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FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES _)
First Regular Session

Representative Maximo B. Rodriguez, Jr.

House Bill No, 0634
EXPLANATORY NOTE

Section 6 of RA. 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 R.A.
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 entitled 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/owner/importer under oath based on the covering documents submitted by
the importer. Provided, That export declarations 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) shall 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 bill is highly solicited.

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

RUFUS B. RODRIGUEZ

Mt

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
First Regular Session

HOUSE OF REPRESENTATIVES

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

House Bill No. 9 °*
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
Congress assembled: =

d the House of Representatives of the Philippines in

SECTION 1. 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. — \n
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:

XXX XXX

(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 follows:

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,