Customs misses June collection target

MANILA, Philippines -  The Bureau of Customs (BOC) missed its collection target in June due to lower import volume and a global ransomware which affected a major shipping line.

Based on preliminary data from the BOC, the agency collected P35.78 billion in June, 7.6 percent short of the P38.73 billion target for the month.

However, the amount was 1.44 percent higher than the P35.27 billion revenue recorded in the same month in 2016.

For the first six months, Customs revenue amounted to P210.64 billion, also short of the P218.71 billion target for the period.

The amount, however, was 10.54 percent higher than the P190.55 billion collected in the same period last year.

BOC spokesperson Mandy Anderson attributed the lower than expected collection in June to lower import volumes and the disruption in the operations of shipping giant A.P Moller-Maersk.

“Main reasons for this (decrease) are the decline in (import) volume for the month of June and the ransomware against Maersk Line which caused a lot of problems in the processing of entries. Maersk is the largest shipping line,” Anderson said.

Maersk was hit last June by a major ransomware attack named Petya, which lead to an information technology system breakdown, affecting the company’s business.

Despite the lower than expected performance, Anderson assured that the BOC is implementing reforms and innovations to ensure efficient collection.

“One is the requirement to importers to fill up and submit the Supplemental declaration on values so that correct valuation of freight insurance, commissions, royalties, cost of packaging and other charges will be determined,” Anderson said.

“Second is the requirement to submit the charter party in bulk shipments to ensure accurate freight rates,” she added. A charter party is a lease contract between an owner of a vessel and a charterer.

Anderson said the BOC is still continuing its efforts to identify underperforming personnel and allocate them with individual targets, therefore ensuring that all officials are efficient in their collections.

The BOC is the second largest tax collecting arm of the government, contributing about 20 percent of total tax revenue.

The agency is targeting to hit P468 billion in collection for this year, up from the 2016 level of P396.37 billion.