Congress of the Philippines : PCCI to Congress: Customs personnel doing overtime work should be paid by BOC, not by third parties

January 19, 2014 at 10:02 pm EST

MarketScreener.com By

The Philippine Chamber of Commerce and Industry (PCCI), known as the country's "single voice of business," has proposed to Congress that Bureau of Customs personnel assigned by a collector to do overtime work shall be paid by the BOC and not by third parties.

The PCCI through its president Miguel Varela made this proposal in a letter to the House Committee on Ways and Means chaired by Rep. Miro Quimbo (2nd District, Marikina City) which sought the organization's position on the proposed Customs Modernization and Tariff Act (CMTA).

Varela said the PCCI has consistently called on the government to declare 24/7 operations of Customs, Immigration and Quarantine (CIQ) and for the government to duly compensate concerned CIQ personnel, as these are basic services that the government should provide.

"We feel that charging for instance airlines for CIQ overtime unfairly shifts the costs of performing these government services to the private airlines," said Varela.

Varela was reacting to Section 1605 (Customs Service Fees) of House Bill 10 filed by Rep. Reynaldo Umali (2nd District, Oriental Mindoro) which provides that "Customs personnel may be assigned by a collector to render overtime work and other customs services based on service fees fixed by the Commissioner of Customs, as approved by the Secretary of Finance, to be paid by the importers, shippers, airlines, shipping lines, logistics, provider, port operators and other third parties" and Section 1605 of HB 5 filed by Rep. Rodolfo Biazon (Lone District, Muntinlupa City) which provides that "Customs personnel may be assigned by a collector to render overtime work and other customs services during weekends and holidays based on rates fixed by the Civil Service Commission, to be paid by the Bureau."

Varela said the PCCI's proposed revision to HB 10 provides that "Customs personnel may be assigned by a collector to render overtime work and other customs services based on service fees fixed by the Commissioner of Customs, as approved by the Secretary of Finance based on rates fixed by the Civil Service Commission, to be paid by the Bureau. For HB 5, PCCI's proposal is that "Customs personnel may be assigned by a collector to render overtime work and other customs services based on rates fixed by the Civil Service Commission, to be paid by the Bureau."

According to him, the PCCI is hopeful the final CMTA will be able to address the need to modernize current customs administration to align it with international best practices and standards set by international protocols, ensuring a smooth shift as both revenue or collection and a trade facilitation agency.

"With the tremendous growth in the cross-border movement of commodities and continuing liberalization of international trade, the need to streamline border procedures has assumed great importance. Customs must be able to adapt its role from the traditional collection of duties and taxes, to executing controls and other activities that serve a wilder set of objectives, e.g. trade facilitation and security," said Varela.

Meanwhile, the PCCI also proposed revisions to Section 110 (Declarant) and Section 111 (Rights and Responsibility of the Declarant) of both House Bill 5 and 10 to make them consistent with the Revised Kyoto Convention (RKC). The RKC provides that the owner of the goods, whether a natural or juridical person, shall have unrestricted choice of making declaration, either through himself, or through a third party regardless of whether it is authorized officer or accredited customs brokers.

The PCCI's proposed revision to Section 110 provides that "A declarant is a person who makes and submits to customs goods declaration or in whose name such declaration is made. Any person having the right to dispose of the goods shall be entitled to directly declare as declarant. However, when he authorizes an agent to make the declaration in his behalf, he can do so through an accredited customs broker or any duly authorized representative."

As to Section 111, the PCCI's proposed revision provides "The person having the right to dispose shall be responsible for the accuracy of the information in the goods declaration made directly or through an agent and shall be liable for their duties, taxes and other charges due on the imported article. The declaration shall be under oath under the penalties of falsification or perjury that the statements contained in the goods declaration are true and correct. Such statements under oath shall constitute a prima facie evidence of knowledge or consent of the violation of any applicable provisions of the Act when the importation is found to be unlawful."