BoC Requirements - German-Philippine Chamber of...
Transcript of BoC Requirements - German-Philippine Chamber of...
BoC Requirements
Presented to: GERMAN CHAMBER OF COMMERCE
25 September 20142GO Hub
KERRY-ATS – your best option in logistics partnership
Discussion Outline
• BoC Accreditation process for exporters
• Export processing
Export
• BoC Accreditation process for importers
• Types of Importers
• Government agencies related to importation
• Activities Eligible under the government agencies
• Incentives offered by BOI and PEZA
• Types of BOI registration
• Asean Freetrade Agreement
Import
KERRY-ATS – your best option in logistics partnership
Discussion Outline
• Import Permit and Clearance
• Duty and Taxes Computation
• Customs Clearance process
• Consumption
• PEZA
• Types of Importation
• Conditional
• Prohibited
Import
KERRY-ATS – your best option in logistics partnership
Discussion Outline
KERRY-ATS – your best option in logistics partnership
Secure required documents
• Registration papers
• If Corporation, SEC Articles of Incorporation & By-laws
• If Partnership, SEC articles of partnership and By-laws and statement of Joint Solidary Undertaking
• If Single proprietorship, DTI Cert of Registration
• SEC GIS, specimen signature, audited financial statement, BIR Cert of Registration, Income Tax return for the last 3 years, mayor’s permit, location map, product list, brochure or pictures
BoC Accreditation for Exporter
KERRY-ATS – your best option in logistics partnership
Submit documents to Phil Export
• Pre-evaluates the documents
• Conduct plant visit
Phil Export approves application
• Encodes information in the Client Profile Registration System (CPRS)
BoC Accreditation for Exporter
KERRY-ATS – your best option in logistics partnership
BoC activates the accreditation
• Issues Certificate of Registration (COR) with Customs Client Number (CCN)
• COR is sent via email once BoCAMO sent the activation notice to importer.
Exporter choose Agent Authorized Bank (AAB)
• Issues Bank Reference Number (BRN) to be used during lodgment of export declaration
BoC Accreditation for Exporter
KERRY-ATS – your best option in logistics partnership
Secure necessary permits
Books cargo with the carrier
or freight forwarder
Secure booking confirmation with the
carrier or freight forwarder. Provides
shipping details
Shipper/ broker lodge export declaration thru
E2M and process to BoCExport Div.
Approve/ Disapprove the ED Application
Pays port charges (for sea freight shipment only)
Carrier accepts the cargo for loading. Export
declaration must be submitted to carrier
Export Processing
Documentary Requirement: Export Declaration Commercial Invoice Packing list Permit / Clearances
KERRY-ATS – your best option in logistics partnership
Discussion Outline
KERRY-ATS – your best option in logistics partnership
BoC Accreditation for Importer
Secure required documents
• Registration papers
• If Corporation, SEC Articles of Incorporation & By-laws and cert of Good Standing
• If Partnership, SEC articles of partnership and By-laws and statement of Joint Solidary Undertaking
• If Single proprietorship, DTI Cert of Registration
• Corporate Sec Cert or SPA, NBI Clearance, valid govt ID, latest GIS, personal profile, license/permits/accreditation from other govt agency, company profile.
Secure clearance from BIR
• BIR issues the Importer’s Clearance Certificate
KERRY-ATS – your best option in logistics partnership
BoC Accreditation for Importer
Complete the registration thru Client Profile Registration System (CPRS)
• On line application thru VASP
• Must be approved prior to submission of documents to BoC-AMO
• Importer will receive email advisory on the status of the application (stored, approved, activated)
BoC-Accreditation Management Office (AMO) evaluates the documents submitted
• Schedule Ocular Inspection
• Approve/ disapprove the application
KERRY-ATS – your best option in logistics partnership
BoC Accreditation for Importer
BoC AMO will Issue Cert Of Registration (COR) with the
Customs Client Number (CCN). COR is sent via email
once BoC AMO sent the activation notice to
importer.
Choose Authorized Agent Bank (AAB)
• Issues Bank Reference Number (BRN) to be used during lodgment of entries
KERRY-ATS – your best option in logistics partnership
Types of Importers
REGULAR IMPORTER
• Imported articles are intended for domestic consumption in the importing country
• Importation are subject to payment of duties and taxes
IMPORTER OPERATING UNDER SPECIAL ECONOMIC ZONE (PEZA)
• The imported articles are raw materials intended for manufacturing into finished products and subject for subsequent importation and other eligible activites inside the economic zone.
• Importations are NOT subject to duties and taxes
KERRY-ATS – your best option in logistics partnership
Types of Importers
IMPORTER OPERATING UNDER FREEPORT ZONE
• Operating inside the Freeport zones such as SBMA or CDA wherein imported articles are intended for manufacturing into finished product for subsequent exportation or consumption within the freeport zone
• NOT subject to customs duty and taxes
BOI REGISTERED IMPORTER
• Importation of capital equipment needed in the operation of their business
• NOT subject to customs duty except consumable articles
KERRY-ATS – your best option in logistics partnership
Types of Importers
IMPORTER OPERATING UNDER CUSTOMS BONDED WAREHOUSE (CBW)
• Imported articles are raw materials that is intended for manufacturing into finished product for subsequent exportation
• NOT subject to customs duty and tax but subject to posting of Warehousing Bond equivalent to the computed customs duty and tax
KERRY-ATS – your best option in logistics partnership
Government Agencies
• Task to promote investments, extend assistance, grant incentives to and facilitate the business operations of investors in an export-oriented manufacturing and service facilities
• Selected areas throughout the country proclaimed by the President of the Phils.
• Attached to the Department of Trade and Industry
PHILIPPINE ECONOMIC ZONE AUTHORITY (PEZA)
KERRY-ATS – your best option in logistics partnership
Government Agencies
• Subic Bay Metropolitan Authority (SBMA) & Clark Development Corporation
• Played a significant part in developing the Subic Bay Freeport and Clark Special Economic Zone into a self sustainable area that promotes the industrial, commercial, investment and financial area of the zone
FREEPORT ZONES (SBMA & CDC)
KERRY-ATS – your best option in logistics partnership
Government Agencies
• Lead government agency responsible for the promotion of investment in the Phils.
• Assist Filipino and foreign investors to venture and prosper in desirable areas of economic activities such as food processing, construction, metal products, telecommunication, power and infrastructure projects among others.
• Under the Dept. of Trade and Industry
BOARD OF INVESTMENT
KERRY-ATS – your best option in logistics partnership
Activities Eligible under the different Agencies
PEZA
• Export manufacturing
• Economic Zone Development / Operations
• Manufacturing
• Tourism
• Medical
• Agro Industrial
• Retirement
• IT Service Export / IT Park Development
• Logistics & Warehousing Services
• Facilities providers for
• Manufacturing enterprise
• IT Enterprise
• Retirement facilities
• Utilities
Freeport Zone
• Aviation
• Education
• Tourism
• Leisure
• Fitness
• Entertainment
• Gaming
• Manufacturing Business
KERRY-ATS – your best option in logistics partnership
Activities Eligible under the different Agencies
BOI
• Manufacturing
• Mining and Mineral Processing
• Pharmaceutical
• Footwear
• Ship building
• Electronics / Semi –conductors
• IT and BPO
• Tourism
BOI
• Agri Business processed Fruits and Vegetables
• Seaweeds
• Tropical fruit puree and juices
• Mango Seed oil
• Sugar Plantation
• Fisheries
• Dairy
• Bioethanol
• Biofuels
• Coco Methyl Ester
• Renewable Energy on hydro, Solar, Wind, Geothermal, Biomass
KERRY-ATS – your best option in logistics partnership
Incentives by BOI and PEZA
PEZA
• Income Tax holiday
• Exemptions on:
• Tax and duty on importation of merchandise
• National and local taxes and licenses
• Duty and tax for importation of personal effects and instruments of foreign national
• Wharfage dues and export tax
• Expanded witholding tax
• Tax and duty for importation on specialized office equipment and furniture, vehicles and other transportation equipment
• Tax credits on:
• Domestic capital equipment
• VAT zero-rating on local purchases of goods and services including land-based telecommunication, utilities and lease on building
KERRY-ATS – your best option in logistics partnership
Incentives offered by BOI and PEZA
BOI
• Income tax holiday
• Additional deduction for Labor Expense
• Exemptions on:
• Duty on Imported Capital Equipment
• Contractors tax
• Tax and duty on importation of breeding stocks and genetic materials
• Tax and duty in imported supplies and spare parts in a bonded manufacturing warehouse
• Wharfage dues and export tax
• Tax Credit on:
• Domestic capital Equipment
• Domestic Breeding stocks and genetic materials
• Duties and taxes on raw materials of export products
• Employment of foreign nationals
• Simplification of Customs Procedures
KERRY-ATS – your best option in logistics partnership
2 Types of BOI Registration
EO No. 70: Reducing the rates of duty on capital equipment, spare parts and accessories imported by BOI registered new and expanding enterprise
5 years availment of incentives of duty free importation of capital equipment and parts from registration date
5 years prohibition to sell or transfer capital equipment and parts
Limitation in the tariff classification of capital equipment and parts to be imported and requirement of surety bond
Exemption from Income tax within 6 / 4 / 3 years from the start of operation
KERRY-ATS – your best option in logistics partnership
RA No. 9513: Renewable Energy Act of 2008
Can be availed by enterprises involves in the renewable energy industry
Need endorsement from DoE and registration with Dept of Environment and Natural Resources to secure the Environment Compliance Cert.
10 years availment of incentives of duty free importation of capital equipment and parts from registration date
10 years prohibition to sell or transfer capital equipment and parts
No limitation in the tariff classification of capital equipment and parts but requires surety bond
Exemption from income tax within 7 years from start of commercial operations
2 Types of BOI Registration
KERRY-ATS – your best option in logistics partnership
Asean Free Trade Agreement (AFTA)
• Trade block agreement by the Association of Asian Nation supporting local manufacturing in all ASEAN countries
• Provides preferential duty rate lower than the tariff duty rate
• Countries involve:
• Asean member
• Japan
• Australia and New Zealand
• China
• Korea
• India
• Documented in a CERTIFICATE OF ORIGIN
ASEAN FREETRADE AGREEMENT
KERRY-ATS – your best option in logistics partnership
Import Permit and Clearances
IMPORT PERMIT AND CLEARANCES
Importer must be registered first to concerned gov’t agency before it can apply for an import permit
Registration to concerned gov’t agency is being renewed every
year Import Permit is being applied
prior to departure of the shipment
from the country of origin
KERRY-ATS – your best option in logistics partnership
Import Permit and Clearances
IMPORT PERMIT AND CLEARANCES
Late application of import permit would
result to seizure of shipment or payment
of penalty
Application of import permit is being lodge thru National Single
Window
Import permit is being applied on a per shipment basis
KERRY-ATS – your best option in logistics partnership
Computation of Duty and Tax
FOB
Freight
Insurance
Other Charges
Dutiable Value (USD)
Rate of Exchange
Dutiable Value (Php)
Rate of Duty
Customs Duty
Taxable Value
Bank Charge app if shpt is under LC
Customs Duty
Brokerage Fee per CAO 1-2001
Arrastre Charge per container or per RT
Wharfage Due per container or per RT
Customs Doc Stamps
IPF
Landed Cost
VAT Rate
VAT
All articles, when imported
from any foreign country into the Philippines, shall be subject to duty upon each importation, even though previously exported from the Philippines, except as otherwise specifically provided for in this Code or in other laws.
Sec. 100 Imported
Articles Subject to Duty
KERRY-ATS – your best option in logistics partnership
Importation Process – Regular/Consumption
Shippers sends cargo and documents to Importer/consignee
• B/l, Commercial invoice, packing list, Cert of Origin.
• Import permit / clearance from consignee
Importer receives documents and assigns broker to clear the shipment
• Broker must be accredited with BoC
Broker endorse the documents to shipping line
• Settle local destination charges – THC, Cntrdeposit
• Secure release or delivery order (RO/DO)
Broker files import entry with BoC
• Lodge entry thru VASP
• BoC transmits assessment to the authorized agent bank
Importer pays the duties and taxes thru bank
• Bank transmits payment on line
Brokers pays the port charges and secure gatepass for truck pull out
• Settles arrastre, wharfage, storage and demurrage
Importer receives cargo
KERRY-ATS – your best option in logistics partnership
Importation Process – Regular/Consumption
Points to Remember
Broker should be able to provide estimate computation of the duties and taxes based on the documents presented
Import permits must be secured prior to departure of the shipment from the origin country
Customs clearance timeline:
2 to 3 days for sea freight 1 to 2 days for airfreight
KERRY-ATS – your best option in logistics partnership
Importation Process under Economic Zones
PEZA examines the cargo upon entry at the zone and prior to delivery to importer’s warehouse
Broker files import entry with BoC
Settle port charges Release shipment and secure gatepass
Broker endorse the documents to shipping Settle shipping line charges – THC,
Container depositSecure release or delivery order (RO/DO)
Broker/Consignees applies Import Permit to PEZA
prior to arrival of the shipment thru VASP
Importer receives documents and assign broker to clear the shipment
Broker must be accredited with BoC
Shippers sends cargo and documents to Importer/consignee
Bill of lading, Commercial invoice, packing list, import permit/clearance
KERRY-ATS – your best option in logistics partnership
Importation Process for Economic Zones
Points to Remember)
Shipment can be processed/released Monday to Sunday / frontdoor and backdoor for airfreight shipments only. Seafreight shipments follows the normal workings hours/days
Importer must have a General Transhipment Surety Bond (GTSB) in place for each port of entry
Broker must be nominated by the importer to lodge the entry
KERRY-ATS – your best option in logistics partnership
Conditional Free Importation
Conditionally Free Importation Sec. 105 (TCCP)
articles brought into the Phils for repair, processing or reconditioning and to be re-exported
medals, badges bestowed as trophies or prizes received and accepted as honorary distinction
personal and household effects belonging to residents of the Philippines returning from abroad
personal and household effects or professional instruments belonging to foreign consultants or persons coming to settle in Phils or accompanying travellers or touristsarticles used for public display or for exhibition
importations for the official use of foreign embassies and otheragencies of foreign governments
imported articles donated to or for the account of any duly registered relief organization, not operated for profit
KERRY-ATS – your best option in logistics partnership
Conditional Free Importation
Conditionally Free Importation Sec 105 (TCCP)
supplies necessary for the reasonable requirement of the vessel or aircraft of foreign registry vessel or aircraft
coffins or urns of human remain, bones or ashes and household effects except vehicles
samples of a kind of no appreciable commercial value or Phil. Articles previously exported from the Phils. And returned without having been advanced in value or condition
books and publications endorsed by DepEd, bibles, prayer books and other religious articles
replacement parts of vessel and aircraft of foreign registry vessel
articles of easy identification exported from Phils. for repair and subsequent re-importer
trailer chassis imported by shipping companies for exclusive use
KERRY-ATS – your best option in logistics partnership
Prohibited Importation
Prohibited Importation
Conditionally Prohibited
These are commodities, that requires
clearances/permits from appropriate government
agencies prior to importation
Absolutely prohibited. These are commodities
that is totally banned to enter/imported to
Philippines
KERRY-ATS – your best option in logistics partnership
Prohibited Importation
Prohibited Importation
Dynamite, gunpowder, ammunitions and other explosives, firearms and weapons of war, and parts thereof, except when authorized by law.
Written or printed articles in any forms which is against the Government of the Philippines.
Written, printed articles or films which represents an obscene or immoral character.
Articles, instruments, drugs and substance designed, intended or adapted for producing unlawful abortion.
Gambling articles or Lottery and sweepstakes tickets except those authorised by the Philippine Government, advertisements thereof, and lists of drawings therein.
KERRY-ATS – your best option in logistics partnership
Prohibited Importation
Prohibited Importation
Any article manufactured in whole or in part of gold, silver or other precious metals or alloys thereof, the stamps, brands or marks or which do not indicate the actual fineness of quality of said metals or alloys.
Any adulterated or misbranded articles of food or any adulterated or misbranded drug in violation of the provisions of the “Food and Drug Act”.
Marijuana, opium, poppies, coca leaves, heroin or any other narcotics or synthetic drugs which are or may hereafter be declared habit forming except when authorised by the Government of the Philippines.
Opium pipes and parts thereof, of whatever material
All other articles and parts thereof, the importation of which is prohibited by law or rules and regulations issued by competent authority.
KERRY-ATS – your best option in logistics partnership
KERRY ATS LOGISTICS INC.
• Columbia Airfreight Complex, Miascor Drive, NAIA Ave., Paranaque City
• Tel # : 63 2 854-7777
• Fax # : 63 2 853-0090
KERRY ATS LOGISTICS INC.
• Operations Manager
• Tel # 63 2 854-7777 loc 108
• Email address: [email protected]
Rhea Corrales
• Principal Broker
• Tel# 63 2 854-7777 loc 138
• Email address: [email protected]
Dexter P. Mondidu
For Inquiries:
Driving Business Forward