Compositions of Post Clearance Audit Group in CAO 01-2019

Compositions of Post Clearance Audit Group in CAO 01-2019

Overview

Under Customs Administrative Order (CAO) No. 01-2019, the Philippine Bureau of Customs (BOC) established the Post Clearance Audit Group (PCAG) to ensure compliance with customs regulations and generate additional revenues. The PCAG consists of two main operating units: the Trade Information and Risk Analysis Office (TIRAO) and the Compliance Assessment Office (CAO).

Operational Structure

The PCAG is divided into two operating units under the supervision of the Assistant Commissioner for Post Clearance Audit, who is appointed by the President of the Philippines and recommended by the Commissioner of Customs. The operating units are:

1. Trade Information and Risk Analysis Office (TIRAO): Headed by a Director II, TIRAO focuses on analyzing trade information and assessing risks associated with customs transactions. It determines the eligibility of firms for post clearance audits based on factors such as the volume of trade, compliance history, and sector-specific risks.

2. Compliance Assessment Office (CAO): Also headed by a Director II, CAO oversees the execution of audits on selected firms identified by TIRAO. It ensures that companies comply with customs rules and regulations, and it submits reports on audit findings to higher authorities.

Selection Criteria for Post Clearance Audits

The following criteria are considered when selecting companies for post clearance audits:

• Relative magnitude of customs revenue generated by the company
• Rates of duties applied to their imports
• Compliance track records
• Assessment of the risk to revenue from the company's import activities
• Compliance levels within the trade sector
• Non-renewal of an importer's customs accreditation

Entities required to maintain records for these audits include importers, consignees, importers of record, owners of goods, or parties involved in the storage or transportation of the imported items.

Key Features of CAO No. 01-2019

Some of the key features of CAO No. 01-2019 include:

• Determining criteria for post clearance audits
• Identifying records needed for auditing purposes
• Outlining consequences for failing to cooperate or comply
• Implementing the Prior Disclosure Program (PDP)

The PDP allows importers to voluntarily disclose discrepancies or errors in their customs declarations before being detected, potentially reducing penalties for non-compliance.