BUREAU OF Customs (BOC) Commissioner Ariel F. Nepomuceno said he remains “hopeful” that Congress would respond positively to his request for a bigger allocation to finance the agency’s modernization program next year despite the miserly allocation decision by the Cabinet-level Development Budget Coordination Committee (DBCC).
In a talk with Pinoy Exposé after the deliberation of the proposed budget of the Department of Finance (DOF) and its attached agencies at the Senate on Tuesday, the Customs Chief said he finds confidence in the support shown to his reform agenda and the BOC’s ongoing modernization program even by the members of the minority, particularly Senator Christopher ‘Bong’ Go.
The budget briefing for the DOF and its attached agencies is being headed by Finance Subcommittee Chairman Senator JV Ejercito.
For 2027, the BOC has proposed a budget of ₱29 billion, the Customs Chief said.
The DBCC, however, reduced the amount to just 30 percent, or ₱5.902 billion, which is even 9.7 percent lower than its current allocation of ₱6.534 billion.
Banking on the agency’s performance that enabled it to consistently overshoot its assigned target since the start of year and the vocal support to his leadership of all stakeholders, Commissioner Nepomuceno said he expects lawmakers to see the importance of at least restoring the ₱10 billion they proposed for a more efficient Customs operations.
Also drastically trimmed down is the BOC’s proposed intelligence fund, from the current ₱250 million to just ₱69.5 million or a budget slash of 72 percent.
The agency’s automatic appropriation for its modernization programs was also hit after it was reduced by more than 13 percent, from the current ₱4.922 billion to just ₱4.283 billion next year.
Banking on the agency’s performance that enabled it to consistently overshoot its assigned target since the start of year and the vocal support to his leadership of all stakeholders, Commissioner Nepomuceno said he expects lawmakers to see the importance of at least restoring the ₱10 billion they proposed for a more efficient Customs operations.
The figure calls for the purchase of at least 24 advance, next-generation X-Ray machines and hastening the agency’s ICT modernization leading to the 100 percent digitization of the BOC’s systems and processes. Despite past efforts, the BOC’s digitization remains stuck at just above 96 percent.
These initiatives are in line with Nepomuceno’s 3-pronged strategy for the agency anchored on Integrity, Accountability and Modernization (IAM Customs).
The BOC also intends to create government-owned condemnation facilities for the condemnation and destruction of smuggled items. The current practice of outsourcing the process to private third-party entities has repeatedly resulted to scandals involving theft and pilferage of condemned goods.
At the end of the budget briefing, Sen. Ejercito and Sen. Go agreed to forward the proposed budget of the BOC and that of the DOF and its other attached agencies to the plenary for further deliberation and approval.