Marking milestones with partnerships, digital transformation
THE Bureau of Customs (BoC) celebrates its 122nd founding anniversary, marking the beginning of a new era of growth and transformation with a focus on digitalization, trade facilitation and intensified efforts against smuggling.
BoC Commissioner Bienvenido Rubio and his team are committed to driving positive change, aiming to transform the BoC into a modern and world-class agency that significantly contributes to the country’s economic growth and development.
Established on Feb. 6, 1902, BoC has played a crucial role in enhancing trade facilitation, strengthening border control and improving the collection of lawful revenues. With a rich history spanning over a century, BoC has evolved to meet the changing needs of the nation’s economy while upholding its core values of professionalism, excellence, integrity and accountability.
As part of its anniversary celebrations, BoC joined global customs administrations in commemorating the International Customs Day with the theme, “Customs engaging traditional and new partners with purpose.”
Rubio urged the fortification of existing partnerships and forging of new ones to advance collective objectives.
“International Customs Day reminds us of our vital function in global trade and supply chains. In our journey to modernize customs in its entirety, we [recognize] the importance of deepening partnerships and forging new alliances to become a more responsive, adaptive and resilient customs administration,” says Rubio.
District Collector Alexandra Lumontad of the Port of Cagayan de Oro stresses the importance of partnerships in fulfilling the bureau’s mandates on revenue generation, trade facilitation and border protection.
Officer in Charge Maita Acevedo of the Port of Davao highlights unity with global counterparts while acting District Collector Rizalino Jose Torralba recognizes BoC personnel’s pivotal role in ensuring smooth crossborder trade. Torralba reaffirms the Port of Manila’s (PoM) commitment to enhancing connections with industry partners and stakeholders for sustained global commerce. Port of Cebu acting District Collector Ciriaco Ugay underscores the importance of innovative partnerships for shared prosperity.
Supporting the global initiative, District Collector Erastus Sandino Austria of the Port of Clark commits to facilitating trade and ensuring border security. The BoC reaffirms dedication to collaboration, innovation and global partnership to promote the growth and prosperity of nations.
Achievements and milestones
BoC has celebrated its remarkable achievements in 2023, highlighting the bureau’s success in surpassing revenue targets and advancing digitalization efforts.
Achieving a record-breaking revenue collection of P883.624 billion, BoC marks a 2.46-percent increase or P21.205 billion more than the previous year. This significant milestone underscores the bureau’s commitment to fiscal responsibility and revenue generation, contributing to the country’s economic stability.
BoC-Ninoy Aquino International Airport (NAIA) recognizes the top 20 importers of 2023 for their significant revenue contributions and partnership with the port.
District Collector Yasmin Mapa says: “To our top importers in 2023, you carried us through a challenging year that enabled us to surpass our annual target. This is a shared success because without all of you, this would not have been possible.”
Samsung Electronics Philippines emerges as the top importer, followed by Globe Telecom Inc., Louis Vuitton (Philippines), Smart Communications and International Specialty Concepts.
Mapa praises the dedication of all BoC-NAIA offices for their role in driving growth and fostering partnerships.
BoC-NAIA reaffirms its commitment to excellence and efficiency as a gateway for international travelers and air cargo importers.
Department of Finance (DoF) Secretary Ralph Recto commends the BoC’s achievements, vowing DoF’s ongoing collaboration to enhance government efficiency. Recto assures BoC officials of strong DoF support to modernize customs, protect consumers and enhance business ease in the country.
A joint effort with the DoF focuses on refining the Philippine Trade Facilitation Committee road map and proposing a National Time Release Study. Finance Undersecretary Dakila Elteen Napao emphasizes strategic implementation across six reform areas: stakeholder engagement, interagency coordination, technology infrastructure, legal and regulatory framework, emergency response measures, and support for micro, small and medium enterprises.
BoC Trade Facilitation Committee Chairman and Deputy Commissioner Vener Baquiran affirms the BoC’s commitment to fostering collaboration and innovation in trade facilitation.
Digitalization initiatives have been a focal point throughout 2023 with 96.99 percent of customs processes digitized. The implementation of systems such as the One-Stop Electronic Travel Declaration System and the National Customs Intelligence System (NCIS) reflects the BoC’s dedication to enhancing efficiency and transparency.
Key strategies for 2024
Looking ahead to 2024, Rubio outlines ambitious goals for the BoC, including further advancements in digitalization, trade facilitation and intensified efforts against smuggling. Plans to reward and recognize personnel underscores the commitment to excellence within the bureau.
Rubio urges all BoC members to maintain momentum and persevere in overcoming challenges, expressing confidence in their collective efforts to achieve success. He affirms the bureau’s commitment to achieving its P959 billion collection target for 2024 and combating smuggling. Strategies that are outlined by Rubio include increasing collections by 15 to 20 percent through modernization projects such as Enhanced Value Reference Information System and an information and communications technology (ICT)-enabled clearance system for express shipments along with plans for e-commerce regulation to prevent revenue leakages.
To combat smuggling, BoC will enhance border control through collaboration with law enforcement agencies and full implementation of the NCIS. In trade facilitation, the BoC aims to streamline processes and enhance transparency through the Customs Customer Care Portal, reducing face-toface transactions.
EO 18: Green lanes for investments
BoC endorses Executive Order (EO) 18, which establishes green lanes for strategic investments. President Ferdinand “Bongbong” Marcos Jr. approves EO 18, which aims to position the Philippines as a premier destination for foreign investments.
By simplifying and expediting the investment process, the EO aims to eliminate red tape and create a business-friendly environment that is conducive to attracting vital foreign capital for growth, job creation and innovation.
Rubio’s endorsement of the EO through the covenant signing demonstrates BoC’s commitment to streamlining customs processes and ensuring trade security. All relevant government agencies, including BoC, pledge their support to this initiative, signaling a unified effort toward promoting investment facilitation and transparency.
EO 18 covers all entities issuing permits, licenses, certifications or authorizations for strategic investments. By harmonizing administrative processes, the EO facilitates investment procedures, making it easier for potential investors to navigate regulatory requirements and fostering trust and transparency.
Port of Davao receives ISO certification
BoC Port of Davao successfully passes its Second Surveillance Audit for ISO 9001:2015 Quality Management System (QMS) Certification. Conducted by TüvSüd, an independent certification body, the audit takes 4 days to assess the implementation of the QMS and monitor continuous compliance by the port.
The surveillance audit is an integral part of the ongoing efforts to uphold the ISO 9001:2015 QMS certification of the Port of Davao. Following the thorough examination, the external auditor from TüvSüd recommends the maintenance of the ISO 9001:2015 QMS certificate, validating the port’s commitment to adhering to internationally recognized quality standards.
Simultaneously, the Davao International Airport, the subport of General Santos and the subport of Parang have undergone their external audits on-site. This proactive measure aligns with the port’s dedication to ensuring standardized customs processes, regardless of changes in policies and administration. Through the leadership of Officer in Charge Maita Acevedo, the BoC Port of Davao remains steadfast in its commitment to promoting transparency and continually enhancing its services, systems and processes.
Trade facilitation initiatives
Trade facilitation efforts flourish through strategic agreements and regional partnerships. During the sixth virtual meeting of the Output 4 Working Group under the Arise Plus Philippines Project, which is under the chairmanship of Julito Doria, deputy collector of PoM, BoC officials discuss the planned activities from February 2024 to February 2025.
The focus areas include Integrated Risk Management (IRM), the Authorized Economic Operator (AEO) program, and e-commerce clearance and taxation. They reaffirm support for the Philippine Trade Facilitation Committee (PTFC), marking a significant milestone for both BoC and the Arise Plus Philippines Project.
Doria states: “Over the past 3 years, we have conducted numerous workshops, aimed at bolstering the PTFC’s development. Studies on the development of an integrated risk management system, enhancement of the AEO program and identification of an e-commerce tax regime have also been initiated. As we embark on the fourth year of this project, the BoC anticipates impactful outcomes, aiming for sustainable initiatives crucial to trade facilitation goals.”
Workshops such as IRM equip BoC officials with skills for effective trade risk management, emphasizing transparency and efficiency in customs operations. This collaboration with Arise Plus Philippines aims to modernize customs procedures and advance trade facilitation initiatives.
Rubio states: “In line with the five-point priority program, this collaboration highlights the dedication to streamline procedures and enable safer commerce.
In 2023, enhanced border protection measures have led to the seizure of P43.295 billion worth of smuggled goods, safeguarding government revenues and domestic industries.
Fight against illegal activities
The BoC at the Port of Clark has prevented an export shipment containing P7.507 million worth of shabu or methamphetamine hydrochloride on Jan. 3, 2024. Initially declared as a “shaft drive model” bound for New Zealand, the shipment has been suspected of containing the aforementioned illegal drug. After K9 sniffing and physical examination, three packs of shabu, totaling 1,104 grams, have been found, concealed inside a shaft drive. District Collector Erastus Sandino Austria commends port personnel for their vigilance, emphasizing the commitment to strict customs controls and law enforcement against illegal drug trafficking.
Another successful operation has intercepted three parcels disguised as “brochures,” containing 14,944 grams of shabu, valued at P103.1 million, which had arrived from the United States (US) on Dec. 18, 2023. After K9 sniffing and physical inspection, plastic pouches with suspected shabu have been discovered and confirmed by Philippine Drug Enforcement Agency analysis as being shabu. Austria reiterates the commitment to dismantle smuggling tactics while Rubio emphasizes ongoing collaboration with law enforcement agencies to combat drug trafficking.
Commissioner Rubio emphasizes BoC’s dedication to safeguarding trademarks and brands in the Philippines. BoC reiterates its commitment to combat counterfeiting and protect Intellectual Property Rights (IPR) at the Asia Security Conference Exhibition in Singapore in July 2023. Rubio is joined by key officials, including Director Verne Enciso of the Customs Intelligence and Investigation Service, and Chief Paul Oliver Pacunayen of the IPR Division.
Rubio shares that the Philippines maintains a clean record in the United States Trade Representative’s Special 301 Report for 10 years and has been removed from the European Union (EU)’s priority watch list for IPR protection.
While acknowledging challenges such as ecommerce, Rubio urges tighter monitoring and emphasizes collaboration among nations and stakeholders. He reiterates BoC’s commitment to upholding the rule of law and ensuring a safe environment for legitimate trade and economic growth.
The BoC collaborates with the US embassy in combating smuggling and strengthening customs expertise.
“The establishment of a strong collaboration between the BoC and the US embassy will undoubtedly enhance the capabilities and technical know-how of BoC personnel. This will create opportunities to intensify border protection and combat smuggling further,” says Rubio.
BoC officials and representatives from the US embassy explore cooperation in law enforcement, maritime operations, investigations and capacity building.
Strategic partnerships with various organizations
In a historic partnership, BoC and the Philippine Economic Zone Authority (PEZA) sign a data-sharing agreement, granting PEZA access to the Electronic Tracking of Containerized Cargo system for real-time monitoring of containerized cargo movements.
Under the leadership of Rubio and Director General Tereso Panga, this transformative step aims to enhance efficiency and security in Philippine trade. The agreement prioritizes data privacy and security, ensuring the responsible use of confidential information. BoC and PEZA are committed to fostering innovation, efficiency and compliance, contributing to the growth of the trade sector while upholding standards of security in cargo transportation to and from these zones.
To strengthen strategic trade facilitation, Rubio, alongside key officials from the BoC and the Department of Trade and Industry - Strategic Trade Management Office (DTI-STMO) signs a memorandum of agreement that is aligned with Republic Act 10697 or the Strategic Trade Management Act (STMA).
The two agencies reaffirm their commitment to establishing robust strategic trade controls in the Philippines. Key features include capacity-building support for the BoC and enhanced cooperation between the BoC and STMO, encompassing data sharing, risk management and trade facilitation efforts.
This agreement aligns with the BoC’s core mandates of strengthening border control, enhancing trade facilitation and improving revenue collection. It represents a step toward expedited clearances, reduced transaction time and costs, and effective strategic trade control processes. Rubio assures stakeholders of the BoC’s commitment to efficiently fulfill STMA-related obligations, and he emphasizes the importance of partnership in balancing trade compliance, national security and economic competitiveness.
Forging alliances for digital integration is another milestone for BoC. The Department of Information and Communications Technology (DICT) and BoC sign a memorandum of understanding (MoU) for digital integration and interoperability. DICT will assess and evaluate BoC’s current ICT systems, providing recommendations for improvement and ensuring seamless integration.
Serving as DICT’s digital transformation partner, BoC commits to sharing information and data to facilitate the goals outlined in the MoU. Rubio expresses gratitude to DICT for its efforts in bringing government agencies together to enhance public services. Rubio acknowledges the importance of technology in enhancing efficiency and creating a seamless experience for citizens and businesses. The signing of the MoU signifies a shared vision of establishing a digital Philippines with both agencies aiming to enhance customs administration, streamline processes, and deliver exceptional services to stakeholders and the general public.
To strengthen trade ties, the BoC Port of Cebu, under the leadership of Ugay, partners with the Cebu Chamber of Commerce and Industry (CCCI). BoC’s initiatives, including customs process modernization, are applauded by CCCI members for simplifying procedures and enhancing transparency.
“Collaboration with the business community is crucial for enhancing customs efficiency and promoting smooth trade flow. By partnering with local entrepreneurs and investors, we can drive economic growth and support President Ferdinand [‘Bongbong’] Marcos Jr.’s priority programs,” states Ugay.
BoC forges a strategic partnership with the Association of International Shipping Lines (AISL) to boost revenue collection, streamline customs processes and ensure trade security.
Formalized through a memorandum of agreement on data sharing on July 21, 2023, this collaboration aligns with Customs Administrative Order 08-2019, which aims to generate nontraditional revenue through effective monitoring and management of overstaying containers.
AISL will grant BoC access to its advanced technology platform, the Automated Container Movement Monitoring System (ACMMS). ACMMS provides real-time information on container movements, including alerts for containers nearing the permitted dwell time of 76 calendar days from the date of arrival or discharge.
Rubio lauds the partnership as a significant step toward customs modernization, emphasizing its potential to elevate BoC’s efficiency and transparency. With approval from the DoF, this joint effort signifies a leap forward in enhancing customs operations and trade facilitation.
To explore electronic trade data exchange, BoC joins forces with the United Nations (UN) Economic and Social Commission for Asia and the Pacific (Escap).
The collaboration aligns with the framework agreement on Facilitation of Cross-border Paperless Trade in Asia and the Pacific, a UN treaty that aims to expedite the implementation of digital trade facilitation measures for trade and development between Escap and BoC.
Rubio acknowledges UN Escap’s support in implementing the framework agreement and highlights BoC’s commitment to facilitating trade and ensuring efficient movement of goods across borders.
BoC, the EU Association of Southeast Asian Nations (Asean) Business Council and the European Chamber of Commerce of the Philippines collaborate to boost trade and investment opportunities between the Philippines and Europe. Rubio expresses optimism about strengthening economic ties with European businesses, aiming to position the Philippines as a premier destination for European investment.
“This collaboration represents a significant milestone in our efforts to strengthen economic ties with European businesses. By enhancing our modernization program and streamlining our processes, we aim to create a seamless and efficient trade environment that benefits both parties,” says Rubio.
Achievements and recognitions
The BoC achieves a significant milestone as it receives an Unmodified Opinion, the highest evaluation granted to government agencies, by the Commission on Audit (CoA). This recognition underscores BoC’s strong internal controls, ensuring accurate and fraud-free financial statements in full compliance with international public sector accounting standards.
Rubio lauds the dedication of BoC personnel, expressing pride in the agency’s recognition for audit compliance after more than 2 decades. Specific acknowledgement is given to the Accounting Division of the Internal Administration Group, the Revenue Accounting Division of the Revenue Collection Monitoring Group and the Collection Districts for their diligent work.
Rubio extends gratitude to CoA auditors for their partnership in effecting meaningful changes within BoC. This recognition reaffirms the agency’s commitment to transparency, accountability and responsible stewardship of public resources.
For streamlining business processes, BoC has been honored at the 2023 Ease of Doing Business Convention by the Anti-Red Tape Authority (ARTA) at the Philippine International Convention Center on Dec. 1, 2023. BoC’s pivotal role in enhancing efficiency and reducing red tape has been acknowledged during the event.
Assistant Commissioner Vincent Philip Maronilla highlights the bureau’s commitment to supporting ARTA’s initiatives, particularly in simplifying procedures for foreign donations, relief goods and improving disaster response.
Michael Fermin, acting deputy commissioner for
the Internal Administration Group, accepts the plaque of recognition, affirming BoC’s steadfast support for ARTA’s programs throughout the year. In line with ARTA’s mission, BoC initiates modernization projects to streamline customs processes, achieving a remarkable 96.9-percent digitalization rate.
The partnership between BoC and ARTA has flourished, reflecting their joint commitment to provide an efficient and business-friendly environment. This recognition marks a significant milestone for BoC, reaffirming its dedication to enhancing government processes to benefit businesses and stakeholders.
E-travel customs system for efficient border control
BoC achieves a significant milestone in enhancing national security and customs procedures with the introduction of the e-Travel Customs System in collaboration with key stakeholders.
Launched at NAIA Terminal 1 on Nov. 21, 2023, the system represents a joint effort with the Bureau of Immigration (BI), Bangko Sentral ng Pilipinas, Anti-Money Laundering Council and DICT.
The integration of the electronic customs baggage declaration form and electronic currencies declaration form into BI’s e-Travel Customs System simplifies data collection for travelers and crew members, optimizing border control, health surveillance and economic data analysis.
The unified digital platform enhances the passenger experience by providing a single web portal for customs, immigration, quarantine and financial declarations. This allows for advance information sharing, effective risk profiling and strengthens anti-money laundering efforts.
Rubio expresses confidence in the system’s potential to transform customs processes, emphasizing its role in ensuring border security and seamless travel experiences. The collaborative effort highlights the government’s commitment to innovation and aligning with global customs standards.
BoC lauded for Asean Single Window implementation
BoC receives accolades for its commitment to facilitating secure trade, notably through the Asean Single Window (ASW). During the 31st Asean Single Window Steering Committee (ASWSC) Meeting in Manila, Lim Teck Leong, deputy director-general of Singapore Customs, commends Commissioner Rubio for fostering robust discussions on future ASW work plans among Asean member states.
Kathy Tin, deputy office director of the United States Mission to Asean, praises BoC’s dedication to advancing the electronic Phytosanitary Certificate System (e-Phyto) and ASW.
Tin says: “I cannot stress enough how amazing it’s been to work with BoC. Not only [is it] appreciative, but [it is] also very motivated to make sure that the e-Phyto and the ASW are sustainable. Here’s to their success in this new endeavor with ASW.”
The Philippines successfully conducts end-toend test exchanges of the e-Phyto certificate with Indonesia, following the meeting.
The ASWSC Meeting focuses on policy discussions to enhance ASW implementation and operation. Rubio expresses gratitude for the support and reaffirms BoC’s commitment to harmonizing trade across Asean.
In October 2023, the 10 Asean member states (AMS) have signed the Asean AEO Mutual Recognition Arrangement (AAMRA), aimed at streamlining customs clearance and establishing a transparent trading environment. AAMRA aligns AMS customs administrations’AEO programs with World Customs Organization Safe Framework Standards, enabling expedited cargo clearance and priority treatment for certified AEOs within Asean.
The Philippines has signed the AAMRA Text in May 2023 with a 6-month pilot implementation by six AMS, namely Brunei Darussalam, Indonesia, Malaysia, the Philippines, Thailand and Singapore, expected by the end of 2023 and fully implemented by the third quarter of 2024.
Last October, BoC has hosted the 34th meeting of the Asean Customs Enforcement and Compliance Working Group in Davao City, emphasizing cooperation in enforcement and compliance measures to combat illicit trade while facilitating legitimate business activities. The meeting highlights the importance of efficient customs enforcement systems and compliance frameworks in promoting smooth trade and preventing illicit activities.
BoC issues RCEP import, export guidelines
BoC has issued guidelines for obtaining preferential tariff treatment under the Regional Comprehensive Economic Partnership (RCEP) agreement.
Customs Memorandum Order 12-2023 outlines conditions for claiming preferential tariff rates for goods originating from RCEP member countries.
Rubio has signed the order, effective June 2, 2023, setting specific procedures for obtaining and accepting certificates of origin, a requirement under the RCEP agreement.
Under the agreement, certificates of origin are obligatory for goods moving among member nations. This document confirms the goods’ origin, aiding customs monitoring within the RCEP bloc.
To qualify for RCEP tariff rates, importers must obtain this certification along with an authorized declaration of origin from exporters as mandated by the BoC. The Export Coordination Division (ECD) scrutinizes these certificates and applications for approved exporter status.
Upon request or risk analysis, ECD verifies the goods’origin either through documentation or on-site inspections. However, the final duty determination relies on importer document assessment.
Exporters must apply to the ECD for RCEP certificate of origin issuance, submitting necessary documentation such as export declarations and invoices. RCEP aims to eliminate tariffs on 90 percent of traded commodities among members while enhancing non-tariff measure regulations.
BoC applauds improved PH Customs’ ranking in World Bank report
BoC welcomes the World Bank Logistics Performance Index (LPI) report 2023, revealing the Philippines’ significant rise in trade facilitation and customs performance.
In 2023, the LPI ranked the Philippines 43rd out of 139 countries, a notable improvement from its 60th position in 2018, showcasing enhanced customs efficiency and logistics competence.
Rubio says the report affirms the effectiveness of BoC’s trade facilitation program and commitment to further modernization efforts. BoC’s strategic initiatives, include systematic studies, addressing bottlenecks and prioritizing digitalization to optimize customs processes while aligning with President Marcos’ vision for national progress.
Commitment and integrity
Rubio is commended by former Finance Secretary Benjamin Diokno for his commitment, integrity and excellence in leading the agency. Rubio has assumed office as Customs Commissioner since Feb. 13, 2023.
Rubio’s appointment comes after serving as the director of the Port Operations Service of the Assessment and Operations Coordinating Group at the BoC, showcasing his extensive experience in customs administration.
Rubio pledges to prioritize digitalization and implement sustainable reforms in line with Marcos’ directives. Rubio outlines his vision for the BoC, emphasizing the importance of surpassing revenue targets, securing trade facilitation, curbing smuggling and boosting morale within the agency. He stresses the need for a data-driven culture and collaboration with stakeholders to achieve these goals effectively.
Having risen from the ranks of special agent 1, Rubio expresses gratitude to the President, and calls for unity and cooperation among BoC personnel.
“To my co-workers, it is time to make that pivotal change, to catapult the BoC as the forefront in revenue collection rather than corruption. To achieve that 180-degree turnabout, this aspiration requires each and everyone’s hard work, dedication and cooperation,” says Rubio.