The Bureau of Customs (BOC) announced it will establish a dedicated e-commerce processing system for the cargo clearance of cross-border e-commerce goods, and will require all stakeholders involved in e-commerce transactions to get accredited to be allowed to use this system.
BOC has issued Customs Administrative Order (CAO) No. 01-2025, which establishes a standard customs procedure for the processing, clearance, and release of imported goods to be brought into the Philippines via e-commerce online shopping platforms and e-retailer websites encompassing business-to-consumer (B2C) transactions.
The Bureau said the development of a simplified and dedicated ICT-enabled e-commerce processing system will enable the exclusive processing, lodgment, clearance and release of e-commerce goods classified as categories 2, 3, and 4 of accredited stakeholders.
Moreover, all stakeholders including e-commerce operators, digital platform providers, e-retailers, value added service providers, freight forwarders, and brokers must be accredited with the Bureau for e-commerce transactions.
“Only accredited e-Commerce stakeholders shall be allowed to use the new dedicated e-Commerce Processing System that will be utilized for clearance and release procedures as well as for implementation of a risk management system,” the order said.
The aim is to “prevent revenue leakage by ensuring the collection of the lawful and correct duties, taxes, and other charges on importations of e-commerce shipments,” said the CAO.
This is also consistent with the World Customs Organization (WCO) Framework of Standards on Cross-Border e-Commerce, WCO Immediate Release Guidelines, and Article 7.8 of the World Trade Organization Agreement on Trade Facilitation.
Under the CAO, the Bureau will pursue data-sharing arrangements or advance information exchange with digital platform providers and other e-commerce stakeholders to allow risk management, data mining, and post-clearance audit purposes.
Additionally, the order requires that a true and complete copy of the cargo manifest shall be electronically sent in advance.
The system will support the following functions:
• Transmittal of e-1FCM (Electronic Inward Foreign Cargo Manifest) and submission of e-CTCFM (Electronic Consolidated Inward Foreign Cargo Manifest) data of shipments of registered e-commerce operators by their appointed freight forwarder, non-vessel operating common carrier, consolidator or clearance agent
• Lodgment of e-commerce goods declarations after the validation of the manifest submission
• Interoperability with the systems of digital platform providers and other e-commerce stakeholders to enable data-sharing and advance information exchange
This CAO will only cover B2C transactions as defined in Republic Act No. 11967 or the Internet Transactions Act of 2023.
Excluded are the following importations:
• Importations declared as “without commercial value,” “of no commercial value” or with specific amount but qualified by the phrase “for customs purposes” or analogous phrases
• Importations classified under business-to-business (B2B) transactions as defined under the Internet Transactions Act and which are not purchased through an accredited online platform
• Importations classified under consumer-to-consumer (C2C) transactions as defined under the Internet Transactions Act
• Goods including those with de minimis value, subject to the requirements or conditions imposed by the concerned regulatory agency unless for personal use and within the limits allowed by regulation
• Importations to be entered conditionally free, for warehousing, for transit and/or admission to free zone
In addition, importations of goods classified as prohibited shall not be allowed for e-commerce purposes.
Further, the CAO said the Bureau will explore the possibilities of applying Authorized Economic Operator programs and mutual recognition arrangements for cross-border e-commerce to enable MSMEs and individuals to fully benefit from the opportunities of cross-border e-commerce.
The CAO warned that any individual who violates its provisions will be meted penalties and sanctions, including the discontinuance of the expedited clearance and release procedure for failure to comply with any provisions of this CAO.
The Bureau will be issuing the relevant customs memorandum order providing for the procedures for the release of e-commerce goods.
Signed and approved by the Secretary of Finance on January 28, 2025, this CAO takes effect 30 days from publication in the Official Gazette or a national newspaper.
