INFORMAL ENTRY PROCESS

CAO 2-2021

applies to all importations cleared through the Informal Entry Process whether or not subject to payment of duties and taxes except accompanied baggage, De Minimis importations and relief consignments which shall be covered by their respective regulations.

Informal Entry Process

shall refer to the clearance process for imported goods with FOB or FCA value of less than P50,000.00 and personal and household effects or goods, not in commercial quantity, not for sale, lease, hire or barter and other shipments stated in Sec. 4 of CAO 2-2021.

Commercial Quantity

shall refer to the quantity for a given kind or class of articles, which are in excess of what is compatible with and commensurate to the person's normal requirements for personal use

Goods of Commercial Nature

shall refer to goods that are intended to be used solely for commercial purpose, including but not limited to, sale, lease, hire or barter

Non-Commercial Goods

shall refer to goods, not otherwise falling under the definition of personal and household effects that are not intended to be used for any commercial purposes, including sale, lease, hire or barter.

Personal Effects

shall refer to commodities whether new or used, for personal use or consumption and not for commercial purposes, such as wearing apparel, personal adornments, electronic gadgets, toiletries, or similar items.

Tax Exemption Indorsement (TEI)

shall refer to an indorsement from the Department of Finance-Revenue Office (DOF RO) embodying the specific tax exemption granted on importations, issued to a specific individual or entity, authorizing the Bureau to release the specified shipment in accordance with law and pertinent customs rules and regulations applicable to the specified exempted shipment.

Small Value Importer (SVI)

shall refer to an importer who imports goods of a commercial nature with FOB or FCA value of less than P50,000.00 but above P10,000.00.

Small Value Importer (SVI)

shall refer to importers previously known as Once-a-Year Importers covered under CMO 46-2019

Non-Regular Importers (NRIs)

shall refer to importers previously known as Once-a-Year Importers covered under CMO 46-2019

Informal Entry Division

Clearance of previously imported diplomatic supplies and equipment of foreign embassies and tax-exempt institutions sold to a non-privileged buyer shall be manually processed under the __________

Formal Entry Process.

Importation of motor vehicles, motorcycles and motor scooters regardless of the consignees, including those under Section 800 of the CMTA, shall be under the _________

Informal Entry Division (IED)

Goods declaration shall be lodged with the Bureau's E2M system and shall be filed at the ______________ or equivalent unit of the port concerned.

Mandatory physical examination.

What examination is required for commercial goods below ₱50,000 transferred to Off-dock CFW if no X-ray machine is installed?

Before assessment and payment of corresponding duties and taxes.

When is mandatory X-ray inspection conducted for containerized cargo under the Informal Entry Process?

Physical examination shall be conducted.

What happens when an X-ray image raises suspicion of irregularity?

All goods intended for airport warehouses and/or composite warehouses.

What shipments require mandatory X-ray inspection when intended for specific warehouses?

No. They are exempt from inspection, subject to certain exceptions.

Are the personal baggage or shipments of diplomatic agents subject to inspection?

• Serious grounds to believe they contain articles not covered by Article 36(1) exemptions of the Vienna Convention.

• Importation or exportation is prohibited by law.

• Articles are controlled by Philippine quarantine regulations.

Under what circumstances may the personal baggage or shipments of a diplomatic agent be inspected?

In the presence of the diplomatic agent or their authorized representative.

In whose presence must the inspection of a diplomatic agent's baggage or shipments be conducted?

Profiling techniques.

What technique does the Bureau utilize in applying risk management to informal entries?

Selectivity parameters determined by the Bureau.

What determines the risk imports under the Informal Entry Process?

In cash through an Authorized Agent Bank (AAB), in-house bank, or Collection Division of the port.

How shall customs duties, taxes, and other charges under the Informal Entry Process be paid?

To the in-house bank.

Where is the Order of Payment presented for sea shipments?

Cash Miscellaneous Module of the BOC's E2M System

What system is used by the in-house bank to accept payment for sea shipments?

Bureau of Customs Official Receipt (BCOR)

What official receipt is issued by the in-house bank after payment for sea shipments?

Computer-generated E2M Customs Receipt Number (ECRN)

What number must appear on the BCOR for sea shipments?

Original (white) and green copies.

Which copies of the BCOR must be given to the importer or broker for sea shipments?

To the BOC Cashier.

Where is the Order of Payment presented for air shipments?

The BOC Cashier

Who issues the BCOR for air shipments?

The BOC Cashier

Who issues and signs the gate pass (BC Form No. 201) for air shipments?

IED or its equivalent unit for the signatures of COO III and COO V.

To which units does the BOC Cashier forward the gate pass and BCOR for air shipments?

Once payment has been confirmed

When shall the Bureau transmit the release instruction to the terminal facility operator or Off-dock CFW?

Assigned Customs Operations Officer V (COO V)

Who verifies the BCOR in the electronic payment system pending full automation?

Payment Verified

What marking must the COO V stamp on the white and green copies of the BCOR after verifying payment?

Data corresponding to the Bill of Lading (BL) of the particular IIDE.

After verifying payment, what document's data must the COO V retrieve?

Chief Informal Entry Division or its equivalent unit.

To whom shall the COO V forward the BCOR copies marked "Payment Verified"?

“Manual Discharge" under the e-manifest menu.

What operation must the Chief Informal Entry Division select to manually write off the BL?

Electronic transmission of the release instruction to the terminal facility operator or Off-dock CFW.

What does the Manual Discharge operation trigger?

(I), which stands for Informal Entry.

What is the Registration Serial value used in Manual Discharge for Informal Entry?

The location of goods assigned to port operators, CY-CFS, Off-dock Customs Facilities, and Warehouse Operators.

What does the Transit Shed Code identify in the Manual Discharge process?

Commissioner of Customs.

Who may recommend an increase or decrease in the threshold value of commercial goods cleared through the Informal Entry Process

Secretary of Finance

Whose approval is required for the adjustment of the threshold value of commercial goods?

Office of the District Collector of the Collection District, preferably nearest the applicant's place of business.

Where should the requirements for SVI registration be submitted?

Through the Value-Added Service Provider (VASP).

Through what system is SVI registration in the CPRS processed?

Unique Reference Number (URN)

What unique identifier is assigned to an SVI registered in the CPRS?

District Collector.

Who approves and activates the CPRS registration of an SVI?

Non-Regular Importers (NRIs), who are governed by separate regulations.

Which importers are excluded from SVI registration under these guidelines?

No. SVIs registered as such are not allowed to file goods declarations under the Formal Entry Process.

Can an SVI registered in the CPRS file goods declarations under the Formal Entry Process?

Entities registered as regular importers or SVI with CPRS

Who may lodge a goods declaration under the Informal Entry Process?

E2M through VASP.

Through what system and service provider are goods declarations lodged?

Single Administrative Document (SAD).

What form is used when lodging a goods declaration under the Informal Entry Process?

IE4.

What is the Model of Declaration (Box 1) for Informal Entry?

Above ₱10,000 but below ₱50,000.

What is the required Customs Value (Box 22) for Informal Entry Commercial Goods?

No. It may be left blank.

Is Financial and Banking Data (Box 28) mandatory in Informal Entry?

4500

What is the Procedure Code (Box 37) for Informal Entry Commercial Goods?

000, unless availing of tax exemption, in which case the applicable code must be entered.

What is the Extended Procedure Code (Box 37) for Informal Entry?

Red

What selectivity color is automatically assigned to goods declarations for Informal Entry upon E2M lodgement?

Entry Processing Unit (EPU)/CCC or equivalent unit of the port of entry.

Where shall the SVI file the hard copy of the SAD?

Endorsed BL/AWB, Commercial Invoice, Packing List, Certificate of Origin (if applicable), and TEI/Certificate (if applicable).

What supporting documents must accompany the hard copy of the SAD?

Check document completeness and forward them to the IED or equivalent unit.

What is the responsibility of EPU personnel upon receiving the documents?

Chief of IED or equivalent unit of the port of entry.

Who assigns the goods declaration to a Customs Examiner?

COO III (Customs Examiner)

Who examines the goods under the Informal Entry Process?

Inspection Act in the E2M

Where does the COO III enter the examination findings?

COO V (Customs Appraiser)

Who reviews the examination findings of the COO III?

Reroute the entry to GREEN for further processing or recommend appropriate action in case of discrepancy.

What may the COO V do after evaluating the examination findings?

To allow further processing and electronic release through OLRS for non-intrusive inspection.

What is the purpose of rerouting the selectivity color to GREEN?

E2M system's audit log

Where must the rerouting of selectivity color be reflected?

Through the VASP

How shall the SVI be notified of the assessment of payable customs duties and taxes?

Cash through AAB via PASS5, E2M Cash SAD Module through the in-house bank, or Collection Division of the port.

What are the payment methods for customs duties and taxes under Informal Entry?

When the declarant lacks information or documents through no negligence or fault, provided mandatory information and documents are present.

When may a PGD be lodged due to lacking information or documents?

The received copy of the application form may be dispensed with for exigency in the release of goods.

What is the special consideration for PGD involving relief consignments?

A Model of Declaration/Procedure Code.

What shall BOC assign to identify a provisional goods declaration upon lodgement?

YELLOW or RED.

What selectivity colors may be assigned to all PGDs?

When the declarant does not indicate the provisional nature of the lodgement.

When is a goods declaration considered full and complete regarding supporting documents and information?

4PG4.

What Model of Declaration code is used for PGD under SAD Box 1?

4400.

What Procedure Code is used for PGD under Box 37a?

Box 37b

Where is the applicable 3-digit additional code entered?

Within 48 hours.

Within how many hours must the declarant file the PGD with the EPU after lodgement?

The next working day.

When is the deadline for filing a PGD if the 48th hour falls on a non-working day?

Receive the PGD together with all supporting documents.

What is the first responsibility of assigned EPU personnel in processing a PGD?

PGD Control Number and SAD Number.

What numbers must EPU personnel write on the PGD checklist (Annex B)?

Last 2-digit year – 5-digit sequential number

What is the required format of the PGD Control Number?

In sequential order

How must PGD Control Numbers be assigned?

Customs Operations Officer V (COO V) of the section concerned.

To whom shall EPU personnel forward the PGD documents in POM and MICP?

Formal Entry Division (FED) Chief or equivalent unit.

Customs Operations Officer V (COO V) of the section concerned.

4400

Procedure code for Initial PGD lodgement

4401

Procedure code for release of regulated goods upon approval

4402

Procedure code for failure to submit required pre-arrival/pre-departure regulatory document; recommend WSD

4403

Procedure code for release under tentative assessment