Philippines: Pre-border technical verification and cross-border electronic invoicing system

The Committee for Pre-border Technical Verification and Cross-border Electronic Invoicing on January 20, 2025, enacted the Joint Administrative Order 001-2025, which contains the guidelines for implementing Administrative Order No. 23/2024 (May 13, 2024). The order mandates the creation of digital and integrated systems for pre-border technical verification (PTV) and a cross-border electronic invoicing (CEI) system for all imported commodities within two years of the order's issuance.

The new electronic invoicing (e-invoicing) system will apply to all goods exported to the Philippines. Exporters must register in the CEI system and issue e-invoices through this platform before exporting to the Philippines. The invoices should include 20 mandatory fields with specific information such as a unique universal identifier, stamp date and time, invoice number, date of issuance, and contact details of the exporters, importers, customs brokers, and manufacturers.

The guidelines also introduce a PTV system to ensure that commodities exported to the Philippines match the declared specifications, description, weight, volume, and country of origin, and that they are safe and of good quality. To support compliance with the system, accredited testing, inspection, and certification (TIC) companies will inspect all commodities before their export to the Philippines. The guidelines also detail the requirements for accrediting third-party TIC companies.

The verification system will apply progressively to three categories of products: “Agricultural products,” “Non-agricultural goods with health and safety issues,” and “Other goods” prone to misdeclaration to avoid duties and taxes.

The mandatory use of the CEI system will roll out in three stages:

• The first stage will require mandatory registration of the exporters abroad within 30 days after the publication of the customs administrative order (CAO) providing specific procedures for the CEI system.
• The second stage will make the use of the CEI system mandatory for all imports covered by the Bureau of Customs (BOC) Bulk and Break-Bulk Cargo Clearance Enhancement Program within 60 days after the publication of the above CAO.
• Finally, the third stage will make the use of the CEI system mandatory for all other imports, within 90 days after the publication of the above CAO.

Finally, the administrative order outlines sanctions for stakeholders that fail to comply with the established processes and requirements. These sanctions include slower processing of the import, rejection at the border of goods that pose health and environmental risks, and financial penalties based on the value of the imported goods. Once the BOC enacts the mentioned CAO, the effective dates for the PTV and the CEI will be defined.

For further information, please contact a KPMG tax professional:

Amie J Ahanchian | aahanchian@kpmg.com

Andrew James Ruiz | adruiz@kpmg.com

Julius Patrick Acosta | jcacosta@kpmg.com

Philippe Stephanny | philippestephanny@kpmg.com

Ramon Frias | ramonfrias@kpmg.com