Biazon eyes new tracking device for transshipped cargoes

MANILA, Philippines - Customs Commissioner Ruffy Biazon is eyeing to put in place a new tracking device for transshipped cargoes.

In an interview with reporters, Biazon said the Bureau of Customs (BOC) may be able to prevent the problem of missing cargoes by using RFID technology.

RFID or radio frequency identification uses radio waves to transfer data from an electronic tag, which is attached to an object.

The technology uses a so-called reader for the purpose of identifying and tracking the object. Information is stored electronically.

Biazon said that users of the technology or Customs employees who would be encoding the data would also be tracked because all employees use RFID-enabled identification cards.

Describing himself as technology-savvy, Biazon said he looked into ways to solve the problem of transshipment even before he formally assumed his post as Customs Commissioner. He believes that the use of RFID may solve the problem of missing cargoes.

He said he already brought up the idea to Finance Secretary Cesar Purisima and that the Finance chief has given him the liberty to study the feasibility of the proposal.

While he does not have a detailed estimate yet on the project cost, Biazon said he does not expect the cost to reach a billion pesos. “I don’t think it will cost a billion,” Biazon said.

Biazon’s predecessor, former Customs Commissioner Angelito Alvarez exposed the problems arising from transshipment operations.

Before he resigned in September, Alvarez ordered a moratorium on transshipment operations covering cargoes with consumption entries, to prevent abuse and misuse of the procedures.

The former Customs chief said that while transshipment is one of the trade facilitation practices being implemented by the agency, the practice has a lot of disadvantages and has been prone to abuse.

Under the Tariff and Customs Code of the Philippines, transshipment is allowed. The process refers to the movement of imported cargoes from their original port of discharge to their final port of destination.

Changes in transshipment rules may help prevent incidents of missing cargoes as what happened in the case of the cargoes that were supposed to be brought to the Port of Batangas.

Alvarez had exposed the case of the missing cargoes contained in nearly 2,000 containers which were covered by transshipment permits from the Port of Manila (POM) and the Manila International Container Port (MICP) to the Port of Batangas. The incident happened between January and May.

The revenue loss of Customs from the missing containers is roughly P240 million or an average loss of P120,000 per container.

Alvarez had also uncovered, through audit, 3,600 more containers that disappeared last year.