Final APEC Philippines Expedited Shipments Assessment

for review by the United States Agency for International Development. The assessment aimed to examine the existing state of the Philippines' expedited shipments program and provide recommendations for its enhancement. The program is part of the APEC Sub-Fund on Supply Chain Connectivity, which aims to improve supply chain performance in the Asia-Pacific region. The assessment team, consisting of Linda Wilcox-Daugherty and Calvin Chan, met with members of the Philippines' Bureau of Customs (BOC) and public and private sector stakeholders. The team analyzed the current expedited shipments processes used by the Philippines and examined how the program can be further enhanced by introducing additional customs modernization and trade facilitation practices, especially with the implementation of the new Customs Modernization and Tariff Act (CMTA). Key findings from the assessment include the lack of complete automation and systems inter-operability in the BOC's processing system, the absence of a backup plan for the e-Manifest requirement, and the need for Implementing Rules and Regulations (IRRs) for the CMTA. The assessment also found a lack of uniformity in the current IRRs for Express Operators, the separation of release from clearance/duties, taxes, and fees payment for formal entries does not exist, and there will be an expected increase in informal entries and de minimis entries due to the CMTA. The assessment team also identified several areas for improvement, including the need for a dedicated BOC office that caters to the unique processing requirements and needs of air express operators, and the elimination of duplicative, time-consuming, and overlapping cargo clearance processes. The team expressed concerns about the capacity and capability of the e2m System, which is currently used by the BOC to process expedited shipments. The assessment was conducted in line with the WTO Trade Facilitation Agreement requirements for Expedited Shipments, and the recommendations provided in the report are designed to enhance the efficiency and effectiveness of the Philippines' expedited shipments program. The report also highlights the importance of implementing the CMTA and the need for the BOC to develop a backup plan for the e-Manifest requirement. The assessment team expressed gratitude to the Philippines' Bureau of Customs for its valuable advice, guidance, and support throughout the length of the assessment. The team also appreciates the assistance from the numerous express operators, business associations, and other nongovernmental stakeholders interviewed, as well as the guidance of the U.S. Agency for International Development. The Philippines' expedited shipments program is an important component of the country's trade facilitation efforts, and the assessment provides valuable insights and recommendations for its enhancement. The implementation of the CMTA and the development of a backup plan for the e-Manifest requirement are critical steps towards improving the efficiency and effectiveness of the program. The assessment team's findings and recommendations are designed to be in line with the WTO Trade Facilitation Agreement requirements for Expedited Shipments, and the report provides a comprehensive analysis of the current state of the Philippines' expedited shipments program. The report highlights the need for the BOC to develop a more efficient and effective processing system, and to eliminate duplicative and overlapping cargo clearance processes.