Philippines to Launch Integrated System to Expedite Inspection and Monitoring of All Imports, Starting with Agricultural Products

On May 19, 2024, the Philippines issued Administrative Order (AO) No. 23 Implementing a Digital and Integrated System for the Pre-border Technical Verification and Cross-border Electronic Invoicing of All Import Commodities. The primary objectives of this new system are to expedite the inspection of all imported goods entering the country, further strengthen national security, safeguard consumer rights, and keep out unsafe goods.

Pre-border Technical Verification 

Pre-border Technical Verification refers to testing and inspection of all commodities by accredited testing, inspection and certification (TIC) companies prior to exporting them to the Philippines. The purposes are to verify the declared specifications, description, weight, volume, and country of origin in advance, and ensure that these commodities are safe and of good quality in accordance with the World Trade Organization Facilitation Agreement, as well as existing laws, rules and regulations.

Cross-border Electronic Invoicing 

Cross-border Electronic Invoicing refers to the system used by verified and registered foreign exporters to create export invoice on the single electronic platform controlled by the government. The electronic invoice is shared transparently and in real time with the Bureau of Customs (BOC), Bureau of Internal Revenue, Department of Agriculture (DA), Department of Trade and Industry (DTI), and other relevant government agencies.

The Responsible Committee 

Under the Administrative Order, a committee is established to oversee the implementation of pre-border technical verification and the cross-border electronic invoicing system. The committee is chaired by the Finance Secretary, with the Secretaries of Agriculture, Trade, Energy, Health, Environment and Natural Resources, and Information and Communications Technology serving as members.

The committee will formulate guidelines, implementing rules and regulations for the conduct of pre-border technical verification, as well as procedures for the procurement of the cross-border electronic invoicing systems.

The Implementation of the System 

As the primary government entity responsible for customs procedures, the BOC is directed to implement the Pre-border Technical Verification and Cross-border Electronic Invoicing System.

The system shall be applied to all import commodities in three phases, with agricultural goods covered in the first phase. The timelines and targets for the implementation of each phase will be determined by the committee.

As per the Administrative Order, agricultural goods include but not limited to fresh or frozen meats, fish and other aquatic products, vegetables, fruits, cereals whether processed or not, as well as animal feeds and feed ingredients. Agricultural goods may be shipped in bulk, break bulk, or shipping containers.

The Application Phase of the Pre-border Technical Verification and Cross-border Electronic Invoicing System