Starting Jan. 4, 2010, all bulk and break-bulk shipments arriving in the Philippines will be subject to the provisions of Administrative Order No. 243-A and its implementing rules and regulations (IRR).

AO 243-A and its IRR provides that all bulk and break-bulk cargoes must be covered by the report of a cargo surveying company accredited by the Committee for Accreditation of Cargo Surveying Companies (CACSC), to facilitate the release of the cargoes from the Bureau of Customs (BoC). The report may be issued by the accredited cargo surveying company only after a full survey of the quantity, quality, grade, price or value, and classification of the bulk or break-bulk cargo.

CACSC Chairman Narciso Y. Santiago said the rules are being implemented to comply with the World Customs Organization International Convention on the Simplification and Harmonization of Customs Procedures, or the Revised Kyoto Convention. The Philippines is a signatory of the Revised Kyoto Convention.

The new procedure will facilitate the proper examination, classification, and valuation of bulk and break-bulk cargoes using measures compliant with customs international best practices and global trade standards.

The CACSC announced last Nov. 2- 3, 2009, that the new rules covering bulk and break-bulk cargoes will be implemented on Dec. 10, 2009.
However, due to numerous requests from stakeholders to move the implementation of the new rules to give them sufficient time to comply, the CACSC, in a meeting last Nov. 16, 2009, unanimously approved the deferment of the implementation to Jan. 4, 2010, the first working day of the new year.

The only cargo surveying firm that has been accredited by the CACS sso far is Cotecna Inspection SA. Cotecna was accredited by the CACSC last Nov. 16.

Santiago said the committee will continue to receive and process applications for accreditations from cargo surveying companies. Only those firms which have met all the requirements for accreditation under AO 243-A and the IRR will be accredited.

AO 243-A was signed by President Arroyo on Sept. 16, 2009. It was published on Oct. 2, 2009, and became effective on Oct. 18, 2009. Its IRR were published last Oct. 28, 2009, and took effect on Nov. 12, 2009.

The administrative order was issued by President Arroyo to protect the revenues of the government by ensuring the correct assessment of taxes and duties on bulk and break-bulk cargo imports. At the same time, the order will streamline the procedures for importations to the country.