The Bureau of Customs (BOC) is adopting the Authorized Economic Operator Program (AEO), an internationally accepted customs procedure that could enhance the bureauâ€™s partnership with the private sector through trade facilitation.
Customs Administrative Order No. 1-2012, establishing an Authorized Economic Program was approved by Department of Finance (DOF) Secretary Cesar Purisima pursuant to the commitment made by the Philippines to implement the World Customs Organization Framework of Standards to Secure and Facilitate Global Trade (WCO-SAFE), as well as the Revised Kyoto Convention on the Harmonization and Simplification of Customs Procedures.
Customs Commissioner Ruffy Biazon said CAO No. 1-2012 is designed to create an accreditation procedure that offers certain benefits and incentives to certain economic operators considered as BOCâ€™s trusted allies.
â€œThe order will also reduce processing periods, last priority in post entry audits, recognition as a low risk company, reduced inspection or expedite clearance if covered by mutual recognition programs under bilateral/multilateral arrangements, and other trade facilitation benefits which the BOC may give under existing laws and regulations,â€ Biazon added.
Under CAO 1-2012, the accredited companies will have the responsibility of updating the BOC when there are significant changes in their security profile and information, and of providing information on any non-conformity with the program guidelines.
The AEO program will first be implemented inside the Clark Freeport Zone that are within the jurisdiction of the Port of Clark and upon consultation with the private sector and stakeholders, the program shall cover exporters in other selected air/sea ports.