BoC Requirements - German-Philippine Chamber of …philippinen.ahk.de/fileadmin/ahk_philippinen/EF_Presentations/... · BoC Requirements Presented to: GERMAN CHAMBER OF COMMERCE 25

BoC Requirements

Presented to: GERMAN CHAMBER OF COMMERCE

25 September 20142GO Hub

KERRY-ATS – your best option in logistics partnership

Discussion Outline

• BoC Accreditation process for exporters

• Export processing

Export

• BoC Accreditation process for importers

• Types of Importers

• Government agencies related to importation

• Activities Eligible under the government agencies

• Incentives offered by BOI and PEZA

• Types of BOI registration

• Asean Freetrade Agreement

Import


Discussion Outline

• Import Permit and Clearance

• Duty and Taxes Computation

• Customs Clearance process

• Consumption

• PEZA

• Types of Importation

• Conditional

• Prohibited

Import


Discussion Outline


Secure required documents

• Registration papers

• If Corporation, SEC Articles of Incorporation & By-laws

• If Partnership, SEC articles of partnership and By-laws and statement of Joint Solidary Undertaking

• If Single proprietorship, DTI Cert of Registration

• SEC GIS, specimen signature, audited financial statement, BIR Cert of Registration, Income Tax return for the last 3 years, mayor’s permit, location map, product list, brochure or pictures

BoC Accreditation for Exporter


Submit documents to Phil Export

• Pre-evaluates the documents

• Conduct plant visit

Phil Export approves application

• Encodes information in the Client Profile Registration System (CPRS)



BoC activates the accreditation

• Issues Certificate of Registration (COR) with Customs Client Number (CCN)

• COR is sent via email once BoCAMO sent the activation notice to importer.

Exporter choose Agent Authorized Bank (AAB)

• Issues Bank Reference Number (BRN) to be used during lodgment of export declaration



Secure necessary permits

Books cargo with the carrier

or freight forwarder

Secure booking confirmation with the

carrier or freight forwarder. Provides

shipping details

Shipper/ broker lodge export declaration thru

E2M and process to BoCExport Div.

Approve/ Disapprove the ED Application

Pays port charges (for sea freight shipment only)

Carrier accepts the cargo for loading. Export

declaration must be submitted to carrier

Export Processing

Documentary Requirement: Export Declaration Commercial Invoice Packing list Permit / Clearances


Discussion Outline


BoC Accreditation for Importer

Secure required documents

• Registration papers

• If Corporation, SEC Articles of Incorporation & By-laws and cert of Good Standing

• If Partnership, SEC articles of partnership and By-laws and statement of Joint Solidary Undertaking

• If Single proprietorship, DTI Cert of Registration

• Corporate Sec Cert or SPA, NBI Clearance, valid govt ID, latest GIS, personal profile, license/permits/accreditation from other govt agency, company profile.

Secure clearance from BIR

• BIR issues the Importer’s Clearance Certificate



Complete the registration thru Client Profile Registration System (CPRS)

• On line application thru VASP

• Must be approved prior to submission of documents to BoC-AMO

• Importer will receive email advisory on the status of the application (stored, approved, activated)

BoC-Accreditation Management Office (AMO) evaluates the documents submitted

• Schedule Ocular Inspection

• Approve/ disapprove the application



BoC AMO will Issue Cert Of Registration (COR) with the

Customs Client Number (CCN). COR is sent via email

once BoC AMO sent the activation notice to

importer.

Choose Authorized Agent Bank (AAB)

• Issues Bank Reference Number (BRN) to be used during lodgment of entries


Types of Importers

REGULAR IMPORTER

• Imported articles are intended for domestic consumption in the importing country

• Importation are subject to payment of duties and taxes

IMPORTER OPERATING UNDER SPECIAL ECONOMIC ZONE (PEZA)

• The imported articles are raw materials intended for manufacturing into finished products and subject for subsequent importation and other eligible activites inside the economic zone.

• Importations are NOT subject to duties and taxes


Types of Importers

IMPORTER OPERATING UNDER FREEPORT ZONE

• Operating inside the Freeport zones such as SBMA or CDA wherein imported articles are intended for manufacturing into finished product for subsequent exportation or consumption within the freeport zone

• NOT subject to customs duty and taxes

BOI REGISTERED IMPORTER

• Importation of capital equipment needed in the operation of their business

• NOT subject to customs duty except consumable articles


Types of Importers

IMPORTER OPERATING UNDER CUSTOMS BONDED WAREHOUSE (CBW)

• Imported articles are raw materials that is intended for manufacturing into finished product for subsequent exportation

• NOT subject to customs duty and tax but subject to posting of Warehousing Bond equivalent to the computed customs duty and tax


Government Agencies

• Task to promote investments, extend assistance, grant incentives to and facilitate the business operations of investors in an export-oriented manufacturing and service facilities

• Selected areas throughout the country proclaimed by the President of the Phils.

• Attached to the Department of Trade and Industry

PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)


Government Agencies

• Subic Bay Metropolitan Authority (SBMA) & Clark Development Corporation

• Played a significant part in developing the Subic Bay Freeport and Clark Special Economic Zone into a self sustainable area that promotes the industrial, commercial, investment and financial area of the zone

FREEPORT ZONES (SBMA & CDC)


Government Agencies

• Lead government agency responsible for the promotion of investment in the Phils.

• Assist Filipino and foreign investors to venture and prosper in desirable areas of economic activities such as food processing, construction, metal products, telecommunication, power and infrastructure projects among others.

• Under the Dept. of Trade and Industry

BOARD OF INVESTMENT


Activities Eligible under the different Agencies

PEZA

• Export manufacturing

• Economic Zone Development / Operations

• Manufacturing

• Tourism

• Medical

• Agro Industrial

• Retirement

• IT Service Export / IT Park Development

• Logistics & Warehousing Services

• Facilities providers for

• Manufacturing enterprise

• IT Enterprise

• Retirement facilities

• Utilities

Freeport Zone

• Aviation

• Education

• Tourism

• Leisure

• Fitness

• Entertainment

• Gaming

• Manufacturing Business


Activities Eligible under the different Agencies

BOI

• Manufacturing

• Mining and Mineral Processing

• Pharmaceutical

• Footwear

• Ship building

• Electronics / Semi –conductors

• IT and BPO

• Tourism

BOI

• Agri Business processed Fruits and Vegetables

• Seaweeds

• Tropical fruit puree and juices

• Mango Seed oil

• Sugar Plantation

• Fisheries

• Dairy

• Bioethanol

• Biofuels

• Coco Methyl Ester

• Renewable Energy on hydro, Solar, Wind, Geothermal, Biomass


Incentives by BOI and PEZA

PEZA

• Income Tax holiday

• Exemptions on:

• Tax and duty on importation of merchandise

• National and local taxes and licenses

• Duty and tax for importation of personal effects and instruments of foreign national

• Wharfage dues and export tax

• Expanded witholding tax

• Tax and duty for importation on specialized office equipment and furniture, vehicles and other transportation equipment

• Tax credits on:

• Domestic capital equipment

• VAT zero-rating on local purchases of goods and services including land-based telecommunication, utilities and lease on building


Incentives offered by BOI and PEZA

BOI

• Income tax holiday

• Additional deduction for Labor Expense

• Exemptions on:

• Duty on Imported Capital Equipment

• Contractors tax

• Tax and duty on importation of breeding stocks and genetic materials

• Tax and duty in imported supplies and spare parts in a bonded manufacturing warehouse

• Wharfage dues and export tax

• Tax Credit on:

• Domestic capital Equipment

• Domestic Breeding stocks and genetic materials

• Duties and taxes on raw materials of export products

• Employment of foreign nationals

• Simplification of Customs Procedures


2 Types of BOI Registration

EO No. 70: Reducing the rates of duty on capital equipment, spare parts and accessories imported by BOI registered new and expanding enterprise

5 years availment of incentives of duty free importation of capital equipment and parts from registration date

5 years prohibition to sell or transfer capital equipment and parts

Limitation in the tariff classification of capital equipment and parts to be imported and requirement of surety bond

Exemption from Income tax within 6 / 4 / 3 years from the start of operation


RA No. 9513: Renewable Energy Act of 2008

Can be availed by enterprises involves in the renewable energy industry

Need endorsement from DoE and registration with Dept of Environment and Natural Resources to secure the Environment Compliance Cert.

10 years availment of incentives of duty free importation of capital equipment and parts from registration date

10 years prohibition to sell or transfer capital equipment and parts

No limitation in the tariff classification of capital equipment and parts but requires surety bond

Exemption from income tax within 7 years from start of commercial operations

2 Types of BOI Registration


Asean Free Trade Agreement (AFTA)

• Trade block agreement by the Association of Asian Nation supporting local manufacturing in all ASEAN countries

• Provides preferential duty rate lower than the tariff duty rate

• Countries involve:

• Asean member

• Japan

• Australia and New Zealand

• China

• Korea

• India

• Documented in a CERTIFICATE OF ORIGIN

ASEAN FREETRADE AGREEMENT


Import Permit and Clearances

IMPORT PERMIT AND CLEARANCES

Importer must be registered first to concerned gov’t agency before it can apply for an import permit

Registration to concerned gov’t agency is being renewed every

year Import Permit is being applied

prior to departure of the shipment

from the country of origin


Import Permit and Clearances

IMPORT PERMIT AND CLEARANCES

Late application of import permit would

result to seizure of shipment or payment

of penalty

Application of import permit is being lodge thru National Single

Window

Import permit is being applied on a per shipment basis


Computation of Duty and Tax

FOB

Freight

Insurance

Other Charges

Dutiable Value (USD)

Rate of Exchange

Dutiable Value (Php)

Rate of Duty

Customs Duty

Taxable Value

Bank Charge app if shpt is under LC

Customs Duty

Brokerage Fee per CAO 1-2001

Arrastre Charge per container or per RT

Wharfage Due per container or per RT

Customs Doc Stamps

IPF

Landed Cost

VAT Rate

VAT

All articles, when imported

from any foreign country into the Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except as otherwise specifically provided for in this Code or in other laws.

Sec. 100 Imported

Articles Subject to Duty


Importation Process – Regular/Consumption

Shippers sends cargo and documents to Importer/consignee

• B/l, Commercial invoice, packing list, Cert of Origin.

• Import permit / clearance from consignee

Importer receives documents and assigns broker to clear the shipment

• Broker must be accredited with BoC

Broker endorse the documents to shipping line

• Settle local destination charges – THC, Cntrdeposit

• Secure release or delivery order (RO/DO)

Broker files import entry with BoC

• Lodge entry thru VASP

• BoC transmits assessment to the authorized agent bank

Importer pays the duties and taxes thru bank

• Bank transmits payment on line

Brokers pays the port charges and secure gatepass for truck pull out

• Settles arrastre, wharfage, storage and demurrage

Importer receives cargo


Importation Process – Regular/Consumption

Points to Remember

Broker should be able to provide estimate computation of the duties and taxes based on the documents presented

Import permits must be secured prior to departure of the shipment from the origin country

Customs clearance timeline:

2 to 3 days for sea freight 1 to 2 days for airfreight


Importation Process under Economic Zones

PEZA examines the cargo upon entry at the zone and prior to delivery to importer’s warehouse

Broker files import entry with BoC

Settle port charges Release shipment and secure gatepass

Broker endorse the documents to shipping Settle shipping line charges – THC,

Container depositSecure release or delivery order (RO/DO)

Broker/Consignees applies Import Permit to PEZA

prior to arrival of the shipment thru VASP

Importer receives documents and assign broker to clear the shipment

Broker must be accredited with BoC

Shippers sends cargo and documents to Importer/consignee

Bill of lading, Commercial invoice, packing list, import permit/clearance


Importation Process for Economic Zones

Points to Remember)

Shipment can be processed/released Monday to Sunday / frontdoor and backdoor for airfreight shipments only. Seafreight shipments follows the normal workings hours/days

Importer must have a General Transhipment Surety Bond (GTSB) in place for each port of entry

Broker must be nominated by the importer to lodge the entry


Conditional Free Importation

Conditionally Free Importation Sec. 105 (TCCP)

articles brought into the Phils for repair, processing or reconditioning and to be re-exported

medals, badges bestowed as trophies or prizes received and accepted as honorary distinction

personal and household effects belonging to residents of the Philippines returning from abroad

personal and household effects or professional instruments belonging to foreign consultants or persons coming to settle in Phils or accompanying travellers or touristsarticles used for public display or for exhibition

importations for the official use of foreign embassies and otheragencies of foreign governments

imported articles donated to or for the account of any duly registered relief organization, not operated for profit


Conditional Free Importation

Conditionally Free Importation Sec 105 (TCCP)

supplies necessary for the reasonable requirement of the vessel or aircraft of foreign registry vessel or aircraft

coffins or urns of human remain, bones or ashes and household effects except vehicles

samples of a kind of no appreciable commercial value or Phil. Articles previously exported from the Phils. And returned without having been advanced in value or condition

books and publications endorsed by DepEd, bibles, prayer books and other religious articles

replacement parts of vessel and aircraft of foreign registry vessel

articles of easy identification exported from Phils. for repair and subsequent re-importer

trailer chassis imported by shipping companies for exclusive use


Prohibited Importation


Conditionally Prohibited

These are commodities, that requires

clearances/permits from appropriate government

agencies prior to importation

Absolutely prohibited. These are commodities

that is totally banned to enter/imported to

Philippines




Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, and parts thereof, except when authorized by law.

Written or printed articles in any forms which is against the Government of the Philippines.

Written, printed articles or films which represents an obscene or immoral character.

Articles, instruments, drugs and substance designed, intended or adapted for producing unlawful abortion.

Gambling articles or Lottery and sweepstakes tickets except those authorised by the Philippine Government, advertisements thereof, and lists of drawings therein.




Any article manufactured in whole or in part of gold, silver or other precious metals or alloys thereof, the stamps, brands or marks or which do not indicate the actual fineness of quality of said metals or alloys.

Any adulterated or misbranded articles of food or any adulterated or misbranded drug in violation of the provisions of the “Food and Drug Act”.

Marijuana, opium, poppies, coca leaves, heroin or any other narcotics or synthetic drugs which are or may hereafter be declared habit forming except when authorised by the Government of the Philippines.

Opium pipes and parts thereof, of whatever material

All other articles and parts thereof, the importation of which is prohibited by law or rules and regulations issued by competent authority.


KERRY ATS LOGISTICS INC.

• Columbia Airfreight Complex, Miascor Drive, NAIA Ave., Paranaque City

• Tel # : 63 2 854-7777

• Fax # : 63 2 853-0090

KERRY ATS LOGISTICS INC.

• Operations Manager

• Tel # 63 2 854-7777 loc 108

• Email address: [email protected]

Rhea Corrales

• Principal Broker

• Tel# 63 2 854-7777 loc 138

• Email address: [email protected]

Dexter P. Mondidu

For Inquiries:

Driving Business Forward

Documents

BoC Requirements - German-Philippine Chamber of …philippinen.ahk.de/fileadmin/ahk_philippinen/EF_Presentations/... · BoC Requirements Presented to: GERMAN CHAMBER OF COMMERCE 25