CUSTOMER ADVISORY: New Philippine Import Regulations (JAO No. 001-2025)

5 Mar, 2025 by Cherry Pascual

The Bureau of Customs (BOC) has recently issued Joint Administrative Order (JAO) No. 001-2025: Guidelines for Administrative Order No. 23, series of 2024 “Implementing a Digital and Integrated System for the Pre-Border Technical Verification and Cross-Border Electronic Invoicing of All Import Commodities” was issued last January 20, 2025, and took effect last February 11, 2025. The program shall be fully implemented within 2 years from the effectivity of A.O. No. 23, s. 2024.

The Pre-Border Technical Verification (PTV) System refers to the testing and inspection of all commodities by accredited Testing, Inspection, and Certification Companies before exportation to the Philippines to verify in advance the declared specification, weight, volume, country of origin, and other requirements as specified in the JAO appendices

The Cross-Border Electronic Invoicing (CEI) System refers to a system used by a verified and registered foreign exporter to create electronic invoices on a single electronic platform controlled by the Philippine Government.

PTV Coverage:

Full Container Load (FCL) of the following shipments:

• Appendix A – Agricultural Products
• Appendix B – Non-agricultural products with health and safety issues
• Appendix C – High-risk goods or goods susceptible to misdeclaration to avoid duties and taxes
• Agricultural products under items iv, vi, vii, viii, and x of the PTV exemption list:
  • Goods where the consignee is the Philippine government or any of its corporations, agencies, or instrumentalities but not including goods imported on behalf of these instrumentalities by private importers
  • Imports by registered export enterprises duly registered with investment promotion agencies
  • Importations made by foreign governments or international organizations
  • Goods qualified under BOC’s Super Green Lane Facility
  • Goods destined for customs-bonded warehouses

CEI Coverage:

All goods imported, whether by air or sea.

Exemption from PTV:

1. Goods that are already covered under the BOC Bulk and Break-Bulk Cargo Clearance Enhancement Program
2. Goods shipped in Less Container Load
3. Balikbayan boxes and personal and household effects of returning residents
4. Goods where the consignee is the Philippine government or any of its corporations, agencies, or instrumentalities but not including goods imported on behalf of these instrumentalities by private importers
5. Explosives, ammunition, arms and equipment, and other strategic materials certified as such by the Department of National Defense
6. Imports by registered export enterprises duly registered with investment promotion agencies
7. Importations made by foreign governments or international organizations
8. Goods qualified under BOC’s Super Green Lane Facility
9. Imports made by accredited companies under BOC’s Authorized Economic Operator Program
10. Goods destined for customs-bonded warehouses

Exemption from both PTV and CEI:

1. Personally owned motor vehicles under No-dollar Importation Program
2. Motor Vehicles for the use of an official of the Diplomatic Corps

READ: Royal Cargo’s Role in the EU-PH Trade Agreement

Advance clearance procedure is qualified for shipments that have undergone PTV and have been issued a Certificate of Conformity subject to the following conditions:

1. The importer has filed an import entry and paid the proper duties, taxes, and other fees on such importation.
2. The information under the import entry, bill of lading, commercial invoice issued by the exporter, and Certificate of Conformity match and refer to the same goods
3. The e-invoice from the exporter contains a full statement of the costs of the shipment for the purpose of calculating the duties and taxes.

Withdrawal from Port

Upon arrival of such importation, the importer may immediately cause the withdrawal of the same from the port:

1. Upon presentation of proof of payment of duties and taxes and
2. Compliance with the applicable border regulatory rules by regulating agencies 

Non-Compliance And Penalties

1. Goods without an e-invoice have not undergone PTV when required, and those that have been issued a Discrepancy Report shall be:
   1. Considered as High-risk 
   1. Subject to 100% physical Inspection
   1. Other applicable controls of ATICC, the Regulatory Agency, and the BOC
2. Failure to subject the shipment to PTV or CEI shall be subject to the following penalties:
   1. 1^st Offence: 30% of the dutiable value of the goods
   1. 2^nd Offense: 50% of the dutiable value of the goods
   1. 3^rd Offense: revocation of accreditation of the importer

PTV Implementation schedule

• Phase 1 (Agricultural products under Appendix 1 of the JAO) – 30 days after the publication of the BOC Customs Administrative Order (CAO), providing the specific procedures for the PTV.
• Phase 2 (Non-agricultural products with health and safety issues under Appendix 2) – 60 days after the publication of the BOC CAO
• Phase 3 (Other goods susceptible to misdeclaration to avoid duties and taxes under Appendix 3) – 90 days after the publication of the BOC CAO

CEI Implementation schedule

• Mandatory registration of exporters abroad – 30 days after the publication of the CAO providing the specific procedures for the CEI
• Mandatory use of the CEI system for all imports covered by the BOC BBCCEP – 60 days after publication of the BOC CAO
• Mandatory use of the CEI system for all other imports – 90 days after publication of the BOC CAO

These regulatory changes represent a significant shift in Philippine trade. Royal Cargo is here to guide you through these new requirements, ensuring a smooth and compliant import process. You may email us or contact your Royal Cargo representative today for further details or assistance.

Share This News