The Bureau of Customs (BOC) has been tasked to adopt policies and regulate the imposition of charges by international shipping lines, freight forwarders, logistics companies, customs brokers, cargo truck operators, cargo yard operators, and empty container depot operators under a Joint Administrative Order (JAO) that the government is considering reviving to reduce the high cost of logistics in the country and prevent congestion at Manila ports.
The JAO, signed by then Trade and Industry Secretary Ramon M. Lopez and former Transportation Secretary Arthur P. Tugade, was not implemented due to the absence of the signature of then Finance Secretary Carlos G. Dominguez III.
Customs Commissioner Ariel F. Nepomuceno earlier said that Secretary Go is considering reviving the JAO, which was originally formulated in 2019 to improve the cost competitiveness of the country’s import-export trade.
Under the JAO, the BOC is mandated to regulate the imposition of all destination and origin charges imposed by international shipping lines, container depot operators, truck operators, freight forwarders, and customs brokers in the Philippines.
As the lead agency for the overall implementation of the JAO, the BOC is also tasked with exercising jurisdiction and oversight over third-party service providers dealing with the bureau in relation to the importation, exportation, movement, storage, and clearance of goods on behalf of another person. These include, but are not limited to, freight forwarders, shipping lines, and operators of Customs Bonded Warehouses (CBWs), container yards, inland container depots, and Customs Facilities and Warehouses (CFWs).
The bureau is likewise directed to issue and implement the necessary regulations to protect the interests of the public and the economy, pursuant to Sections 806 and 1226 of the Customs Modernization and Tariff Act (CMTA).
The BOC is also required to expedite the accreditation and activation of inland container depots to help prevent port congestion.
In addition, the bureau has been tasked to pursue the creation of a single Customs Revenue District for ports serving the Greater Manila Area, or alternatively, to study the option of mandating a single port of discharge for vessels. The BOC is expected to evaluate these options and submit its recommendations to the Secretary of Finance.
The JAO further directs the BOC to review and revise existing rules governing the issuance of Equipment Interchange Reports (EIRs), particularly the mechanisms used to track and monitor the movement of containers.
The bureau is also encouraged to utilize and promote appropriate technologies to improve container movement management.
In monitoring container flows, the BOC is tasked to promulgate rules and regulations governing yard utilization at inland container depots and to enforce a maximum container yard utilization rate of 70 percent.
The bureau must also formulate guidelines, in coordination with the Philippine Ports Authority (PPA), the Bases Conversion and Development Authority (BCDA), special economic zones, and other port authorities, establishing minimum standards, including ensuring the availability of adequate inland container depot space for empty containers.
Likewise, the BOC is expected to coordinate with operators of designated container yards and inland container depots that have sufficient capacity to accommodate container volumes.
To facilitate the decongestion of port terminals, the bureau must review and revise existing regulations governing the disposition of seized and abandoned cargoes.
Pursuant to Section 303 of the CMTA, which provides customs control over premises used for customs purposes, the BOC shall require all terminal operators and container yard operators to provide the bureau with unhampered access to their premises for monitoring and enforcement purposes.
