NewsMacroPhilippine Customs Bureau Stays on Course for P1.011-Trillion Target Despite October Broker Protests

Philippine Customs Bureau Stays on Course for P1.011-Trillion Target Despite October Broker Protests

Author: Bworldonline·

Key Takeaways

  • •The Bureau of Customs is maintaining its P1.011-trillion annual collection target despite a temporary digital protest by customs brokers in early October that disrupted import processing.
  • •Collections between Oct. 1 and 9 totaled P27.217 billion, falling 12.7% short of the P31.191-billion target, leaving year-to-date receipts at 78% of the annual goal.
  • •The Practicing Customs Brokers Association suspended its protest beginning Oct. 8, citing improved port conditions, but continues to press foreign shipping lines to remove empty containers.
  • •A second round of excise tax suspensions on kerosene and liquefied petroleum gas will create recurring revenue losses, after the first round cost about P700 million in foregone monthly collections.
  • •Congress has pledged an additional P10 billion to the bureau's reduced 2027 budget to fund modernization, including X-ray machine upkeep, IT systems, radioactive shipment sensors, and three anti-smuggling vessels.
Philippine Customs Bureau Stays on Course for P1.011-Trillion Target Despite October Broker Protests

The Bureau of Customs (BoC) said it remains on track to meet its P1.011-trillion collection target for the year, despite disruptions caused by customs brokers' protests in early October. As one of the government's main revenue-collecting agencies, the bureau's monthly performance is closely watched.

“So far medyo na-challenge kami dahil sa welga, ’yong welga kasi nila hindi lang siya pisikal na welga, may digital protest din sila (We have faced challenges due to the strike, which was not just physical but also digital),” BoC Commissioner Ariel F. Nepomuceno said on the sidelines of the Kapihan sa Manila Bay forum on Wednesday. He described the impact of the protest as temporary.

The action began on Oct. 5, when the Practicing Customs Brokers Association Philippines, Inc. (PCBAPI) urged licensed customs brokers and importers to voluntarily stop visiting the BoC's import processing website. The move was intended to draw attention to the buildup of empty containers and depot congestion at the ports.

In response, the BoC said it is in constant discussions with the protest leaders, while cautioning that any disruption to port operations may “further aggravate existing challenges, affecting cargo movement, supply chains, and the broader trading community.”

On Oct. 7, PCBAPI Chairman Reynaldo T. Soliman announced that the group would suspend its “digital protest and rest day at the port” starting Oct. 8, citing improvements in port conditions. The association, however, continued to press foreign shipping lines to remove their empty containers.

Collections nonetheless fell short during the protest period. Between Oct. 1 and 9, the BoC collected P27.217 billion, 12.7% below the P31.191-billion target for the period — a gap of roughly P3.97 billion. Average daily collections of P3.888 billion amounted to just 87% of the P4.456-billion daily target, while total collections for the period represented 28% of the P98.028-billion goal for the month.

As of Oct. 9, year-to-date collections stood at P784.624 billion, or 78% of the P1.011-trillion target for the year, leaving about P226.4 billion to be collected over the final stretch.

Mr. Nepomuceno also flagged headwinds from the second round of excise tax suspensions on kerosene and liquefied petroleum gas. “Collections will be reduced,” he said, noting that the first round of suspensions had resulted in foregone monthly revenue of around P700 million. Unlike the temporary protest disruption, the excise suspensions represent a recurring loss, which the bureau intends to offset by continuing to enforce a strict assessment regime.

He added that collections typically peak in October and November on the back of high volumes, though cargo volumes remain weak this year. Headline inflation accelerated to 7.2% in September from 6.1% in August, ending four straight months of easing, and brought the nine-month average to 5.4%. How the seasonal peak holds up against those headwinds is a key variable for the fourth quarter.

Separately, the BoC said Congress has promised it an additional P10 billion after its proposed budget for 2027 was reduced to P5.9 billion from the roughly P29 billion it originally requested under the 2027 National Expenditure Program. The additional funding will support the bureau's modernization projects, including the maintenance of existing X-ray machines, the acquisition of information technology systems, sensors for radioactive shipments, and three vessels to combat smuggling in Philippine waters. That pledge is a line item to watch as Congress finalizes the 2027 budget.

Mr. Nepomuceno likewise called for amendments to the Anti-Agricultural Economic Sabotage Act to include the BoC in its council, saying the agency cannot directly charge alleged smugglers because it is not a member of the body.

The bureau is also pursuing a public-private partnership to build a new Customs Processing System. According to Mr. Nepomuceno, the project is set to be piloted in three of the country's 59 ports and subports by mid-2027, with Batangas Port and Ninoy Aquino International Airport as the first two sites. Cebu or Davao is being considered as the third pilot location.

— with a report from Justine Irish D. Tabile, BusinessWorld