BOC Reiterates Guidelines on Advance Ruling System for Valuation and Origin

The Bureau of Customs reiterated the guidelines on Advance Ruling System to encourage stakeholders to avail of the system as it provides specific and concrete rules offering uniformity in the application of customs rules and regulations.

Advance Ruling is an official and written binding ruling issued by the Commissioner of the Customs (BOC) which provides the requesting person with an assessment of origin or treatment to be applied on a certain element of customs value before an import or export transaction for a specific period. An importer or foreign exporter shall request for an advance ruling at least 90 days prior to the date of shipment and shall pay the non-refundable advance ruling fee of PHP 1,500.00 to Land Bank of the Philippines, the Bureau’s In-House Bank.

The Advance Ruling is valid for three (3) calendar years from the date of its issuance provided that there is no change in material facts and circumstances after the issuance of the ruling, and there is no change in the applicable law. With the issuance of an advance ruling, a requesting person may avoid unnecessary disputes on origin or valuation since the ruling is binding to the BOC. Consequently, delays in the clearance of goods will be avoided, there would be certainty and predictability to international trade and importers and exporters can make informed business decisions based on legally binding rules.

To apply for an advance ruling, an importer or foreign exporter shall accomplish the application form and Order of Payment Form (Appendix A or B and C, CMO 30-2016 respectively). The Order of Payment Form shall be presented upon payment to Land Bank of the Philippines. A BOC official receipt (BCOR) will be issued and shall be attached to the application form, which shall be submitted to the BOC Technical Support Team for Advance Ruling on Valuation (TST-ARV), Office of the Imports and Assessment Service (IAS) or to Technical Support Team for Advance Ruling on Rules of Origin (TST-ARROO), Office of the Ports Operations Service.

TST-AR shall evaluate the documents submitted. If the documents submitted are not complete, the TST-AR shall notify the requesting party to submit additional documents or information. Thereafter, the TST-AR shall evaluate the sufficiency of the request. Thereafter, Assistant Commissioner PCAG, Vice-Chair and the Deputy Commissioner, AOCG, shall review and endorse the ruling to the Commissioner. If the Commissioner finds merit in the request, he shall then approve the decision.

Deputy Commissioner Edward James Dy Buco of the Assessment and Operations Coordinating Group emphasized the importance of the system in providing consistency to the assessment of a good’s value which will benefit both the government and the stakeholders.