Customs Memorandum Order CMO No. 09-2021

Customs Memorandum Order (CMO) No. 09-2021

• Aims to implement Customs Administrative Order (CAO) No. 05-2020 on Customs clearance procedures for express shipments.
• Sets guidelines for accrediting Air Express Cargo Operators (AECOs).
• Establishes procedures for the clearance of express shipments consigned to AECOs, aligning with WCO and WTO guidelines.
• Promotes consistent application of regulations for express shipments' transport, documentation, and clearance.
• Implies a risk-based control approach, prioritizing facilitation of low-risk shipments over stricter control for high-risk shipments.

Definition of Terms

• Air Express Cargo Operator (AECO): A company that provides fast and rapid express shipment delivery, either directly or indirectly.
• Air Waybill (AWB): A transport document used by airlines and freight forwarders outlining shipment details, including consignee and carriage conditions.
• Master Air Waybill (MAWB): An AWB issued by an air carrier to an international freight forwarder or consolidator.
• House Air Waybill (HAWB): An AWB issued by a freight forwarder or consolidator to a sender, specifying the sender, receiver, and detailed goods.
• Bureau: The Bureau of Customs.
• Cargo Manifest: A detailed list of cargo on board a vessel or aircraft. Includes commercial details of goods, such as documents, consignors, consignees, marks, packages, weight, description, and destination.
• Inward Foreign Cargo Manifest (IFCM): A Cargo Manifest for shipments destined for unloading in the Philippines. Available in electronic format (e-IFCM).
• Consolidated Inward Foreign Cargo Manifest (CIFCM): A manifest of individual shipments consolidated for unloading in the Philippines, acting as a rider to the inward foreign manifest. Available in electronic format (e-CIFCM).
• Outward Foreign Cargo Manifest (OFCM): A list of House Airway Bills and/or Master Airway Bills concerning transshipment cargoes departing on a flight. Available in electronic format (e-OFCM).
• Transshipment Foreign Cargo Manifest (TFCM): Documents of shipments intended for temporary unloading in the Philippines for re-exportation to another country. Available in electronic format (e-TFCM).
• Clearance: The completion of customs and related government formalities for goods imported or exported.
• Admission: Act of bringing imported goods into a Free Zone.
• Consumption: Intended use of goods within the domestic market.
• Transit: Transporting goods under customs control between customs offices. This can included transshipment within the same port.
• Warehousing: Storage of goods under customs security in a Customs Bonded Warehouse (CBW).
• De Minimis Value: Value of goods on which no duty or tax is collected.
• Express Shipments: Consolidated air shipments of time-sensitive goods delivered door-to-door.

Customs Control over Express Shipments

• The Bureau of Customs reserves the right to examine, detain, seize, or confiscate goods.
• Post-clearance audits will be conducted.
• Risk management systems may be used.

Accreditation of AECO

• AECOs must be accredited by the Bureau of Customs before handling express shipments.
• Accreditation requirements include documentation and systems compliance.

Establishment of Customs Office

• A customs office must be established inside the AECO facility at international airports where the AECO has its office.

Other Key Points

• Overtime Pay: Regulations for overtime pay for customs personnel working for AECOs.
• Security Deposit: Regulations for security deposit from AECOs. Must deposit at least Five Million Pesos to ensure payment of assessed duties.
• Categories of Express Shipments: Correspondence and documents, de-minimis/low-value, and high-value shipments are some categories of express shipments.
• Submission of Cargo Manifest: Requires a true copy of the IFCM and CIFCM, e.g., details of shipments, consignees, and shippers to be submitted before arrival for pre-clearance.
• Exceptional Circumstances: Provides a list of cases that would justify deviations from regular procedures, e.g., weather-related delays, natural disasters, etc.
• Transshipment: Rules for transshipment of goods, including documentation for temporary unloading in the Philippines for later export to another country.