BOC Jan-July collection up but still shy of target

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BOC_revenueThe Philippine Bureau of Customs (BOC) saw P203.86 billion in revenue collections in the first seven months of 2014, an 18% increase from P173.08 billion in the same period last year, but still short of the P233.96-billion target for the period.

For July alone, total revenues reached P30.46 billion, up 9% over P27.95 billion during the same month last year.

BOC said that despite operational disruptions from Typhoon Glenda and congestion at the Port of Manila (POM) and the Manila International Container Port (MICP)—the country’s largest ports in import volume and revenues—average daily collection in July improved to P1.44 billion versus P1.2 billion in July 2013.

Both months had 21 working days.

Importation of finished petroleum products, which account for about 17% of total revenues, grew 34.5% year-on-year in July 2014, as imports of diesel and liquefied petroleum gas (LPG) went up, according to BOC.

Average value, however, was down 18.5%, consistent with global market trends for oil prices. In its recent oil monitoring report, the Department of Energy noted a spike in supply in Asia and the Middle East caused by several refineries returning from maintenance to operational status and by the end of the peak buying season in Asia. Crude oil imports likewise expanded 20%, accounting for about 11% of total BOC revenues.

On the other hand, importation of motor vehicles, which account for a 15% share of total BOC collection, expanded 22% in July on increased demand for cars. The Chamber of Automotive Manufacturers of the Philippines earlier reported that the local automotive sector posted the highest monthly sales record in July, with passenger car sales surging 64.6% year-on-year to 8,339 units.

Other drivers of revenue growth included importations of food items, iron and steel products, and electrical machinery and equipment.

Meanwhile, majority of BOC’s collection districts or ports saw marked improvement in their revenue collections for July.

Revenue from Luzon ports, which include Batangas, Subic, and Limay, grew an average of 26%, while those in the Visayas and Mindanao posted an average revenue collection growth of 18% and 11%, respectively, driven by the economic expansion in Cebu and Davao.

In Metro Manila, POM, MICP, and Ninoy Aquino International Airport (NAIA)—which account for the lion’s share of total BOC revenue—posted year-on-year flat revenue in July as congestion at the ports continued.

For the first seven months, MICP contributed the biggest share with P54.94 billion, POM recorded revenue of P36.36 billion, and NAIA with P16.12 billion, all of which were below target.

Of the 17 BOC ports, only five beat their January-July targets, and these were Davao (P5 billion), Cebu (P7.61 billion), Iloilo (P708.6 billion), Aparri (P831 million), and Subic (P8.29 billion).

For August 2014, the BOC is tasked to collect P33.5 billion by the Development Budget Coordination Committee. – Roumina Pablo­