The Bureau of Customs (abbreviated BoC or BOC; fil, Kawanihan ng Adwana) is a Philippine
government agency
A government or state agency, sometimes an appointed commission, is a permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an administrati ...
under the
Department of Finance. The Bureau of Customs was established on February 6, 1902 by the
Insular Government of the Philippine Islands
The Insular Government of the Philippine IslandsThis form of the name appeared in the titles of U.S. Supreme Court cases, but was otherwise rarely used. See Costas v. Insular Government of the Philippine Islands, 221 U.S. 623, 1911. The Admini ...
of the
United States of America
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country primarily located in North America. It consists of 50 states, a federal district, five major unincorporated territo ...
, during the
American Colonial Era of the Philippines
American(s) may refer to:
* American, something of, from, or related to the United States of America, commonly known as the "United States" or "America"
** Americans, citizens and nationals of the United States of America
** American ancestry, pe ...
.
Function
The Bureau has the following duties under the Customs Modernization and Tariff Act (RA 10863):
(a) Assessment and collection of customs revenues from imported goods and other dues, fees, charges, fines and penalties accruing under the CMTA;
(b) Simplification and harmonization of customs procedures to facilitate movement of goods in international trade;
(c) Border control to prevent entry of smuggled goods;
(d) Prevention and suppression of smuggling and other customs fraud;
(e) Facilitation and security of international trade and commerce through an informed compliance program;
(f) Supervision and control over the entrance and clearance of vessels and aircraft engaged in foreign commerce;
(g) Supervision and control over the handling of foreign mails arriving in the Philippines for the purpose of collecting revenues and preventing the entry of contraband;
(h) Supervision and control on all import and export cargoes, landed or stored in piers, airports, terminal facilities, including container yards and freight stations for the protection of government revenue and prevention of entry of contraband;
(i) Conduct a compensation study with the end view of developing and recommending to the President a competitive compensation and remuneration system to attract and retain highly qualified personnel, while ensuring that the Bureau remains financially sound and sustainable;
(j) Exercise of exclusive original jurisdiction over forfeiture cases under the CMTA; and
(k) Enforcement of the CMTA and all other laws, rules and regulations related to customs administration.
History
![Manila skyline seen from Manila North Harbor](https://upload.wikimedia.org/wikipedia/commons/2/2e/Manila_skyline_seen_from_Manila_North_Harbor.JPG)
Prior to European colonization, people in the Philippines traded with others from
Southeast Asia
Southeast Asia, also spelled South East Asia and South-East Asia, and also known as Southeastern Asia, South-eastern Asia or SEA, is the geographical United Nations geoscheme for Asia#South-eastern Asia, south-eastern region of Asia, consistin ...
. Since money was not yet the medium of exchange, people bartered commodities. The rulers of the
barangays
A barangay (; abbreviated as Brgy. or Bgy.), historically referred to as barrio (abbreviated as Bo.), is the smallest administrative division in the Philippines and is the native Filipino term for a village, district, or ward. In metropolitan ...
collected tributes from the people before they were allowed to engage in trade. The practice of collecting tributes became part of the Customs Law of the Land.
The Spanish colonial era
During the
Spanish Colonial Era of the Philippines
Spanish might refer to:
* Items from or related to Spain:
**Spaniards are a nation and ethnic group indigenous to Spain
**Spanish language, spoken in Spain and many Latin American countries
**Spanish cuisine
Other places
* Spanish, Ontario, Cana ...
, Spain passed three important statutes:
* Spanish Customs Law which was similar to that of the Indies enforced in the country from 1582 to 1828. It was a concept of ''
ad valorem
An ''ad valorem'' tax (Latin for "according to value") is a tax whose amount is based on the value of a transaction or of property. It is typically imposed at the time of a transaction, as in the case of a sales tax or value-added tax (VAT). An ...
'' levied on import and export.
* A Tariff Board was established which drew up a tariff of fixed values for all imported articles on which ten percent (10%) ''ad valorem'' duty was uniformly collected.
* Another Tariff Law was introduced in 1891, which established the specific duties on all imports and on certain exports and this lasted till the end of the Spanish rule in the Philippines.
The American colonial era
When the Americans came to the Philippines, the Military Government continued to enforce the Spanish Tariff Code of 1891, which remained in effect until the
Philippine Commission
The Philippine Commission was the name of two bodies, both appointed by the president of the United States, to assist with governing the Philippines.
The first Philippine Commission, also known as the Schurman Commission, was appointed by Preside ...
enacted the Tariff Revision Law of 1901.
On October 24, 1900, the Philippine Commission passed Act No. 33 abolishing and changing the position of Captain of the Port to Collector of Customs in all ports of entry except the Port of Manila. The designation of the Captain of the Port in the
Port of Manila
The Port of Manila ( fil, Pantalan ng Maynila) refers to the collective facilities and terminals that process maritime trade function in harbors in Metro Manila. Located in the Port Area and Tondo districts of Manila, Philippines facing the M ...
was retained.
When the Civil Government was established in the Philippines, the most important laws passed by the Philippine Commission were the following:
* Tariff Revision Law of 1902 based on the theory that the laws of Spain were not as comprehensive as the American Customs Laws to conform with the existing conditions of the country.
* Philippine Administrative Act No. 355 passed by the Philippine Commission on February 6, 1902. The full implementation of this Act, however, was considered inadequate and incomplete, so the Customs Service Act No. 355, called the Philippine Customs Service Act was passed to amend the previous laws. After several modifications and amendments, the Philippine Customs Service finally became a practical counterpart of the American Customs Service.
* Act No. 357 reorganized the Philippine Customs Service and officially designated the Insular Collector of Customs as Collector of Customs for the Port of Manila.
* Act No. 625 abolished the Captain of the Port for the Port of Manila.
*Public Act No. 430 transformed the Philippine Customs Service to a Bureau of Customs and Immigration under the supervision and control of the Department of Finance and Justice.
When the
Department of Justice
A justice ministry, ministry of justice, or department of justice is a ministry or other government agency in charge of the administration of justice. The ministry or department is often headed by a minister of justice (minister for justice in a v ...
became a separate office from the Department of Finance, the customs service remained under the umbrella of the latter which set-up remained up to this time.
The Commonwealth Government
After the
Philippine Commonwealth
The Commonwealth of the Philippines ( es, Commonwealth de Filipinas or ; tl, Komonwelt ng Pilipinas) was the administrative body that governed the Philippines from 1935 to 1946, aside from a period of exile in the Second World War from 1942 ...
was established, the
Philippine Legislature
The Philippine Legislature was the legislature of the Philippines from 1907 to 1935, during the American colonial period, and predecessor of the current Congress of the Philippines. It was bicameral and the legislative branch of the Insular G ...
enacted Commonwealth Act No. 613 forming the Bureau of Immigration as a separate office from the Bureau of Customs.
On May 1, 1947, the Bureau of Customs has as its head the Insular Collector of Customs. He was assisted by the Deputy Insular Collector of Customs. Both officials were concurrently Collector of Customs and the Deputy Collector of Customs of the Port of Manila. The Republic Pursuant to the Executive Order No. 94 of Republic Act No. 52, the President of the Philippines reorganized the different departments, bureaus, offices and agencies of the government of the Republic of the Philippines. Consequently, the Insular Collector of Customs was changed to Collector of Customs for the Port of Manila. The reorganization took effect on July 1, 1947.
In 1957, Congress enacted the Tariff and Customs Code of the Philippines known as Republic Act No. 1937, otherwise known as the “Tariff Law of the Republic of the Philippines”. This took effect on July 1, 1957. The passage of this act by the defunct Congress of the Philippines subject to the provisions of the Laurel-Langley Agreement, became the first official expression of an autonomous Philippine Tariff Policy.
Before the passage of Republic Act 1937, all importations from the United States enjoyed full exemptions pursuant to the Tariff Act No. 1902 which was adopted by Republic Act No. 3 as the Tariff Laws of the Philippines.
The Republic
Pursuant to the Executive Order No. 94 of Republic Act No. 52, the President of the Philippines reorganized the different departments, bureaus, offices and agencies of the government of the Republic of the Philippines. Consequently, the Insular Collector of Customs was changed to Collector of Customs for the Port of Manila. The reorganization took effect on July 1, 1947.
In 1957, Congress enacted the Tariff and Customs Code of the Philippines known as Republic Act No. 1937, otherwise known as the “Tariff Law of the Republic of the Philippines”. This took effect on July 1, 1957. The passage of this act by the defunct Congress of the Philippines subject to the provisions of the Laurel-Langley Agreement, became the first official expression of an autonomous Philippine Tariff Policy.
2017 drug smuggling scandal
On May 28, 2017, the Bureau of Customs (BOC) seized worth of
methamphetamine
Methamphetamine (contracted from ) is a potent central nervous system (CNS) stimulant that is mainly used as a recreational drug and less commonly as a second-line treatment for attention deficit hyperactivity disorder and obesity. Methamph ...
in two warehouses in Barangay Ugong of
Valenzuela, Metro Manila
Valenzuela (, Tagalog: ), officially the City of Valenzuela ( fil, Lungsod ng Valenzuela), is a 1st class highly urbanized city in the National Capital Region of the Philippines. According to the 2020 census, it has a population of 714,978 peopl ...
. The BOC said that they acted on an intelligence report from the Chinese
General Administration of Customs
The General Administration of Customs (GAC; ) is a ministry-level administrative agency within the government of the People's Republic of China. It is responsible for the collection of value added tax (VAT), customs duties, excise duties, and o ...
. The seizure was made in accordance to a Letter of Authority issued by BOC Commissioner
Nicanor Faeldon
Nicanor Escalona Faeldon (; born July 29, 1965) is a Filipino former Marine who served as the Director-General of the Bureau of Corrections under the Duterte administration from November 21, 2018, until he was fired in September 2019. He se ...
. The BOC officials were accompanied by personnel of the
National Bureau of Investigation and
Philippine Drug Enforcement Agency
The Philippine Drug Enforcement Agency (PDEA, , ; Filipino: ''Ahensiya ng Pilipinas sa Pagpapatupad ng Batas Laban sa Bawal na Gamot'') is the lead anti-drug law enforcement agency, responsible for preventing, investigating and combating any ...
who inspected the warehouses found the contraband in five metal cylinders.
During the Senate and House hearings, details on how the shipment was smuggled into the Philippines were given. On May 16, 2017, the ship Guang Ping Voyage No. 1719S, which carried the container with the methamphetamine arrived at the
Manila International Container Port (MICP) in
Tondo, Manila
Tondo is a district located in Manila, Philippines. It is the largest in terms of area and population of Manila's sixteen districts, with a Census-estimated 631,313 people in 2015 and consists of two congressional districts. It is also the seco ...
. The cargo of the ship was lodged on the next day by Customs broker, Teejay Marcellana, who claims that the shipment contained kitchenware. The following day, the importer of the goods, EMT Trading, which is owned by Eirene Tatad, paid the customs and duties for the shipment. The firm says that they were not aware of the illegal drugs inside the shipment. The shipment was then passed through the green lane where shipments were not scanned through X-ray. According to protocol, shipments accepted by first-time importers or from China were not allowed to be passed through the green lane. A truck registered under Golden Strike Logistics transported the container from the MICP on May 23.
Chinese businessman Richard Tan, also known as Chen Ju Long, narrated during the congressional hearing that he called the Bureau of Customs at 11pm after he was informed about the illegal drugs shipment by Zhang Xiaohui of the Chinese General Administration of Customs. Customs broker, Mark Taguba claims that Tan was behind the smuggling of the drugs who says that he was hired by the businessman to "fix" the shipment through a middle man named Kenneth Dong.
The
Philippine Senate Blue Ribbon Committee
The Senate Committee on Accountability of Public Officers and Investigations of the Senate of the Philippines, or more popularly known as the Blue Ribbon Committee, is the Senate committee tasked to investigate alleged wrongdoings of the governmen ...
investigated and called the BOC personnel with links to the case as either incompetent or corrupt.
Organization
Office of the Commissioner (OCOM)
The Bureau of Customs is headed by a Commissioner, who is responsible for the general administration and management of the bureau. The Commissioner is assisted by six Deputy Commissioners and an Assistant Commissioner, who supervises the Internal Administration Group, Revenue Collection Monitoring Group, Assessment and Operations Coordination Group, Intelligence Group, Enforcement Group, Management Information System and Technology Group and Post Clearance Audit Group.
Customs Intelligence and Investigation Service (CIIS)
The Customs Intelligence and Investigation Service (CIIS) is the service of the Bureau mandated to the collection, collation, and evaluation of data and information on acts of economic sabotage and the conduct of surveillance, investigation and apprehension of cases involving violations of customs, tariff laws and regulations.
Customs Districts
The Bureau of Customs has 17 Customs Districts (as enumerated below). Each Customs District is headed and supervised by a District Collector, assisted by as many Deputy District Collectors as may be necessary. A Customs District has a designated “principal port of entry”. Generally, a principal port of entry has its “sub-port(s) of entry”.
Commissioners
See also
*
Department of Finance
*
Bureau of Customs Transformers (basketball)
*
Bureau of Customs Transformers (volleyball)
References
External links
*
{{authority control
Philippines
The Philippines (; fil, Pilipinas, links=no), officially the Republic of the Philippines ( fil, Republika ng Pilipinas, links=no),
* bik, Republika kan Filipinas
* ceb, Republika sa Pilipinas
* cbk, República de Filipinas
* hil, Republ ...
Customs
Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs ...
Customs
Customs is an authority or agency in a country responsible for collecting tariffs and for controlling the flow of goods, including animals, transports, personal effects, and hazardous items, into and out of a country. Traditionally, customs ...
Department of Finance (Philippines)
Philippine Drug War