Discarding its laggard image, the Bureau of Customs has become a stellar performer among the revenue collection agencies.
As a result of its impressive 2022 financial results, the BoC has set a bigger collection benchmark, targeted at P901.337 billion this year despite a possible global recession.
Customs Commissioner Yogi Filemon Ruiz is confident about hitting the revenue target given the country’s economic trajectory.
The Department of Finance expects a stronger recovery due to increased consumption and economic activity.
A robust economy means more imports. The bulk of the country’s imports is manufacturing inputs, which will later translate to higher export receipts.
The BoC’s confidence contrasts with the feared impact of the slowdown worldwide.
The Cabinet-level Development Budget Coordination Committee has reduced its gross domestic product growth goal to six to seven percent in 2023, from one percentage point higher.
Since the economy is expected to post among the highest growth levels in the world during the post-pandemic period, the seeming paradox of higher revenues amid a global slump will be addressed.
As of December 2022, the BoC had reported a record P862.929 billion in revenues, effectively overshooting its P721.52 billion target set by the government for the whole year.
All 17 collection districts reached their targets, resulting in the agency’s record-high revenue collection.
The Manila International Container Port contributed the highest revenue for the year, followed by Port of Batangas and the Port of Limay.
How was the BoC landmark achieved, and in a crisis period at that?
Ruiz said it was a mix of the economic reopening, the implementation of improved processes, and the institution of reforms that painted the BoC as having a heart for Filipinos, such as the effort to distribute ‘balikbayan’ boxes to their consignees gratis.
Ruiz, the former director of the Enforcement and Security Service of the BoC and the former regional director of the Philippine Drug Enforcement Agency, knows the most effective measures for effective and efficient law enforcement on border control and drug prevention.
In the area of collections, the proceeds derived from public auctions and collections from post-clearance audits have significantly contributed to the BoC’s collection performance.
In line with a modernized and credible Customs administration that is becoming among the world’s best, the BoC continues to implement measures to eliminate bottlenecks and prevent revenue leakages while combating corruption and smuggling.
The reborn BoC is, thus, playing a vital role in ensuring the sustainable and robust economic growth of the country.