In the lion’s den: Battling corruption at Customs

Over dinner recently, I had a chat with newly appointed Bureau of Customs chief Ariel Nepomuceno, who also happens to be a fellow Op-Ed columnist for The STAR.

It wasn’t a brief meeting. We spent hours talking about our country, the Marcos administration and of course the age-old problems hounding the notorious bureau – corruption and patronage politics.

I asked him how he intends to rid the agency of these problems which, as insiders know, are as old as time.

It’s a question that is asked of every new BOC chief.

And, as is usually the case, a new Customs commissioner makes the boldest of promises to clean the bureau, only to end up devoured by the very same system he had vowed to fix.

I know this because I’ve covered the BOC during the administrations of Gloria Macapagal-Arroyo and Noynoy Aquino.

At the time, I learned that almost every key employee in the BOC has a backer from the halls of power. These backers are usually lawmakers or government executives in high positions. These backers make it difficult for a Customs chief to get rid of employees even if they are non-performing or are found guilty of corruption. In exchange for being their padrinos, these lawmaker-backers get hefty favors from their wards – whether it’s a load of smuggled and bootlegged goods they are trying to bring into the country or some legitimate imports they want to ship at lower prices.

I also learned during those years that you can actually corrupt your way up the BOC ladder by buying promotions or key positions.

Against this backdrop, I told Commissioner Nepomuceno I wasn’t really sure whether I should congratulate him or offer my condolences, given the enormous task on his shoulders now.

Full automation

But Commissioner Nepomuceno, who is no stranger to government and a member of the Philippine Military Academy Class of 1987, has a game plan.

The plan is clear: full automation. With digital systems in place, tampering with goods entering the country becomes difficult – almost impossible.

One major step is the implementation of 100 percent pre-shipment inspections at the country of origin, especially for bulk cargo, where valuation practices have long been open to manipulation. Curiously, this is not yet done for containerized shipments, a gap the bureau acknowledges and aims to address.

The proposed system would require goods to be inspected and verified before they leave their country of origin, a move that Commissioner Nepomuceno said can address the misdeclaration of goods.

“While the concept is still under evaluation, it is being considered as a potential solution to address issues of misdeclaration, under-declaration and technical smuggling before the goods reach Philippine shores,” the BOC said in a separate statement.

To prevent agricultural smuggling, the BOC’s plans include the full automation of customs processes, stricter risk profiling of shipments and the enforcement of the Anti-Agricultural Economic Sabotage Act.

Republic Act 12022, which was signed into law last year, classifies large-scale agricultural smuggling as a non-bailable offense of economic sabotage.

Strong partnerships

Commission Nepomuceno said reforms also hinge on a strong partnership with the private sector, recognizing that for every corrupt official, there’s often a willing corruptor.

“It takes two to tango,” he said.

“But, the system is flawed by design,” I replied.

He said full automation can fix this.

A new digital tracker for importations is also in the works. This aims to enable importers to monitor goods from point of origin to final release, helping identify and close systemic gaps.

Leadership by example

At the heart of all these reforms is leadership by example.

Commissioner Nepomuceno vowed to be the strong leader needed to fight corruption in the agency.

He is aware that smugglers will try to get on his good side, whatever it takes or how much it would cost.

Less than a month in office, he said, he has already been offered jaw-dropping amounts.

However, he insists, he is serious in his fight against corruption, and that the only way to do this is to set an example to the whole BOC bureaucracy.

“Please don’t second guess my no-take policy for my office while I am the BOC Commissioner. I encourage all port collectors to support this. I can easily monitor compliance or violation of this clear directive,” he said in a recent message to the BOC’s district collectors.

To understand the scale of this problem, we must look to history. Smuggling is not new. According to the BOC, it dates back to as early as the 12th century, with the establishment of England’s National Customs Collection System by Edward I in 1275. Back then, highly taxed goods such as wool and hides were prime targets. Folklore from Britain even tells of Tom the Smuggler, a Cornishman who would roll barrels of liquor ashore on moonlit nights and hide them from tax collectors with the help of his neighbors.

Centuries later, smuggling remains a scourge. I told Commissioner Nepomuceno that smuggling continues because they are backed by people in power.

It might even go really high up.

But with determined leaders like Commissioner Nepomuceno, I am sincerely excited to see a better, more efficient and less corrupt – if not, uncorrupt – BOC.

“Mahiya naman kayo!” President Marcos said.

This may well apply to the thieves in the BOC who have long been raking it in.

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Email: [email protected]. Follow her on X @eyesgonzales. Column archives at EyesWideOpen on FB.