BoC hopes CMTA gets nod before Aquino’s term ends

CEBU, Philippines - The Bureau of Customs hopes the Customs Modernization and Tariff Act (CMTA) will be signed by President Aquino before his term ends this June.

Customs Deputy Commissioner Agaton Teodoro Uvero said the CMTA is now pending with the House of Representatives for "enrollment" before transmittal to Malacañang.

Speaking at the Visayas Shipping Conference 2015 in Cebu City on Thursday, Uvero said the Office of the President has to act on it within 30 days from receiving, otherwise the bill will lapse into law.

He said the Department of Finance and BoC created an internal working group to draft the proposed measure's implementing rules and regulations (IRR).

The draft IRR will be subject for public consultations, the official added.

He said the bill was already ratified by both the House and Senate last January.

Under the proposed law, several reforms will be implemented in the BoC, including the streamlining of export and import procedures, full electronic processing of shipments, simplifying of processes for seizure and disposition of illegal goods and imposing of stricter penalties on smuggling and related offenses.

In general, the CMTA will simplify, modernize and align the country's customs procedures with the global practices.

Even before the issuance of IRR, the BoC cited several priority provisions of the measure.

Among them, Uvero said, is the adjustment of the de minimis value for exemption from duties and taxes.

De minimis benefits are benefits of relatively small values provided by the employer to the employee on top of the basic compensation.

Once the CMTA is enforced, the de minimis value would increase to P10,000 from P15 and may be adjusted every three years in accordance with the consumer price index.

He said the CMTA also allows the conditionally-free importation of returning residents and overseas Filipino workers, and balikbayan boxes, among others. Under the measure, the amount of exemptions increased to between P150,000 and P350,000.

The CMTA also makes relief consignments or goods such as food, medicine, equipment and materials for shelter donated exempt from duties and taxes.

As a priority legislation, the proposed law is seen to help boost foreign direct investments. — (FREEMAN)