BOC 122nd Anniversary Supplement – PortCalls

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BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

WEDNESDAY February 14, 2023

Digitalization, partnerships key to a modern, transparent customs administration THE Bureau of Customs (BOC) plays a by the global pandemic, the BOC has pivotal role in international trade and consistently surpassed its annual targets logistics, as it has for more than a century. since 2020, hitting its highest collection to date in 2023 with P883.624 billion.

As it celebrates its 122nd founding an- That is 1.09% more than the 2022 goal niversary this month, the agency hopes to of P874.166 billion. keep in step with the world of fast-moving trade through various projects, some of The latest preliminary revenue colwhich have already been realized and lection was also 2.46% higher than the many more still in the pipeline.

P862.419 billion recorded in 2022.

Established on February 6, 1902 through the Customs Service Act No. 355 as the Philippine Customs Service, the agency later transformed to the Bureau of Customs and Immigration, and finally to the Bureau of Customs when the Bureau of Immigration became a separate entity in 1940.

other law enforcement agencies for seamless coordination and information sharing against the entry of illicit goods, contraband, drugs, and high-value commodities.

In addition, the BOC is fully implementing the new National Customs Intelligence System (NCIS) to enhance actionable intelligence, support case build-up, and conduct For 2024, Customs commissioner risk profiling and analysis to effecBienvenido Rubio committed to hitting tively curb smuggling. The NCIS the P959-billion collection target through serves as a secure data warehouse continued vigilant monitoring and im- Customs commissioner Bienvenido Rubio provement of modernization projects. committed to hitting the P959-billion collection

For the first month of the year, BOC collected P73.329 billion, surpassing its According to a 2022 International P71.779 billion target by 2.16%.

Monetary Fund publication entitled “The Multifaceted Role of Customs and Its ImTo further bolster revenue collections portance for the Economy and Society”: and prevent revenue leakages, the latest “…. the customs administration’s mission BOC initiative addresses the burgeonis composed of three elements, all related ing e-commerce industry. The agency is to international trade in goods: the fiscal implementing an ICT-enabled clearance element (revenue collection, directly and system for express shipments and has alin support of the tax administration), the ready drafted an order covering clearance economic element (implementation and procedures for cross-border e-commerce oversight of certain government economic shipments, volumes of which have been policies), and the protection and security growing and are expected to only continue element (safeguard of citizens’ health and doing so in the foreseeable future. protection of society from transborder criminal activity).”

Border protection In the area of protecting national The BOC’s real challenge therefore borders, the bureau also apprehended a is in how well it can achieve a delicate record high P43.295 billion worth of ilbalancing act in the performance of these legally imported and illicit goods in 2023. three elements.

To address smuggling, the BOC has Revenue collection said it will continue to strengthen border Amid volatile trade heavily impacted control by engaging and collaborating with

target for 2024.

Commissioner Rubio with Finance Secretary Ralph Recto during the latter’s visit to BOC on Jan 24, 2024. Photos from the BOC.

for intelligence information from various units of the customs bureau. Launched in 2022, it provides a database for actionable intelligence information, supporting case build-up, risk profiling, and analysis. The system’s capabilities empower authorized

officials with data-driven insights, enhancing the agency’s operational efficiency and effectiveness. This reinforces its ability to safeguard national borders and facilitate international trade.

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WEDNESDAY February 14, 2023

BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

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BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

WEDNESDAY February 14, 2023

Digitalization, partnerships...

The BOC also seeks to implement a digital system for the pre-border technical verification of agricultural imports and cross-border electronic invoicing to

increase operational efficiency and deter smuggling of agricultural products. A technical working group has been created to study the pre-shipment inspection of

BOC prevented the entry and eventual release of misdeclared agricultural products at the Port of Subic in November 2023.

Other initiatives to further digitalize Continued from page 10 the BOC’s processes and facilitate trade agricultural goods and the mandatory through the use of technology are in the use of digital invoices for all agricultural works. These include: commodities.

• BOC e-Pay Portal System for the Digitalization, trade facilitation settlement of miscellaneous fees The latest United Nations Global • Customs Auction Monitoring Survey on Digital and Sustainable Trade System, a web portal that enables Facilitation report revealed continued users across all ports to manage improvement for the Philippines, which online registration and bidding scored 87.1% in 2023 from 86.02% in 2021. enhancing transparency in the auction of seized goods Buttressed by various digitalization • Integration of the Automated Exprojects as part of its commitment to enport Declaration System (AEDS) hance trade facilitation, the improvement to the Automated Export Docuin trade facilitation score was welcomed mentation System. The AEDS, by the BOC. part of the BOC’s Electronic-toMobile System, facilitates the So far, the bureau has digitalized receipt and processing of export 161 out of 166 customs processes, or declarations by exporters. AEDS a 96.99% digitalization rate. Notable allows for the electronic submisprojects include the Enhanced Value sion of authorized Export DecReference Information System, Customs laration-Single Administrative Customer Care Portal, lectronic TrackDocument from economic zone/ ing of Containerized Cargo System, freeport zone/investment promoPre-Payment System, Automated Bond tion agencies AEDS through Inquiry System, and Goods Declaration BOC-accredited value-added Verification System.

Turn to page 17 BOC-Port of Zamboanga destroyed 5,624 master cases and 1,171 reams of seized and forfeited smuggled cigarettes on November 30, 2023, in a customs-rented warehouse in Barangay Tetuan, Zamboanga City. Photos on this page from BOC.

BOC-Ninoy Aquino International Airport, in coordination with the Philippine Drug Enforcement Agency, and NAIA Inter-Agency Drug Interdiction Task Group, intercepted a parcel containing approximately 9,898 grams of shabu (methamphetamine) with an estimated street value of P67 million at the Paircargo Warehouse, Pasay City in December 2023.

WEDNESDAY February 14, 2023

BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

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BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

WEDNESDAY February 14, 2023

WEDNESDAY February 14, 2023

BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

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BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

WEDNESDAY February 14, 2023

WEDNESDAY February 14, 2023

Digitalization, partnerships...

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service providers to the BOC Electronic to Mobile-AEDS for loading at all international seaports and airports.

Overstaying Cargo Tracking System, which provides updated data on the disposition activities of all ports E-Service Catalog System (internal), a web portal that allows users across all ports to manage online registration and bidding Document Management System (internal), which captures, tracks, and stores electronic documents such as PDFs, word processing files, and digital images of paper-based content.

BUREAU OF CUSTOMS’ 122nd FOUNDING ANNIVERSARY

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Continued from page 12

mended performance tool—to quantify cargo release time from arrival to out-ofcharge for imports, and arrival to carrier departure for exports. This will help the BOC benchmark against global standards and identify areas for improvement and use these data in formulating and improving policies.

On top of the national time release study, the bureau has been conducting time release studies in its districts yearly since 2019 to identify supply chain bottlenecks affecting the release of imports and exports and come up with recommendations to mitigate such bottlenecks.

Together with its mother agency, the Department of Finance, the BOC is working to implement the Philippine Trade Facilitation Committee Roadmap, an action plan containing short- and medium-term activities that aim to achieve full paperless transactions for the import and export of essential goods by 2028.

E-Travel Customs System is also a notable project. It is a unified digital platform that simplifies data collection and streamlines customs procedures for all air travelers at Philippine airports.

The initiative bolsters national security, integrating into one form border control requirements of the Bureau of Immigration, Other trade facilitation projects in Bureau of Quarantine, BOC, and Bangko compliance with international commitSentral ng Pilipinas. ments/agreements and best practices are likewise being implemented, including: It combines BOC’s Electronic Customs Baggage Declaration Form and Electronic • TradeNet, the country’s national Currencies Declaration Form into BI’s single window (NSW). The NSW eTravel System. Its key feature, the Elecprovides for automated and intronic Customs Baggage and Currency tegrated licensing, permitting, Declaration interface. clearance and certification system of Trade Regulatory Government Another project, which is expected Agencies involved in the import to improve the BOC through streamlinand export trade of regulated ing, automation, and development of a goods. world-class customs processing system • Association of Southeast Asian (CPS) is the World Bank (WB)-initiated Nations customs declaration Philippine Customs Modernization Project document (ACDD) portal. The (PCMP) that was launched in 2021. portal facilitates ACDD message exchanges through TradeNet and/ The project has a total cost of $104.38 or the Philippine ASEAN Single million, of which $88.28 million will be Window (ASW) Gateway and funded through WB’s official development ASW gateways of other ASEAN assistance, and the balance shouldered by member states. The ACDD is a the Philippine government. multipurpose document used for faster exchanges of export declaraAfter much delay, the contract for tion information among ASEAN the consulting firms that will assist in all member states. aspects of the execution and implemen• Portal for electronic certificates of tation of the PCMP was finally awarded origin registration where exporters in November 2023 to the joint venture can register and apply for an e-CO. of Spain’s Quality Institute, Belgium’s • Authorized Economic Operator Emerging Markets International, and Program which so far has at least Spain’s GT Capital. three companies accredited under Level 1, namely Toyota Motor The award is a critical first procurement Phils, Panasonic Manufacturing that will jumpstart the implementation of and Coca-Cola Beverages Phils. the PCMP, including other key procureThe AEO program represents a ments such as the CPS, which will upgrade customs-to-business partnership the BOC’s existing Electronic-to-Mobile that seeks to enhance internaSystem. tional supply chain security and facilitate movement of legitimate Aside from these digitalization progoods. jects, the BOC is working on other initiatives designed to further streamline trade Partnerships documentation.

Forging partnerships and collaborations with other relevant government agencies The agency is spearheading the con- and the private sector to further enhance duct of a national trade release study—a trade facilitation and help implement variWorld Customs Organization-recom- ous policies is a key concern of the bureau.

Government partners that the BOC has recently collaborated with include the Philippine Postal Corporation, the Philippine Drug Enforcement Agency, the Philippine Coast Guard, the Philippine Economic Zone Authority, the Department of Information and Communications Technology, and the Department of Trade and Industry-Strategic Trade Management Office.

of Truckers Association of the Philippines; Philippine Chamber of Arrastre and Stevedoring Operators, Inc.; Port Users Confederation; Foreign Buyers Association of the Philippines; Federation of Philippine Industries; Philippine Association of Meat Processors, Inc.; Philippine Chamber of Agriculture and Food Inc.; Philippine Exporters Association; and the top 20 importing companies of the Philippines and other relevant businesses and trade A testament to the bureau chasing after associations. greater partnerships is the recent creation of the Customs Industry Consultative Internally, as part of efforts to promote Council (CICAC) under Customs Memo- integrity and improve its quality managerandum Order No. 02-2024. CICAC is ment systems, the BOC secured 23 ISO expected to function as a consultative 9001:2015 Quality Management System body between the BOC and the business- certificates as of the middle of 2023, and industrial sector to address existing and continues to prepare for ISO Certification potential issues related to Customs and for its other offices. industry matters.

Hire and promotion of personnel and Functions include conducting regular the conduct various initiatives that focus consultative meetings and dialogues to dis- on the welfare and morale of its employees cuss trade environment trends and updates, are ongoing. apprise industry partners about Customs policies and programs, and address issues Criminal charges against erring employrelating to their implementation. ees have also been filed, with a total of 19 show-cause orders against erring employThe CICACs will be established in ees from January to December 31, 2023. the BOC’s central office and all of its col- Ninety-four personnel are either under Oath-taking of 117 newly hired and promoted BOC employees during the Monday flag raising ceremony on January 8, 2024 lection districts, and will be composed of investigation or have been investigated, 16 at the BOC grounds in Port Area, Manila. Photo from BOC. the “most trusted, honest, and compliant of whom are facing administrative charges. companies and trade organizations/associations operating in the country.”

Moreover, 14 employees have been suspended, while one has been disciplined.

The business and trade associations approved by the Customs commissioner Moving forward, the trade and logistics include, but are not limited to, the Philip- industry can expect more BOC projects pine Chamber of Commerce and Indus- geared towards improving efficiencies try; Chamber of Customs Brokers, Inc.; while adapting to evolving trade dynamics.

Federation of Filipino-Chinese Chamber of Commerce and Industry; Association The more modern and efficient a of International Shipping Lines; Airline country’s Customs organization the Operators Council; Philippine Retailers greater its attraction to global invesAssociation; Distilled Spirits Associa- tors, and today’s BOC continues to take tion of the Philippines; Common Bonded major strides to be among the world’s Warehouse Operators, Inc.; Confederation best. – Roumina Pablo