IN THE PAST, the mere mention of the Bureau of Customs (BOC) connotes corruption — and from how it looks, the public impression has yet to change, not in the near future perhaps.
As far as the US State Department is concerned, the BOC is still the most corrupt agency in the country. This was contained in its investment climate report which said the government must address transparency issues in its regulatory system.
It described the system as characterized by bribery and corruption which serve as barriers to investment in the Philippines, the Manila Times quoted the US Department of State report.
KILLING PH ECONOMY
The State Department report described the regulatory environment as “unclear” in many economic sectors, leading to inconsistent regulatory enforcement.
“Some US investors describe business registration, customs, and immigration processes as burdensome.
Customs procedures in particular can present challenges and the Embassy has received multiple reports from US businesses of overly invasive searches, inconsistent customs charges, and solicitations of “facilitation fees” (like bribes) from some customs officials,” the US Investment Climate Statement for the Philippines read.
“Regulatory agencies are generally not statutorily independent but are attached to cabinet departments or the Office of the President. Inconsistencies in the judicial system affect regulatory enforcement,” it added.
BOC’s OWN ADMISSION
Customs Commissioner Ariel Nepomuceno has acknowledged the concerns raised in the 2025 US State Department Investment Climate Statements report but stressed that the issues have already been tackled prior to the report.
Nepomuceno claimed that the customs bureau, under his watch, initiated institutional reforms to address these issues during his first 100 days in office.
Among the key anti-corruption reforms implemented early in his tenure are the issuance of a strict “No Take” policy prohibiting any form of bribery or unlawful monetary transactions within the BOC.
This directive, Nepomuceno said, is enforced across all levels of the agency, with violations subject to immediate disciplinary action.
CONFLICT OF INTEREST
Nepomuceno issued a memorandum in July 2025, banning all BOC officials and employees from holding any business or financial interest in Customs Brokerage operations.
Personnel were also required to disclose familial ties to brokerage firms, ensuring impartiality and transparency in customs transactions.