The Department of Finance is gearing up to implement the Administrative Order (AO) 23 which aims to utilize a fully digitalized border protection system to speed up the inspection of imports in the country.

“Grounded by AO No. 23, series of 2024, we take the first steps today towards achieving a fully digitalized border protection system in the country where no import goes unnoticed and unaccounted for,” Finance Secretary Ralph G. Recto said during a meeting with the inaugural committee on Tuesday, June 11.

President Marcos issued the AO 23 to expedite the inspection of all imported commodities entering the Philippines through digital and integrated pre-border technical verification and cross-border electronic invoicing.

Under this, the finance secretary is tasked to chair the committee for Pre-border Technical Verification and Cross-border Electronic Invoicing (CPTVCEI).

The secretaries of agriculture, trade and industry, energy, health, environment and natural resources, and information and communications technology serve as members.

Other committee members include the Bureau of Customs (BOC) commissioner, the director general of the Philippine Drug Enforcement Agency (PDEA), and two non-voting representatives from duly recognized industry associations to be appointed by the chairperson upon recommendation of the committee.

The order will be implemented in three phases: the first phase will cover agricultural goods; phase two will focus on non-agricultural goods with health and safety issues; and the third phase involves other goods with misdeclaration avoiding duties and taxes.

Pre-border Technical Verification is for the safety testing and inspection of all imported commodities before shipment that entails the verification of the declared specifications, description, weight, volume, and country of origin.

Meanwhile, the Cross-border Electronic Invoicing System will be used to create electronic invoices to monitor international trade transactions of all imported goods, and will be shared in real-time across relevant government agencies for transparency.

Also during the meeting, BOC officials presented the draft joint administrative order (JAO) on the guidelines, as well as the implementing rules and regulations for the conduct of the system.

The CPTVCEI approved the creation of a technical working group to review and finalize the base draft JAO, which is set to be presented in the next committee meeting.

It details the objectives, scope, exemptions, and qualifications for the accreditation of testing, inspection, and certification companies, reporting, and clearance procedures, among others for the proper implementation of AO No. 23.

For the nomination of two non-voting industry representatives, the committee will receive nominations until June 20, and the finance secretary shall have appointed two representatives by June 28, both of which will be invited to attend the next committee meeting.

The DOF said that the committee and member agencies will organize public consultations and stakeholder engagements to ensure the proper and efficient implementation of the systems.

With the systems in place, Recto said that the country is now one step closer to putting an end to smuggling, misdeclaration, and undervaluation.

He urged the members of the committee to lend their full cooperation, commitment, and expertise to the success of the crucial initiative.

“Remember, according to AO No. 23, we have two years to complete and fully implement the systems. So, let us all buckle down to work and get this started. Delay is not an option,” he said.

Present during the meeting were the Office of the Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go; DOF Undersecretary Charlito Martin R. Mendoza; and Department of Trade and Industry Undersecretary Mary Jean T. Pacheco.