Power over customs brokers clarified

The Department of Finance has ordered to revert to the Bureau of Customs the sole authority to accredit and register customs brokers as well as importers even as the Bureau of Internal Revenue was tasked to check their tax compliance.

In issuing DOF Department Order (DO) No. 11-2018 on Feb. 9, Finance Secretary Carlos G. Dominguez III said that under Section 1200 of Republic Act No. 10863 or the Customs Modernization and Tariff Act, the accreditation and registration processes would be supervised by the BOC to simplify them.

“The BOC is, however, mandated to transmit to the BIR on a quarterly basis the list of approved/accredited customs brokers and importers for post-accreditation validation of tax compliance,” Dominguez said.

“In case of any findings of tax deficiency or non-compliance, the BIR must notify the BOC of such findings immediately,” Dominguez added.

DO 11-2018 repealed previously issued DOs 12-2014 and 18-2014, according to Dominguez.

In 2014, the DOF mandated the BIR to issue importer clearance certificates (ICCs) as well as customs broker clearance certificates (BCCs) subject to the documentary requirements and verification procedures determined by the commissioner of the country’s biggest revenue agency.

As such, importers and customs brokers can only register with the BOC after they secured their ICCs and BCCs, respectively, from the BIR.

Under the earlier rules, the ICCs and BCCs must be renewed with the BIR before these were submitted to the BOC every three years.

These certificates were a means for the DOF to map the taxes and duties being paid by importing firms.