philippine bureau of customs wto workshop on technical assistance and capacity building in trade...

Philippine Bureau of Customs

WTO Workshop on Technical Assistance and Capacity Building

in Trade Facilitation

GenevaMay 10 - 11, 2001

WTO Workshop on Technical Assistance and Capacity Building

in Trade Facilitation

GenevaMay 10 - 11, 2001

Frame 1


A customs service more responsive to clients’ needs and supportive of government goals, adhering to world’s best practices; one that every Filipino can be truly proud of.

Frame 2


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;

Frame 3


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.

Frame 4


Philippine Customs Profile for Year 2000Philippine 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.

Frame 5

• Background

• Two Contracts:– UNCTAD - Development of

ASYCUDA++ and Extensions– UNISYS - System Integrator

• Contract Started: 29th June 1994

• Contract Ended: 31st December 1999

Philippine Bureau of Customs Frame 6

Philippine Tax Computerization Project

• Scope of Computerization:

Eight (8) Sites

– Office of the Commissioner– 3 Metro Manila Ports– 4 Outports


Philippine Tax Computerization Project

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


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



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



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



Significant factors contributed for the success of the Computerization Project

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.

Frame 12


Some Strategies AppliedSome 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

Frame 13


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

Frame 14


a. Murphy’s 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

Frame 15

Ope

ratio

ns S

uppo

rt &

Man

agem

ent S

yste

ms

(OSM

S)

RED= priority developmentGreen= on-going developmentBlue= pending development

Managem

ent Information & D

ecision

Support Systems (M

IDSS)

Resources M

anagement &

Information Support System

s

(RM

ISS)

INFOSTRUCTUREINFOSTRUCTURE

--Import Entry Processing

--Suspense Regimes Monitoring

Autom

ated

Cus

tom

s

Ope

ratio

ns S

yste

ms

(ACO

S)

--Export Entry Processing

--Passenger Entry Processing

--Customs Valuation--Tariff Information

--Intelligence Information

--Legal Information

--Statistical Analysis & Reporting

--General Purpose & Ad-hoc Querying

--Performance Indicators Monitoring

--Projects Monitoring

--Issues Monitoring

--Risk Management

--Human Resources Management

--Financial Management

--General Services Management

Overall Application Systems Groupings: Object Deconstruction Chart - 5 Year Plan (ISP)

--Revenue Accounting

--Office Automation

--Records Management

--Trade compliance

Frame 16

Work Program For 2001 - 2004Work Program For 2001 - 2004Work Program For 2001 - 2004Work Program For 2001 - 2004



Technical Assistance from the World Bank was Successful Because...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

Frame 21


After the Project TerminationAfter 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).

Frame 22


What will happen if required budget is insufficient?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.

Frame 23


Trade Facilitation ChallengeTrade Facilitation Challenge

Risk Assessment (Selectivity)

Post-Entry Audit

Come up with an effective and speedy customs clearance process for legitimate

imports / exports without sacrificing revenue efficiency.

Solution . . . Solution . . .

Frame 24

GreenNo

Physicaland

Documentary Check

YellowDocumentary

Check

RedPhysical

DocumentaryCheck

SELECTIVITY

Risk Assessment

Frame 25


Post-Entry Audit SystemPost-Entry Audit System

Accept Face Value of Importation from the Point of Entry

Post-documentary checks of importation

Back-up for “failures” of the Selectivity

Use as a safety net for recovering “lost” revenue

Deterrent factor for technical smuggling

Frame 26


Other Sources of Funds and AssistanceOther 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)

Frame 27


Benefits from well-coordinated relationship with donors

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.

Frame 28

Frame 29

philippine bureau of customs wto workshop on technical assistance and capacity building in trade...

Documents

customs laws

customs service

commissioner of customs

customs administration

customs allies

bureau personnel

mails frame

super green lane system