Senators: Delayed BOC modernization a factor in agri smuggling

Senators on Monday pointed out the delay in modernizing the Bureau of Customs as a factor in the influx of smuggled agricultural products into the country.

During the continuation of the Senate Committee of the Whole investigation into the proliferation of smuggled crops in the Philippine market, Senate President Vicente Sotto III asked the BOC and the Department of Agriculture to explain the discrepancies in the data of imported agricultural products in the country.

According to Assistant Customs Commissioner Vincent Maronilla, the BOC is basing its figures on the actual import volumes while the DA is looking at the import volumes based on the permits that they have issued.

“As far as the bureau is concerned, Mr. President, these are [data] coming from actual importations and we think there lies the discrepancy. I think the DA is basing their numbers on the actual permits volume permits that were issued, not on the actual importation,” Maronilla said.

But Agriculture Assistant Secretary Federico Laciste Jr. raised that there were discrepancies in the data because there is no centralized database system where they can monitor the actual import volume in real time.

“Pertaining to that sir, ‘yung discrepancy hindi pa po kasi centralized ang database namin, wala po tayong way of monitoring kung ilan po talaga ang dumarating at tsaka as per contrast sa issued na [Sanitary and Phytosanitary Import Clearance (SPSIC)],” Laciste said.

(There are discrepancies because the database is not yet centralized. That's why we don't have any way to check the volume of imports against the issued SPSIC.)

“That’s why one of the recommendations namin po is to have a fully automated trade transactions po and monitoring po. Pagka meron na po tayong [If we are able to establish this] automation, not only on centralized database, but also on import processes, export processes, request for inspection, mamo-monitor na po natin [we will be able to monitor the imports],” he added.

At this point, Sotto said that Senator Panfilo Lacson has been pushing for the digitalization of the BOC processes.

WB-funded project

For their part, Maronilla explained that the BOC has already ventured into projects to automate some of their processes, including the Philippine Customs Modernization project, which is funded by the World Bank.

The modernization project is now at the initial stage of procurement.

“Hopefully, after that, we will be able to start with the procurement process of the customs processing system which will replace our current system and will modernize it at par with other international standards together with the World Bank,” the Customs official said.

But Sotto was not satisfied with his answer, asking why the BOC is only modernizing some parts and not the entire system.

“The [Customs Processing System], Mr. President, will cover the entire customs processing system, but pending the realization of the customs processing system under the World Bank project, we have also ventured into modernizing some of our existing processes already so once the customs processing system is complete that will integrate full automation already of the entire customs processing system,” Maronilla explained.

Lacson then recalled an exchange with a Custom official during a budget deliberation in 2018 in which he offered to find funds for the BOC modernization as part of the implementation of the Customs Modernization and Tariff Act of 2016.

However, the lawmaker said the BOC officials “seemed not interested” to seek funds for the project.

“I remember the response was P15 billion at that time, and I volunteered maghahanap ako ng budget para lang kayo ay makapag-fully automate but you seemed not interested at that time so hanggang ngayon, it's already 2022 hindi pa rin kayo nakakpag-start mag-fully automate,” Lacson said.

(I remember the response was P15 billion at that time and I volunteered to find the budget so that you could fully automate but you seemed not interested at that time. That's why until now, it's already 2022, you have not started the full automation of the BOC yet.)

“Sabi mo some so ano ba talaga gusto niyo [ba] mag-automate? Kasi batas ito e Customs Modernization and Tariff Act. Ang kasama dito e computerize and automate. It’s been six years… Bakit hindi kayo interesado na mag-fully automate?” he went on.

(You said you will automate some. Do you really want to automate? Because this is part of the Customs Modernization and Tariff Act. It includes computerization and automation. It's been six years... Why are you not interested in BOC's fully automation?)

Maronilla insisted that the BOC has been pursuing the modernization projects independently. He committed to provide the Senate the list of the modernization projects that are underway.

In response, Sotto said: “We hope and pray that that happens kasi masyadong delayed talaga yang automation ninyo [because your automation projects are already delayed].”

Apart from the modernization of the BOC system, Senator Cynthia Villar said the DA could still monitor the volume of imports that are entering the country by compelling the importers to provide them the actual import volume.

“You can require those you have issued the import permit to tell you what [products have] arrived every day and what haven’t arrived. You can tell them to give you real time arrival and you can enforce this since you are issuing an import permit. If they don’t want to follow, then don’t issue them the permits in the future,” Villar said.

Villar’s suggestion was seconded by Senator Francis Pangilinan.

The Senate Committee of the Whole is investigating the proliferation of smuggled agricultural products in the Philippine market.

The panel is also looking into the issues in the Bureau of Customs that are related to the smuggling of crops. — BM, GMA News