Customs Modernization and Tariff Act

Section 1227

The Bureau shall promulgate the necessary procedures and requirements for the compliance of Authorized Economic Operators (AEOs). For AEOs who have displayed diligence in complying with the rules and the submission of official customs requirements, and have satisfactorily managed their commercial records, the Bureau shall extend the following incentives: (a) Release of the goods upon provision of the minimum information necessary to identify the goods and permit the subsequent completion of the final goods declaration; (b) Grant of clearance of the goods at the declarant's premises or another place authorized by the Bureau; and (c) Other special procedures such as: (i) Allowing a single goods declaration for all imports or exports in a given period where goods are imported or exported frequently by the same person; (ii) Use of commercial records to self assess their duty and tax liability and, where appropriate, to ensure compliance with other customs requirements; and (iii) Allowing the lodgement of goods declaration by means of an entry in the records by the authorized person to be supported subsequently by a supplementary goods declaration.

Section 1228

The Secretary of Finance shall, upon the recommendation of the Commissioner, issue the necessary rules: (a) To supervise and regulate the conduct and operations of the AEOs, consistent with international best practices, the World Customs Organization (WCO) framework of standards to secure and facilitate global trade, and other international conventions and agreements; (b) To develop a trade facilitation program for AEOs and other authorized persons consistent with international best practices and international conventions and agreements; and (c) To recognize existing facilities where the authority or right to operate AEOs has been granted by the relevant government agency or regulator through a contract, where the Bureau shall: (i) Only require an endorsement by the relevant agency or regulator; (ii) Issue a certificate of authority as a matter of course; and (iii) Ensure that the term of the certificate of authority shall be coterminous with the applicable government contract or any extension thereof. The Bureau shall implement the provisions of this chapter without interfering, or impeding AEO operations as well as existing operations of wharves, container yards, container freight stations, warehouses, examination areas and other facilities located in customs territory and/or in airports and seaports. The Bureau shall likewise ensure that any subsequent rules, regulations, orders or memoranda issued in relation to AEOs shall be consistent with the appropriate government agency's or regulator's prevailing operating procedures and international best practices. Existing contracts of private operators with appropriate government agency or regulator, such as, but not limited to, the PPA, SBMA and PIA and their respective authorities and powers already granted by law pertinent to such contract, shall not be impaired or adversely affected with the Bureau's implementing rules and regulations on AEOs.