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REPUBLIC OF THE PHILIPPINES DEPARTMENT OF FINANCE'

BUREAU OF CUSTOMS
26 June 2012
CUSTOMS ADMINISTRATIVE ORDER No. 1..:..W.Z SUBJECT: ESTABLISHING AN AUTHORIZED ECONOMIC OPERATOR (AEO) PROGRAM FOR EXPORTERS

Pursuant to Section 608 of the Tariff and Custom Code of the Philippines, IS amended (TCCP), the following 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 for brevrty) To establish a voluntary certification program. initially for exporters, to be known 8S the AEO Philippines Program, consistent and aligned with the. weo's AEO Program which shan be administered by the Bureau of Customs (BOC) to help certain economic operators in the interna,ional supply chain adopt 8cteptable control measures to enharn;e the security of such chain To enhan~ BOeBusiness and mutual respect. partne~ip on trade security and trade facilitatIon baaed on trust

1.2

1.3 1.4

To establish accreditabon procedures that o"er certain benefits and Incenbves to certain economc operators 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 the jurisdiction of the Port of Clark. SubsequenHy . 00 upon the directive of the Customs Commisstoner. this Order shall cover export8f$ In.other selected aiflsea pons.

3.0 GENERAL PROVISIONS


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

3.2

AppIicabon tor the AEO Program must include the following~

3.2.1 3.2.2

Duly filled up AppIicabon Form Disclosure of certain information on the fOllowing:

3.2.2.1 3.2.2.2 3.22.3 3.2.2.4 3.2.2.5 3.2.3

Organizational Characteristics Compliance Record Volume of Bustness Goods Intemal Procedures related to Declaration

The company's secunty profile which compnses the follOWing:

3.2.3.1
3.2.12 3.2.3.3
3.2.4

A summary of the companv's security management aystem A summary of the company's risk assessment process: and Secunty measures put in place by the company to enhance the security of the company 5 $UPply Cham.

Supporting documents which include: through the company's supply cham.

3.2.4.1 Process map(s) that illustrates the flow of goods and documentation I information
3.2.4.2 Sde plan(s) that shows the layout of the company's prerrn6es and dearly Identifies all perimeters. 800!1SS areas. buildings. strudures, security and access controls. Copy of the company's relevant security accreditations: and

3.2.5
3.2.6

Any other relevant supporting docUments

3.3 The summary of security management system must cootam the follOWing information
3.3.1 3.3.2 3.3.3 The company's security policy, security objeCtives and commrtment to security: The procedures for ensunng that pertinent security manaQement information IS communicated to and trom relevant employees and other stakeholders: . The procedures for the review of the company's security profile at planned intervals, to ensure Its continuing surtability. adequacy and eftecUveness; end Any other relevant information.

3.3.4

3.4 The summary of risk assessment must contain the following information: 3.4.1 34.2 3.4.3 3.4.4 3.4.5 3.4.6 A ftow chart to illustrate the company's nsk assessment process: Tne risks and vulnerabilities identi~ed trom the company's risk assessment process: The countermeasures put in place to reduce the identified risks and vulnerabilities; When the risk assessment was conducted; Who conducted the risk assessment: and Any other relevant information.

3.5 The security measures under this Order ccmpnse eIght (8) elements that a company must ac:Idfm:
3.5.1 Premise security and access controls.

3.5,2 3.5,3 3.5.4 3,5.5 3.5.7 3.5,8


3.6

PersonnelIlCUrity; Businesspartner security: Con.veyance security; Information end InformatiOn Technology (rT) security: Incidentmanagement and inveebgations; and Grists management and incident recovery.

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

3.6.1
3.6.2

3.6.3
3.6.4 3.6.5 3.6.6 3.7

Dedicated procesSing lanes for AEOaccredited exporters resulting In reduced processing period, . Renewal of accreditation as exporter not on an annual basis but for a longer period; Last priOrity on po&t..entry audit Recognijion as a low risk company i.e. enhanced brandln~ Redu<*i Inspection or expedited clearance by other Customs authontl83 should certified status be also recognized by overseas countnes under a mutual recognnlOo program established by bitaterial or mu~ilateral arrangement; and Suth other trade facilitation benefits that may be afforded by BOC under existing laws and regulahons. .

In addition to the terms and condilions stated in the Applicahon Form. a trusted partner under the AEOPhilipPlnes Program shall have the following responsibilibes

3.1.1
3.7.2

3,7.3
3.7.4 3.8

To update BOC as and when there are significant changes to the company's secunty profile and Information required to be dlsciosed under SectIon 3.6.2 hereof: . To submit an annual statement of commitment; and To inform BOC 01 any non-contonnmes by the company with AEO-Philippines Guidelines: To renew its accreditation as trusted partner every two (2) years Program shall be suspended and/or revoked if:

Accreditation under the AEO-Philippines 3.8.1 3.8.2

The company does not abide by the terms and conditions of the AEOPhilipp,nes certification: or There is non-compliance by the company with Philippine Customs laws and regulations and/orwith the laws and regulations of other relevant Phibpptne government 8uthoribes: or

3,8J .3.8.4

Supplycham secuntyweaknesses in the company or noncontonnityby the company with this Order and its Implementing Rues and Regulations are discovered and not rectified 10 BOC's satisfaction: or The company opts to withdraw from the program.
8 company's

3.9

application and participation In the AEO.PhilipPlnes Program by lodging its appeal with the Commissioner of Customs within 15 calendar days trom the date of receipt of the relevant decision communicated to the company by BOe. 'The business documentslinformatlon are for BOC purposes only and will not be dISclosed to a third party without the companies' prior written consent. All bUSiness documentsllnformatton provided by the companies will remain confidential A thir~ party vaHdator may be authonzed to assist the BOC in the accomplishment of security assessment reviews and related validation procedures, ' The cost involved in the security assessment reViews and related validation procures shall be borne by the applicant to the Program, .

A company can lodge an appeal against a BOC decision denying

3.10

3.11

3.12

4.0 IMPLEMENTING RULES AND REGULATIONS


, The Commissioner of Customs, upon cue consultation with the pnvate sectorlstakehokJers. shall ISsue the necessary 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 parts not so declared shall remain in full force and effect

7.0 EFFECTIViTY
This Order shall take effect fifteen (15) days after publication
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,P.s.Aue, 15, 2012