sisson, Republic of the Philippines Department of Finance SEs BUREAU OF customs ome MANILA 1099 A FORUM ON NEW BOC REGULATIONS 1 DECEMBER 5, 2017 AG NEW WORLD MANILA BAY HOTEL PEDRO GIL CORNER MH DEL PILAR, MANILA “BUREAU OF CUSTOMS’ PRIORITY PROGRAMS AND PROJECTS” AICARGO FORWARDERS OF THE PHILIPPINES, INC. PRESIDENT ERICH LINGAD; PHILIPPINE INTERNATIONAL SEAFREIGHT FORWARDERS ASSOCIATION, INC, PRESIDENT DORIS TORRES; PORTCALLS PUBLISHER AND EDITOR LIZA ALMONTE; OTHER OFFICIALS AND MEMBERS OF THE PISFA, AFPI, AND PORTCALLS; COLLEAGUES; FRIENDS; LADIES AND GENTLEMEN, GOOD AFTERNOON! | AM VERY PLEASED TO HAVE THIS OPPORTUNITY TO SPEAK TO YOU ABOUT THE BUREAU'S PRIORITY PROGRAMS AND PROJECTS. MOST OF THESE PROJECTS ARE NO DOUBT SIGNIFICANT TO YOUR ORGANIZATIONS. - LET ME THANK THE EVENT'S ORGANIZERS FOR THEIR INVITATION TO JOIN THIS FORUM. ALSO, LET ME THANK YOUR ASSOCIATIONS FOR THE USUAL SUPPORT AND COOPERATION TO THE BUREAU IN PURSUIT OF REFORMS. THIS IS AN IMPORTANT FORUM FORINDUSTRY STAKEHOLDERS TO DISCUSS BOC ISSUES, REFORM PROGRAMS AND PROJECTS, AND NEWLY IMPLEMENTED REGULATIONS THAT WILL HELP BOOST TRADE FACILITATION AND MITIGATE SMUGGLING IN THE PHILIPPINES. LAST NOVEMBER 30 MARKED MY 100 DAYS INTO OFFICE AS THE CUSTOMS CHIEF. AT THE ONSET, | DECLARED THAT | WILL BE PERFORMING MY DUTIES TO FULFILL THE MARCHING ORDER OF THE PRESIDENT, AND THATIS TO STOP CORRUPTION IN THE BOC AND INCREASE ITS REVENUE EARNINGS. WITH THAT, AND WITH CAREFUL ANALYSIS COUPLED WITH OBSERVATIONS, | ARRIVED AT MY FIVE-POINT PROGRAM FOR THE BUREAU OF CUSTOMS. THE FIVE PRIORITY PROGRAMS ARE: 1, TRADE FACILITATION; 2, INCREASE REVENUE EARNINGS; 3, FIGHT CORRUPTION; 4, FIGHT SMUGGLING; AND 5, ENHANCE PERSONNEL INCENTIVES, REWARD SYSTEM AND COMPENSATION BENEFITS. THESE WERE CRAFTED TO ADDRESS THE PERENNIAL PROBLEMS THAT BESET THE BUREAU. ALL POLICY REFORMS AND DIRECTIVES WILL ANCHOR ON THIS FIVE-POINT PRIORITY PROGRAM. TO ENSURE IMPROVED TRADE FACILITATION, THE BOC MUST UPGRADE AND ENSURE FULL AUTOMATION OF SYSTEMS AND PROCESSES FOR THE TIMELY PROCESSING OF ALL SHIPMENTS. WE HAVE STARTED MEETING WORLD BANK REPRESENTATIVES TO DISCUSS THE CUSTOMS INFORMATION AND COMMUNICATION TECHNOLOGY (ICT) MODERNIZATION PLAN. THIS MOVE IS EXPECTED TO IMPROVE OUR CUSTOMS PROCEDURES AND PROVIDE A SMOOTH AND EFFICIENT SERVICE TO OUR STAKEHOLDERS. THE EASE OF DOING BUSINESS WILL ALSO IMPROVE ONCE CUSTOMS SYSTEMS BECOME FULLY AUTOMATED. | HAVE ORDERED THE USE OF ALL X-RAY MACHINES TO LESSEN PROCESSING TIME. WE ARE NOW IMPLEMENTING THE NON-INTRUSIVE EXAMINATION OF ALL CONTAINERS INSTEAD OF THE USUAL PHYSICAL EXAMINATION. WE ARE EXPECTING ANOTHER PURCHASE OF ADDITIONAL. 56 X-RAY UNITS TO ENSURE EFFICIENCY IN CUSTOMS PROCESSES. IMPLEMENTATION OF NEW MEASURES EXEMPTING FROM X-RAY EXAMINATIONS ALL PEZA BOUND SHIPMENTS, PERISHABLES AND REEFER SHIPMENTS, AND IMPORTATION OF GOVERNMENT AGENCIES AND =~ MULTINATIONAL COMPANIES WERE PUT IN PLACE. THIS MEASUREENSURES FASTER RELEASE OF GOODS RESULTING IN INCREASED PRODUCTIVITY AND TIMELY EXPORT OF COMMODITIES FOR THOSE IN FREE ZONES, THEREBY ENSURING THE SMOOTH FLOW OF ECONOMIC ACTIVITY IN THESE AREAS. | HAVE IMPLEMENTED “ONE ASSESSMENT, NO SECTIONING POLICY’. ASSESSMENT DIVISION IS NO LONGER GROUPED OR DIVIDED INTO SECTIONS OR COMMODITIES. ANY IMPORTER OR BROKER MAY TRANSACT WITH THE FIRST AVAILABLE CUSTOMS EXAMINER AND APPRAISER AT ANY GIVEN TIME ON A FIRST IN, FIRST OUT BASIS. THIS WILL DO AWAY WITH THE "SUKI" SYSTEM AND WILL ENSURE FACILITATED TRANSACTION. ALSO, WE ADOPTED A NEW SYSTEM CALLED STATUS VERIFICATION SYSTEM (SVS) AT THE PORT OF MANILA. THIS SYSTEM WILL HELP IDENTIFY THE CURRENT STATUS OF THE ENTRY DOCUMENTS AS WELL AS THE TIMEFRAME TO COMPLETE THE PROCESSING. UNDER THE SVS, VALUATION OF IMPORTED GOODS CAN BE MONITORED ONCE THE EXAMINERS OR APPRAISERS INPUT THE DATA INTO THE SYSTEM. THE CONTROVERSIAL COMMAND CENTER HAS BEEN ABOLISHED, GIVING THE INTELLIGENCE GROUP, ENFORCEMENT GROUP, AND ALL DISTRICT COLLECTORS THE AUTHORITY TO ISSUE THE ALERT ORDER. THIS WAY, THE ALERT ORDER ISSUED CAN BE ACTED IMMEDIATELY, DECREASING DELAYS IN LIFTING THE ALERTS. THE OFFICES GIVEN THIS AUTHORITY ARE CLOSELY MONITORED AND GIVEN THE DIRECTIVE TO ENSURE THAT SHIPMENTS ALERTED MUST BE EXAMINED WITHIN 48 HOURS AND BE IMMEDIATELY RELEASED IF FINDINGS ARE NEGATIVE. ALERT ORDERS SHOULD NO LONGER SCARE AWAY OUR STAKEHOLDERS. | HAVE CONDUCTED MEETINGS AND DIALOGUE WITH STAKEHOLDERS TO GET THEIR FEEDBACK AND SUGGESTIONS ON HOW WE COULD IMPROVE OUR SERVICES AND GET THEIR SUPPORT TO DO AWAY WITH TARA AND CORRUPT PRACTICES.ALSO, WE CONTINUE TO DRAFT MORE POLICIES FOR THE EFFICIENT IMPLEMENTATION OF OUR CUSTOMS MODERNIZATION AND TARIFF ACT. TWENTY-ONE (21) DRAFT IMPLEMENTING RULES AND REGULATIONS (IRRS) HAVE BEEN SUBMITTED BY BOC TO THE DEPARTMENT OF FINANCE FOR REVIEW AND APPROVAL. WE ALSO AIM FOR IMPROVED REVENUE COLLECTION PERFORMANCE BY PROMOTING CORRECT VALUATION AND ACCURATE ASSESSMENT OF DUTIES AND TAXES PAYABLE TO THE GOVERNMENT AND DO AWAY WITH BENCHMARKING. WE ARE ALSO FOCUSED ON BIG-TICKET COMMODITIES AND EXHAUSTED TRADITIONAL AND NON-TRADITIONAL SOURCES OF REVENUE. AS A RESULT, THE BUREAU POSTED A STRONG MID-NOVEMBER REVENUE BY COLLECTING MORE THAN P3 BILLION IN REVENUE. WE WERE ABLE TO EXCEED OUR DAILY TARGET FOR NOVEMBER 3 AND 10 BY 22.2% AND 54.1% - THE HIGHEST DAILY COLLECTION MADE BY THE BOC. THE BUREAU'S SEPTEMBER 28 AND 29 COLLECTIONS ALSO POSTED MORE THAN P3 BILLION IN ITS DAILY COLLECTION. THE OCTOBER REVENUE PERFORMANCE ALSO MADE HISTORY AFTER HITTING THE P42-BILLION MARK. ALL THESE ACCOMPLISHMENTS WERE BECAUSE OF THE PROGRAMS THAT WE ARE IMPLEMENTING IN THE AGENCY. THESE REVENUES WILL BE ALLOCATED TO ALL GOVERNMENT PROGRAMS AND PROJECTS FOR HEALTH, EDUCATION, LIVELIHOOD, INFRASTRUCTURE, AND POVERTY REDUCTION. WE ARE PRESENTLY COMING UP WITH A UNIFORM APPLICATION OF THE RULES IN VALUATION. THIS WILL PROVIDE A FAIR PLAYING FIELD AMONG OUR STAKEHOLDERS AND PROMOTE CONFIDENCE AMONG BUSINESSMEN WHICH COULD BE TRANSLATED TO MORE INVESTMENT AND EMPLOYMENT OPPORTUNITIES. WE ARE IN THE PROCESS OF RE-TRAINING AND RE- ORIENTING OUR EXAMINERS AND APPRAISERS ALL OVER THE COUNTRY WITH THE END IN VIEW OF PROVIDING SPEEDY AND QUALITY SERVICE TO OUR STAKEHOLDERS. "APART FROM PROVIDING ENHANCED TRADE FACILITATION AND IMPROVED REVENUE EARNINGS, WE ALSO PLAN TO RID THE BUREAU OF CORRUPTIONBY STRICTLY IMPLEMENTING NEW POLICIES SUCH AS THE NO TARA, NO PASALUBONG, NO GIFT AND NO TAKE POLICY AND ONE STRIKE POLICY, AMONG OTHERS. THOUGH I HAVE DECLARED TO GIVE EVERYONE A CLEAN SLATE FOR EVERY OFFICES AND. PERSONNEL OF THE BOC, | WILL ALSO RELIEVE ANYONE WHO WILL BE UNABLE TO KEEP PACE WITH THE REFORMS AND DIRECTIVES | AM PUTTING IN PLACE. THE EFFECTIVE ENFORCEMENT OF THESE POLICIES RESULTED IN THE RELIEF OF TEN (10) DISTRICT COLLECTORS AND FORTY (40) PERSONNEL FROM THEIR POST. THE RED TAPE WHICH RESULTS IN DELAY OR INACTION IN BOC SERVICES IS ALSO AMONG THE ISSUES THAT WE ARE CONTINUOUSLY ADDRESSING. | HAVE ISSUED A MEMORANDUM DIRECTING ALL BOC OFFICES TO STRICTLY ACT ON REQUESTS AND PERMITS - WITHIN 5 DAYS. IN THE ACCOUNTS MANAGEMENT OFFICE (AMO), ACCREDITATION PROCESS FOR OUR IMPORTERS AND EXPORTERS ARE NOW PROCESSED AND ACTED WITHIN 5 DAYS. WHEN | ASSUMED OFFICE, THERE WAS A BACKLOG OF 1,852 PENDING APPLICATION FOR ACCREDITATION AND RENEWAL. LET ME SHARE TO YOU THE GOOD NEWS THAT WE HAVE ACHIEVED ZERO BACKLOG. OTHER MAJOR PORTS HAVE NOW LONGER WORKING HOURS TO ALSO WORK ON THEIR BACKLOGS AND FACILITATE ACTION. | HAVE ALSO IMPLEMENTED THE COMPLETED STAFF WORK DOCTRINE TO IMPROVE WORK PROCESSES AND ACCELERATE DECISION MAKING TO UPGRADE OUR SERVICES TO STAKEHOLDERS. | HAVE ALSO INSTITUTED THE COMPLETED STAFF WORK DOCTRINE THROUGH CUSTOMS MEMORANDUM ORDER 22-2017. THIS PROCESS AIMS TO IMPROVE WORK PROCESSES AND MANDATES OFFICES TO TREAT MATTERS WITH URGENCY AND IMPORTANCE. THIS PROCEDURE SPEEDS UP DECISION-MAKING, NOT ONLY AT MY LEVEL BUT AMONG OTHER DECISION-MAKERS IN THE AGENCY, MAKING OUR SERVICES TO” STAKEHOLDERS A NOTCH HIGHER.| HAVE STRENGTHENED THE BOC-CARES WHICH REGULARLY RECEIVES FEEDBACKS, QUESTIONS, AND CLARIFICATIONS FROM OUR STAKEHOLDERS. THE BOC-CARES |S GIVEN THE DIRECTIVE TO BE ON TIME AND PROACTIVE IN RESPONDING TO THE QUERIES RECEIVED DAILY. THIS SHALL CONTRIBUTE TO THE EASE OF DOING BUSINESS BY PROVIDING ACCURATE AND TIMELY INFORMATION NEEDED BY OUR STAKEHOLDERS. SMUGGLING CONTINUES TO PROLIFERATE IN THE BUREAU OF CUSTOMS, THAT'S WHY WE CONTINUE TO IMPROVE AND STRENGTHEN OUR ANTI- ILLICIT TRADE MEASURES. WE ARE CLOSELY MONITORING THE SHIPMENT OF BIG-TICKET COMMODITIES SUCH AS OIL, CIGARETTES, LIQUOR, MOTOR VEHICLES, MINERALS, AND SENSITIVE PRODUCTS, FOR THE REQUIRED CLEARANCES AND PERMITS AND CORRECT VALUATION. THE BOC HAS APPREHENDED VARIOUS COMMODITIES WORTH BILLIONS OF PESOS, INCLUDING THE P107 MILLION WORTH OF UNDERVALUED LUXURY VEHICLES AT THE MANILA INTERNATIONAL CONTAINER PORT. RECENTLY, OUR ENFORCEMENT AND INTELLIGENCE AGENTS FOUND SEVERAL WAREHOUSES IN TONDO, MANILA CONTAINING HUNDREDS OF BOXES OF COUNTERFEIT COSMETIC PRODUCTS, PERFUMES, AND OTHER MERCHANDISE ITEMS. WE WILL FACILITATE THE FILING OF CASES AGAINST ERRING IMPORTERS AND LICENSED CUSTOMS BROKERS AND HAVE DIRECTED OUR PEOPLE TO STRICTLY SCRUTINIZE ALL DOCUMENTS AND ENSURE ITS AUTHENTICITY. THIS MEASURE WILL ENSURE THAT ALL VIOLATORS OF CUSTOMS LAWS, RULES AND REGULATION WILL FACE LEGAL ACTION WE ALSO VALUE THE ROLE OF EMPLOYEES IN DIMINISHING CORRUPTION IN THE BUREAU. WE BELIEVE THAT IT IS IMPORTANT THAT WE KEEP OUR EMPLOYEES ENGAGED, MOTIVATE THEM AND RECOGNIZE THEIR POSITIVE PRIORITY PROGRAMS IS TO ENHANCE PERSONNEL INCENTIVES, REWARDSYSTEM, AND COMPENSATION BENEFITS. WITH THIS PROGRAM, WE EXPECT THAT THIS WILL INSPIRE EMPLOYEES AND OFFICIALS TO WORK MORE PROFESSIONALLY, EFFECTIVELY AND EFFICIENTLY. RECENTLY, WE SUCCESSFULLY PROCESSED THE PROMOTION OF 563 PERSONNEL AND OPENED 1,029 POSITIONS FOR MORE PROMOTION AND HIRING. WITH ENOUGH MANPOWER OF THE BUREAU, WE WILL BE EFFICIENT AND EFFECTIVE IN CARRYING OUT OUR TASKS AND MANDATE. YOU CAN EXPECT MORE CHANGES AND REFORMS IN THE COMING DAYS, ALL WITH THE END VIEW OF DELIVERING AN IMPROVED, EFFICIENT AND EFFECTIVE CUSTOMS ADMINISTRATION FREIGHT FORWARDING AND LOGISTICS INDUSTRY ARE KEY COMPONENTS OF OUR TRADING FUTURE. WHILE THE BUREAU RECOGNIZES THE ROLE OF PISFA AND AFPI IN SECURING THE SMOOTH FLOW OF THE GLOBAL SUPPLY CHAIN IN THE COUNTRY, WE ALSO HAVE FULL TRUST THAT CARGO FORWARDERS REMAIN COMMITTED TO COMPLYING WITH RELEVANT CUSTOMS LAWS AS YOU CONDUCT YOUR BUSINESSES. YOUR SUPPORT AND PARTICIPATION PLAY A CRUCIAL ROLE IN THE SUCCESSFUL IMPLEMENTATION OF THE VARIOUS PROGRAMS AND PROJECTS INTENDED FOR FURTHER REFORMS IN THE BUREAU. | LOOK FORWARD TO WORKING WITH YOUR INDUSTRY ON OPPORTUNITIES TO IMPROVE OUR CUSTOMS PROCEDURES AND REGULATIONS. CONGRATULATIONS AND | WISH THE MEN AND WOMEN OF PISFA AND AFPI MORE YEARS OF SUCCESS! THANK YOU. ISIDRO S. LAPENA, PH.D, CSEE COMMISSIONER