Senate likely to OK CMTA before yearend, says Lina

A number of senators have committed to pass the proposed Customs Modernization and Tariff Act (CMTA) before the Senate ends its session this year, according to Customs Commissioner Alberto D. Lina.

Among the provisions of the CMTA is the proposal to exempt employees of the Bureau of Customs (BOC) from the Salary Standardization Law (SSL), a move which seeks to minimize corruption in the alleged graft-ridden agency, Lina told reporters.

“Salaries of Customs employees should be at par with salaries of central bank employees to eliminate corruption,” Lina said.

Employees of the Bangko Sentral ng Pilipinas are exempted from the SSL, granting them relatively higher pay than most other government workers.

Lina said once the salaries of BOC employees were raised, it would be a shame for any employee to remain corrupt while enjoying larger pay.

As for the CMTA, Lina said Senators Sonny Angara, Bongbong Marcos, Franklin Drilon, Cynthia Villar, Tito Sotto and Antonio Trillanes IV, among others, have expressed support to pass the measure right after they approve the proposed 2016 budget.

“We’re very positive it [CMTA] will be approved before this year ends. There are no more sticking points; they were all resolved,” Lina said.

The Customs chief said the BOC would immediately work on the implementing rules and regulations (IRR) of the CMTA.

“We will rush the IRR,” he said.

The CMTA seeks to modernize and simplify the country’s customs procedures while harmonizing them with global standards, mainly by amending and updating the antiquated Tariff and Customs Code of the Philippines.

The measure will also facilitate compliance with the Revised Kyoto Convention, which the Philippines signed in 2010.

The convention serves as a blueprint for modern and efficient customs procedures under the World Customs Organization.

Also among the additional reforms to be put in place by the CMTA are mandating the use of information and communications technologies to enhance customs operations and enforcement and strengthening the BOC’s risk management system.

Also, the bill aims to exempt from duties and taxes shipments valued below P5,000, while also exempting relief goods from import dues as well as facilitating their fast release during calamities.

The proposed law also adopts the principle of an “authorized economic operator”—duly-accredited customs brokers, exporters, importers and forwarders who would be required to submit only a minimal number of documents.

It also incentivizes “highly compliant” as well as “low risk” importers and exporters.

Besides paving the way towards faster customs processes, the CMTA is seen strengthening enforcement by making illegal importation and exportation of shipments with an appraised value (including duties and taxes) of over P50 million a heinous crime.

The Department of Finance earlier said the CMTA would “institutionalize and consolidate reforms in what would be the most improved national government agency in terms of collections growth.”

Last year, the BOC’s collections of import duties and other taxes jumped by 21 percent to P369.3 billion, the fastest rate of increase among revenue-collection agencies.