BORDER

MANAGEMENT
CROSS BORDER
MANAGEMENT
Customs and other government agencies play a pivotal role in the facilitation of
international trade. Besides having to efficiently manage the clearance and ensure the
security of international cross-border movements of goods and conveyances, these
organizations also have to apply coordinated cross-border management principles to
foster cooperation and to coordinate their respective regulatory activities.
Goods have to undergo at least two sets of border formalities.
2 SETS OF BORDER
FORMALITIES:
1. COUNTRY OF EXPORT
2. IMPORTING COUNTRY
WHO CONDUCTS BORDER
MANAGEMENT?
1. Bureau of Customs
2. Other government agencies involved in the implementation of border security
Example:
a. Department of Agriculture- prevent the entry of smuggled
agricultural products
b. Phil. Drug Enforcement Bureau- prevent the entry of drugs
c. Department of Trade and Industry- prevent the entry of infringing
goods.
INTEGRATED DATA
MIGRATION SYSTEM (IDMS)
 operations of moving data between systems. Those projects are often referred to as
Extract, Transform and Load (ETL) process. Data are retrieved from the original
database, normalized to match the new system format and loaded in the target system.
 improves the ability of participating agencies to work together and exchange
information in real time.
PHILIPPINE NATIONAL
SINGLE WINDOW (PNSW)
SYSTEM
a digital platform for guidance of investors to identify and to apply for

permits/approvals for their import/export requirements
 allow single submission and accelerated processing of applications for licenses,
permits and other authorizations required prior to undertaking a trade transaction
 Promotes trade facilitation
TYPES OF IMPORTATION
1. FREE IMPORTATION
2. REGULATED
3. PROHIBITED
4. RESTRICTED
AUTOMATED FORMAL
CONSUMPTION ENTRY
PROCESSING UNDER E2M
CUSTOMS SYSTEM AND
MANUAL RELEASE
WHAT E2M CUSTOMS
PROJECT SEEKS TO ACHIEVE?
 Streamline the core process (imports and exports) of BOC; and
 Enhance trade facilitation between the BOC and its stakeholders including other government
agencies (OGAs) through the development and integration of various systems allowing
internet-enabled and later SMS-enabled
Thus, less face to face transactions towards the realization of the Philippine
National Single Window (PNSW) and the ASEAN Single Window (ASW)
FEATURES OF THE E2M
CUSTOMS
1. Online submissions of declarations
2. Automatic advise on declaration status
3. Engagement of the Value Added Service Providers (VASPs)
4. Online submission of manifests by airlines, shipping lines and consolidators
5. Automated process for other types of import transaction such as informal (including passenger
baggage system, warehousing and transshipment entries)
6. Automated process for liquidation of raw materials
7. Centralized management of bonds transactions
8. Links and relevant government agencies; and
9. Online resource access through the BOC website on issuances, processes, policies, guidelines
and other related information
INITIAL E2M
IMPLEMENTATION:
IMPORT ASSESSMENT
SYSTEM (IAS)
 A set of application components that handles the flow of import processing which includes
electronic manifest clearance, import declaration entry, risk management, regulatory
clearances and release of cargo.
HOW IAS WORKS?
1. Pier Inspection Division (PID) or its equivalent office encodes/records the estimated and
actual date and time of vessel arrival
2. Shipping lines, airlines and consolidators submit electronic manifests and Bill of Lading
trough VASP
3. Importers/brokers secure licenses, clearances and permits to import regulated/restricted
goods from the concerned government agencies prior to filing import entry declaration
4. Importers/brokers file import entry declaration (stating bank account information and
application TEC,TDM and IED accounts) by filling out the Single Administrative
Document (SAD) declaration online through VASP
5. For regular importers, SAD with two copies (original and copy) Bill of Lading, Commercial
Invoice, Import Permit/Clearance are presented to the EPD or EPU
6. For SGL accredited importers use SAD which is required to be submitted together with the
required attachments by second working day of the following week from entry lodging.
7. Both for regular and SGL accredited importers customs documentary stamps are to be paid
through PASS5
8. SAD shall be notarized
E2M COMPONENTS BEING
IMPLEMENTED THROUGH IAS
1. Client Profile Registration System
2. Electronic Manifest System
3. Formal Entry System
4. Warehousing Entry System
5. Payment Abstract Secure System version 5
6. Other Settlement Modes consisting of Tax Exemptions, Import Entry Declaration for
Advance Duties, Tax Debit Memos, Deferred Payment of Government Account
7. On-Line Release Systems
8. License and Clearance System for government agencies that are already connected to the
National Single Window.
CLIENT PROFILE
REGISTRATION SYSTEM
 Involves the process of capturing client information during the accreditation and/or registration of the various
BOC client and stakeholders by filling out client specific accreditation form. The captured information is stored
in a central database to allow easy access to stakeholder’s information by operating units and systems serving
line functions.
 Client registration is mandatory as various transactions with the Bureau cannot be processed unless the client is
duly registered with the CPRS. The e2m Customs systems that will be relying on the CPRS database in validating
every client transactions are the EMS, FES, ABMS, AEDS, WES, Transshipment System, OLRS, LCS, HAS and
the Selectivity System.
 A stakeholder shall be CPRS registered for every role they will assume their transactions with e2m Customs. As
such as importer who also exports shall CPRS register as an importer or exporter.
- CPRS registration of importers and customs brokers are a combination of manual accreditation and
automated procedures
- A Customs Client Number (CCN) shall be issued for every successful CPRS registration
NOTE: In actual practice those undergoing combined manual and e-registration submits print out of “stored
CPRS profile” together with supporting documents.
STAKEHOLDERS ACCREDITED
BY BOC
STAKEHOLDER BOC ACCREDITING OFFICE
Importer Account Management Office (AMO) – Two Phase
Accreditation (BIR and BOC)
Customs Broker AMO (BIR and BOC)
Warehouse/Airport Warehouse Operator AOCG Customs Bonded Warehouse Committee
CY-CFS Operator AOCG CY-CFS Accreditation Unit
Surety Company Bonds Division
PEZA Enterprises AMO (CMO 3-2015)
ACCREDITING OTHER
GOVERNMENT AGENCIES
(OGA)
STAKEHOLDER ACCREDITING OFFICE
Shipping Line Marina and AISL
Freight Forwarder/ Consolidator PSB (Sea Freight)
CAB (Air Freight)
Investment Promotions Exporters (those enjoying BOI, PEZA, SBMA, CDC, ZEZA, AFAB (Garments
Fiscal Incentives) Exporters under GTIS under CMO 7-2012 it is
GTIS but this office has been renamed to GTIDO)
Accrediting Office is BOI except those PEZA and
Freeport enterprises
Exporters not enjoying Fiscal Incentives PhilExport
Arrastre Operator PPA
AAB Bankers Asso. Of the Philippines
Tourist Enterprise Zone Operators and Registered Tourist Infrastructure and Enterprise Zone Authority
Tourist Enterprise (TIEZA) – an attached of DOT
PHILIPPINE NATIONAL
SINGLE WINDOW (PNSW)
 The License and Clearance System (LCS) has been replaced by PNSW
 Tagging of e-Permits/Clearance of import/export cargoes through the Philippine National
Single Window (PNSW) shall initially be implemented at MICP and POM for
epermits/clearances issued by Head Offices and NCR offices of regulatory agencies.
WAREHOUSING ENTRY
SYSTEM
 Facilitates the declaration processing of tax and duty free importations under bond of raw
materials or semi finished goods used by local enterprises to manufacture and assemble goods
for exportation.
INFORMAL ENTRY SYSTEM
 Monitors and controls the acceptance of informal entries or goods that are not classified for
commercial value
E2M PROCESSING FOR
INFORMAL ENTRY OF
COMMERCIAL GOODS FRO
SEAPORTS
1. E2M Customs System shall allow shipment to be declared under Informal Entry if the
following criteria are met:
a. Total Customs Value is $ 500.00
b. Total Gross weight is less or equal 300 kilograms
c. Total number of packages are less or equal 12
d. The shipment volume is less or equal one cubic meter
e. The consignee is registered CPRS as an individual entity
2. All informal entry declaration have to lodge through the VASPs. The printed copy of the
SAD in the required number of copies and all other supporting documents must be
submitted to the BOC.
3. Only Customs Brokers and Consignee registered with CPRS pursuant to CMO 39-2008
shall be allowed to submit informal entry declaration in e2m Customs System through the
VASP.
4. The consignee may register himself on a Once-a-Year Importer
5. Shipments that do not qualify for informal entry under the above criteria shall be lodged
under Formal Entry.
6. Informal entry declarations shall be subject to Selectivity.
7. Duties and Taxes shall be settled using PASS5 for the automatic debit of the amount from the
Importer’s nominated bank account
8. Other modes of settlement – Tax Exemptions are allowed as payment for duties and taxes
9. When an informal entry declaration is Post Entry modified after the examination results in
adverse findings, payment of the additional duties and taxes shall not initiated a release message
to the port operator/transit shed.
10. A manual release instruction shall be printed out from e2m Customs System into a con-
editable format (PDF) at the office of the Collector. This release instruction PDF shall be
emailed from the Collector of the Port’s official BOC email address to a designated email
address of the port operator. Manual release instructions provided to the Port by other means
shall not be honored by the port operator.
ELECTRONIC MANIFEST
SYSTEM (EMS)
 E-IFM consists of all master bills of lading of shipment consigned to ultimate and nominal consignees;
 E-CCM consists of all house bills of ladings of shipments consigned to ultimate consignees
degrouped/split from the master bills of lading of shipments whose consignees are just nominal such as
banks, forwarders and consolidators;
 Submission of e-IFM and e-CCM must be done through any of the VASPs accredited by the BOC
 Thee2m import declaration is accepted by the system only when the following requirements are
accomplished:
a. The e-manifest has been officially accepted by EMS
b. the Bill of Lading (B/L) is a house BL
c. The house BL is also registered
 When the BL number has been used in an e2m import declaration, the corresponding BL in the e-
manifest can no longer be subject of any amendment to the e-manifest.
SUBMISSION OF E-MANIFEST:
SEA FREIGHT
1. For containerized cargo the e-IFM (for shipping line) and e-CCM (for NVOCC) must be
submitted by the parties concerned to BOC (Attn: MISTG) electronically within 24 hours
from the time of departure of the mother vessel from the actual exporting port of origin.
2. In the case the containerized cargoes are transported by a feeder vessel, the e-IFM shall be
submitted within 24 hours and the e-CCM within 36 hours from the time of departure of the
said vessel from the last port of call destined to any port in the Philippines.
3. For non-containerized cargoes the e-IFM shall be submitted within 24 hours and e-CCM
within 36 hours from the departure from the actual exporting port of origin.

BASIS: CAO 1-2016

4. The e-IFM must be submitted ahead of the e-CCM. If the e-CCM is submitted ahead of the e-
IFM, the e-CCM will not be registered in the e2m Customs System but has to be re-submitted
when the e-IFM is already registered.
5. Based on the time of e-manifest submission, the EMS process the e-IFM and the e-CCM. The
process leads to classification of e-manifest submission into three time frames:
 ON TIME SUBMISSION

- 12 hours before the arrival in case of IFM

- 6 hours before arrival in case of CCM. In case of CCM is outside of government
regular working hours, it shall be submitted after vessel arrival but within the first two hours of
the next day
 LATE SUBMISSION

- after cut off time provided above (CMO 19-2015)

6. SUBMISSION OF SUPPLEMENTAL E-MANIFEST:
a. Cargoes/containers not listed in the IFM but are otherwise recorded in the Stowage plan
must be submitted not later than 48 hours from the date of discharge of the last package
from the vessel:
b. For cargoes/containers not listed in the IFM and Stowage plan must be submitted not later
than 24 hours from the date of discharge of the last package; and
c. In both cases, the Deputy Collector for Operations and the Chief PID or its equivalent office
monitor the 48 and 24 hours rule as the case may be before authorizing the registration of
the supplemental e-manifest into EMS.
d. Submitted in the electronic form and in hard copy within the period prescribed otherwise
the shipments covered shall be considered as unmanifested and subject to seizure. (CAO 1-
2006)
e. Considered as non-compliant submission (CMO 19-2015)
7. The system automatically registers a manifest in the e2m Customs if the manifest meets the
submission deadline.
8. Manual registration: If the deadline is missed, submit formal request letter to Deputy
Collector for Operations to allow a BOC initiated manual registration of the manifest in e2m.
Only the Deputy Collector for Operations can approve the request and execute the manual
registration (through the “Direct Register” function) in e2m.
9. PENALTIES:
Late Submission
 First offense – P 10,000.00
 Second offense – P 20,000.00
 Third offense – P 30,000.00
10. Aside from e-IFM hard copies shall be submitted in four copies and distributed as follows:
a. IG
b. PID or its equivalent unit of the port concerned
c. AOCG
d. Resident COA Auditor (CMO 6-2016)
11. VALIDATION OF BL
- done by either by the shipping line, consolidator or BOC
- once validated, the BL becomes ready for the filling of import entry and is
officially recorded in the BOC database which renders the B/L non-modifiable.
12. MODIFICATION OF “VALIDATED” BL LIMITS TO:
a. Type of BL (HBL/MBL)
b. Universal Consignee Reference (UCR)
c. Total Containers, Unit of measure of packages, volume (CBM)
d. Description of goods
e. Location of goods
f. Freight and amount
g. Declared value and currency type; and
h. Transport and insurance cost

When erroneous data needs to be corrected, the Shipping line or Consolidator may apply for
amendment of Manifest/BL data with the port concerned by securing the approval of the District
Collector subject to pertinent BOC regulations. Does not need OCOM clearance. (CMO 3-2014)
13. Once approved, the amendment of data in e2m is performed by the Deputy Collector for
Operations. The amended version of the manifest/BL is sent by e2m to the VASP from where
the original version was submitted. The VASP will send the amended copy of the BL to the
concerned arrastre operator to ensure the synchronicity of manifest/BL data between arrastre
operators and BOC.

14. The e2m prohibits the amendment of some BL data elements such as Nature of BL and
Consignee name. In this case the shipping line, or Consolidator will need to submit new BL to
replace the incorrect one. To prevent BL abandonment by the system due to non-filling of
import entry, a new BL must be submitted with a single letter suffix, while the original BL must
be referenced as master BL.
SUBMISSION OF E-MANIFEST:
AIR FREIGHT
1. Cut-off for the submission of IFM:
- If the port of loading is in Asia, submission time is upon arrival of the aircraft; and
- If the port If the port of loading is other than Asia, submission time is 4 hours before
the aircraft arrival.

2. Cut off for the submission of e-CCM

- If the IFM is submitted by the cut off time, the cut off time for e-CCM is one hour after the
aircraft’s arrival;
- If the IFM is submitted late, the e-CCM shall be accepted without penalty provided that the
time of submission shall not exceed 24 hours after the e-IFM is registered by the Office of the Deputy
Collector for Operations. This also applies incase the e-IFM are not validated on in time.
3. SUPPLEMENTAL e-IFM;
a. Shall be filed for cargo which arrives abroad a plane for which an e-IFM has already been
submitted; and
b. Was not covered by either master or house AWB that were part of the e-IFM which was
submitted.
c. TIMELINE OF SUBMISSION;
i. Provided e-IFM has been filed, submitted without penalty up to the 24 hours after the cut
off time for the e-IFM
ii. Any cargo not covered by an e-IFM or supplemental e-IFM within the timeline, will be
considered as unmanifested and subject to seizure.

4. PENALTY FOR LATE SUBMISSION;

If an airline or air express operator submits e-IFM after cut-off penalty imposed is P
10,000.00. (CMO 10-2015)
TAGGING OF ARRIVAL AND
DATE OF LAST DISCHARGE
 Responsible persons

a. If a port or sub port has a PID – Head of PID

b. If no PID – then Head of Port Operations Division, Bay Service Division , Air craft Operation
Division
c. If no (a) or (b) above – then responsible officer designated by the District or Port Collector
d. If no responsible officer – then District Collector or Port Collector

 RULE:

a. Within 3 hours from arrival of vessel or aircraft, responsible officer shall tag the registry number for
that vessel or aircraft as arrived in the e2m Customs System
b. Within 3 hours from the completion of discharge, responsible officer shall update the “date of last
discharge” in the e2m. (CMO 22-2014)
FORMAL ENTRY SYSTEM
1. Facilitates the processing of entry declaration on importations of a commercial nature for local
consumption (sale or barter) of raw materials, semi finished and/or finished goods to collect the
necessary duties and taxes and other fees.
2. It also facilitates the control of regulated, prohibited and other high-risk items through the use of
the Selectivity Process.
3. The process involved in the FES starts with the electronic lodgment of the entry declaration as a
Single Administrative Document through the Value Added Service Provider and validating the
said declaration using the CPRS, LCS and other related reference databases. Then, it verifies
Manifest and Bill of Lading, calculates duties and taxes, verifies mode of payment, sends
message to the VASPs and submits declaration to ASYCUDA
4. The process also includes the registration of entry declaration to ASYSUDA, the clarification
and valuation of imported goods, the corresponding action by the Customs Examiner (COO III)
associated with the classification/tagging of imported goods and the assessment of duties and
taxes
5. The role of VASPs in the import entry lodgment and clearance process:
a. Validates captured entry declaration data from importers and brokers in accordance with the
validation rules to be provided by BOC;
b. Converts data to XML format that is compatible with the requirements of the BOC-VASP
gateway;
c. Receives error or status messages from the BOC-VASP Gateway;
d. Notifies clients concerned of the messages received from the BOC-VASP Gateway. (CMO
19-2007)
6. Upon Submission of SAD from VASP to BOC e-Customs System thru the BOC-VASP
Gateway, the Selectivity System is automatically triggered.
e. Green Lane – the declaration is allowed to move to the next process
f. Yellow lane – the declaration is subject document check
g. Red Lane - the declaration is subject document check and physical examination of the
goods
h. Blue Lane - the declaration is tagged for post clearance (CMO 19-2007)
i. Orange Lane - shall pass through the x-ray scanning and once the image is found to be
suspicious, it shall be subjected to physical examination.
7. EPU and submission of Documents (CMO 22-09, CMO 37-01, CMO 29-2015)
A. For Yellow and Red Lane Shipments
1. CB submits 2 copies of notarized SAD together with the required supporting documents in 2
copies (1) Commercial Invoice (2) Packing List (3) Bill of Lading (4) Import Permit, if
regulated.
- One copy of SAD serves as working copy and 2 nd copy serves as copy of CB/importer
and serves as acknowledgement receipt.
2. The EPU shall validate the Customs Reference Number indicated in the SAD against the e2m
Customs System. EPU shall then forward the working copy and its supporting documents to the
FED Section concerned
3. EPU checks the completeness oand authenticity of documents
B. For Super Green Lane Shipments
1. Submit notarized and with CDS SAD in 2 copies with 2 copies required documents to the
EPU on Tuesday or the second working day of the succeeding week.
2. The EPU shall stamp “RECEIVED” on the copy of SAD, indicating the date and time of
receipt, and then, sign the same as evidence of the receipt. The EPU shall validate the
Customs Reference Number indicated in the VASP-SAD against the e2m Customs System.
EPU shall then forward the submitted SAD and its supporting documents to the FES
concerned for transmittal to the Import Compliance Sub-Committee (ICS)
C. For Green Lane Shipment
1. Submit two copies of the Sad together with the required supporting documents to EPU
2. The EPU shall stamp “RECEIVED” on the SAD, indicating the date and time of receipt,
and then sign the same as evidence of receipt. The EPU shall validate the Customs
Reference number indicated in the SAD against the e2m Customs System.
3. EPU shall then forward the submitted SAD and its supporting documents to the FES
concerned
4. EPU checks completeness and authenticity of documents presented
FES OVERVIEW
1. Electronic manifests from shipping lines and airlines are submitted through a VASP
2. PID/POD updates vessel manifest’s date of last discharge to determine 30 days filling period
3. The VASP helps the importer/broker lodge their entries (consumption and warehousing). All
mandatory information are indicated in the forms
4. Importer/Broker submits hardcopies and attachments to entry processing officers (EPU) for
verification.
5. Document processor at entry processing office forwards verified hard copies to Customs
examiners in appropriate Assessments sections
6. Examiner retrieves the SAD and performs examination based on the declaration’s Selectivity color
7. Examiner modifies and updates the SAD by attaching his electronic signature
8. Appraiser retrieves and reviews SAD and re-routes it Green to enable the payment process.
MANUAL PROCESS/RELEASE
1. Dep. Com., MISTG shall issue authorization for manual release for the ff:
a. Computer system breakdown
b. Power failure
c. Payment system of PCH/AAB offline
2. District Collector shall issue authorization for manual release for the following:
a. Declared location is incorrect but arrastre confirmed ownership even goods not in their facility
b. Declared location is correct but arrastre denied ownership and misrouted goods;
c. Release message not created/transmitted even if the importation already tagged paid with print out
of SSDT
3. Other those above, prior authorization shall be issued by the OCOM. (CMO 10-2014)
PAYMENT SYSTEM
 PMTS involves the use of both cash and non-cash payments, both transacted and stored
electronically, for either advanced or final settlement of duties and taxes.
1. Cash payments which is through the PASS5
2. Non-cash payments
a. Tax Debit Memo
b. Tax Exemption Certificate
c. Advanced Payment Deposit (IED)
d. Deferred Payment Government Account
e. Surety Bond
NOTES ON PAYMENT SYSTEM
1. TCC, TDM, IED cannot be used for payment of charges such as IPF, CSF, therefore every
import entry will generate a payment instruction to the AAB
2. An IED is valid for 7 days from the date the payment instruction is generated by the system.
Beyond this, an IED application is considered expired. A new IED has to be filed.
3. For shipments covered with Letter of Credit, final payment must be made to the same bank
where it was opened.
4. If no payment confirmation is received within 15 days from the date of receipt of the AAB
of the final payment instructions, the import entry is considered as abandoned
5. Unutilized IED may be cancelled upon valid request to the Revenue Accounting Division
(RAD) and may be refunded following the regular refund process.
PAYMENT APPLICATION
SECURE SYSTEM V. 5.0 (PASS5)
 To make payments of advance duty and final assessments:
 Importer must have CCN
 Importer must have debit account with AAB which issue a AAB Reference Number (BRN/ Bank
Reference Number)
 Importers have the option of putting up one or several debit accounts
 There shall be as many BRN as there are nominated debit account (CAO 10-2008)
GOVERNMENT IMPORTATION
1. Government Agencies which are eligible for the deferred payment scheme must be
registered in the CPRS with their joint order (JO 2-91) identification number. Their
eligibility shall be verified in the course of approval of their CPRS registration.
2. The government agency shall secure a clearance from the Collection Service before
lodgement their declaration.
3. Declaration of these pre registered government agencies shall avail of the deferred payment
scheme by entering the code “DPG in Part 2 of box 37 – Procedure of SAD as provided in
item 4.1 above”. E2M Customs System checks that the government agency is eligible for
the deferred payment scheme by verifying its eligibility in CPRS.
4. These importations shall be selected YELLOW to allow the examiner of the Assessment
Division to verify the supporting documents of the government agency, including the
clearance issued by the Collection Service.
ADVANCE PAYMENT SUB-
SYSTEM
 This sub-system automates the existing manual system for filling an IED with an AAB and
computing the advance duty payable for shipments covered by the Letters of Credit.
 Instead of manually accomplishing a paper IED, importers will use this sub-system to prepare
and lodge a SAD-IED thru an accredited VASP.
 The IED, which is in the form of a simplified SAD, is used as a document for processing of
advanced payment of the customs duties.
 The sub-system also processes IED cancellation messages sent by AABs to ensure that only
valid advanced payment deposits are claimed by importers.
FINAL PAYMENT SUB-SYSTEM
The e2m Customs Payment System computes the final amount payable as follows:
 Total Assessment Net of Exemption
 Less: Advance Duty Paid
 Less: TCCs/TDMs applied as referred to in the SAD/IEIRD
 Equals to Final Amount Payable to BOC thru AAB
ONLINE RELEASE SYSTEM
OLRS involves the transmission of release or loading instruction messages from the BOC to
their respective transit facilities, which includes arrastre operators, off dock CY-CFS operators
and warehouse operators granting these entities to release the goods to their
owner/importer/broker. The transit facility can retrieve and provide feedback through the BOC
Portal VASP Gateway.