Exporters: New Customs memo reeks of red tape

CEBU, Philippines - Just when the export sector is expecting recovery starting this year, the industry is yet again confronted with another challenge with the implementation of new Bureau of Customs (BOC) Memorandum Order. 

BOC Commissioner Napoleon L. Morales recently released the (Customs Memorandum Order) CMO-2-2010, which supposedly aims to strengthen the functions of the export coordination division (COO) under the office of the Assessment Operations Coordinating Group (AOCG).

During the introduction of the new rules and regulations in processing documents with the BOC, Cebuano exporters were alarmed of the more difficult and complicated processes, thus players are apprehensive that this new rule would affect the export competitiveness to the global market.

“We see a huge layer of red tape here. We should fight against this new CMO together. This will cause a lot of delay [to our businesses],” said Export Development Council (EDC) private sector representative and former PhilExport-Cebu president Alan Suarez.

Because of a lot of “loopholes” seen in the new CMO, the Cebu export sector is submitting a position paper to be addressed to Morales to possibly amend some of the provisions of the CMO-2-2010, otherwise, the export sector will ultimately lose its competitive advantage in the world.

“We can’t afford any delay. Please do not disable us by putting those barriers. Are you trying to help us? Or derail us? ,” said Mactan Export Zone representative Dondon Montesclaros.

Among the controversial rules under the new CMO, is the [at least] 20 days waiting for exporters to have their papers approved by the BOC, submission of detail reports about the products to be exported, among others.

Having been successful in their advocacies in the past, the PhilExport-Cebu is confident that BOC commissioner Morales will be able to amend some of the provisions of the CMO-2-2010.

Newly appointed BOC Port of Cebu district collector Ronnie Silvestre on the other hand, quickly came to the rescue, saying it is important for the PhilExport-Cebu to immediately submit their position paper to the Commissioner.

“I do not question the wisdom of the commissioner in implementing this. Perhaps PhilExport-Cebu can spearhead a move to convince him [Morales] amend this CMO-2-2010, or make some changes,” Silvestre told Cebuano exporters during a dialogue with BOC-Cebu officials.

Silvestre vowed that the BOC “is here to reach out to you [exporters], not you reaching out to us.”

Gifts, Toys and Houseware (GTH) official Pete Sipulvida said that his new CMO will be reviewed thoroughly as this would severely affect exporters’ competitiveness in the world market.

“We work so fast. We can’t afford delay,” Sipulvida said.

PhilExport-Cebu led by its new president Venus C. Genson has drafted the position paper yesterday, and will hand it over directly to the BOC Commissioner the soonest possible time.

Meanwhile, Silvestre agreed that the old procedure may still be applied in Cebu until the issues on CMO 2-2010 will be resolved.