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The Bureau of Customs is proposing a pre-shipment inspection of containerized agricultural shipments to help curb smuggling
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The proposal is optional with faster release time as an incentive, according to BOC assistant commissioner Vincent Philip Maronilla
The Bureau of Customs is proposing an optional pre-shipment inspection (PSI) of containerized agricultural shipments to help curb smuggling of farm products.
BOC made the recommendation in its last business review meeting with Finance Secretary Carlos Dominguez III, according to Customs Commissioner Rey Leonardo Guerrero at the virtual Business Summit 2022 held on March 17.
BOC co-organized the meeting with the Makati Business Club, Institute for Solidarity in Asia, Management Association of the Philippines and Financial Executives Institute of the Philippines.
PSI is the practice of employing private companies at ports of origin to check shipment details such as price, quantity and quality of imported goods before they are shipped into the country. PSI is currently mandated but only for bulk and breakbulk shipments.
Guerrero said the recommendation was made in light of recent incidents of agricultural products smuggling.
BOC in October last year entered into an agreement with the Department of Agriculture to implement measures to block the entry of smuggled farm products. The measures include strengthening “second border” inspections and creating a technical working group to review guidelines and procedures on handling imported food items.
BOC in 2021 seized smuggled agricultural products worth about P1.228 billion and filed cases against importers involved in unlawful importation of such products valued at P293.9 million.
Also last year, the bureau scanned 66,379 shipments of agricultural products and issued 50 warrants of seizure and detention against shipments containing misdeclared and undeclared goods.
BOC assistant commissioner Vincent Philip Maronilla, in a text message to PortCalls, said the proposed PSI for agricultural products will be optional, “with incentive in terms of faster release time.”
He said this was also proposed last year as one of the measures to curb agricultural smuggling “given the limitations our ports have in examining refrigerated containers.”
In a stakeholders’ forum in 2020, Maronilla had already announced the bureau’s plan to implement a voluntary PSI for containerized cargoes to minimize smuggling and facilitate trade of goods.
READ: BOC revives plan for voluntary pre-shipment inspection of containers
Under Section 440 (Establishment of Advance Customs Clearance and Control Program) of the Customs Modernization and Tariff Act, BOC “may establish and implement a voluntary program to advance customs clearance and control on containerized cargoes.”
Asked if it’s possible for government to subsidize initial implementation of the program if approved by the Department of Finance, Maronilla said this is “less likely” given the limited government resources and funds.
Over the years, there had been several plans to implement PSI on containerized shipments to address smuggling, but these were opposed by stakeholders who cited implications of the measure on costs and trade facilitation.
Some members of the World Trade Organization, during its Fifth Trade Policy Review of the Philippines, also expressed their reservations about the PSI requirements.
Apart from the PSI, Guerrero noted that BOC has already instituted measures to improve its risk management system to allow the bureau to profile and detect suspicious shipments and address the problem of illegal importations.
In 2020, BOC implemented the Universal Risk Management System, which reviews and updates parameters of BOC’s selectivity system, and conducts a continuing study/profile of importers, exporters and customs brokers, among others matters.
Recently, BOC issued Customs Memorandum Order No. 05-2022 that implements the Offense Management System, which tracks and monitors the status of seized and forfeited goods to enhance the bureau’s risk assessment and profiling. – Roumina Pablo
