President Marcos Jr. ordered the use of a single cross-border electronic invoicing system for all imported commodities to expedite the inspection, strengthen national security, safeguard consumers’ rights, and protect the environment against sub-standard and dangerous imports.
The President, in issuing Administrative Order No. 23 on May 13, said a single electronic invoicing system controlled by the government will effectively monitor international trade transactions of all imported goods.
The AO also ensures the Philippines’ compliance to the World Customs Organization International Convention on the Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention) which requires contracting parties to simplify customs procedures and ensure these are predictable, transparent and in accordance with international standards.
Under the AO, Bureau of Customs (BOC), as the primary government entity responsible for implementing customs procedures, will implement the electronic invoicing system in accordance with the government’s strategic direction and policy guidance, international trade standards, and existing laws and regulations.
The conduct of Pre-Border Technical Verification shall be at no cost to the government.
The implementation shall be done in three phases which should be fully implemented within two years from the effectivity of the AO.
The first phase would cover agricultural goods; the second phase covers the non-agricultural goods with health and safety issues; and the third phase, the other goods with misdeclaration to avoid duties and taxes.
The AO also formed a Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing which is chaired by the secretary of finance, with secretaries of agriculture, trade, energy, health, environment and natural resources and information communications technology serving as members.
Also in the Committee are the commissioner of the BOC, the director general of Philippine Drug Enforcement Agency , and two non-voting representatives from duly-recognized industry associations to be appointed by the chairperson upon recommendation of the committee.
The Department of Finance shall serve as the Committee’s secretariat.
The Committee will formulate the guidelines and implementing rules and regulations for the conduct of Pre-Border Technical Verification of all commodities by accredited testing, inspection and certification (TIC) companies prior to the export of these commodities to the Philippines.
It shall also formulate procedures for the procurement of Cross-border Electronic Invoicing System which shall serve as the single electronic platform for the creation, uploading, and storage of electronic invoices for imported commodities covered by a digital verification certificate from accredited TIC companies.
The Committee shall also issue the guidelines for the accreditation of third-party TIC Companies, including the qualifications, documentary requirements, and procedures therefor; and submit to the President, through the Office of the Executive Secretary, a bi-annual report detailing, among others, the Committee’s accomplishments, and the status, timelines and targets of the implementation of Pre-border Technical Verification and Cross-border Electronic Invoicing System.
Funding requirements for the implementation of the AO shall be charged against the BOC and the Committee’s member agencies subject to pertinent budgeting, accounting and auditing laws, rules and regulations.
The AO shall take effect, 15 days after its publication in the Official Gazette or in a newspaper of general circulation.
