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BOC STEPS UP DIGITALIZATION, ANTI-SMUGGLING DRIVE

The Bureau of Customs (BOC) participated in a courtesy meeting with the EU-ASEAN Business Council, the European Chamber of Commerce, and their member organizations to discuss trade and customs-related concerns. 

The meeting was presided over by Department of Finance (DOF) Undersecretary Charlito Martin Mendoza and included other finance-attached agencies. 

Discussions focused on improving customs procedures and preparing for the Philippines’ ASEAN chairmanship in 2026.

During his opening statement, Mendoza expressed optimism about the dialogue ahead. 

“We look to you to support our human and technical capacity.”

“We look to you to support our human and technical capacity between efforts by sharing global best practices, leveraging your industry expertise, and helping us upskill our current workforce, and develop the next generation of Filipino innovators,” he said.

BOC Commissioner Ariel Nepomuceno assured business leaders that the agency is committed to listening and responding to their concerns. 

“We understand the need for faster, clearer, and more consistent processes.”

“We understand the need for faster, clearer, and more consistent processes. That’s what we are working to deliver,” the customs chief said.

Since assuming office in July 2025, the customs head focused on strengthening enforcement against smuggling, especially for high-risk goods like tobacco. These efforts aim to protect government revenue and support fair competition for legitimate businesses.

The BOC also shared updates on its digitalization efforts. The Customs Processing System (CPS) is being developed to simplify import and export procedures, reduce costs, and limit manual handling. 

The agency 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.

Businesses were also encouraged to join the Authorized Economic Operator (AEO) Program, which offers benefits to companies that consistently follow customs rules and maintain high standards.

Nepomuceno 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 smuggling goes further,” he said. 

Nepomuceno added that addressing smuggling will have a domino effect, improving investor confidence and promoting fair competition by preventing smugglers from exploiting gaps in the system.

“Aside from again — collections will be increasing, then there will be efficiency in these processes, but most important will be the macroeconomic impact of being able to control smuggling,” he noted.

The meeting concluded with a shared commitment between the BOC and the DOF, along with other government agencies, to work hand-in-hand in advancing trade facilitation and customs modernization. 

By aligning policy direction with operational reforms, the DOF and the BOC aim to build a customs environment that is transparent, efficient, and responsive to the evolving needs of the business community and the broader economy.

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