Fair exhibitors, traveling businesses and various professionals can now temporarily move specific goods across international borders sans the payment of import duties and other tedious requirements, as the Philippines becomes the 81st participating country of the ATA Carnet System.
The Bureau of Customs (BOC) and the Philippine Chamber of Commerce and Industry (PCCI) officially launched the system yesterday which will allow exhibition items, professional equipment and commercial samples, among other items, to be temporarily brought in and out of the country without incurring import duties or taxes, provided the goods are fully re-exported.
Among those who would benefit from the ATA Carnet are fair exhibitors as well as professionals that have to carry various equipment in and out of the country, such as film crew and entertainers.
The system will replace the multiple customs documents currently required with a single comprehensive document, eliminating tedious paper works and payments of duties and taxes when the goods are totally re-exported, and reduces time and expenses for customs clearance.
“The implementation of the ATA Carnet System demonstrates our commitment to fulfill our international agreements. As we forge ahead, let us remember that through this initiative, we are creating a more stable and predictable environment for business and trade,” said Bienvenido Rubio, customs commissioner.
Trade Secretary Alfredo Pascual said the system is not just a facilitative tool but a gateway to greater opportunities and streamlined international trade promotion.
“Imagine the possibilities: our exporters can now bring their goods to a place for exhibition and promotion and avoid various countries’ complex and often cumbersome customs requirements. Instead, with a single document – the so-called passport for goods, our exporters can ensure their goods move swiftly and efficiently across borders,” the trade chief said.
Vincent Philip Maronilla, customs assistant commissioner, noted the benefits of implementing the system on sidelines of the launch.
“The current system actually allows them to still claim for tax-free importation. What is going to happen is that we’ll just fast-track the entire system,” Maronilla said.
Previously, businesses had to provide a guarantee through a cash bond equivalent to the taxes due on the goods, he added.
“(With the ATA Carnet System), there’s no need (for a bond). A business organization from the exporting country will guarantee their part of the obligation. (In the Philippines,) PCCI will guarantee any obligation should and when these products are not re-exported,” Maronilla said.
He also said the previous process took a lot of time, with some even taking weeks.
“Some would even complain that the exhibit is tomorrow but their items are still in the port. If that’s the case, some would be forced to actually pay the duties and taxes just to be able to have the items released and have the event push through,” Maronilla said.
“And then when it’s re-exported, that’s another tedious process of refunding it (the bond).
So it was a quite tedious process of refunding. If it were not (this tedious), we won’t be considering adopting this system,” he added.
With the implementation of the ATA Carnet System, the customs clearance process for the eligible goods will be faster, Maronilla said.
“Customs process-wise, it takes a day. But again, customs is not the sole agency that’s responsible for releasing goods, there are other entities to it. But if you’re talking about customs process, we can do it in a day or less,” he said.
