Customs modernization plan gets $88-M WB loan

Expect more efficient customs procedures yet cheaper transaction costs translating into bigger trade volumes and higher tax collections at the country’s ports, thanks to the World Bank’s $88.28-million loan to modernize the Philippines’ second-biggest revenue agency.

The World Bank’s Washington-based board on Sept. 27 green-lit the counterpart financing for the Customs Modernization Project, which will “improve customs administration by enhancing the streamlining and automation of the Bureau of Customs’ (BOC) procedures, as well as supporting the development of a world-class customs processing system (CPS).”

“Improved efficiency at the BOC will reduce trade costs and support the Philippines’ competitiveness. Automation will reduce face-to-face interactions and delays, and increase accountability, all of which strengthens efficiency and improve the business environment,” World Bank country director for Brunei, Malaysia, Thailand and the Philippines Ndiamé Diop said in a statement.

This World Bank loan will cover the bulk of the $104.38-million total project cost for customs modernization, which the National Economic and Development Authority Board chaired by President Duterte approved last May.“With the new CPS, important processes like trade management and registration, cargo inspection, duty payment, and clearance and release, among others, will be integrated in a seamless online system. It will also improve adherence to international standards and conventions for customs processing, including an audit trail for transactions, allowing for greater transparency and less opportunity for corruption,” the World Bank said.

In a separate statement, Customs Commissioner Rey Leonardo Guerrero said this World Bank financing would accelerate the reform initiatives of the BOC such as streamlining of operations, development of systems, deployment of information and communications technology infrastructure, processing time reduction for imports and exports, and lowering of trade transaction costs.

Among the features of the project is the modernization of front-line and back-office functions of the BOC through the new CPS and the administrative back-office enterprise resource planning.—BEN O. DE VERA