From humble beginnings in 1898, the Bureau of Customs has evolved into a vital pillar of the nation’s economy and security, safeguarding the country’s borders and facilitating trade with the world.
Historical records show that the Philippine customs service started centuries before Eastern and Western expeditionaries discovered the Philippines.
The Philippines already had a flourishing trade with Southeast Asia countries. But since money was not yet the medium of exchange then, people resorted to the barter system of commodities. The barangay heads, known as the “datus” or “rajahs,” collected tributes from the people before they were allowed to engage in their trade.
Eventually, the BOC became modern, efficient, and adaptable to enhance the Philippines’ trade facilitation, strengthen border control, and improve the collection of lawful revenues. It draws inspiration from its core values — professionalism, excellence, integrity, and accountability.
Through the decades, the Bureau has faced countless challenges. From the tumultuous early years of nation-building to the ever-evolving landscape of global commerce, the BOC has consistently adapted and innovated. Celebrating its 122nd anniversary, the BOC now stands as a testament to the Filipino spirit of resilience and resourcefulness.
Looking back at a successful year
The BOC’s primary mission is to collect revenue and ensure the smooth flow of legitimate goods. But its role goes far beyond mere numbers. It is the first line of defense against illegal imports, protecting consumers from harmful products and safeguarding national security by preventing the entry of contraband.
In recent years, the BOC has made significant strides in its fight against smuggling and corruption. Some efforts include implementing modern technologies, such as enhanced scanning equipment and data analysis tools, which have led to the apprehension of billions of pesos worth of illegal goods.
Last year, during a meeting with Department of Finance (DOF) Secretary Benjamin E. Diokno in September, BOC Commissioner Bienvenido Y. Rubio emphasized how the Bureau took necessary steps to bolster international ties and combat illicit trade operations.
Among the mentioned details was how BOC seized and forfeited 42,180 sacks of rice worth P42 million in Zamboanga City due to the absence of the required Sanitary and Phytosanitary Import Clearance (SPSIC). The rice was then generously donated to the Department of Social Welfare and Development (DSWD), ultimately reaching beneficiaries in Zamboanga City and Tungawan, Zamboanga Sibugay.
During the same meeting, the BOC Commissioner highlighted the agency’s intensified anti-smuggling campaign. These operations targeted counterfeit goods, agricultural products, and cigarettes and tobacco, resulting in 717 successful seizure operations and apprehensions, amounting to an estimated P31.55 billion.
Additionally, the Bureau has taken a proactive stance against bribery and other corrupt practices, fostering a culture of integrity and transparency within its ranks.
Thanks to BOC’s dedication to its mission of fostering transparency, enhancing cooperation, and safeguarding the nation’s fiscal interests, the Anti-Red Tape Authority (ARTA) recognized the agency’s significant role in improving efficiency and reducing red tape.
BOC spearheaded several modernization projects to streamline customs processes, achieving a 96.99 percent digitalization rate and aligning with ARTA’s mission of promoting ease of business.
Other notable achievements in 2023
With the right person at the helm, in recent year’s case being Commissioner Rubio, the BOC undeniably made progress in their initiatives, including digitalization, revenue collection, trade facilitation, smuggling prevention, and employee welfare.
For instance, in the first semester of 2023, the agency surpassed its revenue collection target of P420.664 billion by 3.04 percent or P12.768 billion. Likewise, the agency generated an additional P1.257 billion in revenue from audit findings and Prior Disclosure Program applications and P29.718 million from Public Auctions in the Ports of Manila, Davao, and Manila International Container Port.
Meanwhile, the BOC’s efforts in simplifying procedures and enhancing trade facilitation enabled the Philippines to jump 17 places in the World Bank Logistics Performance Index (LPI), ranking 43rd among 139 countries. The agency has also successfully implemented the electronic Phytosanitary (e-Phyto) Certificate exchange with the Association of Southeast Asian Nations (ASEAN) member countries.
The previous year was a fruitful time for the agency’s anti-smuggling operations. The top commodities seized included counterfeit products, agricultural products, tobacco products, illegal drugs, and general merchandise.
BOC reported seizing smuggled commodities worth P43.295 billion through 980 operations. The fuel marking program, marking 71.95 billion liters, significantly contributed, generating P234.18 billion in duties and taxes.
Most of the agency’s success comes from the ability of its well-equipped employees. As such, the BOC implemented a comprehensive merit and selection program to foster organizational development and boost employee morale.
As a result of the agency’s efforts to incentivize and provide its employees with a proper working environment, the BOC received an Unmodified Opinion, the highest evaluation from the Commission on Audit (COA) for strong internal controls, ensuring accurate financial statements. This recognition highlights the BOC’s commitment to transparency and compliance with International Public Sector Accounting Standards.
Commissioner Rubio also celebrated the success of hiring and promoting 605 individuals and announced the forthcoming release of long-awaited 2018 employee rewards in the first quarter of 2024.
Over the past years, the BOC has etched new milestones. Record-breaking revenue collection, exceeding targets by a significant margin, testifies to its commitment to fiscal stability. The relentless pursuit of modernizing customs processes, with the adoption of digital platforms and automation, promises a smoother and faster trade environment.
This 2024, the BOC, under Commissioner Rubio’s leadership, aims to keep the agency productive and uphold its purpose and legacy of being the sentinels of the Philippine trade.
“Starting is one thing, but maintaining momentum is another. We work diligently, pouring our time and energy into pursuits. And then, time passes, and obstacles begin to take shape and come into view. Maintaining momentum is about pushing through these challenging moments. And I am counting on your unwavering support to carry on with our plans,” Rubio said.
As the Bureau embarks on this new chapter, it does so with a renewed sense of purpose. It aims to be a world-class customs’ administration known for its efficiency, integrity, and dedication to serving the Filipino people.