PHL implements int’l merchandise passport to boost global trade

By Francis Allan L. Angelo

The Department of Finance (DOF) has officially launched the full implementation of the ATA Carnet, an international merchandise passport designed to enhance the global presence of Filipino-made products ease the process for local businesses to participate in foreign markets.

The ATA Carnet, functioning as a customs passport, allows for duty- and tax-free customs clearance across 81 customs administrations worldwide.

“With this system, we now offer Filipino businesses cost-effective access to international trade exhibitions that would have otherwise been prohibitive for them to attend in the past,” said DOF Revenue Operations Group (ROG) Undersecretary Charlito Martin R. Mendoza during the Grand Launch on July 15, 2024.

Finance Secretary Ralph G. Recto, represented by Mendoza at the event, highlighted the broader economic impact of the ATA Carnet.

“This will increase export and import activities, enhance our trade balance, drive job creation, and attract foreign investments,” Mendoza said.

The ATA Carnet will be especially beneficial for micro, small, and medium enterprises (MSMEs), enabling them to participate in trade shows and sell their products directly in foreign markets.

By simplifying customs procedures through a single document for all transactions, the system reduces the costs associated with exporting goods and facilitates smoother entry to multiple countries.

In addition to improving export processes, the ATA Carnet aids in the re-entry of products to their originating countries by eliminating the need for re-registration of goods.

This ensures that the Bureau of Customs (BOC) can collect duties and taxes if the goods are not re-exported within the stipulated timeframe.

“We will leverage technology to streamline customs processes, enhance tracking and compliance, and ensure its seamless integration,” Mendoza added.

The DOF’s efforts to implement the ATA Carnet were bolstered by the recent approval of the Philippine Chamber of Commerce and Industry (PCCI) as a member of the World Chambers Federation ATA International Guarantee Chain.

The approval by the International Chamber of Commerce (ICC) marked the Philippines’ full implementation of the Istanbul Convention on July 15, 2024.

As the National Issuing and Guaranteeing Association (NIGA) for the Philippines, the PCCI is responsible for guaranteeing the payment of duties and taxes on temporarily admitted goods, should there be any violations related to their conditionally free importation.

The ATA Carnet system, established by the International ATA Conventions, is governed by the World Customs Organization and the International Chamber of Commerce’s World Chambers Federation.