Lapeña bares 5-point reform plan for Bureau of Customs

October 9, 2017

Commissioner Isidro Lapeña of the Bureau of Customs (BOC) has vowed to eliminate the “tara” system, increase revenue collections, and strengthen anti-smuggling efforts while improving the incentives and rewards systems for employees as part of the five-point priority program he has begun implementing.

In his report to Finance Secretary Carlos Dominguez III, Lapeña said topping his priority list is to weed out corruption at the BOC, which he plans to do by implementing the “no tara, no gift and no-take” policy at the bureau, a statement from the Department of Finance said Monday.

His five-point program, Lapeña said, involves the following: stopping corruption, increasing revenues, ensuring trade facilitation strengthening anti-smuggling efforts, and enhancing the personnel incentives, rewards system and compensation benefits for BOC personnel.

Lapeña informed Dominguez that the use of the customs green lane, where imports undergo only minimal inspection and verification, remains suspended, with all x-ray inspection machines being used 24/7.

“The default lane for inspections is the red lane and so far there have been no reports of congestion,” Lapeña reported to Dominguez during a recent Department of Finance (DOF) Executive Committee (ExeCom) meeting.

Goods passing through the red lane undergo two levels of inspection to ensure tighter security checks, he said.

Lapeña has made good on his promise to implement the “one-strike” policy at the BOC, which has led to the relief of the district collectors in the Port of Manila and the Manila International Container Port (MICP) and further recommendations to likewise remove other personnel in these two offices.

He has also ordered surprise visits and inspections in Manila’s ports, which led to the arrest of an MICP security guard and two of his accomplices, who were all caught in the act of receiving money from truck drivers last September 30.

The collection being done by the MICP guard and his cohorts, has led to the long line of trailer trucks and container vans passing through the MICP gates, Lapeña said.

Customs officials and employees will also be subjected to lifestyle checks, Lapeña said.

To increase revenue collections, Lapeña said he will, among others, speed up the collection and forfeiture of outstanding and demandable bonds, order the collection of additional duties, taxes or penalties from post audit, immediately auction off forfeited shipments and overstaying containers, and implement the one-strike policy against officials who fail to reach  their monthly collection targets due to incorrect or undervaluation of goods under their jurisdiction.

Lapeña said at the ExeCom meeting that he has also done away with benchmarking, which is the practice of imposing only a discretionary value, rather than conducting the proper valuation and accurate assessment of duties, on container shipments.

He said benchmarking is one of the causes of corruption in the bureau.

On trade facilitation, Lapeña reported that he has abolished the Command Center set up by his predecessor, and directed the strict implementation of a provision in the Customs Modernization and Tariff Act on completing the inspection of container vans within 24 to 48 hours.

Lapeña also vowed to implement a level playing field for all importers by upgrading and computerizing customs systems and processes, and reviewing the requirements and processing time for accreditation.

He will meet with various stakeholders, including the business community, to personally address their concerns.

Lapeña reported to Dominguez that he has ordered the filing of cases against erring importers and customs brokers and directed “the strict scrutiny of all documents to ensure their authenticity.”

He also bared plans to create a joint task force with the Bureau of Internal Revenue to intensify the government’s anti-smuggling campaign and improve the collection of import duties and taxes.

As part of his program to enhance the rewards and incentive system in the bureau, Lapeña said he had promoted 515 BOC employees “by prioritizing seniority” and found out that the oldest had not been promoted for 30 years.

Lapeña also said he will review the rewards system for employees, fast-track the promotion and hiring of personnel to fill in vacant positions and establish a Counter-Intelligence Service and Internal Affairs Service within the bureau, among other measures. DMS