MANILA – The Philippine government is taking significant steps to implement a digitalized border protection system aimed at ending smuggling and ensuring accurate valuation and declaration of imports.
According to Philippines News Agency, Secretary Ralph Recto spearheaded the first committee meeting on June 11 to discuss the operationalization of the digitalized border protection system. This initiative is part of Administrative Order (AO) 23, signed in May by Executive Secretary Lucas Bersamin under the directive of President Ferdinand R. Marcos Jr. The order introduces the Pre-border Technical Verification and Cross-border Electronic Invoicing Systems, designed to streamline the inspection processes for all imported goods entering the Philippines. These systems aim to enhance national security, protect consumer rights, and prevent the entry of substandard and hazardous imports.
The Pre-border Technical Verification will conduct safety tests and inspections of all imported commodities prior to shipment, verifying their specifications, descriptions, weight, volume, and country of origin. Meanwhile, the Cross-border Electronic Invoicing System will generate electronic invoices for all international trade transactions, improving transparency by sharing data in real-time across relevant government agencies.
The implementation of AO 23 will occur in three phases, focusing first on agricultural goods, then on non-agricultural goods with health and safety concerns, and finally on other goods prone to misdeclaration and tax evasion. The Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing (CPTVCEI), chaired by Secretary Recto, includes members from various government departments and agencies, such as agriculture, trade and industry, and customs, among others.
During the inaugural meeting, BOC Assessment and Operations Coordinating Group Deputy Commissioner Vener S. Baquiran presented a draft of the joint administrative order (JAO) that outlines the guidelines and implementing rules for the new system. The committee also approved the creation of a technical working group to finalize the JAO, which is expected to be reviewed in the next committee session.
Furthermore, the CPTVCEI Secretariat outlined the process for nominating and appointing two non-voting representatives from recognized industry associations, with appointments scheduled to be finalized by June 28. These representatives will participate in the upcoming committee meeting to contribute to the discussion on the digitalized border protection system.
Secretary Recto emphasized that AO 23 gives the committee a two-year timeline to fully implement the systems, marking a crucial step towards a more secure and efficient border management regime in the Philippines.