THE Bureau of Customs under Commissioner Ariel F. Nepomuceno is focused on strengthening its partnership with stakeholders and institutional partners in order to push forward his reform agenda focused on greater transparency, systems modernization, and combatting corruption.
Since assuming the top Customs post last July, Nepomuceno already entered into partnership agreements and engagements with the Federation of Filipino – Chinese Chamber of Commerce and Industry, Inc. (FFCCCII), Federation of Philippine Industries (FPI), the EU-ASEAN Business Council, and the Land Transportation Office (LTO), among others.
At a forum organized by the FFCCCII last September 16, Comm. Nepomuceno the officers and members of the country’s biggest group of Fil-Chinese businessmen to hear him spell out his reform agenda for the agency. He also called on the Federation to help him curb corruption in the agency, telling them to contact him directly for their concern.
“A lot of corruption issues are all over the news, ayokong maisama d’yan ang Bureau of Customs during my time.
“So, tulungan niyo akong maayos ang Bureau of Customs – changes that we can do within my power, we will do that,” Commissioner Nepomuceno said (Pinoy Exposé, September 24, 2025).
On October 11, the BOC announced that a memorandum of agreement (MOA) was signed by the Customs Chief and FPI Chairperson Elizabeth Lee, to intensify their joint efforts against smuggling, undervaluation, and unfair trade practices, while ensuring stricter compliance with Philippine National Standards (PNS) and in protecting local industries.
The signing was part of the FPI’s Business Summit and builds on a 2010 cooperation framework but addresses previous gaps by making industry findings actionable, expanding coverage across major ports, and enhancing transparency and oversight mechanisms.
Under the MOA, accredited Industry Technical Experts (ITEs) from FPI will assist the BOC in inspecting and monitoring high-risk shipments nationwide.
The BOC commits to act on ITE reports within seven days, share non-classified shipment data for risk profiling, and issue guidelines within 60 days, in accordance with the Customs Modernization and Tariff Act (CMTA) and the Data Privacy Act.
The FPI, in turn, will provide qualified experts, uphold strict integrity standards, and ensure confidentiality of all information obtained during inspections.
A BOC–FPI Joint Monitoring Committee will convene quarterly to track performance, review compliance, and publish annual reports highlighting key accomplishments and challenges.
The following week, on October 21, the BOC and the LTO also signed a MOA to address the persistent problem on motor vehicle smuggling, as revealed in the smuggling of luxury vehicles the BOC eventually traced to couple Curlee and Sarah Discaya, the controversial flood control projects contractors who are now at the center of the controversy.
13 of the 30 luxury vehicles of the Discayas taken into custody by the BOC last month have been scheduled for auction by November 15, following confirmation they were smuggled into the country, the BOC said.
“This mutual cooperation with the LTO reinforces our shared goal of ensuring transparency, efficiency, and strict compliance with customs laws and other government regulations.
“By working together, we want to make sure that every imported vehicle and its registration process is handled with the highest standards of integrity,” Commissioner Nepomuceno said.
Within 30 days of the MOA signing, the BOC and LTO will form a Joint Technical Working Group (TWG) tasked with developing and implementing the necessary rules and guidelines for the effective implementation of the agreement.
Full digitalization to solve smuggling woes
To further build the BOC’s capacity towards transparency and ease of doing business, Commissioner Nepomuceno also told delegates to the Supply Chain Security Management Summit two days later that full digitalization of agency systems and processes holds the key in addressing the problem of smuggling and corruption.
“Smuggling is, in fact, a national threat. It directly undermines our industries, workers, and consumers. Smuggling distorts fair competition and hinders industrial growth,” he said.
Nepomuceno outlined plans to fully digitize import entry submissions, assessments, and release processes to minimize tampering and improve transparency.
More than 95 percent of the BOC’s systems and processes have already been digitalized but Nepomuceno said he wants “full computerization” by the end of his term.
This includes expanded use of scanning technologies, CCTV monitoring, and surveillance. The initiative, he added, is expected to roll out by next year.
In a separate meeting with the EU-ASEAN Business Council organized by the Department of Finance (DOF), Nepomuceno also discussed the progress of the ‘Customs Processing System’ (CPS) that is currently under development to simplify import and export procedures, reduce costs, and limit human intervention in the entire process.
“We understand the need for faster, clearer, and more consistent processes. That’s what we are working to deliver,” he said.
The agency, he added, is working closely with other government offices and the private sector to ensure that new systems like pre-border technical verification and electronic invoicing are practical and responsive to business needs.
Nepomuceno also explained that the push for full digitalization goes beyond improving revenue collection.
“The main goals for the full digitalization are not only focused on ensuring that the proper revenues will be collected — of course, that’s the most important and immediate impact of achieving full digitalization — but we know that (addressing) smuggling goes further,” he said.
Effectively combatting smuggling, he noted would have a ‘domino effect’ that can improve investors’ confidence and promoting fair competition once smugglers are prevented from exploiting gaps in the system.