PEZA-registered locators exempt from BIR clearances

LOCATORS in special economic zones need not secure the requisite Bureau of Internal Revenue (BIR) clearances for importers and customs brokers as part of a government effort to facilitate trade, according to an order by Finance Secretary Cesar V. Purisima issued last month.

“All locators of PEZA (Philippine Economic Zone Authority) special economic zones throughout the Philippines, duly registered with PEZA are exempted from the requirements of Department Order (DO) 12-2014 as amended by DO 18-2014, and shall be eligible for accreditation as importers with the Bureau of Customs Account Management Office (BoC-AMO),” according to Mr. Purisima’s DO 107-2014 signed Nov. 28.

The twin orders require importers and brokers to secure an importers clearance certificate (ICC) and a customs broker clearance certificate (BCC) as a new requisite before they can transact with the Bureau of Customs.

While PEZA locators are exempted from the requirement, the BoC may still require them to submit documents and information before accreditation is granted.

“PEZA locators that will import goods into the Philippines will have to comply with the documentary requirements provided in the relevant rules of procedure of customs,” the order stated.

“Failure to do so will subject them to the sanctions and penalties as provided by the Tariff and Customs Code of the Philippines, as amended, and by pertinent customs laws and regulations,” it added.

The Finance Department, on Feb. 6, issued Department Order (DO) 12-2014 requiring importers and brokers to secure a BIR Importer Clearance Certificate (BIR-ICC) and a BIR-brokers clearance certificate (BCC) as a requisite for accreditation with the BoC.

The new system aims to support the government’s goal of improving accountability and tax compliance.

Importers were originally given 90 days to comply with the new rule.

Of the 14,995 importers and brokers registered with the Bureau of Customs’ (BoC) client profile registration system before the July 31 deadline, 9,418 or 63% were able to comply.

However, it noted that only 11 or 0.1% of the total importers were able to beat the original May 21 deadline. A total of 3,377 applied in the first extension while an additional 6,030 sought accreditation during the second extension.

Importers and brokers who failed to beat the deadline are treated as new applicants. --Mikhail Franz E. Flores

source:  Businessworld