••REPUBLIC OF THE PHILIPPINESDEPARTMENT OF FINANCE'

BUREAU OF CUSTOMS26 June 2012

CUSTOMS ADMINISTRATIVE ORDERNo. 1..:..W.Z

SUBJECT: ESTABLISHING AN AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAM FOREXPORTERS

Pursuant to Section 608 of the Tariff and Custom£ Code of the Philippines, IS amended (TCCP), thefollowing rules and regulations are hereby promulgated:

1.0 OBJECTIVES

1.1 To a>mpty with the commitment of the Philippines to implement the World Customs Organization(WeO) Frameworl<. of Standards to Secure and Facilitate GlobafTrade (SAFE FrameworK forbrevrty)

1.2 To establish a voluntary certification program. initially for exporters, to be known 8S the AEOPhilippines Program, consistent and aligned with the. weo's AEO Program which shan beadministered by the Bureau of Customs (BOC) to help certain economic operators in theinterna,ional supply chain adopt 8cteptable control measures to enharn;e the security of suchchain

1.3 To enhan~ BOe·Business partne~ip on trade security and trade facilitatIon baaed on trustand mutual respect.

1.4 To establish accreditabon procedures that o"er certain benefits and Incenbves to certain economcoperators considered as BOC's trusted allies

2.0 SCOPE OF PHASE OF IMPLEMENTATION

2.1 This Order Shall initialy apply to export&ra inaide the Clalk Freeport Zone that ere within thejurisdiction of the Port of Clark.

SubsequenHy .• 00 upon the directive of the Customs Commisstoner. this Order shall coverexport8f$ In.other selected aiflsea pons.

3.0 GENERAL PROVISIONS

3.1 The Commissioner of Customs shall constitute 8Committee headed by 8Deputy Commissionerin charge of the aweditation of AEOs that shall petiorm such other functIOns I'may be assignedby the CommlsslOIl8r from tJme to time

3.2 AppIicabon tor the AEO Program must include the following~

3.2.1 Duly filled up AppIicabon Form3.2.2 Disclosure of certain information on the fOllowing:

3.2.2.1 Organizational Characteristics3.2.2.2 Compliance Record3.22.3 Volume of Bustness3.2.2.4 Goods3.2.2.5 Intemal Procedures related to Declaration

3.2.3 The company's secunty profile which compnses the follOWing:

3.2.3.1 A summary of the companv's security management aystem3.2.12 A summary of the company's risk assessment process: and3.2.3.3 Secunty measures put in place by the company to enhance the security

of the company 5 $UPply Cham.

3.2.4 Supporting documents which include:

3.2.4.1 Process map(s) that illustrates the flow of goods and documentation I informationthrough the company's supply cham.

3.2.4.2 Sde plan(s) that shows the layout of the company's prerrn6es and dearly Identifies allperimeters. 800!1SS areas. buildings. strudures, security and access controls.

3.2.5 Copy of the company's relevant security accreditations: and3.2.6 Any other relevant supporting docUments

3.3 The summary of security management system must cootam the follOWing information·

3.3.1 The company's security policy, security objeCtives and commrtment to security:3.3.2 The procedures for ensunng that pertinent security manaQement information IS

communicated to and trom relevant employees and other stakeholders: .3.3.3 The procedures for the review of the company's security profile at planned intervals,

to ensure Its continuing surtability. adequacy and eftecUveness; end3.3.4 Any other relevant information.

3.4 The summary of risk assessment must contain the following information:

3.4.1 A ftow chart to illustrate the company's nsk assessment process:34.2 Tne risks and vulnerabilities identi~ed trom the company's risk assessment process:3.4.3 The countermeasures put in place to reduce the identified risks and vulnerabilities;3.4.4 When the risk assessment was conducted;3.4.5 Who conducted the risk assessment: and3.4.6 Any other relevant information.

3.5 The security measures under this Order ccmpnse eIght (8) elements that a company mustac:Idfm:

3.5.1 Premise security and access controls.3.5,2 PersonnelIlCUrity;3.5,3 Businesspartner security:3.5.4 Con.veyance security;3,5.5 Information end InformatiOn Technology (rT) security:3.5.7 Incidentmanagement and inveebgations; and3.5,8 Grists management and incident recovery.

3.6 Aside from the consequent benefits r~ulting from the implementation of robust security measuresin the forms of increased visibility of goods in the supply chain. reduct10n In pmerages and greaterefficiency in their supply Chain management, companies accredited under the AEO-Ph*ilppmesProgram shall be recognized as trU$ted allies by.the BOC and shall be entitled to the follOWingbenefits: .

3.6.1 DedicatedprocesSing lanes for AEOaccredited exporters resulting In reduced processingperiod, .

3.6.2 Renewal of accreditation as exporter not on an annual basis but for a longer period;3.6.3 Last priOrity on po&t..entry audit3.6.4 Recognijion as a low risk company i.e. enhanced brandln~3.6.5 Redu<*i Inspection or expedited clearance by other Customs authontl83 should certified

status be also recognized by overseas countnes under a mutual recognnlOo programestablished by bitaterial or mu~ilateral arrangement; and

3.6.6 Suth other trade facilitation benefits that may be afforded by BOC under existing lawsand regulahons. .

3.7 In addition to the terms and condilions stated in the Applicahon Form. a trusted partner underthe AEO·PhilipPlnes Program shall have the following responsibilibes

3.1.1 To update BOC as and when there are significant changes to the company's secuntyprofile and Information required to be dlsciosed under SectIon 3.6.2 hereof: .

3.7.2 To submit an annual statement of commitment; and3,7.3 To inform BOC 01 any non-contonnmes by the company with AEO-Philippines

Guidelines:3.7.4 To renew its accreditation as trusted partner every two (2) years

3.8 Accreditation under the AEO-Philippines Program shall be suspended and/or revoked if:

3.8.1 The company does not abide by the terms and conditions of the AEO·Philipp·,nescertification: or

3.8.2 There is non-compliance by the company with Philippine Customs laws and regulationsand/orwith the laws and regulations of other relevant Phibpptne government 8uthoribes:or

3,8J Supplycham secuntyweaknesses in the company or noncontonnityby the company withthis Order and its Implementing Rues and Regulations are discovered and not rectified10 BOC's satisfaction: or

.3.8.4 The company opts to withdraw from the program.

3.9 A company can lodge an appeal against a BOC decision denying 8 company's application andparticipation In the AEO.PhilipPlnes Program by lodging its appeal with the Commissioner ofCustoms within 15 calendar days trom the date of receipt of the relevant decision communicatedto the company by BOe.

3.10 'The business documentslinformatlon are for BOC purposes only and will not be dISclosed toa third party without the companies' prior written consent. All bUSiness documentsllnformattonprovided by the companies will remain confidential

3.11 A thir~ party vaHdator may be authonzed to assist the BOC in the accomplishment of securityassessment reviews and related validation procedures, '

3.12 The cost involved in the security assessment reViews and related validation procures shall beborne by the applicant to the Program, .

4.0 IMPLEMENTING RULES AND REGULATIONS

, The Commissioner of Customs, upon cue consultation with the pnvate sectorlstakehokJers. shall ISsue thenecessary rules and regulabons for the effective Implementation oJ thIS Order

5.0 REPEALING CLAUSE

All Orders. Memoranda. Circulars or parts thereo( which are inronsistent wHh thIS Order, are deemed (evoked.amended and/or modifted accordingly.

6.0 SEPARABILITY CLAUSE

If any part of this Order is declared by Courts as uoconstrtutional or contrary to existing laws,the other partsnot so declared shall remain in full force and effect

7.0 EFFECTIViTY

This Order shall take effect fifteen (15) days after publication In B newspaper of general cireYlahon

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,P.s.Aue, 15, 2012