Updates on the BOC E2M P4 Export Module, EU ENS, CO Francis Norman O. Lopez President

Agenda Introduction EU Import Control System BOC E2M Export Module Certificate of Origin: Self-Certification Q&A

About Local Focus – Global Reach ! IT, Value Added Network Services company established in 1987 with more than 23 years experience in B2B transactions, and more than 12 years in eCustoms Services – accredited as EDI VAN in 1998 and as Value Added Service Provider (VASP) by Customs, PEZA, Clark and Subic Freeports, the Board of Investment and the Department of Agriculture: BAI, BPI and BFAR A distributor of GXS (formerly GE Information Services), the largest global B2B eCommerce services provider since 1987, and CONEX SA (France), EU Customs Service Provider, in 2010 Member, Pan Asian eCommerce Alliance (PAA) Independent IT Company - No Affiliation with any logistics company (brokerage, forwarder, warehouse operator), nor with importer, exporter or trader. No potential conflict of interest with client logistics providers, ensuring data confidentiality and integrity InterCommerce . . . your Value Added Service Partner ! PEZA Department of Agriculture BPI BAI BFAR Local Focus – Global Reach !

InterCommerce . . networking to the World 1987 Americas United States Asia Japan, Korea, China, Hongkong, Macau, Taipei, Thailand, Malaysia, Singapore, Indonesia 2008 2010 European Union 27 Member States

InterCommerce NOW Linked to EU Customs European Union 27 Customs Administrations Multiple formats Pan Asian eCommerce Alliance: PAA Network Japan, Korea China Taipei, Hongkong, Macau Thailand, Malaysia, Indonesia, Singapore Advanced Declaration ENS ENS, eCO, SPS Certificate, etc.

ICS : security data WCO SAFE Framework of Standards adopted worldwide New world context post 9/11/2001 - Anticipation and prevention - Fight against terrorism Starting date : 2011, January 1st …Pre-arrival security data for the purposes of risk management

EU Community Customs Code reform: The entry summary declaration Article 87 CCC and 183 CCIP A declaration shall be made electronically and authenticated by the person making it.   Statement of required data: Annex 30 A CCIP Article 181 B CCIP Scope : All goods brought into the EU Customs Territory shall be covered by an entry summary declaration, except those covered by Article 181 c.

EU ENS Product Coverage Except where otherwise provided for in the regulation, all goods brought into the customs territory of the Community shall be covered by an ENS. However, an ENS shall NOT be required in respect of the following goods: Electrical energy, Goods entering by pipeline, Letters, postcards, and printed matter, including on electronic medium, Goods moved under the rules of the Universal Postal Union Convention, Goods covered by Customs clearance declarations confirming their EU customs status, Goods contained in travellers’ personal luggage, Goods for which an oral Customs declaration is permitted, Goods covered by ATA and CPD Carnets, Goods moved under cover of NATO procedures, Goods carried on board vessels of regular shipping services, Goods carried under cover of Diplomatic procedures.

Annex 30 A of the CCIP (Annex III of regulation (EC) no. 1875/2006) X = The data element concerned is required at the goods item level. Y = The data element concerned is required at the header level. Z = The data element concerned is required at the conveyance report level. X-Y-Z = Data can be requested for the procedure or declaration described in the corresponding column at any of the levels concerned. 1/2

X = The data element concerned is required at the goods item level. Y = The data element concerned is required at the header level. Z = The data element concerned is required at the conveyance report level. X-Y-Z = Data can be requested for the procedure or declaration described in the corresponding column at any of the levels concerned. 2/2

Steps for ICS & 2- Modification 3- Diversion request Description of the various possible exchanges between an operator & one of the 27 European Union Customs Administrations 1- Creation and lodgement of an ICS declaration 2- Modification 3- Diversion request 4- Arrival notification

Description of goods Annex 30A, as included in the implementing provisions of the Customs code by Regulation1875/061 provides that goods description for summary declarations is "a plain language description that is precise enough for Customs services to be able to identify the goods. General terms (i.e. “consolidated”, “general cargo” or “parts”) cannot be accepted. Unacceptable Acceptable Agricultural products Oranges, Fish, Rice, Bread Auto Parts Automobile brakes, Windshield Glass for Automobiles Leather Articles Saddles, Leather Handbags, Leather Jackets Machine parts Pumps, Seals, Engines Vehicles Boats, Cars, Bicycles ……

Time limits for lodging the ENS pre-entry summary declaration Article 184 A Time limits for lodging the ENS pre-entry summary declaration Shipping goods via... ENS to be submitted to 1st EU country of entry … Maritime containerised cargo at least 24 hours before loading at the port of departure Maritime bulk/break bulk cargo at least 4 hours before arrival Maritime sea voyages of less than 24 hours at least two hours before arrival Short-haul flights:less than 4 hours’ duration at the time of actual take-off Long-haul flights at least four hours before arrival Rail and inland waterways at least two hours before arrival Road traffic at least one hour before arrival Article 184 D of the CCIP Establishes the maximum amount of time allowed for the administration to reply

Import Control System – “Grace Period” Effective 28 February France UK Ireland Hungary Malta Netherlands Romania Spain Germany: End February ? Belgium: End February ? Sweden: End April Italy: End May Portugal Greece

Who will be responsible for lodging the ENS message? Article 36 b of the CCC Refers to the transporter or the person assuming responsibility for the carriage of the goods as lodger of the ENS message. Article 181 b of the CCIP Carrier means the person who has concluded a contract, and issued a bill of lading or air waybill, for the actual carriage of the goods into the customs territory of the Community

Case: Transshipment Philippine: Outbound to Europe Main Vessel and Feeder Vessel: Main vessel: Assume responsibility for lodging the ENS for all goods Vessel VOY N° Manila ETA Connecting Vessel ETD Port in EU CSCL NAPOLI 0107N 01/19-20 02/05 Hongkong XIN OU ZHOU 0052W 02/07 03/04 HAM 03/06 RTM RESOURCEFUL 344 07/28-29 08/03 Singapore NYK OCEANUS 016 0808 0825 0828 What happens to the export cargo which has been transshipped thru Hongkong for delivery to EU Member State,if the EU Customs responded with a “Do Not Load” message ? Ship back to the Philippines ?

Can other supply chain operators perform this formality instead of the carrier?   Yes: With the presumption of carrier’s consent Article 183 of the CCIP Where an entry summary declaration is lodged by a person referred to in Article 36b(4) of the Code, the customs authorities may assume, except where there is evidence to the contrary, that the carrier has given his consent under contractual arrangements and that the lodging has been made with his knowledge. This mandate makes it possible to define the declarant as being responsible for the contents of the entry summary declaration.

Goods from Philippines transhipped thru Hongkong or Singapore Carrier in Hongkong or Singapore responsible in lodging ENS before loading in main vessel Feeder or Forwarder in Philippines may lodge ENS before loading into feeder vessel - Complete and timely lodgment of ENS - Ensure that main vessel/carrier is duly informed on Movements Reference Number (MRN), Arrival Notice (ARN) and any Deviation Notice (DN)

Non Compliance to ICS regulation -   Non Compliance to ICS regulation - Failure to lodge the entry summary declaration Loading of goods despite receiving a ‘Do Not Load’ Article 184 c of the CCIP Specifies the consequences when the entry summary declaration has not been lodged: Application of penalties laid down in the national legislation of the Member State of first entry (fines, quarantine, delays, etc.) http://ec.europa.eu/ecip/help/faq/index_en.htm Inter InterCommerce Conex Services

Thailand, Malaysia, Singapore Indonesia, Philippines EXPORTER OPERATOR FORWARDER European Union 27 Customs Administrations Multiple formats 1 2 Export Declaration e2m Phase 4 Q1 2011 Q12011 e-Export Doc (e-EDS) PEZA Q3 2011 SPS Certificate Japan, Korea, China, Macau, Hongkong, Taiwan, Thailand, Malaysia, Singapore Indonesia, Philippines Inter InterCommerce Conex Services

E2M Exports Implementation Schedule * Per Memo issued by Depcom Arevalo, BOC MISTG, dated 19 January 2011 February 28 MICP, Port of Manila and Port of Batangas March 21 Subic, Clark, San Fernando, Limay, Legaspi April 4 Cebu/Mactan, Davao, Cagayan de Oro/MICT, Iloilo April 18 - Tacloban, Zamboanga, Surigao, NAIA BOC E2M Export Declaration implementation deferred indefinitely

E2M Export System – Implementation Requisites Registration of Exporters in the BOC E2M Export System: Client Profile Registration System (CPRS) Accreditation with government agencies: BOI, PEZA, CDC, SBMA, CESA, ZEZA, AFAB PhilExport (Manila and regional chapters) Submission of exporter profile data thru VASPs Exporter to get BRN from banks Electronic Lodgment of Export Declaration/Single Administrative Document thru BOC-Accredited Value Added Service Providers (VASPs) Online preparation of ED/SAD Electronic submission Automated BOC E2M response Online Printing of the ED/SAD

CPRS for E2M Export Procedures CMO 39-2008 as Amended by BOC Memo 07Mar 2011 Exporter Accreditation Government Agencies: Board of Investments Phil Economic Zone Authority Ecozone and Freeport Authorities: Clark Development Corporation, Subic Bay Metropolitan Authority, Cagayan Special Economic Zone Authority, Zamboanga Special Economic Zone Authority, Authority on Freeport Area of Bataan Private Organizations Philippine Exporters Confederation (Manila): Bonded Warehouse Operators Data to be submitted by Accreditation agency to BOC TIN, Name, Address, Contact Number Exporter to submit CPRS Profile Data thru VASPs, and upload to the E2M OGA Server

CPRS for E2M Export Procedures CMO 39-2008 as Amended by BOC Memo 07Mar 2011 BOC MISTG: Accredit, Approve and Activate Exporter CPRS E2M generates/emails Exporter COR and CCN Exporter to Secure Bank Reference Number BRN from AAB, for payment of export related fees Submit COR with CCN to AAB AAB issues BRN to Exporter Transmits Exporter BRN to BOC e2m thru PASS5

CPRS for Exporters Agencies (BOI, PEZA, CDC, SBMA, AFAB, etc.), PhilExport and Bonded Warehouses to provide BOC with their respective List of Accredited Exporters and Members, not later than March 11, 2011 - CDC, AFAB, BOI and PhilExport have submitted initial list Exporters to submit profile data thru VASPs, for submission to BOC E2M not later than March 25, 2011

Mandatory Exporter CPRS Data (Partnership, Corporation) Name of Company Nature of business (BIR Certificate of Registration) Citizenship Address Contact Info Tax Identification Number VASP CCN No. SEC Registration No. Authorized Capital Stock Paid-in Capital Broker (Exporter Representative) Plant Address Company Logo Scanned logo Major Stockholder Name, TIN, Position Contact info including email, phone Scanned Stockholder photo, Signature Principal Officer Responsible Officer

Exporter CPRS Mandatory Data (Individual) Registered Business Name Nature of Business (DTI Certificate of Registration) Citizenship Address Contact Info Tax Identification Number VASP CCN No. Broker (Exporter Representative) Plant Address Business Name/Logo Scanned logo Principal Officer Name, TIN, Position Contact info including email, phone Scanned Stockholder photo, Signature Responsible Officer

Recent Directives on Export Procedures Customs Memorandum Orders - CMO CMO 49-2010 : E2M Export Declaration thru the OSEDC Manila CMO 54-2010 : E2M Export Declaration Joint Memorandum Orders - JMO JMO 1-2010 BOC-SBMA Implementation of AEDS for Subic Freeport Locators JMO 4-2010 BOC-PEZA Implementation of AEDS for PEZA Locators JMO 6-2010 BOC-AFAB Implementation of AEDS for AFAB Locators CDC Memorandum Circular CDC MC dated 3 December 2010 on Electronic Export Documentation EEDS New CMOs on BOC E2M Export Declaration to amend CMO 54, JMO with PEZA

BOC E2M Import Entry Workflow Permit Import Permit National Single Window eIP, eTAP, SPS IC, eCAI Data OGAs Airline/ Shipping Line Forwarder/ Consolidator OGA w Automated Processes: PEZA, CDC, SBMA DA: BAI, BPI and BFAR BOI Manifest/BL IED, Import Entry SAD (Formal/Wrhouse) Internet BOC Response: Assessment Final/Temporary Broker VASP Importers’ Online Visibility: Import Entry, Assessment VASP Gateway Invoice, BL/AWB Release Instruction CPRS Approved COR w BOC CCN Statement of Settlement Of Duties and Taxes (SSDT) Arrastre, Warehouse, Importer COR/CCN Debit from Importer Account BOC Final Payment Instruction (Net: duties, taxes, fees – IPF, CSF, others) AAB Final Payment Confirmation AAB BAP/PASS5 BRN + ADA

BOC E2M Export Declaration Workflow Permit Export Permit, Clearance National Single Window OGAs Exporter Representative Forwarder Export Declaration SAD Internet BOC Response: Selectivity, Assessment Permit VASP Exporters’ Online Visibility: Export Declaration VASP Gateway Invoice, BL/AWB Export Release CPRS Approved COR w BOC CCN BOC Export Division Wharfinger Exporter COR/CCN Debit from Exporter Account BOC Payment Instruction: P115.00 Doc Stamp AAB Payment Confirmation AAB BAP/PASS5 BRN + ADA

PEZA/SEIPI AEDS (Pilot) Electronic lodgment of Export Declaration to Asycuda, using system generated Export Declaration SAD form, with barcode Reduced Customs requisites - No more Tally Sheet, Boatnote and underguarding Additional procedures 30 minute window for PEZA Zone to inspect cargo Barcode scanning upon exit from ecozone Barcode scanning upon arrival at airline warehouse (since this is not done, PEZA does not have closure on export shipments)

BOC E2M Export Declaration/SAD Exporter registration BOC E2M CPRS for Exporters VASP for Exporters and Exporter Representative (forwarder) Electronic Lodgment Export Clearance, Permit prior to lodgment Export Declaration Code (eg. EX1-1, EX2-1) Export Declaration Form: Single Administrative Document (Export SAD) Selectivity screens : Red, Yellow and Green Payment of P115.00 documentary stamps, thru PASS5 Issuance of Authority to Load (Export Release)

Why NOT pay doc stamps via PASS5 ? “Assessment of doc stamps after ‘examination’ Regular banking hours: Mon-Fri, 9:00am – 3:00pm Alternative for exporters to have a cash bond, to avoid delay in loading of export cargo; nonetheless payment will be thru PASS5. Procedures for refund of cash bond? Doc stamps required for Export Declaration is P115.00; Bank charges for ePayment via PASS5 =P120-500 per transaction Total expenses due to payment of doc stamps via PASS5: P115 + P115 + P300 = P530.00

Exporter Representative Export Declaration Processes Manual, paper-based processes 1-3 days cycle time Poor data quality, additional manual work to compile and analyze data, generate reports, statistics Costly to exporters, government 1. Manual Procedures Export Documents: Export Declaration Invoice AWB/BL Export Tally Sheet BoatNote Mission Order, Underguarding Exporter/Forwarder Customs, OSEDC Requires manual data entry, with paper-based processes Automated ED lodgment via proprietary, online systems System requires periodic data maintenance 2. Electronic – AEDS Frame Relay Export Documents: Export Declaration - SAD Invoice AWB/BL Exporter/Forwarder AEDS Export Server Manual encoding of data in ED at ecozone Online submission of ED/SAD to BOC E2M, thru VASPs Automated E2M processing, with ‘selectivity’ Online printing of ED/SAD Exporter Online Visibility, Reports 3. BOC E2M AEDS Export Documents: Export Declaration - SAD Invoice AWB/BL BOC E2M Export Module Internet Exporter/ Exporter Representative VASP

Exporter Representative Export Declaration Processes Manual, paper-based processes 1-3 days cycle time Poor data quality, additional manual work to compile and analyze data, generate reports, statistics Costly to exporters, government 1. Manual Procedures Export Documents: Export Declaration Invoice AWB/BL Export Tally Sheet BoatNote Mission Order, Underguarding Exporter/Forwarder Customs, OSEDC Requires manual data entry, with paper-based processes Automated ED lodgment via proprietary, online systems System requires periodic data maintenance 2. Electronic – AEDS Frame Relay Export Documents: Export Declaration - SAD Invoice AWB/BL Exporter/Forwarder AEDS Export Server Manual encoding of data in ED at ecozone Online submission of ED/SAD to BOC E2M, thru VASPs Automated E2M processing, with ‘selectivity’ Online printing of ED/SAD Exporter Online Visibility, Reports 3. BOC E2M AEDS Export Documents: Export Declaration - SAD Invoice AWB/BL Internet Exporter/ Exporter Representative VASP BOC E2M Export Module

Pilot Implementation of ‘AEDS’ at PEZA Exporter AEDS (“ACOS”) BOC PEZA VASP - E

JMO 4-2010: PEZA and BOC Memo Circular implementing PEZA AEDS PEZA Exporter PEZA AEDS BOC E2M AEDS PEZA VASP - E PEZA VASP -A Memo Circular implementing PEZA AEDS

Definition of Terms Automated Export Documentation System Refers to pilot e-lodgment of Export Declaration by PEZA registered exporters (SEIPI members); e-lodgment of Export Declaration to an independent deployment of the Asycuda System maintained by other VASP Expanded for use in Subic, and recently thru issuance of JMO, in Bataan and for other PEZA registered exporters AEDS Fee (Pilot for SEIPI members) : P75.00 per ED, with revenue share to SEIPI E2M Automated Export Declaration System Refers to e-lodgment of Export Declaration thru VASPs to BOC E2M Export System Provisions for interface to the PASS5, National Single Window and the Bonds Management/Raw Material Liquidation

CDC Electronic Export Documentation Clark Freeport Exporter CDC EEDS BOC CDC VASP -I OSEDC R3 CDC VASP - E

CDC Electronic Export Documentation and E2M Export Declaration Clark Freeport Exporter CDC EEDS BOC E2M AEDS CDC VASP - E

CDC Electronic Export Documentation Eliminate “CDC Export Documentation” form Use ED SAD, with the CDC Ref Number and barcode on ED SAD Box 44 Electronic submission of Export Documentation data Online preparation of the CDC Export Doc using the Export SAD template Export SAD is submitted to CDC Export System for automated processing CDC response would indicate CDC Export Doc reference number Online printing of the Export SAD, with the CDC Ref Number and barcode on ED SAD Box 44 Electronic submission of Export SAD to BOC E2M Either create Export Declaration SAD from CDC approved EEDS, or Automated transmission to BOC E2M upon receipt of response from CDC

JMO vs CMO JMO on AEDS CMO on E2M Export Exporter or representative, CPRS not required Streamlined process Exemption from payment of doc stamps (PEZA), manual payment of DST for non-exempt Lodgment to Asycuda/ACOS (?) Exporter and Customs broker (Declarant), CPRS required Selectivity screens Payment of P115.00 thru PASS5 + payment of bank charges (P120-500) Lodgment to BOC E2M

Updates Summary – BOC E2M Exports BOC Meeting re CPRS for Exporters – 17 February Defer implementation of E2M Export Declaration Agencies, PhilExport to submit accredited exporters and members of good standing Exporters to register thru VASPs (mandatory data only) EDC Networking Committee Meeting – 22 February BOC issued internal Memo re deferred implementation of the E2M Export Declaration and Automated Bonds Management/Liquidation Amendment to CMO 54, to include alternative to payment of P115.00 documentary stamps thru PASS5, among others Draft CMO/JMO re lodgment of Export Declaration of Clark Freeport and PEZA Locators to BOC E2M

APEC Self-Certification Exporters to do ‘Self-Certification’ in lieu of securing Certificate of Origin (CO) from BOC or PCCI APEC Pilot Malaysia-Singapore-Brunei Pre-selection of pilot companies (Certified Exporter) Prior notification to importing country Invoice Declaration Statement - “The Exporter of the product(s) covered by this document (Certified Exporter No. ___) declares that, except where otherwise clearly indicated, the products satisfy the Rules of Origin to be considered as ASEAN Originating Products under ATIGA (ASEAN Trade in Goods: ___ (Exporting Country) with origin criteria ____ (eg. 40% RVC)” Philippines Commitment to ASEAN Self-Certification by 2012 Requires legislation, to be inserted in draft Customs Modernization Bill

New Services in Q1 2011 EU Advanced Declaration ENS Economic Operator Registration and Identification (EORI) ENS Web Application BOC E2M P4: Informal, Transshipment, Exports Declaration, eManifest Dept of Agriculture BAI BFAR and BPI SPS Import Clearance (mandatory) BAI SPS Import Clearance for one-time importer of pets (dogs and cats) BOI Motor Vehicle Development Program (MVDP) e-Certificate of Authority to Import, effective 3 March 2011. Briefing to Cebu-based MVDP participants on 10 March 2011 PEZA E-LOA, EIPS and Transfer for Logistics Enterprises: on-going pilot implementation

National Single Window NSW Import Permit Processes Online Registration Importer Online Submission Import Permit Application Data Manual Submission of NSW Import Permit Application Form + Support Docs, Payment of Fees Import Permit Status OGA (Manual) NSW Online Submission of Import Permit Application Data + Support Docs Autodebit Payment of Fees Approved Import Permit Data OGA (Auto) Broker Online Lodgment of Import Entry Declaration BOC e2m

Q & A :

WebCWS: Export Declaration

CDC ED/SAD Print Out

WebCWS: PEZA AEDS

With Exportables Without Exportables

WebCWS: CDC Export Documentation

CDC ED/SAD Print Out