Finance Secretary Ralph G. Recto convened the inaugural committee meeting to operationalize the Pre-border Technical Verification and Cross-border Electronic Invoicing Systems under Administrative Order (AO) No. 23, series of 2024 on June 11, 2024 at the Department of Finance (DOF) office in Manila.

“Grounded by AO No. 23, series of 2024, we take the first steps today towards achieving a fully digitalized border protection system in the country where no import goes unnoticed and unaccounted for,” he said in his opening remarks.

AO No. 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 No. 23 will be implemented in three phases. The first phase will cover agricultural goods; phase two will focus on non-agricultural goods with health and safety issues; and the third phase involves other goods with misdeclaration avoiding duties and taxes.

Pre-border Technical Verification stands for the safety testing and inspection of all imported commodities prior to shipment. This entails the verification of the declared specifications, description, weight, volume, and country of origin.

Meanwhile, the Cross-border Electronic Invoicing System will be used to create electronic invoices to monitor international trade transactions of all imported goods, and will be shared in real time across relevant government agencies for transparency.

AO No. 23 created the Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing (CPTVCEI) chaired by the Secretary of Finance.

The Secretaries of Agriculture, Trade and Industry, Energy, Health, Environment and Natural Resources, and Information and Communications Technology serve as members.

Other committee members include the Bureau of Customs (BOC) Commissioner, the Director General of the Philippine Drug Enforcement Agency (PDEA), and two non-voting representatives from duly recognized industry associations to be appointed by the chairperson upon recommendation of the committee.

During the inaugural meeting of the Committee, BOC Commissioner Bienvenido Y. Rubio provided the overview of the initiative, while BOC Assessment and Operations Coordinating Group Deputy Commissioner Vener S. Baquiran presented the draft joint administrative order (JAO) on the guidelines and IRR for the conduct of the system.

The CPTVCEI approved the creation of a TWG to review and finalize the base draft JAO, which is set to be presented in the next committee meeting.

The JAO details the objectives, scope, exemptions, qualifications for the accreditation of Testing, Inspection, and Certification (TIC) companies, reporting, and clearance procedures, among others for the proper implementation of AO No. 23.

In line with Section 2 of AO No. 23, the CPTVCEI Secretariat presented the process and timeline for the nomination and appointment of the non-voting representatives from duly recognized industry associations.

The Committee shall receive nominations until June 20, 2024, and the Secretary of Finance shall have appointed two representatives by June 28, both of which will be invited to attend the next committee meeting.

The Committee and member agencies will organize public consultations and stakeholder engagements to ensure the proper and efficient implementation of the systems.

With the systems in place, Secretary Recto said that the country is now one step closer to putting an end to smuggling, misdeclaration, and undervaluation.

He urged the members of the Committee to lend their full cooperation, commitment, and expertise to the success of the crucial initiative.

“Remember, according to AO No. 23, we have two years to complete and fully implement the systems. So, let us all buckle down to work and get this started. Delay is not an option,” he said.

Present during the meeting were the Office of the Special Assistant to the President for Investment and Economic Affairs (OSAPIEA) Secretary Frederick D. Go; DOF Undersecretary Charlito Martin R. Mendoza; and Department of Trade and Industry (DTI) Undersecretary Mary Jean T. Pacheco.

Also in attendance were OSAPIEA Assistant Secretary Kristine Joy Diaz-Teston; DTI Assistant Secretary Agaton Teodoro P. Uvero; DOF Director Euvimil Nina R. Asuncion; Department of Agriculture Directors Jerome D. Bunyi and Honorio C. Flameño; Philippine Drug Enforcement Agency Director Agnes D. Mandap; Department of Energy Division Chief Gloria A. Ferranco; Department of Health Division Chief Ms. Cherrie D. Esteban; and Department of Information and Communication Technology representative Mr. Mario Elmer Cunanan.