P24-B budget cut threatens Customs modernization

The Bureau of Customs (BOC) is seeking congressional intervention after its proposed P29.9-billion budget for 2027 was reduced to P5.9 billion, threatening projects aimed at modernizing customs operations and combating smuggling.

Customs Commissioner Ariel Nepomuceno said the P24-billion reduction could derail 15 information technology projects, including the National Single Window and Customs Processing System.

The initiatives are intended to establish a fully automated, integrated and paperless customs system to improve trade facilitation, transparency and border security.

“What we inherited when I came in was P7.2 billion. We proposed a reformed budget of P29.9 billion for next year. However, the approved 2027 NEP for us was even lowered to P5.9 B. All projects were wiped out. What remained was for MOOE (Maintenance and Other Operating Expenses),” Nepomuceno said.

He argued that insufficient funding could weaken the bureau's ability to detect smuggling, including shipments involving radioactive materials and illegal activities at sea.

“Humihingi kami ng budget, pero hindi binibigay,” he said, citing the lack of detection equipment and dedicated vessels.

Despite its funding concerns, the BOC reported collecting P757.406 billion from January to September 2026, surpassing its P748.494-billion collection target for the period.

Nepomuceno said the bureau is counting on Congress to reconsider funding for its proposed modernization projects.

Malacañang, meanwhile, acknowledged the agency's need for additional equipment to strengthen anti-smuggling operations.

Palace Press Officer Claire Castro said lawmakers could still review the allocation during Senate deliberations and the bicameral conference committee.

“Kailangan talaga nila ng ibang machineries, equipment para mas matugunan ang issue sa smuggling,” Castro said.

She urged Congress to examine the funding requirements of agencies such as the BOC before finalizing the national budget.