The Bureau of Customs (BOC) posted revenues of P32.87-Billion in September 2014, the highest-ever single-month collection of the agency, on the back of continuous improvements in valuation and an increase in the volume of imported goods. September’s collection is up 27.2% versus the same month last year.
For the month of September, volume of imports grew 15.7%, driven by the growth in imports of petroleum products; motor vehicles; iron and steel products; as well as electrical machineries and equipment, which accounts for about 72% of total customs revenue. Valuation of imported goods also improved, offsetting a decline in the prices of petroleum products. Reports from the Department of Energy showed that Dubai crude decreased by about US$6.10 per barrel in September, while imported diesel and gasoline went down by US$7.10 and US$3.00 per barrel, respectively in the Mean of Platts Singapore (MOPS). The P0.98 depreciation of the Peso versus the US Dollar also helped defray the decline in the price of petroleum products, which accounted for about 27% of total imports last month.
On the average, every P1.00 movement in the exchange rate of the US Dollar against the Philippine Peso has an estimated P2.7-Billion impact on the Bureau’s revenue collection.
September’s milestone in revenues is also supported by a growth in imports of motor vehicles, which grew 31%, as well as record sales of cars and trucks, which surged 41.72%. Following the Bureau’s strong performance in September, total revenues for the third quarter of 2014 reached P92.39-Billion, up 15% year-on-year, tracking improvements in the country’s economy.
From January to September 2014, total revenue collections of the BOC reached P265.787-Billion, 18% over the same period last year. Improvements in the Bureau’s system for the valuation of goods, coupled with enhanced enforcement and apprehension efforts, yielded an 18.23% hike in the customs value for imported products and a 19% increase in the duties and taxes collected, offsetting a slight decrease in the average tariff rate.
At the Port level, revenue collections by the Bureau’s 17 Collection Districts nationwide for the first three quarters of 2014 grew by an average 18.23% year-on-year. The ports of Batangas, Iloilo, Cebu, Davao, Subic and Aparri exceeded their collection target for the period.
For October 2014, the BOC has a collection goal of P36.810-Billion from the inter-agency Development Budget Coordination Committee.