TERMS OF REFERENCE

Electronic Import Permit System (EIPS)

BACKGROUND

The Cagayan Economic Zone Authority (CEZA) was created by virtue of Republic Act 7922, otherwise known as the “Cagayan Special Economic Zone Act of 1995”. It is a government and controlled corporation tasked to manage and supervise the Cagayan Special Economic Zone and Freeport (CSEZFP) which covers the entire Municipality of Sta. Ana and the islands of Fuga, Barit and Mabbag in the Municipality of Aparri, Province of Cagayan.

The CSEZFP is envisioned to become an agro-industrial growth zone, a major transshipment port and a tourism and eco- tourism haven serving as a vibrant hub of economic activities in East and Southeast Asia and spurring economic activity and employment in Northern Philippines. In order for this to realized, CEZA has been implementing development projects and intensive marketing and promotion activities to attract local and foreign investors.

Currently, CEZA has one hundred twenty-one (121) locators inside the CSEZFP. As CEZA Locators, they are authorized beneficiaries of incentives provided under the RA 7922 such as tax and duty free importations. As such, CEZA Locators are enjoying these benefits through importation of raw materials, capital goods, equipment, and consumer items.

To apply for the tax and duty free importations, CEZA Locators have to secure a hardcopy of Import Permit from CEZA Office, accomplish the form along with the attachments and submit to CEZA for approval, and then submit to BOC for lodging and releasing. It takes a lot of time and effort for the CEZA locators to import articles. Thus, it is vital to automate this procedure aside from the fact that other agencies such as BOC and other economic zones have already automated their importation transactions.

OBJECTIVES

To simplify the procedures and expedite the processing period for Applications of Import Shipments of CEZA registered Locators;

To electronically file the Import Permit, pay the required processing fees through electronic mode of payments and print system – generated Import Permits;

To enhance efficiency, transparency and accountability in the processing of Import Permits;

Introduce features into the system to prevent or deter unscrupulous use of names of CEZA Enterprises in smuggling activities and to alert CEZA, BOC and CEZA locators on possible hijacking or diversion of Import shipments;

To be able to provide Management Reports for all transactions filed by the CEZA Locators.

QUALIFICATIONS

Provide similar service to other entities in Government and Private Sectors specifically BOC and special economic zones for at least 10 years; and

An accredited BOC Value Added Service Provider (VASP) for at least 10 years.

SCOPE

        The Import Permit Automated System shall cover the following features:

        On-line approval/disapproval of the List of Importables

        24 x 7 On-line application of the Import Permit

        Electronic Broadcast Message via email to the registered locator upon filing of Import Permit

        Prepayment Mode for CEZA and VASP Fees

        Real time tracking/monitoring of the shipment status

        Real time checking/validation on the authenticity of the Import Permit through the barcode system.

        Availability of Management Reports

        Capability to interface with BOC Systems

        Capability to archive transaction/records of registered locators

        Capability to validate the Registration of the locators and Accreditation of the Forwarders

BUSINESS RULES

        1. APPLICATION & REGISTRATION 

        1.1 Only registered CEZA locators with valid Certificate of Registration & Tax Exempt (CRTE) can be enrolled in the system.

        1.2 Only Accredited Forwarders/Brokers can be registered in the CEZA System.

        1.3 Only accredited VASPs can participate in the CEZA Automation Project.

        2. IMPORT PERMIT PROCESSING

        2.1 Use of the 12 digit HS Codes based on the Asean Harmonized Tariff  Nomenclature of the Philippine Tariff Commission in the submission of the List of Importables

        2.2 Only items in the approved List of Importables can be used in the Import Permit Application

        2.3 Pre-approved Import  Permit is subject for Payment of CEZA & VASP Fees

        2.4 Only paid Import Permit can be printed with Barcode

        2.5 Single use of the Import Permit

IMPLEMENTATION

        1. SYSTEM CONFIGURATION

        1.1 Re-configuration of the Import Permit System to adopt to CEZA needs

        1.2 Set-up Infrastructure at the VASP side for CEZA use

        2. TRAINING

        2.1 Training of CEZA Personnel that will handle the automated processing

        2.2 Issuance of access to the CEZA System

        2.3 Change Management & Communication for the implementation

        3. PAYMENT SCHEME

        3.1 Pre-payment fund of CEZA Importation Processing Fees will be paid through CEZA Cashier

        3.2 Pre-payment fund for VASP Fees will be deposited through their accredited banks.