Cargo Targeting System guidelines now available for the Philippines

2020-04-30T18:38:43+08:00 April 30th, 2020|Insight, Medical Regulation Updates, News & Events|
OSCAR system

The Philippines’ Bureau of Customs (BOC) has issued operational guidelines for foreign carriers and their authorized agents on the submission of the advance cargo declaration and manifest to the Cargo Targeting System (CTS).

The Philippines’ Bureau of Customs (BOC) has issued operational guidelines for foreign carriers and their authorized agents on the submission of the advance cargo declaration and manifest to the Cargo Targeting System (CTS).

The BOC launched the Cargo Targeting System which is a World Customs Organization (WCO) enterprise solution last year. This was regulated for under the Customs Memorandum Order (CMO) No. 48-2019, signed on October 22, 2019.

The CTS complements the BOC’s risk management system and beefs up their intelligence system in identifying and preventing fraudulent practices, especially for regulated shipments. The system will make the processing of shipments more efficient and will greatly improve the profiling, risk assessment, anti-terrorism, law enforcement and trade facilitation initiatives of BOC. For example, the online system allows shipping lines to submit manifests in advance.

Submitting an advance manifest is a requirement under the Customs Modernization and Tariff Act (CMTA) and is part of BOC’s 10-Point Priority Program designed to boost trade efficiency while ensuring border security.

The new Customs Memorandum Order (CMO 48-2019) which covers the CTS applies to the following categories whose cargoes, including transshipments, are destined for the Philippines:

  • airlines
  • shipping lines/shipping agents
  • non-vessel operating common carriers
  • freight forwarders/cargo consolidators/co-loaders

When to submit the cargo manifest according to CMO 48-2019:

  • For sea freight carrier should submit the cargo manifest electronically at least 24 hours before the vessel arrives.
  • For air freight, submission should be at least one hour before the aircraft arrives if the port of origin is in Asia, and at least four hours before it arrives if the port of origin is other than Asia.

Rules on the electronic cargo manifest/consolidated cargo manifest (CCM):

  • It should be submitted to the CTS in XML format or in any other format prescribed by BOC.
  • The carrier should use BOC-accredited value-added service providers (VASPs) or accredited information processors for the submission of an Inward Foreign Manifest (IFM) or a Consolidated Cargo Manifest (CCM) to the CTS and to E2M (electronic to mobile) system.
  • The cargo description in the cargo manifest must be precise enough to enable BOC to identify goods for discharge at the port and take pre-emptive action, if warranted.
  • Generic descriptions in the cargo manifest of the carrying vessel such as FAK (Freight All Kinds), general cargo and/or similar terminologies will not be allowed and will be considered as failure to exhibit the required document. Only the master bill of lading (B/L) or master air waybill (AWB) are allowed to use cargo description such as “consolidated Balikbayan box” for freight forwarders handling balikbayan boxes only, or “consolidated cargo” for freight forwarders handling non-balikbayan boxes.

Penalties for failure to comply

Under Section 1412 of the CMTA, failure to transmit the electronic manifest within the required time will make the owner, operator, or agent of the vessel or aircraft liable for a fine of not less than P100,000 but not more than P300,000. If the transit time from port of origin to port of entry is at least 72 hours, the shipping or forwarding agent of the carrier or the vessel that fails to submit the manifest at least 24 hours before entry will likewise be liable for a fine of not less than P100,000 but not more than P300,000.

About the WCO CTS:

The CTS helps identify high risk shipments and facilitates trade. It allows WCO member-countries to adopt international best practice in cargo risk assessment. And it implements key parts of the WCO’s SAFE framework to secure and facilitate global trade. Click here for information on the CTS in the Philippines.

For more information on our services in the Philippines or if you’d like help with the customs declarations in the Philippines please contact Andaman Medical.