DOF pushing for full implementation of ‘passport for goods’ system

The Department of Finance (DOF) said Friday it is pushing for the full implementation of an international merchandise passport or “passport for goods” in a bid to provide wider access for local businesses to leverage opportunities in foreign markets and showcase Filipino-made goods in the global scene.

In a statement, the DOF said the ATA Carnet forms part of its ongoing efforts to enhance the ease of doing business in the Philippines.

The ATA Carnet is an international customs document functioning as a merchandise passport or passport for customs clearance throughout several customs checkpoints on a duty- and tax-free basis. 

The ATA is accepted by an international network of 81 customs administrations.

The ATA Carnet system was established by the International ATA Conventions and is governed by the World Customs Organization and the International Chamber of Commerce’s World Chambers Federation.

“With this system, we now offer them [Filipino businesses] cost-effective access to international trade exhibitions that would have otherwise been prohibitive for them to attend in the past,” said DOF Revenue Operations Group (ROG) Undersecretary Charlito Martin Mendoza.

“This will increase export and import activities, enhance our trade balance, drive job creation, and attract foreign investments,” said Mendoza.

The Finance Department underscored that almost every industry with temporary importation can benefit from the use of ATA Carnets, such as commercial samples, professional equipment, and goods for display at exhibitions, fairs, and meetings.

It said that foreign market access will be particularly beneficial to micro, small, and medium enterprises (MSMEs), “allowing them to join trade shows and sell their products on the spot.”

Apart from reducing the cost of exporting goods, the DOF added that ATA Carnet promotes trade efficiency as it simplifies customs procedures through a single document for all customs transactions, and makes arrangements for entry to many countries in advance at a predetermined cost.

The merchandise passport will also help facilitate the re-entry of the product to any contracting country since it eliminates the need to register goods with the contracting country at the time of departure.

As a result, this system ensures that the Bureau of Customs (BOC) can collect duties and taxes if goods are not re-exported within the stipulated time frame, according to the DOF.

“We will leverage technology to streamline customs processes, enhance tracking and compliance, and ensure its seamless integration,” said Mendoza.

The DOF said the Customs has recently released the Customs Memorandum Order entitled "Procedure in the Implementation of the ATA Carnet System in the Philippines under the Istanbul Convention," which covers the integration of the ATA Carnet processing system into the existing system of the BOC.

The Finance Department said it has long been lobbying for the Philippines’ accession to the Convention of Temporary Admission of Goods (ATA Carnet) or the Istanbul Convention.

However, it said that a National Issuing and Guaranteeing Association (NIGA) for the Philippines was yet to be approved by the International Chamber of Commerce (ICC) in order to fully implement the ATA Carnet.

Since then, the DOF said it has continuously been collaborating with the private sector to boost opportunities for local businesses.

On November 21, 2023, the Finance Department said the Philippine Chamber of Commerce and Industry (PCCI) was finally admitted as a member of the World Chambers Federation ATA International Guarantee Chain.

The ICC approved the full implementation of the Istanbul Convention in the Philippines on July 15, 2024.

As NIGA, the PCCI is responsible for guaranteeing the payment of duties and taxes of temporarily admitted goods in case of violations related to its conditionally free importation to the Philippines, the DOF said.—AOL, GMA Integrated News