The Philippines is making significant strides in digitalising its import verification and invoicing systems through Administrative Order No. 23, Series of 2024. This landmark directive, titled “Implementing a Digital and Integrated System for the Pre-Border Technical Verification and Cross-Border Electronic Invoicing of All Import Commodities,” marks a major step towards modernising trade procedures, enhancing national security, safeguarding consumer rights, and protecting the environment.
Administrative Order No. 23 introduces a cutting-edge approach to import management by mandating two critical digital systems: Pre-Border Technical Verification (PTV) and Cross-Border Electronic Invoicing (CEI). These systems aim to streamline and fortify the import process, ensuring that all imported goods meet Philippine standards before they enter the country.
Pre-Border Technical Verification (PTV) involves rigorous testing and inspection of goods before their shipment to the Philippines. This verification process is crucial for confirming that products adhere to declared specifications and comply with safety and quality standards. By leveraging advanced digital tools, the PTV system will significantly reduce the risk of substandard or hazardous goods entering the market.
Cross-Border Electronic Invoicing (CEI) is a new digital platform designed to enhance the efficiency and transparency of international trade transactions. This system requires all imported goods, whether arriving by air or sea, to be processed through a unified electronic invoicing platform managed by the Philippine Government. The CEI system is poised to revolutionise how trade invoices are created, verified, and monitored, ensuring accuracy and reducing administrative burdens.
The implementation of these systems falls under the purview of the Bureau of Customs (BOC), which will oversee the integration of PTV and CEI into existing customs procedures. The Bureau, guided by the Committee for Pre-Border Technical Verification and Cross-Border Electronic Invoicing (CPTVCEI), will be responsible for ensuring that the new digital processes align with international trade standards and Philippine regulations.
The CPTVCEI comprises various government departments, including the Department of Finance (DOF), Department of Agriculture (DA), Department of Trade and Industry (DTI), Department of Energy (DOE), Department of Health (DOH), Department of Environment and Natural Resources (DENR), Department of Information and Communications Technology (DICT), Bureau of Customs (BOC), and the Philippine Drug Enforcement Agency (PDEA). This diverse committee will provide strategic direction and policy guidance, ensuring a cohesive and effective rollout of the new systems.
The digital transformation initiative is set to be fully operational within two years from the effective date of the order. During this period, the BOC will work on integrating the PTV and CEI systems with current customs practices, ensuring a smooth transition and full compliance with the new regulations.
To facilitate faster processing, goods that pass PTV and receive a Certificate of Conformity will be eligible for an advance clearance procedure. This allows importers to expedite the withdrawal of goods from the port, provided all duties, taxes, and required documentation are in order.
The guidelines also address non-compliance with stringent measures. Goods that lack an e-invoice or PTV, or those with discrepancies, will be considered high-risk and subjected to 100% physical inspection. Non-compliant goods will face continuous scrutiny until a Border Technical Verification (BTV) Report is completed, and any outstanding duties, taxes, and penalties are resolved.
Administrative Order No. 23 represents a significant leap towards digital transformation in the Philippines’ trade and customs sectors. By implementing these advanced systems, the government aims to enhance trade efficiency, ensure robust regulatory compliance, and better safeguard consumer interests and environmental standards. This move underscores the Philippines’ commitment to leveraging technology to modernise its import processes and drive economic growth.
