The Bureau of Customs (BOC) legal division is reviewing the draft customs memorandum order (CMO) providing guidelines on implementation of the new Registered Exporters (REX) system.

The system is for certifying origin of goods that the European Union (EU) is progressively introducing in its preferential trade arrangements.

“The CMO is already under review of the Legal Service. Once cleared by them, it will be forwarded to the Office of the Commissioner for (the commissioner’s) signature,” BOC Assessment and Operations Coordinating Group deputy commissioner Atty. Edward James Dy Buco told PortCalls in a text message.

Earlier, Dy Buco said the REX system will gradually replace the current system of origin certification based on certificates of origin or CO (Form A) issued by BOC, which is the country’s competent authority in implementing the new system.

But even while the CMO is still to be issued, exporters can already apply online through https://customs.ec.europa.eu/rex-pa-ui/#/create-preapplication/.

BOC, in an information session hosted by the Department of Trade and Industry’s (DTI) Export Marketing Bureau on August 20, noted that some exporters have already applied for REX registration.

The customs bureau also noted that application is free of charge.

Mechanics
Once the electronic application is submitted, a printed application form must be submitted by exporters to BOC’s Export Division or Export Unit together with the tax identification number; unique reference number for Philippine Economic Zone Authority (PEZA) locators and Client Profile Registration System for non-PEZA locators; and product evaluation report, if applicable.

All application forms submitted to the Export Divisions/Unit shall be endorsed to BOC’s Export Coordinating Division (ECD) for registration to the REX system.

Exporters shall be notified about the results of the application and assigned a REX number within seven working days from receipt of the complete set of documents by ECD from the export division of ports.

CO Form A shall be issued by the Export Divisions/Units for exporters that are not yet registered to REX until December 31, 2019. In case majority of exporters to the EU have not yet registered by the third quarter of this year, an extension of six months may be requested from the EU. If the extension is granted, it is only up to June 30, 2020.

Certifying origin of goods
REX is the new system of certifying the origin of goods that the EU is progressively introducing in its preferential trade arrangements. First applied to the Generalised System of Preferences (GSP) program from January 1, 2017, REX will eventually completely replace the current system of origin certification that is based on certificates of origin issued by government authorities and on invoice declarations made out under certain conditions by economic operators.

The global transition period from the current system of origin certification to the REX system started on January 1, 2017 and will last until June 30, 2020 at the latest. The Philippines had earlier notified that it would apply the REX system on January 1, 2019 but the DTI last January notified exporters that BOC is still completing the two prerequisites for applying the REX system.

(For the full article, please visit https://www.portcalls.com/order-sets-limits-customs-police-power-cmta/)