CUSTOMS MODERNIZATION

The DOF is committed to reforming and modernizing the Bureau of Customs (BOC) to balance its dual responsibilities in curbing smuggling and trade facilitation. With the increased globalization of trade and the uptick in trade activity due to rapid economic growth, the DOF recognizes the need to upgrade customs laws and policies to keep up with the recent trend towards harmonization, modernization, and simplification of customs procedures.

To augment the reform initiatives currently underway at the BOC, the DOF supports legislative measures to impose higher standards for professionals (such as customs brokers), improve valuation mechanisms to determine accuracy of declared values of goods, and the delegation of post-entry audit functions to an external government group.

The DOF also supports measures to allow for considerable flexibility in the determination of de minimis value to prevent the instance wherein the specified amount would become inapplicable or not up-to-date. To prevent abuse, the DOF also recommends that fees for overtime work should be shouldered by the government, not private enterprises, and that arrangements for shifting be done to improve 24/7 services.

To enhance trade facilitation, the DOF also supports the mandatory issuance of alert orders which are pre-numbered, listed in a single logbook, marked confidential and reported to the department, clearly identifying the person who issued the alert. Streamlining the modes of disposition of property under BOC custody is also suggested.

The DOF also recommends legislating penalties for those who committed errors in the declaration of goods to be increased, particularly for repeated offenders, with the presumption of good faith considered removed to those who have erred in their declaration for up to three instances for a specified period.

Finally, to keep up with the times, the DOF advocates for greater transparency and efficiency at the BOC through electronic submissions of documents and the advance electronic transmittal of cargo manifest, bill of lading and other shipping documents.