Customs Brokers vs Declarant: Who Signs Import and Export Declarations in the Philippines

The Supreme Court has settled a significant question in Philippine customs law: who may sign import and export declarations? In Chamber of Customs Brokers, Inc. v. Commissioner of Customs (G.R. No. 256907, February 20, 2023), the Court ruled that the exclusive role of customs brokers in signing goods declarations has been repealed. Importers and exporters—or their authorized agents—may now sign these declarations themselves, with a licensed customs broker's signature no longer mandatory.

The ruling affects every business engaged in international trade and clarifies the boundaries between the customs broker profession and the rights of declarants under the Customs Modernization and Tariff Act (CMTA).

The Legal Background

The dispute involved two laws. Republic Act No. 9280, the Customs Brokers Act of 2004, originally required that import and export entry declarations be signed only by a customs broker under oath, giving licensed customs brokers an exclusive role in processing trade documents.

In 2016, Congress enacted RA 10863, the Customs Modernization and Tariff Act, to align Philippine customs practice with international standards, particularly the Revised Kyoto Convention. The CMTA defines a "declarant" and sets out the rights and responsibilities of declarants, including the signing of goods declarations. Under the CMTA, a declarant may be a consignee or a person who has the right to dispose of the goods, and may include a person duly empowered to act as agent or attorney-in-fact for each holder. The law also provides that the declarant shall sign the goods declaration, even when assisted by a licensed customs broker, who shall likewise sign the goods declaration.

The Chamber of Customs Brokers, Inc. (CCBI) filed a petition for declaratory relief, arguing that the provision in RA 9280 requiring customs broker signatures should remain in effect and that the CMTA provision allowing non-licensed persons to perform customs broker functions violated the equal protection clause.

The Issue

The central question was whether the CMTA impliedly repealed the exclusive signing authority of customs brokers under RA 9280, and whether the CMTA provision violated the equal protection clause.

The Ruling

The Supreme Court denied the petition and affirmed the rulings of the Regional Trial Court and the Court of Appeals. The Court held that the relevant provision of RA 9280 had already been amended by RA 9853, which allowed exporters to sign export declarations themselves or delegate the task to a customs broker or authorized representative.

Even without RA 9853, the Court found that the CMTA impliedly repealed the RA 9280 provision. The two laws were irreconcilably inconsistent: RA 9280 required customs broker signatures on both import and export declarations, while the CMTA allowed the declarant to sign independently. Under the doctrine of implied repeal by irreconcilable inconsistency, the later law prevails.

The Court also rejected the equal protection challenge. The CMTA is economic legislation subject to the rational basis test. The law's purpose—complying with international commitments to balance customs control, revenue collection, and trade facilitation—is a legitimate government interest. Allowing declarants to sign their own goods declarations is reasonably connected to that purpose. The Court noted that the equal protection clause permits reasonable classifications and does not require absolute equality.

Notably, the Court also observed that the petition was filed out of time, which alone warranted dismissal.

Practical Takeaways

• Customs brokers are no longer mandatory for signing goods declarations. Importers and exporters may sign their own declarations or delegate the task to an agent or attorney-in-fact.
• A licensed customs broker may still assist, and if one does, both the declarant and the broker must sign the goods declaration.
• The ruling aligns Philippine practice with the Revised Kyoto Convention, which discourages mandatory use of customs brokers as a trade facilitation measure.
• The customs broker profession is not abolished; rather, its exclusive signing authority has been removed. Brokers remain available for importers and exporters who choose their services.
• Businesses should review their customs processes to determine whether they wish to handle declarations in-house or continue engaging licensed customs brokers for specialized transactions.

This article is general information and not legal advice. For your specific situation, consult a lawyer or ask ASG Legal AI.