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1. Background

1.1     BOC-PEZA   Joint   Memorandum   Order   2-2015   dated   24   July   2015 prescribed the rules and regulations for the transfer of goods by PEZA registered Enterprise to other PEZA Registered Enterprises, utilizing the computer system, Electronic Zone Transfer System (e-ZTS).

1.2    While JMO 2-2015 covers all transfer of goods to include among others; constructive exports, farm-out, farm-in, for sub-contracting, and permanent/temporary transfer of goods and equipment, the initial implementation  of e-ZTS shall be for the transfer of goods entered/stored in an Ecozone Logistics Service Enterprise (ELSE) with corresponding Electronic  Letter  of Authority  for the  goods  to be  transferred  to a zone locator duly authorized to received such transfers.

1.3   The CMO defines the duties and responsibilities of concerned BOC- Officers/Officials  in the conduct  of ELSE  Transfers.  The separate  duties and responsibilities of PEZA Officers/Officials for the transfer shall be contained in a separate PEZA Memorandum Order.

2. Objectives

2.1     To further enhance the ease of doing business in the Ecozone through the Implementation of an Electronic System for composing, submitting and processing   applications   for  the  transfer  of  the  goods  between  ELSE Facilities and Partner PEZA Locators.

2.2     To clearly define the duties and responsibilities  of Customs  Personnel  in the transfer of goods from ELSE Facilities to Ecozone Locators.

3. Scope

3.1     The role of the customs officials in the Ecozone for the transfer of goods from an ELSE Facility to a partner Ecozone Locator shall be limited to the following activities:

a.     Approval  of the General  Transportation  and Surety  Bond (GSTB)  to ensure that there is adequate security for the goods being transferred.
 
b.     Selective  examination  of the  goods  covered  by  the  electronic  zone transfer  document  or e-ZTD, both prior to exit from ELSE and upon arrival of the transferred goods to the destination. Ecozone Locator to ensure only duty approved goods are withdrawn/transferred.

c.     Selective  examination  of the  goods  covered  by  the  electronic  zone transfer  document  or e-ZTD, both prior to exit from ELSE and upon arrival of the transferred goods to the destination. Ecozone Locator to ensure only duty approved goods are withdrawn/transferred.

d.     Support  tracking  transfer  to identify  transfer  that may  have  diverted from the intended destination.

e.     Support  initiation  at the  earliest  possible  recovery  operation  for  the divided transfer and certification of the GTSB.

f.     Support   the  spot-checking   of  destination   warehouse   to  check   if intended transfer successfully delivered at the approved destination.

4. Operational Provisions

4.1     Filing and Approval of the GTSB

a.     No ELSE can transfer goods to partner PEZA Locators without having posted at GSTB duly approved as provided for in JMO 2-2015 and in this order.

b.     The duly designated  ELSE  operator  shall obtain  the GTSB  required under in the JMO from any Customs Accredited Surety Companies.

c.     The Operator  shall submit in 3 copies the GTSB to the Head of the Customs Office based in the Zone for approval. The application must be notarized.
d.     Approval of the GTSB Application by concerned customs official must be based on the following:

-  Completeness of the Application Form

-  Correctness  of the arithmetical  computation  (Declared F.O.B Value to be presumed correct subject to subsequent PEZA verification)

-  Verification  thru telephone  and other means of the GTSB with the issuing surety company

-  Compliance  of the GTSB with the format and content of the GTSB Template (See Annex B)

e.     If  in  order,  GTSB  application  shall  be  approved  and  distributed  as follows:

-  Original of the application and the GTSB on file with the BOC

-  Second Copy of GTSB application with PEZA EAD officer (delivered by ELSE to BOC)

-  Third copy file of the ELSE Company

A scan/photo  copy of the original GTSB’s  application  must be taken and attached to an email addressed to the PEZA EAD officer.

4.2     Examination of Goods for Transfer

a.     The  ELSE  Operator  must  apply  for  transfer  of  goods  from  ELSE Facility to partner locator using the Electronic Zone Transfer Document (eZTD) of the eZTS.
 
b.     The Goods for Transfer must be physically segregated or immediately located to the carrying truck where these may be examined by BOC.

c.     BOC Officers must monitor the e ZTS video display unit for submitted eZTD and determined based on Risk Assessment whether or not to physically examine the goods.

d.     Thirty-Minute  Window.  BOC Officers  have 30-minute  within which to register in the eZTS whether or not they wish to examine the goods. Failure to indicate intent to examine will free the goods for transfer.
e.     BOC must keep printed copy of the eZTD for spot-checking and other monitoring activities.

4.3     Monitoring of Transfer

a.     BOC  Officers  shall  have  responsibility  for  checking  that  the  goods transferred arrives safely at the partner-locator premises and duly received thereat. In general, above shall be performed by:

-  Checking  Status  of  the  eZTD  in  the  eZTS  as  Already  Delivered/ RECEIVED

-  Telephone call with the partner-locator and ELSE operator if transfer
has been completed

-  On selection  basis following  Risk Management  to actually proceed to the goods destination if goods arrived thereat

b.     BOC Officers shall ensure that “view only” access is provided  in the eZTS by PEZA-accredited VASPs.

5. Repealing Clause

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

6. Effectivity

This Order shall take effect immediately.

(SGD) ALBERTO D. LINA
Commissioner