Bureau of Customs (BOC) Commissioner Ariel Nepomuceno addressed the agency's top concerns and affirmed his commitment to regain public trust amid controversies in an interview on DAILY TRIBUNE's Straight Talk on Wednesday, 22 October.

Nepomuceno emphasized his “clear mission” of meeting the strict revenue target of P958 billion for the entire year.

“My mission is very clear: to enable the BOC to truly collect the target revenues. Without such action, the agency ‘will exacerbate or worsen the deficit, which will compel the country to borrow more. And then presumably, if that happens, the credit rating will go down, creating a domino effect."

Since taking over in July, Nepomuceno noted significant increases in collections, even surpassing monthly targets.

“We were happy to report that the July collection of the BOC, on record, was the highest in the last two years. We surpassed it by P1.4 billion. We always have the pressure to collect every day between four to six billion pesos,” he proudly said.

He explained that such numbers were achieved despite a low volume of imports from July to September, thanks to attention to technical details:

“If what used to be paid before was only, let’s say, 90,000, I made sure it’s no longer like that if it was wrong. There were items that used to cost 90,000, but when we reviewed them, they’re now being paid almost 200,000.”

Nepomuceno stressed that the issue is inherited, “That’s not the fault of the previous commissioner. We all just inherited it.”

Full digitalization

Nepomuceno is confident that full digitalization of the agency's processes is the “only and ultimate solution to pursue good governance,” noting that the President has given a “full go signal.”

“This process is not new anymore, as other countries are already doing it. By the time people submit import documents, assessment, payment, and releases, it should all be fully automated to maximize technology,” he explained.

He added that personnel will need training, with periodic checks and balances, to eliminate discretionary powers as he noted, “That’s where the temptation comes in. Once you’re given the decision on how much to pay, it can be abused.”

Nepomuceno also plans to integrate artificial intelligence and blockchain in the future. A Public-Private Partnership (PPP) approach is being considered to lower costs to P350 per transaction, barely felt even by importers who will eventually pay for the cost.

The full system, including the integration of 17 major ports and 39 subports, is expected to roll out with pilot testing by Christmas 2026.

Reforms

For importers, brokers, and consignees, accreditation will now be valid for three years to avoid annual issues and exposure to potential abuses.

For BOC personnel, “It’s definitely forbidden for you to become a broker yourself. I will dismiss people and file cases,” he said.

Nepomuceno shared that 100 percent of personnel have received certifications, while 138 out of 5,000 confessed interest in brokerage.

“We have an automated risk management system that allows us to see whether brokerage firms or importers are getting discounts or paying less. We can monitor that. Those who do not declare it are committing fraud.”

The BOC recently faced criticism from the United States, being cited as “one of the most corrupt agencies.” Nepomuceno is coordinating to obtain details in order to address the allegations.

He also plans to improve complaint handling, noting that only 16 staff currently manage the thousands of complaints nationwide.

The bureau faces another "inherited" problems with balikbayan boxes from Overseas Filipino Workers (OFWs)

“You can’t even predict how many balikbayan boxes are stuck in our ports. There are 22,000 boxes, owned by those waiting, and who are they mad at? The BOC.”

He explained that "the consolidators from abroad did not pay what they were supposed to pay at private ports. Given that, of course, arrastre will not release the cargos and those boxes will be considered abandoned. Customs is the easiest punching bag.”

A proposed solution is to donate containers to the Department of Migrant Workers (DMW) to waive port storage fees. Nepomuceno assured OFWs that the agency is working on a resolution, although worries that some perishable items may no longer be consumable.

Acknowledging the bureau’s poor public image, Nepomuceno urged patience and trust, “Just give me a little time, and you can be assured that we will leave the BOC more modern and better able to fulfill its role in the country. Trust me, if your trust in the BOC is not fully there yet, at least trust that I will do everything I can.”