THE Bureau of Customs (BOC) under the leadership of Comm. Rey Leonardo Guerrero, successfully hurdled the third stage of the four-stage ‘Performance Governance System’ (PGS) for government agencies and in the process also being awarded another ‘Gold Trailblazer Award’ from the Institute Solidarity for Asia (ISA).
During its presentation before the ISA panel, via Zoom, last September 3, 2021, under the Public Governance Forum – BOC Proficiency Revalida, Guerrero enumerated his agency’s accomplishments and breakthrough results from the sustained momentum of the implementation of the programs and innovations they initiated during the early stages of their PGS journey.
For the third stage, Guerrero highlighted the current BOC programs that are anchored on the modernization of its processes and values reformation of its officials and personnel.
These include automation of 108 out of 148 BOC core processes; full utilization of 17 Customer Care Centers nationwide; launching of the National Customs Enforcement Network and Customs Operations Center, to name a few.
For values reformation, Guerrero presented the Values Transformation Program, digitized IPCR and Personal Scorecard that have been put in place as part of his ’10-Point Reform Program’ for the agency that he first enumerated on his assumption into office.
Guerrero, a former Armed Forces Chief of Staff, was first appointed by Pres. Duterte as Maritime Industry Authority (Marina) on his retirement in April 2018 before being designated as customs commissioner in October 2019.
Immediately, Guerrero took it upon himself to enroll the BOC in the PGS being administered by the ISA to help modernize and institutionalize reforms in the bureau’s operations and processes.
During both the initiation (2019) and compliance (2020) stages, the BOC was similarly awarded the Gold Trailblazers Award by the ISA.
A statement from Guerrero’s office further noted that these innovations are in line with the BOC ‘Strategic Communications Plan’ focused on automation and modernization, good governance and values transformation.
The PGS is a significant tool for good governance reforms, promoting the efficient delivery of services.
It also calls for effective, sustained, and systematic contributions from individuals and institutions for the common good of their institution or community and of the Philippines, as well as the long-term positive development of the public.
Members of the ISA panel who were impressed by the BOC presentation include:
Mr. Emmanuel T. Bautista, Panel Chair & Trustee, ISA; Undersecretary Elsa P. Agustin, Department of Finance (DOF); Assistant Secretary Mary Jean T. Pacheco, Department of Trade and Industry (DTI);
Mr. Guillermo M. Luz, Trustee, ISA; Kenneth Isiah Ibasco Abenta, Managing Director, WeSolve Foundation, Inc; and, John Forbes, Senior Adviser, American Chamber of Commerce.
For the 4th Stage – Institutionalization Status, the BOC is preparing for an “audit review” of its performance for at least two years of implementing its PGS strategy.
The scorecard must show breakthrough financial results and high social impact, two conditions that the BOC are beginning to meet after sustaining a monthly surplus revenue collection now running at 14 months, or since June 2020.
“This is a testament to the hard work and dedication of the good men and women of BOC,” Guerrero said after the simple awarding ceremony.
“This proves that we are committed and faithful in this transformation journey. This award not only gives us inspiration but is also reminder that distinguished people in society believe in us and that we must not fail them.
“I would like to assure ISA and all our stakeholders, that everything that we started will be sustained, faithful to our mandate of providing the best service to our people,” Guerrero added.
Trade regulation monitoring bolstered
On the same day, September 3, 2021, that the BOC is earning praises and plaudits from the ISA panel, the BOC also announced further improvements in its enforcement of trade regulations while addressing leakages in revenue collection due to ‘undervaluation’ and goods
‘misclassification’ in customs declaration.
In a separate statement, the BOC stressed it is steadfast in updating the ‘TRADENET Tariff Table while expediting the ‘onboarding’ of the ‘TRGAs’ (Trade Regulatory Government Agencies) to the ‘NSW’ (National Single Window) System.
The NSW is a long-standing government project that seeks to create a single computer window (“link”) for all government agencies and departments with the BOC to further facilitate trade, remove red tape and lower the cost of doing business in the country.
Import Assessment Service (IAS) director, Atty. Ismail Abbas, chair of the Customs Commodity Classification Project Team (CCCPT), said that already, a total of 5,746 commodities with validated AHTN codes applicable to 34 TRGAs would be uploaded in the alternative TradeNet System.
Currently, 5 agencies from the TRGAs are still being encoded in the TradeNet Compatible Tariff Table to be used as the basis in identifying the required permits, licenses, and certificates issued by each TRGA.
As far back as August 17, 2020, the BOC had already implemented the ‘e-VRIS’ (Enhanced Value Reference Information System) in all customs ports nationwide. It would serve as the new database of reference values accessible thru electronic to mobile (E2M) system.
Aside from replacing the National Value Verification System (NVVS) established in 2019, the e-VRIS allows customs officers to protect government revenues through the determination of possible undervaluation and/or trade mis-invoicing of imported goods.
“The e-VRIS shall help Customs establish a reliable and comprehensive database of information on the value and classification of imports for reference purposes in support of the implementation of the World Trade Organization’s (WTO) Valuation System,” Abbas noted.
Partly in compliance with the PGS scorecard, the ‘Assessment and Operations Coordinating Group’ (AOCG) is set to cover a target of 6,049 out of 12,098 or 50 percent of total tariff lines for the year 2021.
Thru the IAS, the AOCG had already covered 40 percent of its target, equivalent to 4,837 tariff lines as of July 30, 2021.
Abbas also reminded BOC stakeholders to dutifully fill-up Box 33 of the customs declaration, as provided for under CMO 16-2020, upon lodgment in the E2M system.
Non-compliance with CMO 16-2020, which refers to the specific declaration of goods imported usually result to delays and questions by customs officers as they cannot immediately determine the actual content of the goods imported.
To assist stakeholders, Abbas noted that since August 2020, his office has thus far created 40,447 specification codes that can be used in filling-up Box 33.