‘SIXTEENTH CONGRESS
REPUBLIC OF THE PHILIPPINES
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rosier a
Representative Maximo B. Rodriguez, Jr.

House Bill No. 417 2 —

EXPLANATORY NOTE

Section 6 of R.A. No. 9280 which covers the scope of practice of customs broker
profession in its present form does not consider employment in government as practice of
profession. This is unlike in the case of other professional regulatory laws as for example R.
‘A. No. 9298 or practice of accountancy and R.A. No. 8495 or the practice of mechanical
engineering. The proposed amendment will not only make R.A. No. 9280 in harmony with
other professional regulatory laws but will make customs brokers in government more aware
of their professional accountability in the discharge of their official functions.

The proposed amendment of Section 6 which seeks to make exclusive the Customs
Broker Licensure Examination (CBLE) and Bar Examination converted into professional level
civil service eligibility under R. A. No. 1080 for second level positions requiring expertise in
customs and tariff administration will serve as an impetus to professionalize the Bureau of
Customs. Currently, there are many Customs Operations Officers (COO) whose educational
and professional background did not prepare them to discharge their functions technically
and professionally.

Section 16 of R.A. No, 9280 provides that graduates of the two-year Master of
Customs Administration (MCA) were qualified to take the Customs Broker Licensure
Examinations (CBLE) for a period of five (5) years from the effectivity of the law which was
in 2004. Extending the five (5) year period under RA 9280 for another eight (8) years
period will encourage current customs employees occupying positions in the first and
second level to take up MCA to qualify for the licensure examination for promotion
purposes.

The Philippines’ accession to the International Convention on Simplification and
Harmonization of Customs Procedures otherwise known as the Revised Kyoto Convention
(RKC) necessitates the amendment of some local laws among them RA. No. 9280
otherwise known as the Customs Brokers Act of 2004.

Chapter 3.7 of the General Annex of RKC provides that “any person who has the
right to dispose of the goods shall be entitied to act as declarant.” However, Section 27 of R.
A. No. 9280 provides that “any single act or transaction embraced within the provision of
Section 6 hereof shall constitute an act of engaging in the practice of customs broker
profession. Import entry shall be signed by a customs broker and the
consignee/ownerfimporter under oath based on the covering documents submitted by the
importer. Provided, That export deciarations shall be signed by the exporter or, at his option,
delegate the signing and processing of the document to his designated customs broker or
authorized representative.” Section 27 of R. A. No. 9280 must therefore be amended to
allow any person who has the right to dispose of the goods to be entitled as declarant.

The proposed amendment while ensuring that the Philippines’ commitment to the
international community is complied with likewise institutes safeguard to protect lawful
government revenue by adopting the concept of an independent customs broker in the
concept of an independent certified public accountant under the provisions of the National
internal Revenue Code (NIRC}, as amended to quote:

“Section 232. Keeping of Books of Accounts. (A) Corporations,
Companies, Partnerships or persons required by law to pay internal


revenue taxes shall keep a journal and a ledger or their
equivalents...Provided, further, That corporations, companies,
partnerships or persons whose gross quarterly sales, earnings, receipts or

output exceed one hundred fifty thousand pesos (P150,000.00) shalll have

their books of accounts audited and examined yearly by independent
Certified Public Accountants...”

Thus, while persons having the right to dispose the goods shall be entitled to act as
declarant and shall be allowed to make, lodge and process their import entries provided that
if the Free on Board (FOB) or Free Carrier (FCA) value of a consignment is more than fifty
thousand pesos (Php 50,000.00) shall be reviewed and signed by an independent customs
broker, Further, such declarants can only delegate the making and processing of import
entries to customs brokers

The concept is that the Bureau of Customs cannot review all the import entry
declarations and that customs brokers as professionals would serve as government first line
of defense against unlawful acts against customs.

The proposed amendment of Section 32 of R. A. No. 9280 seeks to inculcate in the
minds of customs brokers that the primary function as professionals is the collection of
rightful revenue due the government and not the pecuniary interest of their clients when
making import and export declarations and representing them before the Bureau of
Customs. This is similar to the primary responsibility of lawyers of administering justice in
their advocacy when representing clients before the courts of justice.

The proposed amendments to R, A. No. 9280 which seek to professionalize the
Bureau of Customs, safeguard government revenue while complying with commitment with
treaty commitment and put emphasis on professional responsibility of customs broker and in
this regard the approval of the billis highly solicited

In view of the foregoing, immediate passage of this bill is eamestly requested.

MAXIMO B. ALi JR.


SIXTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES }
First Regular Session

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
_ Representative Maximo B. Rodriquez, Jr.

House Bill No, 41°72

AN ACT

TO PROFESSIONALIZE THE BUREAU OF CUSTOMS, COMPLY WITH COMMITMENT
OF THE PHILIPPINES’ ACCESSION TO THE INTERNATIONAL CONVENTION ON THE
SIMPLIFICATION AND HARMONIZATION OF CUSTOMS PROCEDURES OTHERWISE
KNOWN AS THE REVISED KYOTO CONVENTION, TO MAKE CUSTOMS BROKERS
MORE AWARE OF THEIR RESPONSIBILITY AND ACCOUNTABILITY AS A
PROFESSIONAL THEREBY AMENDING FOR THE PURPOSE R.A. NO. 9280
OTHERWISE KNOWN AS THE CUSTOMS BROKERS ACT OF 2004

Be in enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 4, Section 6 of Republic Act No. 9280 is hereby amended to read as follows:
SECTION, 6. Scope of Practice of Customs Brokers - Customs
Broker Profession involves services consisting of consultation,
preparation of customs requisite documents for imports and exports,
declarations of customs duties and taxes, preparation, signing, filing,
lodging and processing of import and export entries, representing
importers and exporters before any government agency and private
entities in cases related to valuation and classification of imported
articles and rendering of other professional services in matters relating
to customs and tariff laws, its procedures and practices.

‘A customs broker shall be considered in the practice of the
profession if the nature and character of his/her employment in private
enterprises AND IN GOVERNMENT requires professional knowledge
in the field of customs and tariff administration. AS SUCH, FOR
SECOND LEVEL POSITIONS REQUIRING PROFESSIONAL
KNOWLEDGE IN THE FIELD OF CUSTOMS AND TARIFF
ADMINISTRATION, THE CIVIL SERVICE ELIGIBILITY SHALL BE
THE CUSTOMS BROKER LICENSURE EXAMINATIONS OR THE
BAR EXAMINATIONS CONVERTED INTO PROFESSIONAL LEVEL
UNDER THE PROVISIONS OF REPUBLIC ACT NO. 1080. He/she
is also deemed in the practice of customs broker profession if he/she
teaches customs and tariff administration subjects in any university,
college or school duly recognized by government.

SECTION 2. Paragraph (f), Section 8 of RA 9280 is hereby amended to read as follows
SEC. 8. Qualification of the Chairman and Members of the Board. —
The chairman and members of the Board must, at the time of their
appointment:

(f) Not be a member of the faculty, whether full-time or part-time, of
any school , college or university OR A REVIEW OR TRAINING
CENTER where a regular and/or review course in customs


administration is taught, nor shall have any pecuniary interest in such
institution; and

SECTION 3. Section 16 of RA 9280 is hereby amended to read as follows:
“SECTION 16 - Qualification of Applicants for Examinations. — In order
to be admitted to the licensure examination for customs broker
profession, a candidate shall, at the time of filing his/her application,
establish to the satisfaction of the Board that
XXXXXXX
(b) he/she is a holder of a Bachelor's Degree in Customs Administration,
Provided, That CURRENT EMPLOYEES OF THE BUREAU OF
CUSTOMS WHO ARE HOLDERS [a holder] of a master’s degree in
Customs Administration shall be allowed to qualify within [five (5) years]
FIFTEEN (15) YEARS from the effectivity of this Act; and

SECTION 4, Section 27 of RA 9280 is hereby amended to read as follows:
“SECTION 27 - Acts Constituting Practice of Customs Broker
Profession. - Any single act or transaction embraced within the
provision of Section 6 hereof shall constitute an act of engaging in the
practice of customs broker profession. Import entry shall be signed by
a customs broker and the consignee/owner/importer under oath based
on the covering documents submitted by the importers: Provided, That
export declaration shall be signed by the exporter or, at his option,
delegate the signing and processing of the document to his
designated customs broker or authorized representative. PROVIDED,
FURTHER, THAT IMPORTERS MAY PERSONALLY MAKE
DECLARATIONS WHILE IN THE CASE OF JURIDICAL PERSONS
A RESPONSIBLE OFFICER MAY MAKE DECLARATIONS IF THE
FREE ON BOARD (FOB) OR FREE CARRIER (FCA) VALUE OF A
CONSIGNMENT IS FIFTY THOUSAND PESOS (Php50,000.00) OR
LESS. OTHERWISE, AN INDEPENDENT CUSTOMS BROKER
MUST COUNTERSIGN THE IMPORT ENTRY THOUGH THE
IMPORT ENTRY MAY PERSONALLY BE PROCESSED BY THE
PERSON MAKING THE DECLARATION.

SECTION 5. Section 30 of RA 9280 is hereby amended to read as follows.
SECTION 30. Prohibition Against Financing Activities By Customs
Brokers. - No Customs Brokers shall advance and finance on behalf
of their client-importers the payment of duties and taxes, arrastre
charges, wharfage dues, storage fee and other port AND
WAREHOUSE charges.

SECTION 4. Section 32 is hereby amended to read as folows

SECTION 32. Code of Ethics for Customs Broker Profession. - THE
BASIC FOUNDATION OF THE CODE OF ETHICS FOR CUSTOMS
BROKERS IS THE PREMISE THAT THEY ARE QUASI-CUSTOMS
OFFICIALS AND THE PRIMARY FUNCTION OF THEIR OFFICE IS
COLLECTION OF RIGHTFUL REVENUE DUE THE GOVERNMENT.
ANY ACT BY A CUSTOMS BROKER WHICH IS CONTRARY TO HIS
PRIMARY FUNCTION SHALL BE CONSTRUED AS VIOLATION OF
THE CODE OF ETHICS AND SHALL SUBJECT HIM TO
ADMINISTRATIVE SANCTIONS AND THE PENAL PROVISIONS OF
THIS ACT. The Board shall adopt and promulgate the Code of Ethics
and Code of Technical Standards which shall be prescribed and issued
by the accredited professional organization of customs brokers.


SECTION 5. Implementing Rules and Regulations (IRR) — Within three (3) months from
effectivity of this Act, the Professional Regulatory Commission, through the Professional
Regulatory Board for Customs Brokers with due consultation to the accredited professional
organization shall promulgate the IRR of this Act.

SECTION 6. Separability Clause — If any portion or provision of this Act is declared
unconstitutional, the remainder of this Act or any provision not affected thereby shall remain
in force and effect.

SECTION 7. Repealing Clause ~ All laws, presidential decrees, letters of instruction,
executive orders, rules and regulations, or any part thereof inconsistent with the provisions
of this Act are hereby repealed or modified accordingly.

SECTION 8. Effectivity - This Act shall take effect after fifteen (15) days following its
publication in two (2) newspapers of general circulation

Approved,