Electronic Payment & Revenue
Reconciliation System
The views expressed in this paper are the views of the author and do not necessarily reflect the views or policies of the Asian
Development Bank (ADB) or its Board of Directors, or the governments they represent. ADB does not guarantee the accuracy of the
data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be
consistent with ADB official terms.
Outline:
1.
2.
3.
4.
5.
6.
Background
BOC Electronic mode of payment matrix
Import Clearance System
Electronic Payment Process Flows
Remittance Process Flow
Revenue Reconciliation System
Background
•
•
•
•
•
•
A joint project of Bureau of Customs (BoC) and the
Bankers Association of the Philippines (BAP).
It was implemented in 1995. Initially, it started with
using diskettes (PASS 1)
In 1996, it was upgraded to hardware based (smart card
technology) encryption/decryption via Philippine
Clearing House, Inc. (PCHC) (PASS2)
In 1997, the front-end system was enhanced to include
additional fields. (PASS3)
In 2002, it was upgraded from hardware-based smart
card technology to software decryption.
By 4th quarter of 2003, it will be upgraded from EDI
based (ftp) to browser based technology. Also, it will
include mobile broadcasting and payment. (PASS4)
BOC Mode of Electronic Payment
Daily Transactions (%)
Remark
E-Payment via PCHC
89%
Metro Manila Ports
Internet Payment
1%
TMW at NAIA
Payment using diskettes
4%
Provincial Ports
AAB In-House Banks
3%
Metro Manila Ports
Non-Cash Payment
3%
Manual
Type of Process
AAB Participants Nationwide
• 35 Authorized Agent Banks
• 100 AAB branches nationwide
• Landbank and PNB as in-house
banks for POM, MICP and NAIA.
Authorized Agent Bank Participants (35 AABs) – (100 Branches Nationwide)
Na me of Ba nk
Allied Bank
ANZ Bank
Asia United Bank
Banco de Oro Commercial
Bangkok Bank
Bank of America NT & SA
Bank of Commerce
Bank of the Philippine Islands
China Bank
Chinatrust Comm'l Bank
Citibank
Deutsche Bank
Development Bank Phils
East W est Banking Corportation
Equitable-PCI
Export and Industry bank
Fuji Bank, Limited
Hongkong Shanghai
ING Bank
International Exchange Bank
Land Bank
Maybank Bank
Metrobank
PBCom
Philippine National bank
Philtrust
Prudential Bank
Rizal Commercial Banking
Security Bank
Standard Chartered
The Bank of Tokyo, Limited
Union Bank
United Coconut Planters
Veterans Bank
UOB
No. of Bra nche s
5
1
1
6
1
1
1
6
2
1
2
1
1
1
1
1
1
1
1
1
10
1
11
1
13
2
1
9
3
2
1
2
6
1
1
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI
EDI
LODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
FROM PAPER TO ELECTRONIC MANIFEST
ELECTRONIC
MANIFEST
IEIRD
PAPER
MANIFEST
Customs
PARTNERS
•AIR CARRIERS
•SHIPPING LINES
•ARRASTRE
BILL OF LADING
& IMPORT
DECLARATION
SHIPMENT VERIFICATION
Manifest
2nd Level
IEIRD
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI/
EDI/ EELODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
ACCEPT ELECTRONIC LODGMENT ONLY
Single
Import Document
EDI
DTI
DTI
95% Entries
83% Revenues
P 38.00 Fee
EEC-PCCI
INTERNET
PARTNERS:
VAN’s
BOC
ACOS
•PCCI
•VAN’s
METRICS for 2002
MODE
EEC
VOLUME
REVENUE
91.0%
83.0%
DTI/Direct Trade
Input
EDI/Electronic
Data Interchange
Internet
0.5%
0.5%
5.0%
9.0%
0.5%
0.5%
Super Green Lane
(EDI)
3.0%
7.0%
Face-to-Face Import Process Flow for Metro Manila Ports
Importer
Broker
Lodgment Channels
•EEC
•Internet
•EDI
•DTI
Authorized
Agent Bank
Dock
Operators
Customs
ACOS
Import Entry
Declaration
ASYCUDA
•Importer processes import
declaration based on
self-assessment
•Submits to AAB together
with copy of Import Entry
Declaration
•AAB encodes the payment
Order using the PASS data
Entry screen
•Check-writes the Import Entry
Declaration
•Transmits electronic abstract
of payment via PCHC to BOC
Validate
Manifest
Validate
Valuation
Validate
Selectivity
•Electronic manifest
sent by Airline thru
SITA/ARINC
•Electronic manifest
sent by Shipping Line
thru e-mails and to
consolidators
Airlines
Shipping
Lines
AMPP
Payment=
Assessment
Release
Instruction
•BoC system transmits
•Release Instructions
to Operators for the
issuance of Gatepass
Manifest
BL, AWB
OLRS
Online Cargo
Release System
•Matches the Payment
BOC
made at the AAB and the
Collection
final assessed amount to
Division
be paid.
Once it matches, BOC system
generates a release instruction
Non Face-to-Face Import Process Flow for Metro Manila Ports
Importer
Broker
Lodgment Channels
•EEC
•Internet
•EDI
•DTI
Customs
ACOS
Import Entry
Declaration
ASYCUDA
•Create Import Entry
•declaration
Transmit Import Entry as
CUSDEC/EDI via
VAN Customs
to the EDI Gateway
Create Payment Order
based on Final Assessment
•Submit to Bank together
with copy of Import Entry
and Final Assessment
Validate
Manifest
Validate
Valuation
Validate
Selectivity
AMPP
Payment=
Assessment
In-Dock
Operators
Release
Instruction
•BoC system transmits
•Release Instructions
to Operators for the
issuance of Gatepass
OLRS
Online Cargo
Release System
Manifest
BL, AWB
•Electronic manifest
sent by Airline thru
SITA/ARINC
•Electronic manifest
sent by Shipping Line
thru e-mails and to
consolidators
Airlines
Shipping
Lines
Duty Paid
Memo
•Duty/Tax payment received by
Bank
banks thru the VAN
•Duty-Paid Memo transmitted to
Customs on ‘real-time’; with
parallel transmission by batch via
PCHC, every 3-4 hours (regular
banking hours)
•No Check-writing, No Additional
Payments (2nd- step)
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI
EDI
LODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
AUTOMATED SELECTIVITY SYSTEM
Red Lane
Yellow Lane
Green Lane
Super Green
Lane
Physical examination
Documentary check
No Inspection
Straight to
Importers’
Premises
3% Volume
7% Value
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI
EDI
LODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI
EDI
LODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
SECURE ELECTRONIC PAYMENT
PARTNERS:
•Bankers Assn of Phil
•Phil Clearing House
•Member Banks
Banks
Matching of
Payables and
Payments
Encrypted
Payment
Assessment
Division
PCH
Remittances
National
Treasury
Collection
Division
Revenue
Reconciliation
Revenue Accounting
Division
Electronic Payment Process Flow
via PCHC for Metro Manila Ports
Authorized Agent Banks
BOC Collection
Divisions
AABs transmit the
encrypted electronic
abstract of payment of
duties and taxes for a
particular declaration
based
POM
MICP
1st Copy
BOC Port matches
the decrypted payment
and the payable
on the electronic
payable generated by
the BOC ACOS
System.
NAIA
PCHC
BOC Ports pulls the
electronic payment
from PCHC using BOC-RAD
leased line/dial up
2nd Copy
(all ports)
Electronic Payment Process Flow via
In-house Banks for Metro Manila Ports
In-House Banks
POM
MICP
In-house Banks transmit the encrypted
electronic abstract of payment of duties and
taxes via BOC network for a particular
declaration based on the electronic payable
generated by the BOC ACOS System.
BOC Collection
Divisions
1st Copy
BOC Port matches
the decrypted payment
and the payable
NAIA
BOC-RAD
2nd Copy
(all ports)
Electronic Payment Process Flow via
diskette for Provincial Ports
Authorized Agent Banks
BOC Collection
Divisions
Provincial
Port
AAB transmits the encrypted electronic
abstract of payment of duties and taxes via
diskette hand carried by a designated
messenger of the AAB for a particular
declaration based on the electronic payable
generated by the BOC ACOS System.
1st Copy
BOC Port matches
the decrypted payment
and the payable
BOC-RAD
2nd Copy
(all ports)
Electronic Payment Process Flow
With Non-Cash component
Authorized Agent Banks
BOC Non-Cash
Payment System;
Tax Credit
Tax Exempted
Deferred Payment
AABs transmit the
encrypted electronic
abstract of payment of
duties and taxes via
PCHC
BOC Additional
Payment System
BOC Collection Division
BOC system matches the payment
made from the In-house bank+the
non-cash component- additional
payment vs. payable
IMPORT CLEARANCE SYSTEM
MANIFEST
MANIFEST
DTI
DTI // EDI
EDI
LODGMENT
LODGMENT
SELECTIVITY
SELECTIVITY
RELEASING
RELEASING
PAYMENT
PAYMENT
ASSESSMENT
ASSESSMENT
ON-LINE RELEASE SYSTEM (OLRS)
Automates
transmission of
release instruction to
the Arrastre.
Automates the
receiving of feedback
from the Arrastre.
PARTNERS:
Arrastre Operators
Electronic Remittance Process Flow
Authorized Agent After 10 days holding
period
Banks
Bureau of Treasury
Bangko Sentral ng
Pilipinas –
Accounting Division
Bureau of Customs
Revenue Accounting Division
Proposed NEW PASS
NEW PAYMENT (PASS) SYSTEM
Importer / Broker
P 30.00 (300 entries/d)
P 50.00 (1700 entries/d)
Payable File
Payment File
Authorized Agent Banks
Non-EDI Transactions
Lodgment
OLRS
VANS
Development Bank of the Phil.
Philippine Clearing House, Inc.
EDI Transactions
BOC Collection Division
Payment System
BOC ACOS System
Released Instruction
Value Added Network
Bureau of Customs
Gateway/Portal
Matched File
PASS5
System Flowchart
Deposit
CUSDEC = Customs Declaration
PRE-CUSDEC
NET PAYABLE
IMPORTER/
BROKER
PRE-CUSDEC
SUFFICIENCY RESPONSE
NET PAYABLE
1st Copy ELECTRONIC
ABSTRACT of PAYMENT
(PAS5 FILE)
AAB
(SR)
VAN / ASP
-C
US
CU
DE
SD
C
IF
E
C
UN US
C
E D DE
IFA C
CT =SR
NE
/X
TP
MV
AY
AB
LE
Payment Details
Module
3rd
PA
SS
h
4t
BSP
CO
PY
F IL
E
RAD
C
O
PY
ONE-TIME
ENROLLMENT
PROCESS
2nd C
O PY
PCHC
PR
E
CCC
PA
REGISTRATION
E
FIL
S
CU
GENERATE :
FINAL
ASSSESMENT =
CUSRES
FINAL PAYMENT
ADVANCE PAYMENT
NON-CASH PAYMENT
SS
DE
T
NE
C
YA
PA
E
BL
GATEWAY
ARRASTRE
OLRS
MATCHED FILE
RELEASE MESSAGE
GATE PASS
ACOS
CUSRES
DBS
File
per Port
PS
NET PAYABLE
CUSRES - (NCP + IED
Utilization)
NON-CASH
COMPONENT
(NCP)
PD
Centralized Database
CASH DIVISION
CONTAINER YARD
OPERATORS
REALEASE OF GOODS
PASS 5 FLOWCHART
STEP 1 : ENROLLMENT / REGISTRATION OF AAB
Registers at BOC per
District Port
Registers at BOC
Central Office
IMPORTER
FINAL
PAYMENT
ADVANCE
PAYMENT
1
NON - CASH
PAYMENT
BOC
AAB 1
AAB2
KEY FIELDS
Bank Code
Bank Branch
Acct. Code
TIN/Importer
BOC
GATEWAY
KEY FIELDS
TIN
Tax Credit
Reference Code
PCHC
VAN
Portals
AAB3
AAB4
1
ONE - TIME
ENROLLMENT
PROCESS
STEP 2 : Payment at AAB for Customs duties and Taxes based on self assessment by importer.
Deposits the amount for
duties and taxes to BOC acct.
with any of the folllowing
facility
SELF ASSESSMENT
AAB processes the payment
Over the Counter
E-Payment
Portal of AAB
Note:
Reference Code:
No encodiing shall take place at the AAB
side. Mode of payment of importer is
not limited to CASA debit. Scheme of
payment is importer's prerrogative as
arranged with AAB.
TIN
Account Code (assigned in
the enrollment process)
STEP 3 : Pre-lodgement (Replacement for Checkwriting)
L
O
D
G
E
M
E
N
T
Internet
EDI
Entry Number
Bank Code
Bank Reference Number
BOC
Gateway
Pre - CUSDEC
Sufficiency Response
V A N Portals
Pre - CUSDEC
IF Pre-CUSDEC =
sufficiency response get
CUSDEC File FROM VAN
ELSE
STOP PROCESS importer
goes back to AAB
CUSDEC
BOC ACOS
PCHC
Processes sufficiency
response
KEY FIELD:
TIN
Account Code
Confirmation Flag
STEP 4 : Final Assessment (CUSRES) and PASS 4 File
Transmit net payable
System validates and
deducts non-cash
component
BOC appraises the
declaration
B O C ACOS
BOC Payment System
BOC Gateway
PASS 4 File
PCHC
Transmits PASS 4 File
PASS 4 File
Attaches Electronic
Abstract of Payment
AAB
STEP 5 : Printing of PASS 4 File and release message
BOC
Payment
System
Transfer
Matched File
BOC
ACOS
Transmits
Release
Messages
ARRASTRE
OPERATORS
Prints PASS 4 File.
Uploads to BOC ACOS System.
Generate Matched File.
RELEASE of GOODS
GATEPASS
Front-End & Middleware Application
Development (Nationwide)
1.
2.
3.
4.
5.
New PASS Data Entry Screen for AABs
• Final Payment
• Advance Payment
Data Capture of Payable (Cusres file)
Encryption of Electronic Payment File
• Final Payment
• Advance Payment
BOC Data Capture of Electronic Payment file from
PCHC
BOC Decryption of Electronic File
• Final Payment
• Advance Payment
AAB (Cash) Payment System Model
Advance Payment System
Additional Payment System
through In-House Banks
Final Payment System
BOC
Cash
Payment
Collecting Officer’s Duties& Taxes
System
Other Cash Payment System (overthe counter (<P5,000.00)
AAB Final & Advance Payment
System Process Flow
Authorized Agent Banks
AABs transmit
the encrypted
electronic
abstract of
payment of
duties and taxes
for a particular
declaration.
Final Payment
Tin Number
Serial Number
Port Code
Advance Payment
Tin Number
L/C No.
IED No.
BOC Cash Payment
Server pulls the electronic
payment from PCHC
using leased line/dial up
POM
MICP
PCHC
BOC Collection
Divisions
1st Copy
BOC Port matches
the decrypted paymen
and the payable
BOC
NAIA
RAD
Provincial Ports
2nd Copy
(all ports)
Non-Cash Payment System Model
Tax Credit System
Tentative Release System
BOC
Non-Cash
Payment
Collecting Officer’s Non-Duties&
Taxes System
Tax Exempted System
Government Accounts System
Indirect Payment Process Flow
Importer / Broker
BOC Collection Division
Billing System
Tentative Release System
Collecting Officer’s Non-Duties&
Taxes System
Tax Credit System
BOC
Non-Cash
Payment
BOC Collection Division
Utilization System
Tax Exempted System
Government Accounts System
Advance Payment System
Back-End Payment System Application
Development
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Final Payment
Advance Payment Utilization Slip
Additional Payment
Collecting Officer’s Duties & Taxes
Other Cash Payment
Tax Credit
Government Accounts
Tax Exempted
Tentative Release
Collecting Officer’s Non-Duties & Taxes
Revenue Reconciliation System
Revenue Reconciliation Model
Assessment
Payment
=
Remittance
=
Nationwide Revenue Reconciliation System
Performance Measure Model
Assessment
Payment
District Targets Database
=
Performance Measure System
Project Mercury
Payment System Business Model
Assumptions: 250 Working Days / annum
2000 Cash Payment Trans./Day
800 Non-Cash Payment Trans /Day
Type
Entries/Day
Non-EDI
1700
Fee
Amount
50 P21,250,000
EDI
300
30
2,250,000
Tax Credit
200
20
1,000,000
Additional
400
20
2,000,000
Others
200
20
2,000,000
Total
P28,500,000