FREQUENTLY ASKED

QUESTION ON E2M
(CUSTOMS MODERMIZATION PROJECT)
 1. What is the E2M Customs Project?

 The E2M (electronic-to-mobile) Customs project is one of the

mission-critical and high impact ICT projects of the national
government. It seeks to streamline BOC’s core processes (import
and export) and improve trade facilitation between the bureau
and its stakeholders, including other government agencies,
through the development and integration of various systems
allowing internet-enable and later SMS enable, thus less face-to-
face, transaction, all towards the realization of the National and
ASEAN Single windows. Launched last January 2005, this Project
was awarded to Unisys Philippines through a multi-million grant
from President GMA e-Government fund, which was specifically
created to finance strategic ICT project of government agencies.
 1. What is the E2M Customs Project?

 The e-Customs system or the electronic component of the

integrated e2m-customs automated processes is an
internet-based technology that allows customs officers
and traders to handle most of their transaction from
Customs declaration to cargo manifests and transit
documents via the internet. It makes use of advanced
technology including electronic signatures to provide
government officials, especially customs administration
with new tools that will enable them to make dramatic
improvements in security, trade efficiency and fight
against corruption. Over 80 countries around the world are
using a similar Customs IT system.
 2. What are the new features in the
e2m-customs?
E2M Customs offers the ff. enhancement to the current system
 Online submission of declaration
 Automatic advice on declaration status
 Engagement of VASPs. Online submission of manifest by airline and shipping
lines including de/consolidator
 Automated process for other type of import transactions such as informal
(including passenger baggage system), warehousing and transshipment
entries.
 Automated process for liquidation of raw materials. Centralized management
of bonds transactions.
 Links with relevant government agencies
 Online resources access through BOC website in issuance, processes, policies
guideline and other related information.
VASPs have replaced the EEC – where lodgment was previously made,
introducing the shift to internet lodgment. However, procedures in the FED
and WAD (including the respective EPU) remain basically the same.
 3. Will there be new facilities for the
new system?
YES – The e2m customs system will be
supported by new servers, workstation,
computers and accompanying software. The
maintenance of both hardware and software
shall be done by MISTG. Furthermore, several
workplace areas have undergone renovation.
The ICY building, MISTG-officer at pilot ports,
POM-formal entry division and cash division,
among others.
 
 4. What are the benefits of the E2M
Customs Project?
E2M Customs Project brings the BOC to its vision
of a customs organization that delivers services
anytime and can be transacted anywhere. A
compelling scenario which it envisions is a queue
less, cashless and paperless environment. In
supporting the recently formulated BOC strategic
Goals for 2008-2012 which priorities the agenda
of Enhanced Revenue Collection, Secured Trade
Facilitation, Strengthened Enforcement and
Improved Work Environment,
 4. What are the benefits of the E2M
Customs Project?

the Project undertakes the ff. :

 Automation of accreditation of importers/brokers and other
clients.
 Updating of import values
 Automation of lodgment entries, payments, cargo release,
among others.
 Provision of IT support facilities and equipment
 Capability building for the work force

For external stakeholders, the project provides for:

 Greater BOC accountability to stakeholders, government and
the public due to more transparent dealing efficient system.
 Reduced processing time on low-risk transaction
 Lower cost of doing business due to streamlined processes
 5. What are the mechanisms for
detecting and controlling fraud?
 All transaction with external offices and
stakeholders pass to designated gateways of the
E2M Customs Project and undergo security checks,
Examples of these security measures are the use of
digital signature and online checking of specific
licenses and permits through the new system.
Aside from system check, at BOC’s end, examiners
and clerks will be trained to identify fraudulent or
suspicious documents and authorization. Any
suspended violation or treats will be brought to the
attention of the proper office and investigated.
 6. What is the new IAS and what are
its components?

The IAS is a set of application component that

handles the flow of imports processing which
includes electronics manifest clearance, import
declaration entry, risk assessment, regulatory
clearances and release of cargo.
 
EMS processes all submitted Master and
consolidated Manifest from air and shipping
lines through VASP. HAS and SEL system
contains the controls necessary to block
processing of selected declaration and direct
these declaration to the appropriate processing
channels. It involves of an alert/hold order the
monitoring of the action taken on the
alerted/held cargo.
 
 FES facilitates the processing of entry declaration
on importation of a commercial nature for local
consumption (sale or barter) of raw materials, semi-
finished goods to collect the necessary duties,
taxes, and other fees; while WES facilitates the
declaration processing of tax and duty free
importations under bond of raw materials of semi-
finished goods used by local enterprises to
manufacture and assemble goods for exportation.
IES on the other hand monitors and controls the
acceptance of informal entries or goods that are
not classified for commercial value.
 IAS covers the ff. sub system namely: the EMS,
selectivity, HAS, FES, IES, WES, transshipment
system, PAS, and ORLS, while generating data from
the LCS and CPRS.
 
 EMS processes all submitted Master and
consolidated Manifest from air and shipping lines
through VASP. HAS and SEL system contains the
controls necessary to block processing of selected
declaration and direct these declaration to the
appropriate processing channels. It involves of an
alert/hold order the monitoring of the action taken
on the alerted/held cargo.
 TSS monitors and controls the movement of goods
within national borders for shipments that use
specific point of entry but will be subsequently
moved to the final port of destination.

 PMTS involve both cash and non-cash payment and

application of these payments to the duties taxes
and fees payable. OLRS involves the transmission of
release or loading instruction messages from the
BOC to transit facilities, granting these entities
authority to release the goods to the rightful
owner. The transit facility can retrieve and provide
feedback through the BOC Portal VASP Gateway.
CPRS will serve as a central repository of data
pertinent to BOC clients and stakeholders, both
internal and external, and will include exporters,
other government agencies, and private entities
that conduct business with bureau. It involves
the process of capturing client information
during the accreditation and registration of the
various BOC stakeholders by filling out client
specific accreditations form. The captured
information is stored in a central database to
allow easy access to stakeholder’s information
by operating units and system serving line
function.
LCS involves the acceptance of the BOC of
electronic licenses and clearances granted to
import and export shipment. Issuing agencies
that are not yet ready to provide for real time
data access are provided with online access by
system through the internet-agency information
exchange gateway of the BOC portal.

Implementation of AIS has piloted in the Port of

Batangas effective March 21, 2009.
7. What are the needed from importer/broker
prior to AIS transaction?
To be eligible for transaction in the internet-enable
IAS, importers/brokers must have the ff.

 Valid and active CCN from the CPRS., Bank Account

information and bank reference number of their
AABs for payment of customs duties and taxes.
 Appropriate licenses/clearance/permit from
concerned issuing agencies for their importation.
 Applicable non-cash payment instrument (TOM, TEC
and IED). Other supporting document.
 8. Will the current roles and position
be affected by the new system?

 With the streamlined processes, same roles and

position need to be reinvented and re-aligned as
deemed necessary by BOC management. Even with
these changes, BOC management assures the staff
about their security of tenure as long as they willing
to adapt to new roles and responsibilities. Series of
orientation and training are conducted to ensure
that affected personnel will be equipped with the
necessary skills to perform their new
responsibilities. The BOC management will prepare
the policies for transfer or replacement, as need
arises.
INFORMATION ON THE NEW
PAYMENT SYSTEM
 1. What are the new features of the
e2m automated payment system?
 The new payment system involves the use of both cash
and non-cash payments, both transacted and stored
electronically, for either advanced or final settlement of
duties and taxes. Declared non-cash payment accounts
are utilized first by the system during assessment of
import entries. The balance, payable cash, is
automatically debited from the importer bank account
through a payment instruction generated by the system
and sent over to the importer’s bank via the PCHC. The
final payment instruction are generated after the
assessment of the declaration by the concerned port’s
assessment division. The importers bank account details
are provided during import lodgment at the VASP
 1. What are the new features of the
e2m automated payment system?

 The BOC has partnered with the BAP to develop a

comprehensive payment system that provides
clients with various modes of payment. The new
process does not only lessen work for the Bureau,
but also ensures complete and more accurate
computation of client’s payables.
 The new system features application of payment
application secure system version 5.0 (CAO No. 10-
2008) which provided details guidelines on secured
internet-base banking transaction between MBs
and importers.
 1. What are the new features of the
e2m automated payment system?
The new payment system involves the use of
both cash and non-cash payments, both
transacted and stored electronically, for either
advanced or final settlement of duties and
taxes. Declared non-cash payment accounts are
utilized first by the system during assessment of
import entries. The balance, payable cash, is
automatically debited from the importer bank
account through a payment instruction
generated by the system and sent over to the
importer’s bank via the PCHC.
 1. What are the new features of the
e2m automated payment system?
The final payment instruction are generated
after the assessment of the declaration by the
concerned port’s assessment division. The
importers bank account details are provided
during import lodgment at the VASP
2. What are needed from the importer to
be able to transact in the new payment
system?

An importer needs to have obtained the ff. data

prior to filling of import declaration:

Customs Client Number

Debit accounts with AAB
AAB Reference Number
3. What are considered non-cash
payment instrument?

Non-cash payment instrument include the ff.

Tax Credit Certificate

Tax Exemption Certificate
Advance Payment of Duties
 
4. What are the procedures for securing
an electronic TOM?
 The processing of the application for utilization shall be
performed ff. existing procedure. Upon approval of the
importer’s application for TCC utilization, the TOM
covering the single shipment shall be generated using the
e2m Customs TCC Module and shall be printed out for
the importer’s reference of the TOM number. The
electronic TOM uploaded in the e2m customs TCC/TDM
system shall be considered authentic and authoritative
document that is valid to be used for the non-cash
payment. TDMs created for BOC issued TCCs will
automatically update their TCC ledgers in the system.
 
 5. What will be happen to TDMs with
unused balance?
 Per CMO 10-2009, TDMs with unused balance and
intended to be used for non-cash payment in
Batangas starting 21 March 2009 shall be returned
to the issuing office (one stop shop Center at the
Department of Finance or the Tax credit Secretariat
of the BOC) for their re-validation and conversion to
the new electronic TDMs. The verification of the
validity of the TOM balance shall be the
responsibility of the issuing office. The holder of the
TOM with unused balance shall be responsible for
the representation of document required by the
issuing office. Establish the accuracy of the TOM
balance.
 5. What will be happen to TDMs with
unused balance?

For TDMs issued by the BOC, unused balance

shall be administratively converted to tax credit
using the E2M customs payment system, under
COA audit procedure. New TDMs may me
subsequently issued from the tax credit.
6. What is the process for utilizing IEDs
with remaining balance?
Importers seeking to use IEDs originally
presented at the part of Batangas and with
remaining balances shall proceed to the port of
Batangas Cash Division section in the charge of
IEDs and secure a certificate of balance. An
authorize officer shall encode the data in the
certificate of balance in the e2m payment
system. The converted IEDs shall be issued new
numbers.(more details on item 4.7 of CMO No.
10-2009)
7. What is the new process for securing a
Tax Exemption Certificate at the port of
Batangas?

Importers with shipments arriving at Batangas

Port or on after 21 March 2009 and intending to
use TEC to affect the release of the shipments
shall apply for the exemption at any of the ff.
DOF Revenue Department Offices: Mabuhay
Lane, International Revenue Division and the
Customs and Tariff Division.(refers to item 4.4 of
CMO No. 10-2009 for more details)
8. How does an importer or broker apply
for TEC to his/her in port declaration?

Importer’s nature of exemption sought must be

indicated selecting appropriate procedure in box
37 (procedure) of the SAD. This must be
supported by corresponding TEC number issued
by the DOF in the terms of payment to effect the
applied exemption.
9. If the total amount of non-cash payment is
sufficient to fully cover the declaration’s total
assessment notice will there still be a need to
generate a payment instruction to the
importer’s AAB?

TCC/ TDM account cannot be used for payment

of charges such as IPF, Container Security Fee,
and others; every import entry will generate a
payment instruction to the AABs, for at lest a
minimum IPF of P250.00
 10. Since cash payment will be made
through AAB. What will be the basis for
generating daily cash collection reports?

The system generates daily reports based on the

payment confirmation message that where
received in 1 day the AABs. In addition, AABs
submit total collection data month to the BOC.
11. What if the importer does not have a
local bank account where his/her port of
lodgment is located?
The final payment instruction is sent by e2m to
PCHC, which in turn routes the instruction to the
bank branch corresponding to the AAB
reference number specified by the importer on
the SAD. Because of this centralized
implementation of the new payment system,
payment of duties and taxes can be done
through any AAB as log as it has connection to
the Payment Application System PCHC.
 12. What id the bank’s cut off time for
auto-debiting payment of duties and
taxes?
 Bankers Associated of the Philippines, AABs are expected
to return the payment confirmation messages within 20
minutes upon receipt of final payment instruction
message from BOC, such requirement id not being
enforce by the e2m-customs system. The BOC server will
receive final payment confirmation message via the
Philippines Clearing House Corporation (PCHC anytime,
24x7, for as long as to serve is up and running, provide
that the time duration for abandonment (for being
update) has not yet elapsed. AABs return confirmation
messages per transaction, not by batches as practiced
under PAS4.
 13. What proof of payment can the
importer/broker get after his cash/non-
cash accounts have been debited?

Based on CAO 10-2008 (PASS5) items 5.3.3 BOC

will be issuing an electronic document called
Statement of Settlement of duties and taxes for
completely processed declaration to the
importer through his VASP. This will serve as the
official receipt for all payment made.
OTHER SYSTEM-SPECIFIC
INFORMATION
1. Does the EMS system allow transaction
on weekends and holidays for the creation
of arrival schedule?

This will be depending on BOC policy.

Technically, the system is capable to run
continuously with only minimal interruption for
maintenance. It is important to note, however,
the currently Unisys Helpdesk Support is only
available during regular working hours…Monday
to Friday, 8am to 5pm.
  
2. What are the new features of the CPRS
which are not in the old BOC system?

 Instead of manual submission of application form

and documentary requirements for client’s
accreditation clients can now electronically submit
applications for accreditation, for accreditation
trough a VASP, and are, in turn, validated
electronically before being stored in a central
database. When the accreditation expires, the
clients automatically notified by the system to apply
for renewal. CPRS interfaces with other BOC
systems such as import entry system and hold and
alert system, to provide critical client information.
 3. Is CCN issued to each client a lifetime
number and does the registration have to
be renewed annually?

CCN is supposed to be life time number that a

broker will keep while she/he is active and dully
Accredited by BOC, renewal should be done on
regular frequency as per policies of the Customs
Accreditation Secretariat (CAS) but it does not
change the CCN.
 4. What happen if different information will
give in the CPRS through electronic registration,
as compared to those in the original paper with
CAS?
Affidavits establishing which information
submitted have been change should be
submitted immediately or as close to the
application for accreditation. This is to be
included as part of the supporting document
when the hard copy of CPRS application is
submitted to CAS
5. Where can we find more information about
the details of the new or modified processes
brought about by the e2m system
implementation?
BOC accredited client may contact any
accredited VASP for more information on the
E2M processes.

To Unisys Helpdesk (02)9173201 or email

[email protected] to get further
information.