POSITION PAPER ON CMO 2-2010 RE RULES OF ORIGIN

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A POSITION PAPER

OF

THE CONFEDERATION OF PHILIPPINE EXPORTERS FOUNDATION (CEBU) INC. (UMBRELLA ORGANIZATION OF ALL THE EXPORTING INDUSTRIES IN THE CENTRAL VISAYAS REGION) ALSO KNOWN AS PHILEXPORTCEBU

ON

BUREAU OF CUSTOMS CMO 2-2010 RE RULES AND REGULATIONS STRENGTHENING THE FUNCTIONS OF THE EXPORT COORDINATION DIVISION (ECD) UNDER THE OFFICE OF THE ASSESSMENT OPERATIONS COORDINATING GROUP (AOCG)

 

Background

Republic Act 7844, otherwise known as the Export Development Act of 1994 mandates all government agencies, whose actions affect exporters, to simplify procedures in order to minimize bureaucratic red tape. On July 25, 1996, by order of the Export Development Council (EDC), the Confederation of Philippine Exporters Foundation (Cebu), Inc., otherwise known as Philexport Cebu, together with the Bureau of Customs (BOC) and the Department of Trade and Industry (DTI), signed a Memorandum of Agreement (MOA) to establish a ONE-STOP EXPORT DOCUMENTATION CENTER (OSEDC) in Cebu City to service the needs of the exporters in Cebu and to facilitate documentation of exports. The MOA was signed by then BOC Commissioner Guillermo Parayno, Jr., BETP Director Luis Berrei, Jr. and Philexport National President Sergio Ortiz-Luis, Jr.

Under the supervision of the DTI and the deputization extended by the BOC, the Philexport OSEDC-Cebu started processing and approving Export Declarations (EDs) and Special Permits to Load (SPLs) from 1996 to date.  The BOC, Cebu Port Authority (CPA), OPASCOR (arrastre and stevedoring concessionaire), DENR, BFAR and other government agencies are represented through their representatives and/or signatories at the OSEDC-Cebu. The BOC deploys a customs official at the OSEDC, usually a CO signatory who comes from the Export Services Division of theBOC-CebuPort.

 

Issues against CMO 2-2010

 

During the BOC open forum with new BOC-Cebu District Port Collector Ronnie Silvestre last February 3, 2010 at the Casino Espanol inCebuCity, the exporters raised their concerns pertaining to the issuance by the Commissioner of Customs of Customs Memorandum Order No. 2-2010 (CMO 2-2010) which aims to strengthen the functions of the Export Coordination Division (ECD) as well as the internal controls of the BOC pertaining to the rules of origin especially when the Philippines have signed several Free Trade Agreements (FTAs) with its neighbors in the Asia-Pacific region. The exporters were told by the Customs officials of BOC-Cebu that, in line with the CMO 2-2010, pre-evaluation of applications for issuances of COs will be centralized at the BOC’s ECD inManila.

 

  1. The exporters openly objected when they were told that the new procedure will add a minimum of 5 working days to around 22 working days forCOsto be pre-evaluated and approved by the BOC. This long delay (compared to the current 2-3 hours processing time) is totally unacceptable;

 

  1. The exporters voiced their concerns on the security of the information or trade secrets they are required to divulged to the BOC based on documentary requirements (a certified cost breakdown of the value of foreign and local raw materials including direct and indirect labor cost).  We have experienced leakage of sensitive information in the past;

 

  1. The exporters conveyed their anxiety over the fact that the BOC may not have the right personnel complement to pre-evaluate their applications, considering that exporters may have hundreds of product lines and models in their inventories notwithstanding the fact that there is already a shortage of CO signatories in the provincial ports;

 

Our Prayer

 

In the interest of trade facilitation and efficiency and in the spirit of the Revised Kyoto Convention (RKC) we, the exporters ofCebu, pray that the BOC:

 

  1. conduct a thorough review of CMO 2-20-10;
  2. hold in abeyance the implementation of said CMO during the review period;
  3. decentralize the pre-evaluation of CO applications to the provincial districts’ Export Services Divisions;
  4. tighten control measures in archiving exporters’ product data; and
  5. right-size the personnel complement of it’s district offices

 

Signed in the City ofCebu,Philippineson 8 February 2010 by:

 

 

 

VENUS C. GENSON                                                      ANGELA PAULIN

President – Philexport Cebu                                           President – CFIF

Exporters’ Umbrella Organization                                    Cebu Furniture Group

 

 

 

PETE SEPULVEDA                                                        JANET CHUA

Vice President – Cebu GTH                                             President –CebuFAME

Gifts & Home Décor Group                                              Fashion Accessories Group

 

 

 

PORFERIO MONTESCLAROS                                       BENSON DAKAY

Secretary – MEPZCEM                                                  President

MEPZ Group                                                                 CebuSeaweed Sector

 

 

 

NELSON BASCONES                                                   TERESITA D. UYFANG

President – AFIME                                                        Representative

Cebu Food Group                                                          Industrial Goods Sector

 

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