Aquino approves law on Customs Modernization
Export Development Council
June 27, 2016
President Benigno S. Aquino recently signed Republic Act 10863 or the Customs Modernization and Tariff Act (CMTA).
The CMTA enables full customs automation and will make it easier for exporters, importers and traders to comply with complex customs processes. With CMTA, the Philippines will now be compliant to the Revised Kyoto Convention.
Some of the salient provisions of the new measure are the increase in the de minimis value from P10 to P10,000, higher tax-free provision in balikbayan boxes and the declarant provision which states that the engagement of custom brokers is mandatory only for two years, beyond which is optional. Aside from amending existing laws, CMTA redefines free zones, reclassifies customs bonded warehouse (CBWs) and includes advance ruling and alert orders in a more simplified process.
The IRR of CMTA is being prepared by the Bureau of Customs and expected to be issued on June 30.