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Jul 28, 2018 @ 23:44

BOC’s revenue shortfall narrows down in last 3 years due to effective reward, punishment system

 

Customs Commissioner Isidro “Sid” Lapeña’s strict implementation of the reward and punishment system among district collectors is making dividends.

The Commission on Audit reported that the Bureau of Customs (BOC) has closed down the gap between its revenues and targets over the last three years.

In an annual audit report, BOC collection targets showed a decreasing trend in shortfall, from P69.685 billion or 16 per cent in 2015 to P8.122 billion or 1.70 per cent in 2017 despite increased targets every year.

In 2017 BOC posted P459.774 billion in revenues or 15 percent better than 2016..

Since Lapeña took Over Nic Faeldon in August last year, COA said the BOC has breached P40 billion mark in three months – P40.260 billion in September, P42.915 billion in October and P46.408 billion in November. When BOC fell short of its targets in December, COA said Lapeña shuffled the district collectors who failed to reach their targets.

“We recommended and management agreed that the Commissioner, Port Collectors and the concerned officers and employees continue to exert more effort and employ new strategies in order to achieve its collection target. Further, implement strictly Section 2 of RA No. 9335, which prescribes the sanctions against BOC officials and employees who were not able to achieve their targets, and reward those who had exceeded their targets,” said COA.

COA cited four major issues facing BOC in its effort to boost collections

1) Forgone revenues composed of duties and taxes due from other government agencies, importations entitled to exemptions by Department of Finance and trade agreements and those for re-exportation supported by cash bonds at BOC-Ninoy Aquino International Airport.

2) The volume of importation of consumption entries (which is the main source of revenue) actually decreased by 2.30 per cent as compared to last year. Likewise, the volume of warehousing decreased by 15.28 per cent resulting to a total decrease of Port of Manila’s volume of importation by 0.59 per cent;

3) The volume of PEZA (Philippine Economic Zone Authority) bound importation increased by 38.68 per cent. It must be noted that PEZA bound for importation can be categorized as POM’s foregone revenue since it was imported tax and duty free and the foregone revenue of POM amounted to P224.584 million.

4) The exemptions on payment of duties, taxes and other charges due to free trade agreements from member countries contributed to the shortfall at Manila International Container Port.

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