REDUCING HUMAN INTERVENTIONS WILL STOP CORRUPTION AND SMUGGLING AT THE BUREAU OF CUSTOMS IN THE PHILIPPINES

FORMER CUSTOMS COMMISSIONER VILLANUEVA SUGGESTED REFORMS TO REDUCE GRAFT AND CORRUPTION AND TECHNICAL SMUGGLING AT THE BOC 
By. Ver M. Garcia & Teddy Cho

Former BOC Commissioner Titus Villanueva seated at the right with Blogger Journalist Susan Amoroso (seated at the center) and other media partners.

The Philippines a DEVELOPING country plague with corruption and Technical smuggling. Time and again the BOC (BUREAU of CUSTOMS) has been known to be corrupt. There have been verified reports about its loses in revenues of P300 millions each month due to smuggling. Just recently. newspapers reported alleged illegal entry of imported sugar, rice, cars, agricultural products, plastic, petroleum, and smuggling of manufactured goods, such as iron bars and adulterated cement; the entry of 100 container vans of toxic waste; and the lost of 2,000 container vans of imported manufactured products without payments of duties and taxes.

Corruption in the form of bribe and facilitation money are elicited from delays in the release of cargoes, contributing to port congestion, does victimizing all kinds of importers, big and small which includes the honest and dishonest business entities. ‘Human interventions must be reduce to the barest minimum to reduce corruption’ avers Atty, Villanueva

BLOGGING COVERAGE.. Ms. Susan Amoroso (standing) emcee at the Media Forum held recently at the Jadevine Hotel in United Nation Avenue, Manila. Topics of the discussion is How to Rid the Bureau of Custom of Graft and Corruption.. Resource Speaker is Atty. Titus Villanueva (Right) former Custom Commissioner. 

STATUS OF THE DRIVE AGAINST SMUGGLING AND CORRUPTION

In a private blog and media briefing, lawyer Titus B. Villanueva in an excerpt from a book entitled ‘FROM THE RANKS’  a biography of Titus himself was written and introduced by  journalist Chando P. Morallos.

TITUS POLICY: EXCERPTS FROM HIS BIO-BOOK: FROM THE RANKS: TITUS B. VILLANUEVA's BIOGRAPHY BOOK: THAT DURING THE TIME OF THE FORMER BUREAU OF CUSTOMS COMMISSIONER. TITUS B. VILLANUEVA WITH  HIS POLICY: ‘ALWAYS FAVOR THE IMPORTER IN COMPLIANCE WITH THE SUPREME COURT RULING THAT  CONTROVERSIAL ISSUES SHOULD BE RESOLVED IN FAVOR OF THE TAXPAYER WHO HAS THE BURDEN OF PAYING THE TAXES.’

According to Titus the BOC has not been lacking in reform programs or measures to curb smuggling and eradicate corruption. In fact, the following are some of the reforms adopted and implemented.

1.) Simplification of Customs Documents.

2.) Determination of the Time of processing of Customs Documents.

3.) Limitation of the Number of days of processing Customs documents.

4.) Reduction of the Number of signatures required in the processing.

5.) Conduct of Moral regeneration seminars for Custom employees.

6.) Use of Selectivity System by Identification of legitimate and less legitimate importers.

7.) Hiring of Pre-shipment inspectors (PSI).

8.) Computerization of Customs Operation.

It should be noted that two of the aforementioned reform programs: BOC's Selectivity System and Pre-shipment Inspection (PSI) were found out to be very effective but were removed from the operations due to political reasons. As reported funds from corruption and smuggling were used for campaign funds in both local and national elections.

THE SOLUTION TO THE PROBLEM

The restoration of the Selectivity System and the CISS (Comprehensive Import Supervision System) and removing the reasons why they did not last long. In case of big and legitimate-accredited importers, their shipments covering about 80% of the total imports should no longer pass through Customs but would be delivered immediately from pier direct to the consignee's warehouse but subject only to random check (Alert) to rule out abuse of the privilege. Bribe/ facilitation money would be avoided with the removal of Customs processing prior to the release of the shipment. 

Without human intervention, there would be no place for bribery/ facilitation money.

In the case of hiring of Import Supervisor, make the coverage comprehensive which was the reason why it was removed. The solution is to make it cover only the group of new and less reliable-accredited importers comprising only about 20% of total imports, hence, no longer costly to the Government.

In order for the solution to succeed and make it lasting, the system of reward and punishment should be adopted. This means that ACCREDITATION of big / honest, legitimate importers would be revoked if the importers commit any violation of the Customs Tariff and Custom code and other related laws and regulations. In the same manner, new and less reliable importers may join the group of big/ honest/legitimate importers should they maintain good record of performance in dealing with the BOC.

SOME RECOMMENDATIONS : FOR THE SUCCESS OF THE PROPOSED SOLUTIONS

1.) Creation of a committee of 3 to 5 honest and reliable members. The committee would select/accredit those who would compose the group of big/legitimate importers and the group of new and less reliable ones. The committee member must be appointed by no less than the President of the Philippines upon the recommendation of the Customs Commissioner.

2.) The Herein proposed solution to the problem should be contained in an Executive order to be issued by the President.

Former Customs Commissioner is the only Filipino Customs head to chair the ASEAN and APEC meetings on customs procedures. His advocacy to rid customs of graft and corruption has been proven effective during his term as customs deputy and as commissioner. He rose from the ranks serving the Bureau for 41 years and the only non-political appointee. He is a CPA-lawyer and a licensed customs broker. He is no other than Lawyer Titus B. Villanueva.

(VerGarciaBlogs)