BOC collection up 9% to P35 B in July

MANILA, Philippines - Collections by the Bureau of Customs rose nine percent in July but still fell short of the agency’s P35-billion target for the month.

Data from the BOC showed that the BOC collected P30.46 billion in July bringing the seven-month collections to P203.86 billion or 18 percent higher from a year ago as a result of continued improvements in valuation as well as a marginal increase in the volume of imported goods.

Revenue growth slowed down in July compared to June’s 17.5-percent expansion. This was attributed to the implementation of the truck ban in Manila which resulted in massive backlog and congestion in two of the country’s biggest ports.

 As a result, revenues from the bureau’s main drivers – Port of Manila, Manila International Container Port and the Ninoy Aquino International Airport – were flat year on year.

 Importation of finished petroleum products, which accounted for about 17 percent of total revenues, grew 34.5 percent in July, largely due to higher imports of diesel and liquefied petroleum gas (LPG).

Average value, however, fell 18.5 percent, consistent with global market trends for oil prices.

In its recent oil monitoring report, the Department of Energy noted that a spike in supply in Asia and the Middle East was caused by the return of several refineries from maintenance to operational status and the end of the peak buying season in Asia. Crude oil imports likewise expanded 20 percent, taking up about 11 percent of aggregate revenues.

 On the other hand, importation of motor vehicles, which accounted for a 15 percent share of total BOC collections, expanded 22 percent on increasing demand for cars.

The Chamber of Automotive Manufacturers of the Philippines earlier reported that the local automotive sector posted the highest monthly sales record in July, with passenger car sales surging 64.6 percent on year to 8,339 units.

Other drivers of revenue growth include importation of food items, iron and steel products, as well as electrical machineries and equipment.

Most of bureau’s collection districts or ports saw a marked improvement in revenue collections.

Revenues from Luzon ports, which include Batangas, Subic and Limay, grew an average 26 percent, while those in the Visayas and Mindanao posted average revenue collection growth of 18 percent and 11 percent, respectively, driven by the economic expansion in Cebu and Davao.

For August, the BOC is tasked to collect P33.5 billion.