Supreme Court E-Library
Information At Your Fingertips

  View printer friendly version

[ BOC CUSTOMS MEMORANDUM ORDER NO. 4-97, January 28, 1997 ]




1.1       To further facilitate the import clearance process by providing remote lodgement of entries from office premises of Clients to the Bureau of Customs.

1.2       To promote a "paperless" procedure in entry processing.

1.3       To minimize encoding at the Entry Encoding Centers.

1.4       To implement best Customs practices.



2.1       This Order shall be applicable to all ports with an Automated Customs Operation System (ACOS) already operational and with Designated Examination Areas in place.

2.2       Only entries electronically lodged to BOC thru the Direct Trader Input project by selected Clients are covered.


General Provisions

Considering the need to further facilitate legitimate trade and enhance current Customs Import Clearance Process through modern technologies, the Direct Trader Input (DTI) shall be implemented to provide for acceptance of electronic lodgement of import entries from remote offices of Clients.

3.1           Accreditation of Authorized DTI Users

DTI service shall be made available to shipments of accredited importers.  An importer must avail of the services of an accredited customs broker, customs brokerage companies or partnership who would be issued password to transact with the Bureau via DTI.

A broker shall be issued a password for each accredited importer that he services.

An application must be submitted for each Broker-Importer relationship.

Accreditation shall be based both on the importers and the brokers track record of clean and honest dealing with the Bureau.

3.2           DTI Review Board

Due to the communication facility limitation, the number of DTI participants will be regulated.

A review board shall be formed having the responsibility of reviewing applications for inclusion into the project.  The review board shall be composed of the FED Chiefs of the different ports, CIIS Head, and one from the private sector (PCCI).  The Commissioner of Customs shall be the chairman of the review board.

3.3           Memorandum of Agreement

The accredited importer and his designated broker must enter into a Memorandum of Agreement with the Bureau defining their responsibilities and providing for a mechanism to pinpoint responsibilities.

3.4           Lodgement

There are two steps involved in lodging entries via DTI. The first step called ENCODING may be done either by the broker or the importer. If the importer will encode, he will be given a password to gain access.  The second step is called REGISTRATION. After encoding has been accomplished, the broker, using his own password and inputing the transaction reference number can review the declaration, make necessary corrections and then register the entry.  Only Brokers can register the entry.  Import entries lodged by Clients (Brokers and Importers) with the Bureau of Customs thru DTI shall be official and binding.  The participants shall be responsible for the confidentiality of their passwords.  It shall also be the responsibility of participants to submit accurate and true IEIRD.  Non-compliance of the above provision shall result in sanctions that may lead to suspension of membership with the DTI project depending on the gravity of the offense.

3.5           Document Submission

Although submission of the IEIRD and supporting documents is not required immediately for Green Lane shipments, the same must be submitted to the Entry Processing Unit, FED, in batches such that all IEIRDs covering Green Lane entries filed for a particular week, must be submitted on the first working day of the following week.


Operational Provisions

4.1           Activities on the Importer/Broker Side

4.1.1        Encoding
Importer or the designated broker encodes all pertinent information using Client side ACOS software (Module MODBRK) DTI entries shall use "4DT 4", as its Model of Declaration code to distinguish it from regular entries.

He then connects to the port server and invokes the "Check" option in order to check the integrity of encoded data.
4.1.2        Registration of Entry to BOC
Client's broker registers entry with BOC and triggers Selectivity by requesting for assessment of the entry in ACOS.
4.1.3        Printing of Assessment Notice and Single Administrative Document.
Prints a copy of the SAD and two copies of the Temporary Assessment Notice (TAN) for payment of duties/taxes at the bank and for attachment with import documents.
4.1.4        Bank Payment
Makes actual payment at the bank based on ACOS computation as shown on the TAN. Machine validation by the bank shall be on the SAD and not on the TAN.
4.1.5        Pickup and Delivery of Shipments/Filing of Paper Entry
Based on the result of Selectivity, the Participant now has to go to the Port either for pick-up and delivery of the shipment or preparation for documentary/physical examination starting at the Entry Processing Unit.
4.2           Activities at the Bureau Of Customs
Selected DTI entries will follow current procedures that require Clients to submit documents and personally appear before Customs officers. DTI entries granted green status, however, will adhere with the following procedure:

Once the Selectivity System grants an entry green lane status, cargo releasing and payable information are electronically forwarded to the Collection Division.
4.2.1        Collection Division (CD)

At CD, a tracer document called the ACOS DTI Green Lane Assessment Form (DGLAF) will be printed at the same time that the DTI information is received at CD.  The DGLAF will take the place of the working copy of the entry in procedures where paper handling is still being performed. The Matching Clerk stamps the DGLAF when the entry is matched against the payments. The clerk then sends the DGLAF to the Pre-manifesting clerk. Performs pre-manifesting check on the entry based on the DGLAF.          Writes-off the shipment if it is found in the manifest.          If the shipment is not found, the Pre-manifesting clerk makes the appropriate report and submits it to the CD Chief for proper disposition and lifting of the duty stop is then held in abeyance. The Pre-manifesting clerk then sends the DGLAF to OLRS staff. The OLRS clerk lifts the duty stop and sends the DGLAF to FED for Post Audit purposes.
4.2.2        Formal Entry Division Post Audit (PA) staff receives and files the DGLAF pending presentation of import documents by the Client. PA staff retrieves the electronic DTI entry in the ACOS system upon submission of import documents by the Client. PA then performs a post audit check based on entry documents.          If a discrepancy is detected that warrants immediate verification or holding of the shipment (if applicable), information on the results of the Post Audit shall be immediately sent to Chief of FED for proper disposition.          For entries with discrepancies:       Cash will issue tax credit for over payment       Liquidation and Billing will issue billing to concerned Client (CIIS shall serve and the Collection Division shall collect the amount payable to the Bureau). PA staff periodically submits the results of post audit to the Chief FED. The PA staff shall be responsible for monitoring Clients' performance.  Record of discrepancies discovered in the DTI entries will be kept to serve as one of the basis for the client's retention in the list of qualified DTI clients.


Repealing Clause

All rules and regulations inconsistent with this Order are hereby deemed repealed, superseded or modified accordingly.



This Order shall take effect upon approval.

Adopted: 28 Jan. 1997


© Supreme Court E-Library 2019
This website was designed and developed, and is maintained, by the E-Library Technical Staff in collaboration with the Management Information Systems Office.