intended to be used. Equipment previously entered as Relief Consignments shall not be
allowed entry for consumption into the domestic territory unless the proper duties, taxes, and other charges have
been paid.
Equipment which are not re-exported within the prescribed period or for which no payment of the proper duties,
taxes and other charges has been made, as the case may be, shall be proceeded against in accordance with the
provisions of CMTA; and
6. Compliance with other conditions and requirements as may be imposed by the government regulatory agency
concerned.

Treatment of Relief Consignments Brought In by International Humanitarian Workers

Goods and equipment brought in by duly registered international humanitarian workers as accompanied baggage must be
properly identified and listed whether for donation or re-exportation.
If for outright donation, the following requirements must be presented to avail the privilege:
a. Duly Filled Up Baggage Declaration Form;
b. Deed of Donation or Letter of Intent to Donate the Goods;
c. Deed of Acceptance by the Accredited Donee;
d. Itemized Packing List (for foodstuffs, include expiry dates);
e. Commercial or Non-Commercial Invoice; and
f. English translation of the product description
If for re-exportation, the following requirements must be presented to avail of the privilege:
a. Duly Filled Up Baggage Declaration Form;
b. Itemized Packing List;
c. Commercial Invoice or Statement of Value;
d. Duly Filled Up Re-Exportation Commitment (REC) Form (Annex B) and Letter of Guaranty from the local
counterpart or posted Security;
e. English translation of the product description;
f. Goods previously entered under 8.2 above but are to be subsequently donated, shall be processed under
Section 800 (m)

Goods for Donation under Section 800 (m) of the CMTA.

Imported goods donated to or, for the account of the Philippine Government or any duly registered relief organization no
operated for profit, for free distribution among the needy, upon certification by DSWD, or DepEd, or DOH, as the case may be,
shall be exempt from import duty.
Unless a special One-Stop-Shop is constituted for this purpose by the agencies enumerated under the immediately preceding
paragraph, processing of donations under this Section shall follow the regular procedures in processing of donations, including
application for requisite permits and licenses from the concerned regulatory agencies and the TEI from the DOF.
The following documents shall be filed with the Bureau:
a. TEI with accompanying documents;
b. Goods Declaration ;
c. Import Bill of Lading/Airway Bill; and
d. Import Invoice/Packing List
In case of processing of donations through the One-Stop-Shop, the procedure for the clearance of relief goods under this JAO
shall apply

Prof. JERALD D. SOLLANO, CB, MCA

Page 3 of 14
 PEDREZA CUSTOMS & TARIFF WEBINARS
410 Burke Street, Brgy. 290, Binondo, Manila
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Reportorial Requirements
1. All concerned government agencies involved in the distribution of Relief Consignments shall submit to the DFA a report
(Annex C) on the status, utilization and distribution of the goods within 120 working days from the deactivation of the
PIHARC-OSS
2. The PIHARC-OSS shall report to the PIHAC the GD lodged, processed, and shipment cleared from all ports on a
weekly basis with but not limited to the following information:
a. Port of Entry;
b. Country of Origin;
c. Name of Donor;
d. Name of Donee;
e. Description of Goods;
f. Total Volume in Kilogram;
g. Total Value in Peso;
h. Total Forgone Revenue;
i. Other information that may be required

3. The PIHARC-OSS shall be assisted by a Secretariat headed by the DFA who shall prepare the necessary reports for
submission to the PIHAC.

TRAVELLER AND PASSENGER BAGGAGE

Customs Clearance of Accompanied and Unaccompanied Baggages of Travelers and Crew (CAO 1-2017)
General Provisions
1. All arriving travelers and crew shall accomplish a Customs Baggage Declaration Form (CBDF) to be prescribed by
the Bureau which will be submitted to the assigned customs officer at the Customs arrival area for clearance. In
addition to CBDF, the following additional documents must also be presented during the clearance process:
a. Owner’s Pre-Departure Declaration Form or Certificate of Identification (CI) for goods previously
exported;
b. A duly filled out Foreign Currency Declaration for travelers carrying foreign currency in excess of
USD10,000.00 or its equivalent in other foreign currency and foreign currency denominated bearer
monetary instruments;
c. Authorization duly issued by BSP for travelers with more than PHP50,000.00 in local currency; and
d. Necessary permits/clearances from the regulatory government agency in case of restricted and regulated
goods in excess of the limits allowed by the agencies
2. Foreign Travelers with Diplomatic Status, who are duly documented and acknowledged as such under the law,
shall continue to avail of the privileges accorded to them by applicable convention, laws, rules and regulations as
regards to traveler and passenger baggages;
3. The Bureau shall adopt and implement an advanced information and traveler record system as a risk
management tool in traveler processing;
4. The Bureau shall create different lanes to cater different types of travelers which shall include but not limited to the
following:
a. OFWs, Returning Residents and Non-Resident Filipinos;
b. Foreign Travelers which with Diplomatic Status;
c. Airline Crew Members; and
d. Traveler with Accompanied and/or Unaccompanied Baggage containing goods in commercial quantity
5. Baggage of arriving Travelers and Crew shall be subject to non-intrusive inspection. When necessary, scanned
Baggage may be subject to physical inspection;
6. The Traveler, Crew, or any Baggage may be subject of inspection based on derogatory information or reasoned
and/or random selection. For this purpose, the Bureau shall restrict the entry of unauthorized personnel into the
customs arrival area, including the baggage carousel area;
7. Tobacco goods, liquors, wines, and spirits brought in as Accompanied Baggage even if within De Minimis Value,
shall be subject to Excise Tax. Whenever such goods are purchased at Philippine Duty Free Stores upon arrival
of travelers and within the allowable quantity limits, shall no longer be assessed the duties and taxes due;
8. Dutiable goods in accompanied baggage brought in by travelers thru the airports which are intended for re-
exportation may be:
a. Allowed release upon posting of cash bond amounting to 100% of the assessed duties and taxes; or
b. Temporarily deposited for safekeeping in the deposit facility subject to the following conditions :
i. Re-exportation shall conform to the date of departure but which shall not exceed three (3) months
from the date of acceptance of the goods;
ii. Full payment of Service and Storage Fees upon deposit of the goods;
iii. Rates of Service and Storage Fees shall be subject to periodic review and may increased or
decreased upon the approval of the Commissioner;
iv. Inventory of the items reflected in the appropriate form to be signed by the traveler and authorized
customs officer.
c. Failure to re-export the goods within the period agreed upon shall subject the cash bond and the goods to
forfeiture;

Prof. JERALD D. SOLLANO, CB, MCA

Page 4 of 14
 PEDREZA CUSTOMS & TARIFF WEBINARS
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d. The deposit facility may be under the ownership and control of the Bureau or outsourced from a third-party
provider.
9. Baggage whether brought in or sent by Qualified Filipinos While Abroad with value of more than PHP10,000.00
shall, at the option of the Filipino traveler, be governed by Section 800(g) of the CMTA insofar as the value of the
Baggage and the frequency of availment is concerned. For the availment of the tax and duty exemption pursuant
to said Section, a processing fee of PHP250.00 (inclusive of LRF of PHP10.00) shall be collected. The
Commissioner shall periodically review the processing fee and revise the same accordingly;
10. Departing travelers with goods for export in commercial quantities shall accomplish and file with the Bureau a
Special Permit to Load (SPL). For goods that will be returned, the traveler shall accomplish a simplified Owner’s
Pre-Departure Declaration Form or CI for presentation upon his return to the Customs Officers at the Arrival Area.
11. Dutiable Goods that are not declared by any person arriving within the Philippines, if not imported contrary to law
shall be seized and the traveler may obtain release of such goods, upon payment of a surcharge equivalent to
thirty per cent (30%) of the landed cost of such goods , in addition to all duties, taxes and other charges due.
Nothing in this provision shall preclude the filing of criminal action against the offender;
12. Without prejudice to other provisions of the CMTA, imported goods are deemed abandoned once the assessed
duties taxes and other charges have been paid and the owner, importer or consignee or interested party after due
notice, fails to claim the goods within thirty (30) days from payment. For this purpose, the Interline Operator and/or
the Baggage Assistance Division operator shall report the unclaimed goods to the District Collector for disposition
pursuant to the provisions of the said Act;
13. Any misdeclaration as to quantity, quality, description, weight or measurement of the goods, resulting to a
discrepancy in duty and tax to be paid between what is legally determined upon assessment and what is declared,
shall be subject to surcharge equivalent to two hundred fifty per cent (250%) of the duty and tax due. No
surcharge shall be imposed when the discrepancy in duty is less than ten per cent (10%);
14. Any undervaluation in goods declaration, shall be imposed a surcharge equivalent to 250% of the duty and tax
due. No surcharge shall be imposed when the discrepancy in duty is less than ten per cent (10%).

Clearance Formalities for Baggage of Specific Arriving Travelers and Crew

1. OFWs, Resident Filipinos, Returning Residents and Non-Resident Filipinos- shall undergo regular clearance
formalities;
2. Crew Members- Baggage of Crew Members shall undergo mandatory physical examination;
3. Resident Aliens and other Foreign Travelers- Other travelers not falling under Sections 5.1 and 5.2 of CAO 1-2017
shall undergo clearance procedures based on traveler profiling and risk management control measures.

Clearance Formalities for those availing of Section 800(f) and (g) of CMTA
1. For availment of Section 800 (f) of CMTA, the Returning Resident or OFW shall accomplish the Personal and
Household Effects Declaration Form (PHED) which may be downloaded from the Bureau’s website and filled out prior
to arrival; or secured from the Customs Officer at the arrival area. The duly filled out PHED Form shall be submitted
to the Customs Officer manning the Customs counter at the arrival area. The PHED Form shall contain the following
basic information:
a. Complete name of the traveler, date of birth, citizenship, passport number, address abroad and in the
Philippines, contact number and e-mail address, if any;
b. Contents, quantity, unit value and total value of Baggage;
c. Packing List information which shall contain an itemized listing of all goods in each box and their respective
quantities and description;
d. Names of accompanying family members and their respective passport numbers;
e. Date of last departure from the Philippines; and
f. Estimated date of arrival of the Returning Resident or OFW in the Philippines
2. For availment of Section 800 (g), the OFWs, Resident Filipinos, Returning Residents and Non-Resident Filipinos shall
accomplish and Information Sheet which may be downloaded from the Bureau’s website and filled out prior to arrival
or secured from the Customs Officer at the arrival area. The duly filled out Information Sheet shall be submitted to the
Customs Officer manning the Customs counter in the arrival area. The Information Sheet shall contain the following
basic information:
a. Complete name of traveler, date of birth, citizenship, passport details, address abroad and in the Philippines,
contact number and e-mail address, if any;
b. Packing List Information which shall contain an itemized listing of all goods in each Balikbayan Box and their
respective description, quantities, unit value and total value;
c. Number of availments within the calendar years; and
d. Other essential information as may be required by the Bureau

Clearance Formalities for Commercial Goods

1. The Traveler in addition to the CBDF, shall fill out a Customs Baggage Declaration Rider to be provided by the
Customs Officer stationed at the Customs counter at the arrival area;

Prof. JERALD D. SOLLANO, CB, MCA

Page 5 of 14
 PEDREZA CUSTOMS & TARIFF WEBINARS
410 Burke Street, Brgy. 290, Binondo, Manila
Globe: 09063811016 / 09068172757 Landline: 82423398
Email: pedrezasem@gmail.com FB: www.facebook.com/clap.stacruz/

2. The Baggage shall be subject to 100% physical examination by the Customs Officer assigned to determine the
duties, taxes and other charges due;
3. For Baggage to be entered conditionally-free under Section 800 of CMTA or those requiring permits or clearances
from other government regulatory agencies, release thereof shall not be allowed until the TEC or requisite permit or
clearance is presented.

Treatment of Interline Baggage

Interline Baggage- refers to the Baggage received, handled and placed at the Interline Baggage Room (IBR) such as but not
limited to:
a. Mistagged baggage;
b. Erroneously off-loaded baggage;
c. Advanced or delayed baggage;
d. Left behind of unclaimed baggage;
e. Transit baggage for foreign destinations

Treatment of Interline Baggage

1. Baggage received, handled and placed at the IBR shall be covered by an Unclaimed Baggage Report (UBR) to be
issued by the Airline company, who shall furnish the copy thereof to the interline operator and the Bureau;
2. Interline Baggage shall be subject to non-intrusive inspection before storage;
3. All claimed Interline Baggage for entry into the Philippines shall be subjected to 100% physical examination by the
Customs Officer in the presence of the traveler or authorized representative to determine the duties, taxes and other
charges due thereon;
4. All Interline Baggage, which remained unclaimed after 30 days from arrival shall be subject to abandonment
proceedings;
5. The Airline shall be required to furnish the Bureau a copy of a Property Irregularity Report (PIR) issued to the
passenger for delayed Baggage

Treatment of In-Bond Baggage

In-Bond Baggage- refers to Baggage received, handled and placed at the Customs In-Bond Baggage Room (CBR) due to the
following:
a. Insufficient funds for payment of duties, taxes and other charges assessed;
b. Lack of presentation of the required permit/clearance from the Government Agency concerned; or
c. Violates the Customs rules and regulations and other related laws
1. Baggage received, handled and placed at the CBR shall be covered by a Held Baggage Receipt (HBR) which is
secured from the CBR, Baggage Assistance Division and to be issued by a Customs Officer;
2. In-Bond Baggage shall be subject to physical inspection before storage;
3. All In-Bond Baggage, which are prohibited in nature, shall be turned over to the appropriate agencies;
4. All In-Bond Baggage, which remained unclaimed after 30 days from arrival shall be subject to abandonment
proceedings

Treatment of Transit Baggage

1. All international baggage ultimately destined to a domestic port shall be cleared ad the first port of entry in the
Philippines

Postal Item or Mail

Clearance of Postal Items (CAO 3-2017)
General Provisions
1. The Bureau shall establish a system that is capable of interfacing with the designated postal operator of the
Philippines for the submission of the following:
a. Advance copy of the Postal Customs Declaration Form for Postal Item from countries wherein the
designated postal operator of the Philippines has a bilateral or multilateral agreement;
b. List of Postal Items received which should contain at least the following:
i. Addressee or claimant’s name;
ii. Address;
iii. Contact Number (e-mail or mobile number);
iv. Sender;
v. Origin;
vi. Declared description of goods;
vii. Declared value of the content;
viii. Declared weight; and;

Prof. JERALD D. SOLLANO, CB, MCA

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ix. Postage and other fees paid

c. List of unclaimed postal items beyond thirty (30) days from the third delivery of the Notice Card to the
addressee or claimant;
d. List of Returned to Sender Postal Item;
e. List of Postal Items that were redirected to a third country;
f. List of damaged Postal Items;
g. Periodic reports on the Postal Items received, handled, processed and dispatched by Central Mail Exchange
Center (CMEC), Foreign Surface Mail Distribution Center (FSMDC), and other similar Postal Items receiving
and distribution centers; and
h. The List required under 4.1.3 to 4.1.7 of CAO 3-2017 shall include this Postal Items dispatched thru various
Offices of Exchange (OE)
2. The Bureau shall maintain, in collaboration with the designated postal operator of the Philippines, centralized offices
for the examination and assessment of customs duties, taxes, and other charges of postal items arriving and for
delivery within the Philippines:
a. One receiving and distribution center at OE for Postal Items arriving by air including Surface Airlifted (SAL)
Postal Items;
b. One receiving and distribution center at OE for Postal Items conveyed by sea;
c. One receiving and distribution center at OEs that may be established in the future.
3. The designated postal operator of the Philippines shall secure prior arrival from the District Collector for the re-
exportation of Misrouted Postal Item, Missent Postal Item, or Damaged Postal Item to be returned to Sender;
4. The transfer of Postal Item from the carrier to the Receiving Distribution Center up to the final OE shall be under the
continuous supervision of the Bureau;
5. Carriers shall be required to submit the IFM and OFM to the Bureau within the prescribed period;
6. Rules and regulations on De Minimis importation shall apply to Postal Item falling within the De Minimis Value. Postal
Items shall be released under a simplified clearance procedure using Postal Customs Declaration Form unless
another form is otherwise prescribed;
7. Postal Items with an FCA/FOB Value of more than PHP50,000.00 shall be cleared thru a Formal Entry Process and
shall require the lodgment of goods declaration;
8. The following shall be cleared thru an Informal Entry Process using the form prescribed by the Bureau;
a. Those covered by Section 800 (f) and (g) of CMTA;
b. Goods of commercial nature with FCA/FOB Value of less than PHP50,000.00;
c. Personal and household effects or goods, not in commercial quantity

Clearance Formalities under Section 800 (f)

1. To clear the shipment, Returning Resident or OFW shall accomplish, sign and submit in advance to the Bureau a
PHED, to be developed by the Bureau, containing among others, the following basic information:
a. Complete name of the shipper, date of birth, citizenship, passport number, address abroad and in the
Philippines, contact number and e-mail address, if any;
b. Contents, quantity, unit value, and total value of the shipment;
c. Packing List information which shall contain an itemized listing of goods in each box and their respective
quantities and description;
d. Names of accompanying family members and their respective passport numbers;
e. Date of last departure from the Philippines; and
f. Estimated date of arrival of the Returning Resident or OFW in the Philippines
2. For Postal Items by sea and air, the Returning Resident or OFW shall secure Duty and Tax Exemption Indorsement
(TEI) from the Revenue Office of the DOF;
3. Importations of excisable articles such as, but not limited to, distilled spirits, wines, cigars and cigarettes, perfumes,
toilet waters, in excess of allowable quantity to be prescribed by the Bureau shall be subject to payment of duties,
taxes and other charges;
4. To be exempt from duties, taxes and other charges, personal and household effects normally used for the comfort
and convenience of Returning Residents of OFWs during their stay abroad must accompany them on their return, or
arriving within a reasonable time which, barring unforeseen and fortuitous event, in no case shall exceed 60 calendar
days from the date of owner’s return

Clearance Formalities under Section 800 (g)

1. Returning Residents, OFWs, or Non-Resident Filipinos while residing abroad who are allowed to send to their
families Balikbayan Boxes which are exempt from duties and taxes may do so thru post. Sending of Balikbayan
Boxes thru post shall be counted in the frequency of the availment of the privilege which is up to maximum of three
(3) times per calendar year;
2. De Minimis importations whether by post or other modes of importation shall not be included in the counting of
availment of the privilege. However, a shipment that is above the De Minimis threshold shall be automatically
considered as one availment;
3. Returning Residents, OFWs, or Qualified Filipinos While Abroad shall ensure that Balikbayan Boxes sent as Postal
Items should contain personal effects and household goods, otherwise they shall be subject to duties and taxes;
4. Addressee or claimant of Balikbayan Boxes shall be required to submit the print-out of Information Sheet
accomplished, signed and sent by the sender. The Balikbayan Box shall not be subject to immediate release in the
event that the addressee or claimant fails to submit it. The contents of the Information Sheet are the following:

Prof. JERALD D. SOLLANO, CB, MCA

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a. Complete name of the shipper or sender, date of birth, citizenship, passport details, address abroad in the
Philippines, contact number and e-mail address, if any;
b. Relationship of the shipper or sender to the consignee;
c. Contact number, postal or e-mail address of the consignee;
d. Total value of contents and number of Balikbayan Boxes;
e. Packing List information which shall contain an itemized listing of all goods in each Balikbayan Box and their
respective quantities and description;
f. Number of availments within the calendar year; and
g. Other essential information as may be required by the Bureau
5. In addition to the Information Sheet, sender of Balikbayan Boxes shall send the following documents to addressee or
claimant for presentation to the Bureau:
a. Photocopy of pertinent page of Philippine passport with personal information, picture and signature or in
case of Dual Filipino Citizen without passport, photocopy of foreign passport with personal information,
picture and signature plus proof of Dual Filipino Citizenship; and
b. Invoice, receipt or equivalent document covering the goods contained in the Balikbay Box, if any
6. Physical examination or non-intrusive inspection of foreign Postal Items shall be conducted subject to existing
regulations and based on established risk management scheme of the Bureau;
7. Postal Items shall be subject to mandatory non-intrusive inspection by the Bureau at the OEs;
8. The Bureau shall coordinate with the designated postal operator of the Philippines for immediate dispatch of Postal
Items to the concerned Postal Stations;
9. Postal Items which shall remain unclaimed despite due notice given to addressee or claimant shall be subject to
abandonment proceedings;
10. The clearance of Postal Items for transshipment shall be governed by rules and regulations relative to Transshipment

Exclusions from Immediate Release

1. Goods redeemed or claimed from airlines, hotels, magazines, online bloggers, etc., thru mileage or points earned by
the addressee or claimant;
2. Conditionally free importations under Section 800 of CMTA;
3. Postal Items that are non-compliant with the conditions imposed by the concerned regulatory agency;
4. Postal Items declared as “Without Commercial Value” or of “No Commercial Value” or with specific amount but
qualified by the phrase “For Customs Purposes” or analogous phrases. Hence the sender must declare in Postal
Customs Declaration Form the specific value of goods;
5. Importation of tobacco, cigars, cigarettes, and liquor products within the De Minimis value shall be subject to excise
tax;
6. Prohibited and Restricted Postal Items as provided for under the CMTA and the Universal Postal Convention and its
Regulations;
7. Postal Items to be entered conditionally free, for warehousing, for transit, and/or for admission to Free Zone;
8. Postal Items purchased online and with discount which shall be subject to presentation of transaction record such as
credit card statement or confirmation of the receipt of the seller

Express Shipments of Air Cargo Express Operators

Cargo Clearance Procedures
Correspondence and Documents
1. The AECO shall ensure that non-document shipments are not mixed with Correspondence and
Documents. Should this occur, the AECO shall provide supporting documents to the Bureau that the non-
document shipment was manifested correctly. Any shipment found to contain dutiable goods shall be
segregated from Correspondence and Documents and the same shall be filed and cleared separately.
2. The detailed e-CIFCM for all Correspondence and Documents shall serve as the Goods Declaration.
3. Prior to release, the Bureau shall conduct a non-intrusive examination for shipments classified as
Correspondence and Documents.
4. All Correspondence and Documents shall be placed in a sealed green bag.
5. Documents included in the e-CIFCM for Correspondence and Documents shall be cleared without
payment of duty and tax.
6. The Bureau shall utilize risk management techniques in determining criteria for the physical and
documentary examination of documents, e.g., weight, volume.

De Minimis Shipments - shall refer to the value of goods for which no duty and taxes is collected.
Prior to the arrival of the shipments and to enable the processing of Express Shipments, the AECO shall submit to
the Bureau a detailed e-CIFCM of all De Minimis Shipments with FOB/FCA Value of Php10,000.00 or less.

Prof. JERALD D. SOLLANO, CB, MCA

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De Minimis Shipments
1. The detailed e-CIFCM shall also serve as the goods declaration for all De Minimis shipments, but
regulated goods shall be declared separately per HAWB.
2. The Customs Examiner shall carry out risk assessment on the e-CIFCM submitted by the AECO and tag
shipments for physical examination and require submission of clearance or permit from the concerned
regulatory agency, if applicable.

Low Value, Dutiable and/or Taxable Express Shipments - shall refer to goods with FOB/FCA Value of more
than Php10,000.00 but less than Php50,000.00.
Subject to the application of risk-based management techniques, the Bureau shall allow the advanced processing
of Low Value, Dutiable and/or Taxable Express Shipments subject to the following conditions:
1. The e-CIFCM shall be submitted to the Bureau prior to arrival of the goods for purposes of processing
information, calculating the amount to duties and taxes payable and for selecting shipments for
documentary or physical examination or both, if deemed necessary. The e-CIFCM must also contain the
following information:
a. Customs Duty Amount;
b. Value Added Tax;
c. Express Clearance Fee; and
d. Other Charges (i.e., fines and penalties)
2. A simplified goods declaration containing the information required by the Bureau shall be filed by the
AECO prior to the arrival of the goods.
3. Low Value, Dutiable and/or Taxable Express Shipments with a value of less than Php50,000.00 may be
released prior to the payment of the assessed customs duty, tax and other charges subject to the posting
by the AECO of a bank guaranty which shall act as security deposit as provided under Section 11 of this
CAO and provided further that the following are present:
3.a. The informal entry for Express Shipments sought to be released shall have been duly filed and
processed;
3.b. The documentary and/or physical examination of the cargo, if necessary, has been completed,
and the duties, taxes and other charges due on the consignment have been properly
determined by the Bureau;
3.c. Only such number of shipments with aggregate assessed duties, taxes and other charges not
exceeding the amount guaranteed by an AAB shall be allowed to be released;
3.d. The shipment sought to be released shall is not subject to any alert or hold order issued by the
authorized Alerting Unit of the Bureau; and
3.e. The AECO shall submit to the District Collector a notarized written commitment executed by an
AAB, guaranteeing to pay the Bureau upon demand whatever customs duties, taxes and other
charges assessed on any import not paid by the AECO.
High Value Shipments - shall refer for the shipments with an FOB Value of Php50,000.00 and above.
Each shipment shall be declared individually through the Customs Cargo Clearance System and shall processed
under formal entry

Treatment of Split Consignments

Two or more low-value non-document express consignment which appears on the e-CIFCM to have the same
shipper and the same consignee, the aggregate value of which amounts to Php50,000.00 or more, or its foreign
currency equivalent value at the date of arrival of the shipment shall be treated as a single consignment and will
require filing of formal entry.

Mis-Sorted or Misrouted Shipments

Mis-Sorted or misrouted shipments may be returned to the shipper with our payment of duties, taxes and other
charges under the following circumstances:
1. The AWB indicates that the consignee’s address is other than the Philippines;
2. The AWB indicates that the consignee’s address is the Philippines, but the labels or markings clearly
show that the destination of the shipment is other than the Philippines and the Bureau has verified the
same;
3. The Bureau is notified prior to the arrival of the shipment and lodgment of goods declaration that the
same is mis-sorted or misrouted; and
4. The shipment is not subject of an alert order or derogatory information and the same is not regulated,
restricted or prohibited upon conduct of non-instrusive inspection.

Prof. JERALD D. SOLLANO, CB, MCA

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The AECO shall re-export the same within 24 hours from the arrival of the shipment. The Bureau shall require the
AECO to provide a designated and secured area for mis-sorted or misrouted shipment.
The AECO shall also submit electronically a monthly summary of all mis-sorted and misrouted shipments to the
Bureau with the following information:
a. Arrival into the Philippines;
b. Departure Date from the Philippines;
c. Export AWB Number;
d. Export Flight Number;
e. Correct Destination; and
f. Document showing proof of landing or other evidence of re-exportation.
For purposes of recording, the Bureau shall compute the duties and taxes that should have been collected from
the shipment had it not been mis-sorted or misrouted.

Security Deposit
In case of Low Value, Dutiable and/or Taxable Express Shipment, the AECO shall deposit and maintain in AAB
the amount of Php5,000,000.00 specifically to guaranty immediate payment by the bank upon demand by the
Bureau. In case of default on the part of the AECO to pay the assessed customs duties, taxes and other charges
due on shipments that were released under Section 6.3.3 of this CAO, the Bureau shall deduct the security
deposit the payment of duties, taxes and other charges.
The security likewise covers mis-sorted and misrouted shipments being returned to the shipper. In case of failure
to show proof of landing or evidence or re-exportation or that the said shipment was not re-exported within 24
hours from arrival, the amount of duties, taxes and other charges which should have been collected shall be
deducted from the security by way of penalty.

Accreditation of AECO
The AECO shall be accredited by the Bureau before it can avail of the privileges for handling Air Express
Shipments.
The applicant for accreditation shall comply with the following:
1. Accreditation by the Bureau as an Importer;
2. Accreditation by the Bureau as a CFW Operator;
3. Must be accredited by CAB as a freight forwarder;
4. Proof of membership to a recognized existing international organization for air express operators, i.e.,
Conference of Asia Pacific Express Carriers (CAPEC);
5. Certification as an operator of a global or regional hub for handling express shipments;
6. Must have dedicated air carrier for their use as Air Express Operator;
7. Must have integrated end-to-end tracking system; and
8. Must have at IT system capable of interfacing with the Bureau’s automated system.

Exclusions from Immediate Release

1. Importations declared as “without commercial value”, ”of no commercial value’ or with specific amount but
qualified by the phrase “for customs purposes” or analogous phrases.
Hence the sender, importer, consignee, AECO must declare the specific value of the goods supported by
available invoice, receipt or equivalent document, if any, except Correspondences and Documents
classified under Category 1 of the WCO Guidelines for the Immediate Release of Consignments by
Customs.

2. Goods subject to requirements or conditions imposed by the concerned regulatory agency unless for
personal use ad within the limits allowed by the regulations.
Regulated Goods with De Minimis Value shall comply with the requirements of the concerned regulatory
agencies. However, when the importations consist of Regulated Goods of personal use and in limited
quantity as determined by the implementing regulatory agencies, the same may be processed and
released by the Bureau.
3. Importations to be entered conditionally-free, for warehousing, for transit and/or admission to free zone

Express Shipment Restrictions

The following shall not be considered as an Express Shipments:

Prof. JERALD D. SOLLANO, CB, MCA

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1. Prohibited and/or Restricted Goods under the Philippine Laws;

2. Dangerous Goods and/or Hazardous substances such as explosives and other hazardous chemicals
under RA 6969;
3. Valuable such as jewelry, works of art and the like;
4. Animals fishes and fowls;
5. Foodstuff and highly perishable articles;
6. Human remains or cadavers; and
7. Money (coins, cash, paper money and negotiable instruments equivalent to cash)

Authorized Economic Operator (AEO, CAO 5-2017)

Components of AEO:
1. Cargo Security System - a system that ensures the integrity and security of imported goods in
accordance with the principles of the WCO SAFE Framework;
2. Trade Clearance System - a system that enables highly compliant stakeholders to clear their goods with
minimum or zero customs border intervention;
3. Mutual Recognition Arrangement - refers to a formal document between two or more Customs
administrations outlining the circumstances and conditions in which AEO programs are recognized and
accepted between the signing parties

Who may participate in the AEO Program?

a. Importers and Exporters (CMO 9-2020);
b. CBW and CFW;
c. Customs Brokers;
d. NVOCC, IFF with offices in the Philippines;
e. Shipping Lines, Airlines and their agents;
f. AABs;
g. Local Transport Operators and their facilities and equipment;
h. Foreign suppliers, manufacturers, and other entities in the Logistics and Supply Chain accredited as
AEO by another country with which the Philippines has MRA.

AEO Membership Criteria

1. General Criteria;
2. Security Infrastructure;
3. Applicant entity must have been in operation for at least 1 year prior to the date of application;
4. Applicant must ensure that it has obtained the necessary permits, licenses, clearances and/or
concession if regulated by another government agency;
5. None of the executive officers and directors, directly engaged in customs procedures and shareholders,
as applicable, have been criminally liable for violations of customs laws and procedures;
6. Applicant must have a dedicated office or unit and responsible officer whose main function is to ensure
the applicant’s compliance with its duties and responsibilities under the AEO Program as an accredited
member

AEO Application Processing and Approval (CMO 9-2020)

Pre-Screening. The AEO Office shall conduct a pre-screening process for all interested AEO candidate to
determine their readiness and compliance with the criteria and standards set of AEO prior to their application for
accreditation.
a. An AEO candidate may signify its intention to be an AEO by submitting the following through the AEO
Online Portal or the office of supervising Deputy Commissioner for AEO:
i. Notarized Pre-Screening Form (Annex A);
ii. ii. Notarized Self-Assessment Questionnaire (Annex B);
iii. Risk Evaluation Sheet (Annex C);
iv. Notarized Undertaking (Annex D);
v. Financial Documents (e.g., Annual BIR Returns, Financial Report, etc.);
vi. SEC/DTI Registration, as applicable;
vii. Mayor’s Permit and/or Certificate of Registration (e.g., BOI, PEZA, SBMA, etc.) as applicable; and

Prof. JERALD D. SOLLANO, CB, MCA

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viii. General Information Sheet (GIS)

b. Once received, the Chief, AEO Office shall assign an Account Manager assisted by AEO Inspector(s). The
Account Manager shall review and provide feedback and recommendations to the AEO candidate with 15
calendar days from receipt of complete documents.
c. The Account Manager may schedule consultation meetings and inspections to guide the AEO candidate on
the standards required to be an AEO Importer and/or Exporter within 5 days from the issuance of feedback
and recommendation.
d. The AEO candidate shall be given a reasonable period to comply with the recommendations of the Account
Manager.
e. The Account Manager shall prepare an evaluation report determining the level of readiness of the applicant
and submit the same to the Head, Accreditation Unit within 5 days from evaluation.
f. The Chief, AEO Office shall review the recommendation and issue a Pre-Screening Clearance to AEO
candidates who have been determined to meet the criteria within 10 calendar days from receipt of
recommendation. The same shall be recommended to proceed to AEO Application.
g. AEO candidates who fail to meet the criteria of the AEO Program shall be recommended for further
trainings and consultations by the AEO Office.
h. Application Proper. An AEO applicant shall submit its application form together with the following
documentary requirements through the AEO online portal:
1. Notarized Application Form (Annex A);
2. Pre-Screening Clearance;
3. Notarized Self-Assessment Questionnaire (Annex B);
4. Risk Evaluation Sheet (Annex C);
5. Notarized Undertaking (Annex D);
6. Financial Documents (e.g., Annual BIR Returns, Financial Report, etc.);
7. SEC/DTI Registration, as applicable;
8. Mayor’s Permit and/or Certificate of Registration (e.g., BOI, PEZA,SBMA, etc.) as applicable; and
9. General Information Sheet (GIS);
10. Secretary’s Certificate designating the authorized person to process the application

Evaluation
Evaluation shall be conducted within 10 calendar days from receipt of complete documents. They may include
verification of information with other government institutions and through cross referencing with available data,
among others.

Validation
1. The Account Manager shall prepare the validation plan based on the initial findings in the document
evaluation and notify the applicant with the required Validation within 5 calendar days from evaluation.
2. The Validation shall be conducted within 15 calendar days from receipt of notice through the AEO Online
Portal. The notice shall contain the name/s of the authorized inspectors who shall conduct the on-site
inspection.
3. The authorized officer of the applicant and the designated Account Manager from the AEO Office may
discuss the detailed schedule and other preparations for the on-site inspection.

4. During the conduct of Validation, the Account Manager and/or authorized AEO inspector shall verify if the
security measures and other required criteria are complied with. This may include system walkthrough or
personal interview of applicant or duly designated and competent representative.
5. In case the applicant has more than one place of business, application should be submitted after
preparing and classifying them according to each place of business with respect to the areas directly
related to the application of AEO authorization.

Decision
1. The AEO Inspector shall submit the report of findings within 5 calendar days from the end of the
Validation to the Account Manager.
2. The Account Manager shall prepare document evaluation, Validation reports and his/her recommendation
which shall be submitted to the Head, Accreditation Unit within 10 calendar days from the end of the
Validation.

Prof. JERALD D. SOLLANO, CB, MCA

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3. The Head, Accreditation Unit shall forward the recommendation to the Chief, AEO Office for indorsement
to the supervising Deputy Commissioner.
4. The supervising Deputy Commissioner shall meet with the Chief of the Unit Heads of the AEO Office and
Account Manager within 5 calendar days from receipt of indorsement to deliberate the application.
5. After the deliberation, the Account Manager shall prepare a resolution within 5 calendar days for signature
of the Chief and Unit Heads of the AEO Office and supervising Deputy Commissioner who shall review
the same within 10 calendar days from receipt.
6. If approved, the AEO Office shall notify the applicant in writing of this Level 1 Accreditation as AEO
member within 3 calendar days from receipt of the decision and issue an AEO Certificate of Accreditation.
7. If disapproved, the AEO Office shall notify the applicant in writing stating the grounds for denial of
application within 3 calendar days from receipt of the decision

Other Procedures
1. An AEO applicant whose application for accreditation was disapproved by the supervision Deputy
Commissioner may re-apply within one year, allowing the applicant to complete the deficiencies, if any, or
upgrade its security systems/requirements, as may be needed.
2. The processing of an AEO Application may be extended upon reasonable grounds (e.g. further review
and validation, etc.) but should not exceed 90-day period of Level 1 Accreditation.
3. Complete records of Level 1 AEO Members should be provided by the Accreditation Unit to the Post
Validation Unit for monitoring and subsequent Validation.

Authorized Economic Operator (AEO)

Level of Benefits for AEO Members
Level 1 - The Bureau shall offer limited benefits to a Level 1 member who has been certified in accordance with
the guidelines referred to in Section 4.3 of CAO 5-2017.
1. Exemption from Renewal of Accreditation. An AEO Member shall not be required to renew its
membership under any customs accreditation system. In lieu of the annual renewal of accreditation, AEO
member shall only be required to periodically update its information and corresponding documentary
requirements pursuant to the membership responsibilities under Section 11 hereof. The AEO office shall
review the updates and documentary requirements provided by an AEO Member pursuant to Section 11
hereof. (CMO 9-2020)
Self-Assessment using their Trade Document System. For AEO Members with a satisfactory system for
managing their Trade Documents, the Bureau may allow the use of Trade Documents (e.g. Bill of Lading,
Invoice) to self-assess their duty and tax liability and, where appropriate, to ensure compliance with other
customs requirements. For this, provided that information declarpurpose, information declared by an
AEO Member in its GD based on its self-assessment shall be accepted by the BOCed thereto are
consistent with the Trade Documents provided by the AEO Member. Nothing in this Order shall prevent
the Bureau from the conduct of compliance audit of an AEO Member pursuant to the CMTA and other
existing laws, rules and regulations. (CMO 9-2020)

Dedicated Helpdesk for AEO applicants.

a. An AEO Portal shall be created for exclusive use of AEO Members and interested applicants which shall
handle the acceptance and processing of AEO applications.
b. The AEO Help Desk shall also utilize the online portal to answer all customs related concerns of AEO
members in coordination with the concerned offices of the BOC.
c. The MISTG shall assist the AEO Office in setting-up said online facility. (CMO 9-2020)

Other Benefits
AEO Members shall be accorded recognition by the BOC as trusted trade partners. The AEO Office thru the
PIAD, shall publish the list of approved AEO Importers and Exporters at the official website, social media
accounts and other information platform of the BOC. (CMO 9-2020)

Level 2 - The Bureau shall validate the security measures and supply chain practices of Level 1 member in
accordance with the criteria referred to in Section 4.3. Such validation shall include on-site assessments as
appropriate foreign locations utilized by Level 1 member in its supply chain and shall, to the extent practicable, be
completed no later than 1 year after certification as Level 1 Member.

Prof. JERALD D. SOLLANO, CB, MCA

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Level 2 Benefits:
i. In addition to the benefits enjoyed by a Level 1 member, the Bureau shall extend benefits to each AEO
Member that has validated as Level 2 member under this section, which shall include:
1. Dedicated Processing Lane. Dedicated processing and selectivity lane for AEO Shipments with no
documentary, physical or non-intrusive examination.
Only in instances of derogatory information may the Commissioner direct the examination of an AEO
importation, which shall be done at the premises of the operator in case of physical examination.
When non-intrusive examination is required, members shall be given priority.
2. Advance Clearance Process. The processing of import documents prior to arrival of the carrying
vessel or aircraft provided that e-manifest has been uploaded in the system.
3. Periodic Lodgment. Allowing a single GD or a given period of the following:
a. Freely-importable goods of the same kind regularly imported or exported.
b. Regulated goods of the same kind regularly imported or exported in coordination with and
subject to the conformity by the concerned government agencies.
4. One-Time Exemption Certificate. For goods to be imported over a period of time and are subject to
duty and/or tax exemption privilege, the AEO member may secure a one-time duty and/or tax
exemption certificate to cover all the importations subject to the approval of the Department of
Finance, provided that the goods are properly identified and listed in the duty and/or tax exemption
certificate.
5. Expedited Customs Clearance for Exports. Reduced intervention for export to countries under an
MRA.

Level 3 - The Bureau shall establish a third level of AEO participation that offers additional benefits to member
who demonstrate a sustained commitment to maintaining security measures and supply chain practices that
exceed the guidelines established for validation as Level 2 member in AEO;
Level 3 Criteria shall be subject to approval of Secretary of Finance;
Additional benefits of a Level 3 member shall be available 2 years after effectivity of this CAO and upon
consultation by the Commissioner with AEO Office.

Grounds for Suspension of Accreditation (CMO 9-2020):

1. If at any time an AEO member’s security measures and supply chain security practices fail to meet any of
the requirements under Section 9.1 hereof;
2. Repeated and unjustified failure or refusal to comply with official directives or mandates from the Bureau;
3. Habitual delinquency in complying with AEO regulations or in abiding by the terms and conditions of AEO
membership;
4. Recommendation based on the periodic evaluation by the Post Validation Unit of the member’s
performance in its AEO operations over a given period of time indicating the existence of significant risk to
customs revenue or to the cargo supply chain security;
5. Member violates any provision of the CMTA, or related laws, rules and regulations

Grounds for Revocation of Accreditation (CMO 9-2020):

1. Member violates any provision of the CMTA, or related laws, rules and regulations resulting in significant
loss of customs revenues or serious injury to public health and welfare;
2. If an AEO member knowingly provides false or misleading information to the Bureau during the Validation
process provided for under this CMO;
3. Any other violations that would constitute fraudulent intent or gross negligence.

Prof. JERALD D. SOLLANO, CB, MCA

Page 14 of 14