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The Philippines Automation of Import Procedures

for Perishable Goods

Florian A. AlburoCenter for the Advancement of Trade Integration and

Facilitation 249 School of Economics University of the Philippines

Diliman, Quezon City Philippines

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Outline

• Context• Import Procedures for Agricultural Products• Automating Import Procedures• Features of Automation• 2010 Results• Challenges

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Context: Regulation and Facilitation

• Regulatory functions in agriculture includes protection of consumers from unsafe products; prevent entry and spread of plant, animal, fish pests and diseases; protect public from risks in use of chemical, biological production and pos- harvest inputs.

• Facilitation functions include fast release of agricultural products upon arrival.

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• Release of imports of agricultural products requires submission of necessary permits from controlling government agencies.

• Preliminary results of a time measurement study indicate some improvement in the time it takes for imports of food items (including perishable products in reefer containers) to move from arrival to release between 2003 and 2010.

• These food items had a mean release time of 6.3 days (152 hours) at MICP in 2010.

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• Breakdown of the time between arrival and release show 50 hours (2.1 days) or 33 % delay between goods arrival and lodgement.

• Part of the reason for length of time for submission is delay in securing necessary permits (as well as other reasons).

• The automation of the processing of issuing import permits for agricultural products would help in trade facilitation.

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Import Procedures for Agricultural Products

• ImportsProduct Registration

Establishment Accreditation

Licensing of Importer

Issuance Import License

Import Inspection at Border

• ExportsProduct Registration

Establishment Accreditation

Licensing of Exporter

Issuance of International SPS Certificate

Port of Exit Inspection

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General Import Process

Each of the functionat the right opens updifferent processes

13 steps(12 documents)

19 steps(22 proofs)

15 steps(17 documents)

12 steps(15 documents)

23 stepsSource of Basic Data: SPS Administration Manual(Department of Agriculture, July 2007)

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• Paper-based documentation• Manual processing of Permit• Submission of Permit to supplier at origin• No advance info on the arrival of goods (eg manifest, AWB/BL and import declaration)

• Receipt of Health/Phytosanitary Certificates from origin

• Provision of copies of approved Permits to offices at the Port of discharge

• Issuance of clearance after inspection, quarantine• Limited laboratory facilities, eg Los Banos• Reports on findings at the Port, laboratory• Closure

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Automating Import Procedures

• Scope of AutomationProduct RegistrationAccreditation of EstablishmentsLicensing of ImportsIssuance of Import Permits

• “Trade System” at the central offices of the Department of Agriculture through a hub provided by a VASP.

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Importer InterCommerce

BPI Plant, Plant Products

BAI Live Animal

BAI AnimalProducts

BAI Veterinary& Biologicals

BFAR, Fisheriesand Aquatic Resources

BPI, BAI, BFARQuarantine Office

DA ITCAF

DA Trade System

Source: INS 2010

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Features of the Automation

• Electronic registration of importers and imported products

• Harmonized forms: Internet electronic application and submission (data fields determined by agencies)

• Auto debit of fees and payments (through advance deposits with authorized banks)

• Eliminate other manual steps (manual typing of import clearance, physical signature)

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• Individual secure login for approval of permits by DA Director

• At ports, quarantine officer secure login to view import clearance ahead of arrival of goods, tags SPS as used, record data and actual inspection

• Database of accredited importers/importable products improves risk analysis in agriculture trade

• Safety concerns are attended to through authenticated permit, secure electronic signature of approval (secure login), conditions for entry noted in approval, and permit is unique (bar code)

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2010 Results of Automation of Import Procedures in Agricultural Goods

• Manual processing of permit applications takes 2-3 days; cash payment for fees and manual issuance of receipt; import permit submitted to quarantine officer at port upon arrival of goods.

• Electronic on-line processing takes 2-3 hours; payments are auto-debit; on-line printing of import clearance, advance clearance available to quarantine officer before arrival of goods

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• The implementation of automating import procedures for agricultural products has moved from pilot stage to cover all transactions.

• The number of both registered importers and list of importables have expanded since pilot although skewed towards the animal products coverage.

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Status –SPS IC• Registered importers

– Registered : 704– With LIVE Transactions : 162 (104 or 64% from BAI)

• Items in Lists of Importables– Submitted : 36,687 100%– Rejected : 4,004 11%– For Approval : 11,698 32%– Approved : 20,917 57%

(18,878 or 90% from BAI)

• Number of SPS IC– Submitted : 2,143 100.0%– Rejected : 246 11.5%– Under Review : 24 1.1%– For Endorsement : 18 0.8%– For Approval : 0 0%– Approved : 1,855 74.2%– Used : 265 12.4%

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Status – BAI SPS IC• Registered BAI importers

– Registered : 440– With LIVE Transactions : 104

• Items in Lists of Importables– Submitted : 23,676 100%– Rejected 3,362 14%– For Approval : 1403 6%– Approved : 18,878 80%

• Number of SPS IC– Submitted : 1,697 100.0%– Rejected : 199 11.7%– Under Review : 16 0.9%– For Endorsement : 15 0.9%– For Approval : 0 0%– Approved : 1,467 74.9%– Used : 169 11.5%

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Status – BPI SPS IC• Registered BAI importers

– Registered : 168– With LIVE Transactions : 13

• Items in Lists of Importables– Submitted : 10,854 100.0%– Rejected 558 5.1%– For Approval : 9,848 90.7%– Approved : 413 3.8%

• Number of SPS IC– Submitted : 96 100.0%– Rejected : 10 10.4%– Under Review : 8 8.3%– For Endorsement : 2 2.1%– For Approval : 0 0%– Approved : 76 77.1%– Used : 10 2.1%

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Status – BFAR SPS IC• Registered BAI importers

– Registered : 96– With LIVE Transactions : 45

• Items in Lists of Importables– Submitted : 2,157 100%– Rejected 84 4%– For Approval : 447 21%– Approved : 1,626 75%

• Number of SPS IC– Submitted : 350 100.0%– Rejected : 37 10.5%– Under Review : 0 0%– For Endorsement : 1 0.3%– For Approval : 0 0%– Approved : 312 72.2%– Used : 43 26.9%

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Challenges

• Automation should reduce the time it takes between arrival of goods and lodgment.

• At the same time regulatory functions become more secure and transparent.

• Interface with the National Single Window without compromising primary functions of the Department of Agriculture.

• Interconnect all ports into the Trade System.

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End…