Imposing The Mandatory Payment Of Container Security Fee In The Implementation Of The Non-Intrusive Container Inspection System (NCIS) Project Of The Bureau Of Customs And Creating A Trust Fund For The Use Thereof

Case Overview and Summary

Summary of Executive Order No. 592:

Imposition of Container Security Fee (CSF):
- Mandatory CSF imposed on all import and export cargoes under Bureau of Customs (BOC) jurisdiction.
(Section 1, Section 2)
- CSF rates:
    - US$50 for 40-footer container
    - US$25 for 20-footer container or 20 equivalent units (TEUs)
    - Rates adjustable by BOC Commissioner as approved by NEDA Board.
(Section 2)

Utilization of CSF:
- 75% remitted to National Treasury for repayment of concessional loan from China for Non-Intrusive Container Inspection System (NCIS) Project, including interest and charges. After loan repayment, this 75% allocated to NCIS Trust Fund.
(Section 3a)
- 25% retained by BOC in NCIS Trust Fund for:
    - Maintenance and improvement of NCIS operation, including upgrades
    - Institutionalizing post-audit procedures and processes
    - Fraud and fraud-related investigations and prosecutions
    - Training and capability enhancement of NCIS personnel
    - Other activities to enhance NCIS effectiveness and efficiency
(Section 3b)

NCIS Trust Fund:
- Established and sourced from 25% CSF portion retained by BOC
- Permanent committee to monitor and evaluate Trust Fund activities and balances
(Section 4)

Non-compliance:
- Failure to follow directives subjects concerned officials to administrative sanctions
(Section 5)

Effectivity:
- Executive Order takes effect immediately upon publication in national newspaper
(Section 6)