Philippine Bureau of Customs. WTO Workshop on Technical Assistance and Capacity Building in Trade Facilitation Geneva May 10 - 11, 2001. Frame 1. Philippine Bureau of Customs. Our Vision.
WTO Workshop on Technical
Assistance and Capacity Building
in Trade Facilitation
May 10 - 11, 2001
A customs service more responsive to clients’ needs and supportive of government goals, adhering to world’s best practices; one that every Filipino can be truly proud of.
Our Mission and Objectives
The Bureau of Customs, an office under the Department of Finance, is tasked primarily to perform the following functions:
a. Assess and collect lawful revenues from imported articles and all other dues, fees, charges, fines and penalties accruing under the Tariff and Customs Laws;
b. Prevent and suppress smuggling and frauds upon the Customs;
c. Supervise and control the entrance and clearance of vessels and aircraft engaged in foreign trade;
d. Enforcement of Tariff and Customs Laws and all other laws, rules and regulations relating to tariff and customs administration;
e. Supervision and control over the handling of foreign mails arriving in the Philippines, for the purpose of collecting lawful duty on the dutiable articles thus imported and prevent smuggling through medium of such mails;
Our Mission and Objectives
f. Supervise and control all import and export cargoes, landed or stored in piers, terminal facilities, including container yards and freight stations; and
g. Exercise exclusive jurisdiction over seizure and forfeiture cases under the Tariff and Customs laws.
Philippine Customs Profile for Year 2000
a. Largest revenue collector after Internal Revenue Service;
b. Employed and managed 5,258 officers and employees;
c. Processed about 600,000 entries (400,000 from consumption and 200,000 from warehousing) and facilitated more than 6 million arriving and departing travelers;
d. Surpassed the target collection by 2.0% despite of economic crisis;
e. Embarked on some E-commerce initiatives; and
f. Implemented the WTO Valuation System.
Philippine Tax Computerization Project
UNCTAD - Development of
ASYCUDA++ and Extensions
UNISYS - System Integrator
Contract Started: 29th June 1994
Contract Ended: 31st December 1999
Significant factors contributed for the success of the Computerization Project
a. Commitment and political will of the President of the Republic to the Commissioner of Customs in pursuing the project.
b. Congenial working relationship between the World Bank and the Philippine Bureau of Customs and contractors (UNCTAD and UNISYS)
c. Commitment and seriousness with which the project was pursued by the Bureau personnel in the struggle to elevate the Customs service to world class level.
d. Ideal partnership and close working relationship among Customs, its clients and stockholder and Customs allies and supporters.
Some Strategies Applied
1. The Bureau entered an agreement with the private sector for the establishment of the Entry Encoding Center (EEC)
2. Creation of an ad hoc Risk Management Group
3. Pilot testing of ACOS system (ASYCUDA ++) in one of the major ports before rolling it to other ports
4. Introduction of the Super Green Lane System
Positive Lessons Learned
a. Concrete, visible, unwavering top management support
b. Flexible and ingenious strategies
c. Involvement of users/stakeholders in all phases of the project
d. Hard work, dedication and skills of the major players
e. Employed change management programs
Negative Lessons Learned
a. Murphy’s Law - “If anything can go wrong - it will”
b. Never be optimistic when it comes to money
c. Never be optimistic when it comes to deadlines
d. Inflexible work plans
e. Slow financial accounting and reporting
Overall Application Systems Groupings: Object Deconstruction Chart - 5 Year Plan (ISP)
--Import Entry Processing
Operations Support & Management Systems (OSMS)
Automated Customs Operations Systems (ACOS)
--Export Entry Processing
--Suspense Regimes Monitoring
--Passenger Entry Processing
--Human Resources Management
--Statistical Analysis & Reporting
--General Purpose & Ad-hoc Querying
--Performance Indicators Monitoring
Resources Management & Information Support Systems
Management Information & Decision Support Systems (MIDSS)
RED= priority development
Green= on-going development
Blue= pending development
Technical Assistance from the World Bank was Successful Because...
a. Project progress implementation was adequately reported
b. Implementation problems were immediately identified, assessed and addressed for resolution
c. Sufficient attention was paid to likely development impact, as in the case of document processing and cargo release time
d. Advise given to the Bureau were well thought out, while follow-ups on required actions/decisions were consistent
e. Loan covenants were enforced and remedies were exercised. An example of this remedy was the creation of working group (e.g. Site Preparations Committee) to assume some of the functions of the undermanned Project Implementation Unit
f. The WB showed flexibility in suggesting or approving needed modifications, such as those on the non-computer equipment and roll-out strategy
g. The WB and the Bureau had a congenial working relationship
After the Project Termination
What will happen if required budget is insufficient?
Trade Facilitation Challenge
Come up with an effective and speedy customs clearance process for legitimate imports / exports without sacrificing revenue efficiency.
Solution . . .
Post-Entry Audit System
Other Sources of Funds and Assistance
Benefits from well-coordinated relationship with donors