Finance Secretary Ralph G. Recto has lauded the issuance of Administrative Order (AO) No. 23 which will significantly enhance the monitoring of imported commodities entering the Philippines through electronic means, and has vowed to protect the country’s borders from dangerous imports as Chair of the Committee implementing the said initiative.

“This initiative is another significant step towards achieving a fully digitalized border protection system in the country where no import goes by unnoticed and unaccounted for. This will certainly go a long way in putting an end to smuggling, misdeclaration, and undervaluation. I thank the President for his support in ensuring that the Bureau of Customs is well-equipped with the necessary technology and support needed to protect our people from illegal and hazardous imports,” he said.

AO 23 was issued by President Ferdinand R. Marcos Jr. and signed by Executive Secretary Lucas Bersamin on May 13, 2024 to expedite the inspection of all imported commodities entering the Philippines through digital and integrated pre-border technical verification and cross-border electronic invoicing.

It is intended to strengthen national security, safeguard consumer rights, and protect people against substandard and hazardous imported goods.

AO 23 will be applied to all imported commodities in three phases: First, for agricultural goods; second, for non-agricultural goods with health and safety issues; and third, for other goods with misdeclaration to avoid duties and taxes.

The AO has created the Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing chaired by the Secretary of Finance.

The committee members include the Secretaries of the Department of Agriculture (DA); Department of Trade and Industry (DTI); Department of Energy (DOE); Department of Health (DOH); Department of Environment and Natural Resources (DENR); Department of Information and Communications Technology (DICT); the Commissioner of the Bureau of Customs (BOC); the Director General of the Philippine Drug Enforcement Agency (PDEA); and two non-voting representatives from recognized industry associations.

The DOF will lead the formulation of guidelines and implementing rules and regulations for the Pre-Border Technical Verification of all commodities to be conducted by accredited Testing, Inspection, and Certification (TIC) Companies prior to their export to the Philippines.

TIC Companies are qualified third-party companies that have legal, financial, and technical capabilities to implement the Pre-border Technical Verification and Cross-border Electronic Invoicing System for the certification of all commodities bound for the Philippines.

The accreditation of such TIC Companies shall be in accordance with the guidelines to be issued by the Committee, which shall be competitive, transparent, and in compliance with international trade standards, as well as existing laws and regulations.

The Committee shall also formulate procedures for the procurement of a Cross-border Electronic Invoicing System, which will serve as the sole electronic platform for the creation, uploading, and storage of electronic invoices for all imports with a digital verification certificate from the TIC Companies.

“I expect full cooperation from the members of our newly-formed Committee and look forward to working with them closely to ensure that no unregulated commodity slips past our borders,” Secretary Recto said.

The Pre-border Technical Verification and Cross-border Electronic Invoicing System is expected to be fully implemented within two years from the Order’s date of effectivity, which is 15 days after its complete publication in the Official Gazette or in a newspaper of general circulation.