The Bureau of Customs (BOC) has released two orders on the implementation and the effectivity date of Customs Administrative Order (CAO) No. 02-2024, which provides the new guidelines on the different service fees, dues, and charges to be collected from stakeholders for the services the agency provides.
Office of the Commissioner (OCOM) Memo No. 27-2024 sets the effectivity date of CAO 02-2024, while Management Information System and Technology Group (MISTG) Memo No. 09-2024 details the updated fees, dues, and charges in the E2M system.
OCOM Memo 27-2024, issued last month, provides that CAO 02-2024 became effective on June 10, 2024, which is 30 days after the CAO was published in a newspaper.
Meanwhile, MISTG Memo 09-2024, dated June 6, implements the CAO, specifically by updating the customs dues, fees and charges in the E2M system, with the new charges taking effect on June 10, 2024.
For the goods declaration for transit, charges are as follows: transit charge (TC) – P1,000; import processing charge (IPC) – P250; customs documentary stamp (CDS) – P100; and Bureau of Internal Revenue (BIR) documentary stamp – P30.
For the import processing charge exclusive of CDS and BIR documentary stamp, MISTG Memo 09-2024 states that for every goods declaration filed for processing under the consumption and warehousing clearance procedure, the dutiable value has the corresponding rates/amounts:
• Up to P25,000 in dutiable value – P250
• Above P25,000 to P50,000 – P500
• Above P50,000 to P250,000 – P750
• Above P250,000 to P500,000 – P1,000
• Above P500,000 to P750,000 – P1,500
• Above P750,000 – P2,000
On the export processing charge, a P130 charge for the CDS and BIR documentary stamp shall be paid by the exporter for every export declaration, unless otherwise exempted under existing laws.
For the appeal fee on duties and taxes, stakeholders should take note of the corresponding amount.
• Up to P50,000 in duties and taxes – P1,000 in appeal fee
• Over P50,000 to P100,000 – P1,500
• Over P100,000 to P200,000 – P2,000
• Over P200,000 to P300,000 – P2,500
• Over P300,000 to P400,000 – P3,000
• Over P400,000 to P500,000 – P3,500
• Over P500,000 to P750,000 – P4,000
• Over P750,000 to P1 million – P4,500
• Over P1 million – P5,000
Finally, the SGL service charge is P2,500 for FOB value of US$200,000 and below and P3,000 for FOB value of above $200,000.
CAO 02-2024, published May 11, 2024, seeks to ensure consistency in the rates of fees, dues, and charges imposed and to establish a mechanism for the payment of overtime work and other services provided by the bureau.
The CAO, which took effect on June 10, covers all such fees to be collected by the BOC from shipping lines, airlines, air express operators, importers, exporters, Customs brokers, freight forwarders, consolidators, de-consolidators, logistics providers, transhippers, operators of Customs bonded warehouses, free zone locators, registered enterprises, third-party solutions providers, and all other entities served by the bureau.
Under its provisions, service fees collected will be channeled into a Trust Fund, to be used to pay the allowances and overtime services of Customs personnel.
Among the services covered by these fees are vessel supervision, aircraft supervision, free zone locator supervision, annual supervision for Authorized Economic Operators, underguarding for transfers, off-hours services, special flight supervision, and various processing and storage fees.
Meanwhile, Customs dues and charges will be collected separately and will accrue to the General Fund.
These dues and charges encompass a wide range of transactions, including processing fees for goods declaration, balikbayan boxes, import and export transactions, appeals, legal opinions, accreditation charges, permit fees, registration charges, and service charges for document issuance and certification.
Reaction to CAO 02-2024
Last March 19, the Philippine Exporters Confederation, Inc. (PHILEXPORT), in a position letter sent to the BOC, reacted to the provisions of CAO 02-2024 and made recommendations on some of the charges specified in the order.
On the Authorized Economic Operator (AEO) application charge, the letter signed by PHILEXPORT president Sergio R. Ortiz-Luis, Jr. recommended exempting micro and small enterprises to encourage their participation in the program.
The export organization also questioned the Certificate of Origin (CO) processing charge of P500, pointing out “the fee of P500 is clearly much more expensive than the current P150 combined for the CO form and documentary stamp.”
Also objected to were the new AEO annual supervision fee and request for legal opinion fee, which were deemed “too much and not needed.”
“These and other (higher) fees being charged under this CAO will directly impact on the cost of doing business in the country and further reduce our competitiveness, especially of MSMEs and exporters,” PHILEXPORT cautioned.
