What many non-believers once dismissed as “just a trend” has become inevitable. And it is not too late for us to catch up and march with the times in the same direction as where the entire world is headed.
Digitalization may have its disadvantages, and much has been said about the downsides: not 100 percent reliable, risk of being hacked or sensitive data being compromised, misuse or spread of false information. The truth is the advantages outweigh the pitfalls.
The Bureau of Customs has not lagged in realizing this undeniable fact. Chided in the past for its “medieval” or inefficient way of doing business and pilloried incessantly for being one of the government’s most corrupt agencies, the BoC has taken up the challenge to prove every Tom, Dick and Harry wrong.
Outdated and manual processing of important documents and paperwork used to dominate Customs office procedures in the distant past, resulting in bureaucratic red tape and costly delays. Worse, such an old-time approach exposed vulnerable sectors to the irresistible attractions of corruption in all its forms.
Initial fears about entering the strange new world of digitalization were dispelled after adventurous and daring firms, and offices decided to test the waters of new technology, which, to their surprise and delight, produced encouraging and even productive results. Not one willing to accept the label of being called a fossil, the BoC embarked on an ambitious program in 2020 after experimenting with a “Paperless, Cashless, and Queueless” campaign to modernize the agency close to the beginning of the Millennium under the administration of then Customs Commissioner Guillermo Parayno Jr.
With much-needed support from the World Bank, the BoC launched the P5.72 billion Philippine Customs Modernization Program in March 2020, but not without hitches.
Four projects are on hold due to the court order on the E2M filed by the Joint Venture of OmniPrime. The momentary derailment caused by the filing of a restraining order against the program, however, was not seen as a roadblock as we remain optimistic that a resolution will be issued in our favor and we can achieve our number one objective, which is to have a bureau that can compare with the best customs administrations in the world.
Since 25 July 2022, three customs process systems have been implemented, and four systems are being developed and ready for implementation. These projects resulted in a 93.37 percent rate of digitalization, wherein 155 out of 166 customs processes under the 2021 Citizen’s Charter are digitalized, resulting in the above-target collections despite the economic slowdown due to the pandemic.
For 2023, several projects have been scheduled for implementation :
• Automated Export Declaration System
A system that allows electronic submission/transmission of all authorized ED-SAD from the EZ/FPZ/IPAs AEDS through the BoC-accredited VASPs to the BoC E2M-AEDS for loading at all international seaports and airports.
• Document Management System
A system or process used to capture, track and store electronic documents such as PDFs, word processing files, and digital images of paper-based content.
• Electronic Certificate of Payment in E2M Integration to LTO LTMS
E2M will allow sending of ECP to LTO once the importer makes payment of duties and taxes.
• Paperless Accreditation
Enhancement of Client Profile Registration System module by allowing e-documents in PDF or approved image format that is needed in the accreditation.
• PEZA Input Data Project
Integration of E2M and PEZA System to cater to the submission of Import Permits approved by PEZA. The E2M shall verify if a particular import T-SAD declaration has a corresponding approved PEZA permit and reject if none.
• Customs Auction Monitoring System (e-Auction System)
A web portal allowing users across all ports to manage the registration and bidding process online.
• System Catalog
A system that will let BoC employees submit various service requests online.
Apart from upgrading systems, procedures, and operational activities, one of the modernization program’s features is the Customs Processing System, which combines all the most fundamental customs procedures. The CPS is most helpful in periods of crisis or unforeseen setbacks like Covid-I9, which cause a temporary stoppage in operations. The CPS makes sure this does not happen.
Remote Imaage Analysis Centers will also enable the BoC to analyze X-ray images and improve its detection capabilities, besides helping curb corruption by doing away with face-to-face encounters between importers and exporters and BoC examiners.
Huge revenues lost to smugglers may also be contained because of better control of business operations due to more efficient, time-saving, productive, and better customer experiences, among the vaunted benefits of digitalization.