BOC at 120: Serving with integrity and accountability
THE Bureau of Customs (BoC)’s operational upgrades and digitalization gained positive results and continues its growth momentum as it celebrates the 120th Founding Anniversary.
Customs Commissioner Rey Leonardo Guerrero said BOC collected P645.77 billion, higher by 4.7 percent than the P616.75 billion goal set by the Development Budget Coordination Committee (DBCC) for 2021.
“By sticking to our priorities and focusing on our mandates, we achieved milestones in revenue collection, operational upgrades, and customer service. Through opening channels of communication and interaction, we sustained the tempo of our work and provided services for our various stakeholders to keep businesses moving,” he said.
BOC’s positive revenue collection performance was mainly attributed to the improved valuation, intensified efforts against illegal importations, improved compliance with customs laws, increase volume of imports and ensured the movement of goods domestically and internationally.
“The foundation laid by the BOC in the past years makes the prospect of transformation not only a possibility but a natural outcome of efforts which are all to our utmost priority of serving the public with professionalism, integrity, and accountability,” he said.
All these were made possible through the collective efforts of Customs personnel and employees who performed well in their tax collections amid the pandemic.
“While the challenges we face may be tough and uphill, we recognize the significance of investing both time and resources to improve our services, regain our credibility, and accomplish our mission,” he said.
For the month of January, BOC collected P58.158 billion, surpassing its target collection by P6.035 billion or by 11.58 percent. Fourteen out of 17 collection districts hit the target namely the Ports of San Fernando, Port of Manila (POM), Manila International Container Port (MICP), Batangas, Legaspi, Iloilo, Cebu, Surigao, Zamboanga, Davao, Subic, Clark, Aparri and Limay.
For the past two years, it was able to surpass its annual target collection by +6.23 percent and +4.70 percent respectively despite the global health crisis. Guerrero commended the efforts of the men and women of BOC who showed their commitment and dedication to government service.
Anniversary bonus
BOC’s founding anniversary is best celebrated when one receives an anniversary bonus. The Customs Office Order (COO) 01-2022 granted a P3,000 anniversary bonus to all Customs officials and employees who have rendered at least one-year of service as of Jan. 31, 2022. The COO was based on Administrative Order 263 and the National Budget Circular 452.
Khristine Melencio, acting chief of Human Resource Management Divison, in her Memo said the officials and employees who were found guilty of any offense related to their work during the last five years from Feb. 1, 2017, to Jan. 31, 2022, were not entitled to anniversary bonus.
Covid-19 response
Guerrero said Customs ensured that the essential goods and supplies were expeditiously processed and released, as its way of helping fight the Covid-19.
A total of 16,102 shipments of personal protective equipment (PPE) and other medical supplies were released since the onset of the pandemic. Some 300 shipments of Covid-19 vaccines consisting of 210,448,870 doses were facilitated as of Dec. 31, 2021. BOC created one-stop shops in its collection districts to ensure the expeditious facilitation of these shipments. It conducted interport briefings to ensure quality service and to cascade the uniform procedures in facilitating the release of PPE and vaccines.
Intensified operations against illegal drugs and smuggling
The BOC, Philippine Drug Enforcement Agency (PDEA) and PNP Drug Enforcement Group (PDEG) seized a total of P230.26 million worth of illegal drugs in 2021. From July 2016 to December 2021, the BOC recorded P15.376 billion worth of seized illegal drugs.
BOC-Port of NAIA (BOC NAIA) with the PDEA and the NAIA Inter-Agency Drug Interdiction Task Group (NAIA IADITG) intercepted five parcels containing illegal drugs in Central Mail Exchange Center (CMEC). They have prevented the entry of a total of 1,115 ecstasy tablets and 26.4 grams of Ketamine with an aggregate value of P2.027 million. The parcels were sent as ‘mail parcels’ from the Netherlands and Germany bearing no shipper details and consigned to individuals from Caloocan, Mandaluyong, Bulacan and Davao.
Statistics showed that smuggling attempts of ecstasy in NAIA increased from 14 parcels seized in 2020 to 23 parcels seized in 2021 or a 60 percent increase in data of interception.
Phillip Morris lauds DOF, BOC’s efforts against cigarette smuggling
Tobacco giant Phillip Morris International (PMI) Inc. commended the Department of Finance (DOF) and the BOC for their efforts to stop smuggling attempts and for the seizure of billions worth of illicit cigarettes, tobacco products, and raw materials.
BOC seized three containers with 1,500 master cases of COO brand Heated Tobacco Products (HTP) worth P90 million at the Port of Subic. It has no import permit from the National Tobacco Administration (NTA) and tax stamps from the Bureau of Internal Revenue (BIR). On Dec. 6, 2021, the Port of Subic seized 500 master cases of COO brand HTP without NTA permit amounting to P30 million.
Meanwhile, on January 25, BOC- Port of Manila seized one unit of used Lamborghini Huracán worth P14 million. It was shipped from Malaysia and was declared to contain a brand new motor car vehicle.
In 2021, the BOC successfully condemned or destroyed P14.261 billion worth of forfeited goods, which brings the total amount of condemned goods to P16.691 billion from July 2016 to December 2021. Among the condemned goods were various forfeited automotive vehicles, counterfeit goods, agricultural products, foodstuff, and general merchandise.
BOC donates 6.4K liters of forfeited diesel to PCG
BOC donated 6, 357.8 liters of unmarked diesel fuel seized last September and forfeited in favor of the government.
BOC and the Philippine Coast Guard (PCG) signed a memorandum of agreement on the turnover of the seized fuel to PCG for its anti-smuggling operations. The Port of Clark ordered the confiscation of the diesel fuel, which was found at a retail gas station in Pampanga after a composite team of composed of BOC and the Bureau of Internal Revenue (BIR) conducted field tests and detected the absence of the fuel marker supposed to be injected into tax-paid oil products.
The Customs district collector in Clark port issued a decision on Sept. 22, 2021, forfeiting the confiscated fuel in favor of the government after conducting legal proceedings. The management of the gas station, Luzon Petromobil Integrated Service Stations, Inc (LPISSI) filed an affidavit abandoning its claim on the seized products. The decision became final on Oct. 11, 2021, as no other petition was filed by LPISSI after the lapse of the 15-day period for filing an appeal.
Under Section 7 of the DOF-BOC-BIR Joint Circular (JC) No. 001.2021, petroleum products that
are unmarked, with a diluted marker or have counterfeit fuel marker shall be subject to duties and taxes, inclusive of the appropriate fines and penalties. This is without prejudice to the confiscation and forfeiture of such products and the filing of the appropriate criminal cases against those liable for violations of the law.
BOC and DA signs data sharing agreement
BOC, through its Legal Service and Management Information and Technology Group (MISTG) together with the Department of Agriculture (DA) – Trade Remedies Unit (TRU) held a virtual signing of the BOC-DA Data Sharing Agreement (DSA) on Jan. 27, 2022. The event was attended by Commissioner Guerrero and DA Secretary William Dar.
The DSA is intended for data and information sharing between the BOC and the DA-TRU regarding importation and exportation of agrifishery products under the Asean Harmonized Tariff Nomenclature (AHTN) Chapters 1-24. The DSA was made to improve the regulation and implementation of the trade remedy measures and Customs purposes with respect to customs duties, safeguard duties, anti-dumping duties, general safeguard duties, countervailing duties, and other duties.
Both parties agreed to comply with all the rules and regulations governing the intended data sharing initiative which would be most beneficial to public service and to all parties involved.
Heightened border protection capabilities
BOC procured 200 body-worn cameras to be used during official customs activities, in line with its mandate of further strengthening border protection. The device is capable of recording videos and audio, serving as a communication device between the user and the monitoring facility.
BOC also acquired 20 units of 12.7 meter boats equipped with three engines capable of doing over 45 knots top speed. The vessels will be deployed to ports nationwide to combat smuggling along the coastlines. Four mobile x-ray machines were procured. The additional assets have features that allow non-intrusive scans at a rate of 120 containers per hour and can produce clear pictures of items. BOC also procured 16 trace detection systems for a stronger interdiction capability.
Efficiency in trade facilitation
The Philippines’ overall performance in the latest United Nations Global Survey on Digital and Sustainable Trade Facilitation report has improved, obtaining a score of 86.02 percent in 2021 from 80.65 percent in 2019. Philippines ranked third among 10 other Southeast Asian nations.
Despite the challenges due to the pandemic, the improved performance of the Philippines in trade facilitation can be attributed to various initiatives such as the development and deployment of ICT systems, the full implementation of the National Single Window, and the establishment of Customer Care Centers.
Implementation of the WCO Mercator program and National Single Window
Customs has been aligning itself with the World Customs Organization (WCO) Mercator Programme to assist the governments worldwide in implementing Trade Facilitation Agreement (TFA) measures. This program embodies the international Customs community’s strong commitment to trade facilitation following a structured and harmonized approach, using WCO instruments and tools as a fast way forward. To date, 87.76 percent or 16 of the 27 Mercator Recommendations have already been completed since its implementation in 2019.
The BOC, as the Chairman of the National Single Window (NSW) Technical Working Group (TWG), spearheaded the implementation of activities for the establishment, implementation, operation, and monitoring of the NSW and the Asean Single Window (ASW) in the country.
A total of 21 Trade Regulatory Government Agencies (TRGA) were onboarded into the NSW as of Dec. 31, 2021. The NSW is an automated and integrated licensing, permit, clearance, and certification system for regulatory agencies. It aims to connect all regulatory government agencies to make the trade facilitation processes interoperable and efficient.
Customs modernization program
BOC implements in full swing the World Bank-funded Customs Modernization Program. The digitalization programs such as Electronic Advance Ruling System (e-ARS) for Valuation and Rules of Origin are in place as well as the use of the Association of Southeast Asian Nations Asean Single Window (ASW) platform in exchanging customs declaration documents with other Asean-participating economies.
The customer care portal system (CCPS) enables stakeholders to electronically lodge and track the status of their inquiries, requests, and concerns. The electronic tracking of containerized cargo system (e-TRACC) allows for real-time monitoring of inland movements of containerized cargo using a GPS-enabled tracking device to secure the transport of shipments to their intended destinations.
BOC has automated 82 percent (139 out of 170) of the Customs processes. The continuous BOC operations amid the ongoing pandemic are mainly attributed to the enhancement of information technology systems in 2019 and drive to fully digitalize frontline transactions in 2020. Since 2019, 30 ICT projects and systems have been developed and implemented which have resulted in more streamlined and efficient customs processes and procedures.
ISO certification of offices and ports
In its bid towards becoming a modernized and credible customs administration at par with international best practices, BOC continues to undertake the ISO 9001:2015 Quality Management System (ISO QMS) Certification of its units and offices. In 2021, nine BOC ports, subports, and offices have been awarded ISO 9001:2015 certifications, while the rest were in various stages of the ISO compliance process.
“The encouraging uptrend in public confidence in our service will continue to inspire us to work harder and do better. In the face of the various challenges and developments in the year just passed, we kept the pace and stayed on course. Each milestone, lesson, and recognition will keep us going forward and onward,” Commissioner Guerrero said.