RECTO HEARS OUT BOC ‘STRATEGIC DIRECTION’ PLAN UNDER NEPOMUCENO

DEPARTMENT OF Finance Secretary Ralph Recto gathered the top officials of the Bureau of Customs (BOC) headed by Commissioner Ariel F. Nepomuceno for a meeting last July 14 to chart the agency’s ‘strategic direction’ with special attention on reaching the agency’s assigned collection target for the year.

It was also the first meeting between Recto, Nepomuceno and the other new BOC officials who have been appointed to their respective posts by President Marcos Jr. last July 1.

An agency statement afterwards said the BOC presented a “catch-up” action plan to Recto after the agency registered a collection shortfall of more than P700 million for the first half of the year and over P8 billion last year (P931 billion actual against the agency’s adjusted target of P939.6 billion).

Assistant Commissioner and BOC spokesperson Atty. Vincent Maronilla, who is the only top official retained by President Marcos Jr., earlier told Pinoy Exposé that the country’s fiscal managers tasked them to collect more than P958 billion, already an “adjusted target” from the BOC’s original target of P1.06 trillion.

He maintained however that breaching P1 trillion in collection this year remains their “ideal target,” the same claim the agency made at the start of the year under Commissioner Bienvenido Rubio.

While affirming his support to the agency’s proposed plans for revenue generation, border security and streamlining trade processes, Sec. Recto also reminded the agency of its “pivotal role” in national fiscal stability. He noted that 20 percent of government spending is sourced from BOC collection.

However, the country’s over 8-years “experiment” with the PSI under the Ramos administration and in the early years of the Estrada administration proved it to be a complete failure—it failed to combat smuggling, worsened the problem of corruption and failed to increase the BOC’s actual tax collection.

In the sidelight of the meeting, Secretary Recto also swear into office the other officials appointed by the Palace at the BOC to help Commissioner Nepomuceno in the running of rhe agency.

Addressing Agri smuggling

Meanwhile, Commissioner Nepomuceno eyed the complete digitization/computerization of the BOC’s entire processes as an important tool to combat all forms of smuggling, especially the smuggling of agricultural products.

The official said he is also open to the idea of re-introducing ‘pre-shipment inspection’ (PSI) for agricultural imports and strict implementation of the provisions of Republic Act (RA) 12022, also known as the Anti-Agricultural Economic Sabotage Act.

Although nearly 97 percent of BOC processes are now digitized, Comm. Nepomuceno believes its 100 percent completion can be accomplished under his term.

He noted that curbing agricultural smuggling is not only a matter of enforcement but also a question of system integrity.

“We must modernize our systems, tighten our enforcement, and transform our workforce to truly protect our borders and support our farmers,” he said.

To eliminate ‘human intervention’ and reduce opportunities for corruption, the BOC is accelerating the full automation of customs procedures, especially in the processing and clearance of agricultural imports.

Automation will enable real-time tracking, automated risk management, and digital verification, significantly improving transparency and operational efficiency, the Customs chief added.

As for the PSI, it is being eyed to require goods to undergo inspection and verification before leaving the exporting country.

However, the country’s over 8-years “experiment” with the PSI under the Ramos administration and in the early years of the Estrada administration proved it to be a complete failure—it failed to combat smuggling, worsened the problem of corruption and failed to increase the BOC’s actual tax collection.

Aside from vowing to fully implement the provisions of RA 12022, Comm. Nepomuceno said he is also committed to “building a culture of integrity and discipline” among BOC personnel.

From entry-level staff to high-ranking officials, all employees are expected to uphold the values of professionalism and accountability. “This is not just about stopping smuggling. It is about transforming the institution and building a Bureau that the Filipino people can trust,” he added.

Towards this end, Comm. Nepomuceno already ordered all officials and employees to stop involvement in the customs brokerage business to stop the culture of ‘conflict-of-interest’ in the agency.

He also warned of severe consequences for those violating his directive.