The Bureau of Customs (BOC) acknowledged the concerns raised in the 2025 U.S. State Department Investment Climate Statements report, which identified bribery and corruption as barriers to investment in the Philippines.
However, even prior to the release of this report, the BOC, under the new leadership of Commissioner Ariel Nepomuceno, already initiated institutional reforms to address these issues within his first 100 days in office.
Among the key anti-corruption reforms implemented early in Nepomuceno’s tenure are the issuance of a strict “No Take” policy prohibiting any form of bribery or unlawful monetary transactions within the BOC.
This directive is enforced across all levels of the agency, with violations subject to immediate disciplinary action and full cooperation with law enforcement authorities.
In a landmark move to eliminate conflicts of interest, the Commissioner issued a memorandum on July 10, 2025, banning all BOC officials and employees from holding any business or financial interest in Customs Brokerage operations. Personnel are also required to disclose familial ties to brokerage firms, ensuring impartiality and transparency in customs transactions.
To further strengthen internal oversight, he mandated enhanced disclosure requirements, compelling all BOC personnel to submit affidavits detailing any connections to customs-related businesses, including past associations. These measures are designed to prevent hidden conflicts of interest and reinforce public trust in the Bureau’s operations.
In response to mounting complaints from stakeholders regarding overly intrusive audits and enforcement activities, Nepomuceno ordered the suspension of unserved Letters of Authority (LOA) and Mission Orders (MO). This temporary halt allows the BOC to conduct a comprehensive review of its enforcement protocols to ensure that legitimate businesses are not subjected to undue disruption while maintaining the integrity of customs operations. The review aims to recalibrate procedures to be more targeted, risk-based, and respectful of due process.
He also prioritized collaboration with international partners and foreign business chambers to ensure that investors are treated fairly and professionally when engaging with the BOC.
As part of this commitment, the Bureau will maintain and strengthen the Customs Industry and Advisory Council (CICAC), which serves as a formal mechanism for engagement between the BOC and key stakeholders in trade, logistics, and foreign investment. Through CICAC, the Bureau aims to institutionalize regular consultations, promote policy transparency, and co-develop solutions that enhance customs efficiency while safeguarding the interests of legitimate businesses.
“We will continue pushing forward with both short and long-term solutions.”
“The reforms we introduced within my first 100 days were not reactionary. They were proactive measures rooted in our commitment to clean governance. These measures directly respond to the very issues highlighted in the U.S. State Department report, and we will continue pushing forward with both short and long-term solutions,” Nepomuceno stressed.
The BOC recognizes that meaningful transformation will take time. While these initial reforms are critical short-term solutions to restore trust and accountability, the long-term strategy centers on full digitalization and automation of customs processes. By reducing human discretion and streamlining transactions, the BOC aims to eliminate systemic vulnerabilities and build a customs administration that is modern, efficient, and corruption-resistant.
“We are fully committed to transforming the Bureau of Customs into a model of integrity and professionalism.”
“We are fully committed to transforming the Bureau of Customs into a model of integrity and professionalism. Corruption has no place in our agency, and we will continue to pursue reforms that protect investors, promote fair trade, and uphold public trust,” Nepomuceno emphasized.
The Bureau of Customs encourages all stakeholders to report any corrupt practices or irregularities they may encounter. Formal complaints may be submitted via email to complaint@customs.gov.ph or directly to the Office of the Commissioner at boc.ocom@customs.gov.ph. All reports are treated with strict confidentiality and investigated thoroughly.
Under Nepomuceno’s leadership, the BOC is committed to building a transparent, professional, and globally trusted customs administration that fosters a competitive and corruption-free investment climate in the Philippines.
