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BOC revenue goal

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The Bureau of Customs (BOC) has been assigned its performance targets for 2020, including an 11.6% increase in revenue collection, as it received an approved budget of P2.448 billion, 6.5% less than its P2.617-billion budget in 2019.

Under the General Appropriations Act (GAA) of 2020, signed by President Rodrigo Duterte last January 6, BOC’s strategic objectives this year are still to improve revenue collection and achieve secured trade facilitation using international standards.

Among its performance targets are to meet the 11.6% increase in revenue collection and collect duties and taxes amounting to P731.235 billion, 10.4% higher than the P662.165-billion target under the 2019 GAA.

BOC in 2019 collected P630.571-billion net tax refund, or 6.3% higher than the P593 billion earned in 2018 but 6.9% lower than the P677-billion target imposed by the Development Budget Coordination Committee for the year.

For 2020, BOC’s outcome and output indicators under the GAA still include clearing 96.61% of imported goods within 10 days of filing of import declaration.

The number of cases filed within 15 days under the Bureau’s Action Team Against Smugglers Program should still be 24 cases. BOC should also apprehend 60 cases of smuggling activities.

On trade facilitation, BOC must improve the cargo clearance process by 2%, lower than last year’s 6% target, while enforcement actions resulting in seizures must increase by 2%, similar to the figure for 2019.

The number of alerts was raised to 1,440 from 1,200 in 2019. The percentage of shipments selected and physically examined must still be higher by 2%. The number of cases of anti-social goods seized should still be 50.

Meanwhile, in addition to its approved 2020 budget, BOC was again granted special provisions for several programs.

Some P50 million is to be allocated to maintaining and improving the operations of the Super Green Lane facility, including the Automated Customs Operations System and related computer systems. The fund, the same budget as last year’s, will be sourced from service fees collected from importers using the facility.

Another P297.428 million will be used to maintain, improve, and upgrade the Non-Intrusive Container Inspection System, the money to be obtained from the mandatory container security fee imposed on every 40- and 20-foot container under the system. This budget is similar to the funding last year.

About P23.746 billion, higher than last year’s P14.532-billion budget, will be used this year to refund excess or erroneous collection of value-added tax (VAT) and other internal revenue taxes, and monetize Tax Credit Certificates.

To be continued this year is setting aside 20% of proceeds from the sale of smuggled and confiscated goods or from the collection of additional revenues for use as informer’s reward. The reward will go to persons instrumental for these accomplishments, in accordance with relevant provisions under the Customs Modernization and Tariff Act.

About P460.650 million will be used in granting rewards and incentives to officials and employees of BOC who exceeded revenue collection targets in the prior year. BOC collected P585.542 billion in 2018, beating its annual revenue collection target of P584.881 billion by 0.1%. The incentives fund will be sourced from 15% of the collection of BOC in excess of its revenue target pursuant to the Attrition Act of 2005.

The release of the fund, however, will be subject to the submission of a special budget pursuant to Executive Order No. 292 or the Administrative Code of 1987. As a condition for the grant of rewards and incentives at BOC, the President, in his Affirmation Message in the 2020 GAA, encouraged BOC to hit this year’s annual target, and the Development Budget Committee to approve this incentives fund.

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