HB 1653 and Its Impact to Customs Brokers

by: Atty. FERDINAND A. NAGUE Chairman, Professional Regulatory Board for Customs Brokers
July 07, 2011

OVERVIEW
What are Customs Brokers?  RA 9280 & RA 9853  HB 1653  Crazy Rationale  Amendatory Provisions  Impact to the CB Profession  PRBCB Plans  Concerted Actions Needed


Customs Broker - Any Person who is a bona fide holder of a valid CR/PIC issued by the PRB-CB and PRBPRC. (RA 9280) Customhouse Broker- A customs Brokerbroker who is accredited by CASCASCustoms Legal Service to practice in the Bureau of Customs. (CAO3(CAO32006)

Any person who is engaged in the practice of his/her respective profession or is performing acts or activities, whether occasionally, regularly or occasionally, including those holding positions in the government or private firms, whose and duties require knowledge application of their respective professions as defined in various professional regulatory laws. laws.

Practicing Professional -

RA 9280 as amended by RA 9853



RA 9280 CUSTOMS BROKERS ACT OF 2004 Regulating the Practice of Customs Broker Profession in the Philippines. RA 9853 - Amending Sec. 27 & Sec. 29 of RA 9280 - Sec. 27. Acts Constituting the Practice of CB - Sec. 29. Prohibition Against Corporate Practice (now: Admission to Professional Practice)

Effectivity of RA 9280/9853 & IRR



EFFECTIVITY OF RA 9280 April 21, 2004. PRBCB RESOLUTION NO. 03, S. 2005- took effect on 2005March 27, 2005. CA0 3-2006-A- took effect in 2006 3-2006EFFECTIVITY OF RA 9853 - Dec. 15, 2009 (During the 14TH CONGRESS). PRBCB RESOLUTION NO. 01- took effect on April 22, 012010. BOC yet to issue CAO implementing RA 9853

RA 9280 provisions amended by RA 9853



SEC. 27. ACTS CONSTITUTING THE PRACTICE OF 27. CUSTOMS BROKERS. Import and export entry declaration shall be signed only by customs broker under oath based on the covering documents submitted by the importers. Now: Now: Import entry shall be signed by a customs broker and the consignee/owner/importer under oath based on the covering documents submitted by the importers: importers: Provided, That export declaration shall be signed by the exporter or at his option, delegate the signing and processing of the document to his designated customs broker or authorized representative. (Sec. representative. (Sec. 1, RA 9853) 9853)

Meaning of Engaging in the Engaging Business of Customs Brokerage Brokerage



Meaning of:

Making representations on behalf of importer-clients in the Bureau of importerCustoms and other government agencies: agencies: Provided, That such corporations engaged in the business of customs brokering shall have a minimum paid-up capital of PHP1M paidPHP1 before they are accredited by the BOC. BOC.
[Sec. 2 (2nd par.), RA 9853] Sec. par. 9853]

RA 9280 provisions amended by RA 9853



SEC. 29. PROHIBITION AGAINST CORPORATE 29. PRACTICE. The practice of customs broker is a professional service, admission to which shall be determined upon the basis of individual and personal qualifications. No firm, company, or association may be registered or licensed as such for the practice of customs broker profession. profession. Now: Now: ADMISSION TO PROFESSIONAL PRACTICE. PRACTICE. However, nothing in this Act shall prevent a corporation from being registered for the purpose of engaging in the business of customs brokerage as long as the corporation shall engage or hire the services of at least one (1) customs broker. (Sec. broker. (Sec. 2, RA 9853) 9853)

Amendatory Provisions of PRBCB Resolution No. 01-2010 01RA 9853: Provided, That export declaration shall be 9853: signed by the exporter or at his option, delegate the signing and processing of the document to his designated customs broker or authorized representative . (Sec.1) (Sec. PRBCB Res. No. 01-2010: That export declaration Res. No. 01-2010: shall be signed by the exporter or at his option, delegate the signing and processing of the document to his designated customs broker or authorized representative who shall be a full time regular exporter s employee knowledgeable in customs and tariff. (Sec. 2) tariff. (Sec.

Amendatory Provisions of PRBCB Resolution No. 01-2010 01RA 9853: However, nothing in this Act shall prevent a corporation 9853: from being registered for the purpose of engaging in the business of customs brokerage as long as the corporation shall engage or hire the services of at least one (1) customs broker. (Sec. broker. (Sec. 2) PRBCB Res. No. 01-2010: However, nothing in the RULES Res. No. 01-2010: shall prevent a corporation from being registered for the purpose of making representation on behalf of importer-clients in the Bureau of Customs and other importergovernment agencies as long as the corporation shall engage or hire the services of at least one (1) customs broker in his professional capacity. capacity. To avoid confict of interest a customs broker may not enter in to engagement with more than one (1) corporation. corporation. (Sec. (Sec. 2)

Amendatory Provisions of PRBCB Resolution No. 01-2010 01

Meaning of Making Representation in Behalf of the Importer-Clients in the ImporterBureau of Customs: Shall refer only to activities other than those in Sec. 6, Article II of RA 9280 and Sec. Sec. Sec. 6, Rule II of the IRR which enumerate the scope of the customs broker profession, as such only the name of the Professional Customs Broker shall appear in the import entry for lodgment with the BOC. [Sec. 2 (2nd par.), RA BOC. [Sec. par. 9853

Scope of CB Practice under RA 9280

   

Consultation Preparation of customs documents Declaration of customs duties and taxes; Preparation, signing, filing, lodging and processing of IMPEX entries and documents
Representing importers and exporters before any government agency and private entities in cases related to valuation and classification of imported articles

Cont.


Rendering of other professional services in matters relating to customs and tariff laws, its procedures and practice. Private employment requiring professional knowledge in customs and tariff. Teaching Customs Administration subjects in HEIs.

HB 1653 and its crazy Rationale



By allowing any person doing business as IMPORTERS/EXPORTERS to exercise some of the functions of CBs (except (except CONSULTATIONS/TEACHINGS): - Trade transactions are simplified

- Eliminate Red Tape - Reduce Cost - PHL Products more competitive

By allowing AUTHORIZED REPRESENTATITVES of importer/exporter to sign Import entry and Export Declaration: - AVOID RED TAPE

Questionable Wisdom of HB 1653

   

  

Author is not aware of RA 9853 since Dec 2009. HB 1653 was filed during the 15th Congress while RA 9853 was already a law during the 14th Congress. Importers/Exporters may now become professional smugglers under HB 1653. They seem to forget that CB is a regulated profession acquired through individual and personal qualification with degree requirement and professional ethics. Business pursuit requires no professional, educational and ethical standards. Government is shortchanged and revenue is compromised. Smuggling will flourish even more.

PRBCB PLANS


BIG NO TO HB 1653!

 

     

CLOSE MONITORING OF EVENTS IN CONGRESS (i.e., public hearings and consultations). CONTINUOUS CONSULTATIONS WITH THE CHAIR OF THE HOUSE MOTHER COMMITTEE ON CIVIL SERVICE AND PROFESSIONAL DEVELOPMENTS. MEETING/BRIEFING WITH CONG. RUFUS RODIRGUEZ. CONTINUOUS CONSULTATIONS WITH CCBI. ACTIVE PARTICIPATION IN CONGRESSIONAL hearings . SUBMIT POSITION PAPER AGAINST HB 1653. SOLICIT THE SUPPORT OF PRC. CAMPAIGN AGAINST HB 1653.

DATA NEEDED


SOMEBODY HAS TO CHAMPION THE ECONOMIC ACTIVITY AND FINANCIAL IMPACT (FOR IMPORTERS/EXPORTERS) INVOLVED IN ENGAGING THE SERVICES OF A CUSTOMS BROKER (If any negative impact); and PREPARE A MEANINGFUL AND VERY GOOD POWERPOINT PRESENTATIONS ABOUT THE FUNCTIONS AND ESSENCE OF CUSTOMS BROKERS IN THE BOC, COLLECTION OF REVENUE AND PREVENTION OF SMUGGLING AND ANTI-SOCIAL GOODS.

Q&A

THANK YOU
and

GOD BLESS CUSTOMS BROKERS!