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Manila Bulletin devider Business devider Fully digital border protection system underway—DOF

Fully digital border protection system underway—DOF

Published May 21, 2024 06:55 am

Finance Secretary Ralph G. Recto lauded the recent issuance of an order aimed at enhancing the monitoring of imported goods entering the country through digital pre-border verification and electronic invoicing.

As the chair of the committee overseeing the implementation of President Marcos’ Administrative Order (AO) No. 23, Recto emphasized the importance of safeguarding the country's borders from illegal and hazardous imports.

“This initiative is another significant step towards achieving a fully digitalized border protection system in the country where no import goes unnoticed and unaccounted for,” Recto said.

“This will certainly go a long way in putting an end to smuggling, misdeclaration, and undervaluation,” he added.

READ: Marcos orders single electronic invoicing system for all imported goods to improve inspection

The new system focuses on expediting the inspection of all imported goods through digital and integrated means.

It is also designed to strengthen national security, protect consumer rights, and prevent the entry of substandard or dangerous products into the country.

AO 23 will be implemented in three phases, starting with agricultural goods, then non-agricultural items with health and safety concerns, and finally, addressing goods with potential misdeclaration issues to evade taxes.

A special Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing has been established, led by Recto and composed of key officials from other government departments and industry representatives.

The system will rely on accredited Testing, Inspection, and Certification (TIC) companies to conduct pre-border technical verification of all imported commodities.

These TIC companies are expected to ensure compliance with international standards and local regulations, helping to prevent smuggling and undervaluation.

The Committee will also oversee the procurement of a Cross-border Electronic invoice system, which will serve as the electronic platform for processing invoices issued by TIC-certified imports.

Recto expressed confidence in the Committee's ability to implement the new system effectively and emphasized the importance of cooperation among all stakeholders.

The full implementation of the new system is expected within two years from the order's effective date.

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Department of Finance (DOF) ralph recto Finance Secretary
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