BOC collection up 19% in June

MANILA, Philippines - The Bureau of Customs grew its collections in the second quarter, helped by a rise of nearly a fifth this month, reversing its first quarter performance.

“The second quarter (collections) are up. Not (against) the target, but over the actual last year,” outgoing Customs Commissioner Alberto Lina told reporters in a recent meeting.

“For June, I think we are up already 19 percent,” he added.

Customs, which traditionally accounts for a fifth of state revenues, has consistently fallen behind its targets, at times even raising less revenues compared to last year.

From January to March, the agency collected P90.5 billion, down two percent from P92.3 billion last year, Bureau of the Treasury data showed.

Lina said revenues suffered due to a drop in commodity prices, especially oil, which until recently had hit record-low prices in the world market.

Average Dubai crude, the benchmark for Asia, rose to $43.96 a barrel last month from a low of $27.25 in January.

The Philippines uses Dubai and Mean of Platts Singapore on its pricing formula.

“I actually support raising excise taxes on oil to protect our revenues. Because otherwise, once prices fall, we are also affected,” Lina said.

“In other countries, they do that and they are able to hit their collection targets regardless of oil price movements,” he added.

In addition, Lina said his successor, Nicanor Faeldon, can review product valuations used to price Customs dues.

Faeldon earlier said he plans to ask the country’s trading partners to get good pricing.

The Customs chief also reiterated his call to lift bank secrecy for importers. “We can hit the target if there will be waiver of bank secrecy for imports,” he said.

He explained doing so would allow the bureau to cross-check the true worth of products importers purchased vis-a-vis the value they declare.

“Third, we really need to monitor transactions 24/7,” Lina said. Customs officers currently operate from 7 a.m. to 7 p.m.

Customs has been under fire from the incoming Duterte administration, tagging it as the most corrupt government agency based on a survey last year.

According to a poll by the Social Weather Stations in August, Customs was rated a “very bad” -55 by businessmen, worse than its “bad” grade in 2012 and “execrable” ratings from 2005 to 2009.