Senate closer to harmonizing cross-border customs processes

THE Philippine Senate last week approved on second reading the accession documents of the country to the Revised Kyoto Convention (RKC).

RKC is the global blueprint for modern, simplified and harmonized Customs procedures, standards and best practices that will lower the cost of cross-border transactions, enhance administrative transparency and efficiency, and improve trade security.

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Reports said the country’s accession to the RKC is expected to further modernization efforts as RKC itself requires Customs to apply information technology to support the agency’s operations.

Competitive

Such development will yield better logistics performance for the country and greater competitiveness of local products in the global supply chain.

In a statement, the American Chamber of Commerce of the Philippines said it believes the country’s accession to RKC guarantees consistent customs rules and regulations that are important in attracting foreign investment to the Philippines.

Sought for comment, Philexport Cebu executive director Fred Escalona said “it would be great if all the customs procedures of all trading nations are rationalized and harmonized.”

Escalona added that exporters will benefit strongly because RKC will facilitate trade between countries, as customs procedures will be harmonized in line with the demand of the times.

RKC is still set for third reading in the Senate.

However, once the documents are signed by majority of the senators, the Philippines will become the third member of the Association of Southeast Asian Nations aside from Vietnam and Thailand to abide by the global customs rules.