A Technical Working Group (TWG) that aims to enhance trade of strategic goods in the country was recently established by the Bureau of Customs and Department of Trade and Industry.
Under a Memorandum of Agreement signed on Dec. 15, a TWG on strategic trade facilitation (STF) was created to establish communication mechanisms and procedures, organize and implement commodity identification training (CIT) for frontline and enforcement officers, and streamline documentary requirements.
Customs Commissioner Rey Leonardo Guerrero said they entered into an agreement with the DTI in a bid to increase the overall efficiency of the trade environment in the country.
Other parties in the pact are the Strategic Trade Management Office (STMO), Authority of the Freeport of Area Bataan, Clark Development Corp., Philippine Economic Zone Authority, and Subic Bay Metropolitan Authority.
Guerrero explained that the partnership aims to establish an effective coordination and cooperation mechanism towards enhanced trade facilitation, optimize information sharing, boost the capability of frontliners to identify strategic goods, and reduce the complexity of doing business of legitimate and compliant strategic goods exporters.
The effort, the commissioner said, is in accordance with the Republic Act No. 10697 or the “Strategic Trade Management Act” (STMA), authorizing the establishment of STMO to serve as the executive and technical agency of the national government for the establishment of the management systems for the trade in strategic goods.
A mandatory application for authorization from STMO is also being implemented.
Authorization refers to a license issued by the STMO to any person who engages or intends to engage in the trade of strategic goods. This shall be requested prior to export as this shall form part of the shipment clearances and requirements of the BoC and Investment Promotion Agencies (IPAs) as provided in the DTI Memorandum Circular No. 20-47, Series of 2020.
The BoC and IPAs shall be responsible for verifying the authenticity of the authorizations through the quick response code system, call, or email to STMO designated lines. A reach-back mechanism shall also be established among the parties to monitor compliance with SMTA.
In case the item for export does not meet the minimum technical specifications in the National Strategic Goods List (NSGL) but are visually similar with the strategic items, the Non-Strategic Good Certificate (NSGC) is issued by the STMO to requesting parties.
The BoC and or IPAs shall ensure that all strategic goods have appropriate authorizations from the STMO prior to export.
The STMO, on the other hand, shall establish capacity building training for BoC and IPA personnel such as commodity identification training, risk profiling, and targeting training, among others, to build and enhance the capacity of BoC and IPA personnel in the implementation of the STMA.
The bureau’s Risk Management Office (BoC-RMO) shall perform centralized risk management and targeting for strategic goods shipments while the IPAs shall contribute to information sharing and other efforts in harmonizing the risk management of strategic shipments.