WTO Presentation

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Philippine Bureau of Customs
WTO Workshop on Technical Assistance and
Capacity Building in Trade Facilitation Geneva M
ay 10 - 11, 2001
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Our Vision
A customs service more responsive to clients
needs and supportive of government goals,
adhering to worlds best practices one that
every Filipino can be truly proud of.
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Our Mission and Objectives
The Bureau of Customs, an office under the
Department of Finance, is tasked primarily to
perform the following functions
a. Assess and collect lawful revenues from
imported articles and all other dues, fees,
charges, fines and penalties accruing under the
Tariff and Customs Laws b. Prevent and
suppress smuggling and frauds upon the
Customs c. Supervise and control the entrance
and clearance of vessels and aircraft engaged in
foreign trade d. Enforcement of Tariff and
Customs Laws and all other laws, rules and
regulations relating to tariff and customs
administration e. Supervision and control over
the handling of foreign mails arriving in the
Philippines, for the purpose of collecting lawful
duty on the dutiable articles thus imported and
prevent smuggling through medium of such mails
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Our Mission and Objectives
f. Supervise and control all import and export
cargoes, landed or stored in piers, terminal
facilities, including container yards and freight
stations and g. Exercise exclusive
jurisdiction over seizure and forfeiture cases
under the Tariff and Customs laws.
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Philippine Customs Profile for Year 2000
a. Largest revenue collector after Internal
Revenue Service
b. Employed and managed 5,258 officers and
employees
c. Processed about 600,000 entries (400,000 from
consumption and 200,000 from warehousing) and
facilitated more than 6 million arriving and
departing travelers
d. Surpassed the target collection by 2.0
despite of economic crisis
e. Embarked on some E-commerce initiatives and
f. Implemented the WTO Valuation System.
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Philippine Tax Computerization Project

• Background
• Two Contracts
• UNCTAD - Development of
• ASYCUDA and Extensions
• UNISYS - System Integrator
• Contract Started 29th June 1994
• Contract Ended 31st December 1999

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Philippine Tax Computerization Project

• Scope of Computerization
• Eight (8) Sites
• Office of the Commissioner
• 3 Metro Manila Ports
• 4 Outports

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Philippine Tax Computerization Project

• Implemented by 31st December 1999
• Office of the Commissioner
• 3 Metro Manila Ports
• 17 Outports

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Sites on ACOS Live Implementation

• Port
• 1. Port of Manila
• 2. MICP
• 3. NAIA(w/ 7 satellites)
• 4. Davao
• 5. Cebu
• 6. Cagayan de Oro
• 7. Subic

• Date of Implementation
• January 22, 1996
• August 19, 1996
• April 21, 1997
• October 30, 1997
• February 23, 1998
• June 26, 1998
• March 26, 1998

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Sites on ACOS Live Implementation

• 8. General Santos
• 9. Iligan
• 10. Mactan
• 11. Legaspi
• 12. Batangas
• 13. San Fernando
• 14. Zamboanga
• 15. Surigao

• November 24, 1998
• February 3, 1999
• May 13, 1999
• August 9, 1999
• August 13, 1999
• August 16, 1999
• September 1, 1999
• September 6, 1999

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Sites on ACOS Live Implementation

• 16. Iloilo
• 17. Tacloban
• 18. Clark
• (Office Automation only)
• 19. Baguio
• 20. CEPZA

• September 28, 1999
• September 29, 1999
• October 15, 2000
• September 27, 1999
• September 30, 1999

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Significant factors contributed for the success
of the Computerization Project
a. Commitment and political will of the President
of the Republic to the Commissioner of Customs in
pursuing the project.
b. Congenial working relationship between the
World Bank and the Philippine Bureau of Customs
and contractors (UNCTAD and UNISYS)
c. Commitment and seriousness with which the
project was pursued by the Bureau personnel in
the struggle to elevate the Customs service to
world class level.
d. Ideal partnership and close working
relationship among Customs, its clients and
stockholder and Customs allies and supporters.
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Some Strategies Applied
1. The Bureau entered an agreement with the
private sector for the establishment of the Entry
Encoding Center (EEC)
2. Creation of an ad hoc Risk Management Group
3. Pilot testing of ACOS system (ASYCUDA ) in
one of the major ports before rolling it to other
ports
4. Introduction of the Super Green Lane System
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Positive Lessons Learned
a. Concrete, visible, unwavering top management
support b. Flexible and ingenious
strategies c. Involvement of users/stakeholders
in all phases of the project d. Hard work,
dedication and skills of the major players e.
Employed change management programs
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Negative Lessons Learned
a. Murphys Law - If anything can go wrong - it
will b. Never be optimistic when it comes to
money c. Never be optimistic when it comes to
deadlines d. Inflexible work plans e. Slow
financial accounting and reporting
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Overall Application Systems Groupings Object
Deconstruction Chart - 5 Year Plan (ISP)
--Trade compliance
--Import Entry Processing
--Customs Valuation
Operations Support Management Systems (OSMS)
--Tariff Information
Automated Customs Operations Systems (ACOS)
--Export Entry Processing
--Intelligence Information
--Suspense Regimes Monitoring
--Revenue Accounting
--Passenger Entry Processing
--Legal Information
CUSTOMS
INFOSTRUCTURE
--Human Resources Management
--Statistical Analysis Reporting
--General Purpose Ad-hoc Querying
--Financial Management
--Performance Indicators Monitoring
Resources Management Information Support
Systems
(RMISS)
--General Services Management
Management Information Decision Support Systems
(MIDSS)
--Projects Monitoring

--Issues Monitoring
--Records Management
--Risk Management
RED priority development Green on-going
development Blue pending development
--Office Automation
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Work Program For 2001 - 2004
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Work Program For 2001 - 2004
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Work Program For 2001 - 2004
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Work Program For 2001 - 2004
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Technical Assistance from the World Bank was
Successful Because...
a. Project progress implementation was
adequately reported
b. Implementation problems were immediately
identified, assessed and addressed for resolution
c. Sufficient attention was paid to likely
development impact, as in the case of document
processing and cargo release time
d. Advise given to the Bureau were well thought
out, while follow-ups on required
actions/decisions were consistent
e. Loan covenants were enforced and remedies
were exercised. An example of this remedy was
the creation of working group (e.g. Site
Preparations Committee) to assume some of the
functions of the undermanned Project
Implementation Unit
f. The WB showed flexibility in suggesting or
approving needed modifications, such as those on
the non-computer equipment and roll-out strategy
g. The WB and the Bureau had a congenial working
relationship
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After the Project Termination

• Philippine Tax Computerization Project concluded
  December 31, 1999 along with the funding
  assistance from the World Bank loan.

• Computerization project of the Bureau will have
  to sustain itself from funding through the local
  budget.

• Extensive lobbying of additional funds for the
  maintenance and expansion of the program from the
  legislative and executive branches of the
  government.

• Maintenance and enhancement of the system handle
  by BOC internal IT group with some services
  outsourced to private contractor (e.g. Facility
  Management).

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What will happen if required budget is
insufficient?

• Computer systems operation will be limited to six
  months only

• Progressive shutdown of computerized sites and
  operations

• Reversion to manual procedures and

• Termination of system development efforts.

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Trade Facilitation Challenge
Come up with an effective and speedy customs
clearance process for legitimate imports /
exports without sacrificing revenue efficiency.
Solution . . .

• Risk Assessment (Selectivity)

• Post-Entry Audit

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Risk Assessment
SELECTIVITY
Red Physical Documentary Check
Yellow Documentary Check
Green No Physical and Documentary Check
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Post-Entry Audit System

• Accept Face Value of Importation from the Point
  of Entry

• Post-documentary checks of importation

• Use as a safety net for recovering lost revenue

• Deterrent factor for technical smuggling

• Back-up for failures of the Selectivity

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Other Sources of Funds and Assistance

• World Bank

• United States Agency for International
  Development (USAID)

• Asian Development Bank (ADB)

• Japan International Cooperation Agency (JICA)

• Canadian International Development Agency (CIDA)

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Benefits from well-coordinated relationship with
donors

• More effective and cost efficient implementation
  of technical assistance project

• Avoidance of duplication of projects/activities

• More transparent working relationship among the
  donors.

• Facilitate project program implementation.

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End of Presentation
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