NOTWITHSTANDING reforms infused by one administration after another, the Bureau of Customs (BOC) has consistently been ranking on top of the list of government agencies with highest incidence of corruption.
For one, BOC is the second highest revenue-generating agency in the Philippines. Collected funds in form of tariff are used to finance national projects, such as social services, infrastructure development, and other government programs.
However, not all has been spent for the purpose it was raised. A significant chunk of its collection goes to somebody else’s pockets, while the bigger slice corresponds to losses incurred by the government from illegal smuggling, undervaluation and misdeclaration of shipments.
Share of Expenses
No less than Finance Secretary Ralph Recto admitted the importance of the BOC in providing funds to defray the cost of the government projects, programs and socioeconomic plans.
“The BOC is more than the landing point of trade in our country. It is also the starting point of our nation’s progress. For it is in the BOC that emanates the revenues that fund our nation’s dreams and secure its future,” Recto said in a message during the BOC’s 122nd Founding Anniversary in February this year.
With the BOC contributing no less than P1 trillion, the government hopes to raise P4.3 trillion this year.
Taking cue from data coming from the Department of Finance, Recto referred to models corresponding to consumptions.
According to the DOF chief, BOC has been bankrolling a long list of government priorities, including 20 percent of the salary due to some 228 policemen, cost of constructing roads, and classrooms. The BOC also shoulders 20 percent of the medical expenses incurred by poor patients – including those undergoing chemotherapies.
Not Good Enough
Established in 1902 by what was then referred to as the Philippine Insular Government, BOC was responsible for the collecting of customs duties, excise duties, and other indirect taxes on all imports and on certain exports.
The agency is mandated to work with the consistent exchange of goods, which will improve the process of carrying on with business and in the end lead to additional investments entering the country.
In 2023, BOC revenue nearly breached the one trillion mark as it collected P883.213 billion in revenue, which is 2.41 percent higher as compared to the previous year.
Revenue boost, according to Customs Commissioner Bienvenido Rubio, could as well be attributed to several factors, including the shift to digital operation, streamlined customs processes, improved trade facilitation, global recognition, intensified anti-smuggling campaign, heightened border control and security measures.
However, the mere fact that the local market is flooded with cheap and unbranded commodities speaks well of the continued proliferation of illegal smuggling in the country.
Vulnerable to Smuggling
Its strategic location in the heart of Southeast Asia and its dynamic economy, the Philippines has become one of the fastest-growing economies in Southeast Asia, and a leader in the Association of Southeast Asia Nations (ASEAN).
However, the country’s position as a vital maritime gateway in the region, coupled with its robust economic activities, has rendered it susceptible to a spectrum of illicit practices.
From counterfeit goods flooding local markets to the underground movement of smuggled products, the illegal wildlife trade, and the intricate networks of money laundering, the Philippines faces significant challenges in its ongoing battle against these illicit activities.
Smuggled cigarettes, cars, toxic toys, substandard appliances, gadgets, agricultural products, fuel and illegal drugs to name a few are flooding the local market – the amount of which translates to revenue losses for the government.
BOC’s Unsung Heroes
Amid the relentless anti-illegal smuggling efforts are the unsung heroes of the bureau.
The Manila port for one, a bustling epicenter of global commerce, teems with life and industry. Towering cranes move with mechanical precision against a backdrop of an endless sky, while the chorus of engines and voices fills the air.
But not everything seemed well as corruption and illegal smuggling remained. The good thing though is that there are still a handful of BOC personnel who are doing what they are supposed to do – maintain vigilance, diligence, and integrity by protecting the nation’s economic lifelines.
The silent guardians deserve recognition for their exceptional contributions to the nation. They’re not merely tax collectors; they are custodians of the nation’s security and economic prosperity.
Every shipment they inspect, every document they review, and every regulation they enforce represents a battle against illicit trade, smuggling, and threats to public safety. These officers work tirelessly to ensure that legitimate trade flourishes while preventing harmful goods from entering the country.
