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01 Customs Reforms and Modernization Customs Reforms and Modernization (The Philippine Experience) Customs Cooperation Committee Conference Beijing, China 21-24 April 2004 By: Deputy Commissioner George M. Jereos Philippine Bureau of Customs Role of Customs Administration in Economic Development and Services in the Trade Community in Particular World Trade Organization (WTO) • Increasing importance of international trade to the economic well- being of nations Computerization • Economic growth • Increased trade flows • Collect more revenue • Adopt modern technology and efficient streamlined procedures WTO Agreement on Customs Valuation • Valuation system based on the transacted price between the importer and his supplier 2 VisionVision StatementStatement AA customscustoms serviceservice moremore responsiveresponsive toto clients’clients’ needsneeds andand supportivesupportive ofof governmentgovernment goals,goals, adheringadhering toto world’sworld’s bestbest practices;practices; oneone thatthat everyevery FilipinoFilipino cancan trulytruly bebe proudproud of.of. 3 MissionMission StatementStatement ¾ To maximize collection of government revenues ¾ To facilitate trade and commerce ¾ To prevent smuggling and enforce compliance with existing laws, rules and regulations on customs and tariff ¾ To implement international commitments on customs and trade ¾ To safeguard the general public/environment against the entry of hazardous and harmful materials and substances ¾ To support industry and work in partnership with the private sector to promote business in the country 4 Overview of the Philippine Customs Administration Organizational Structure COMMISSIONER OF CUSTOMS ANTONIO M. BERNARDO INTERNAL CUSTOMS ASSESSMENT CUSTOMS REVENUE INTELLIGENCE MANAGEMENT INFORMATION POST ENTRY ADMINISTRATION AND OPERATIONS COLLECTION AND ENFORCEMENT SYSTEM AND AUDIT GROUP COORDINATING GROUP MONITORING GROUP GROUP TECHNOLOGY GROUP GROUP GEORGE M. JEREOS GIL A. VALERA RAY M. ALLAS ALEXANDER M. AREVALO NELSON J. SOLIMAN FINANCIAL ADMINISTRATION IMPORT AND PORT LEGAL FINANCIAL COLLECTION INTELLIGENCE AND ENFORCEMENT PLANNING & SYSTEM TECHNOLOGY TRADE INFORMATION COMPLIANCE MANAGEMENT OFFICE ASSESSMENT OPERATIONS SERVICE SERVICE SERVICE INVESTIGATION AND SECURITY DEVELOPMENT MANAGEMENT AND RISK ANALYSIS ASSESSMENT OFFICE MA. CORAZON C. AZAÑA OFFICE SERVICE DAMAN PLACIDO LIWAYWAY MENDOZA RAMON CUYCO SERVICE SERVICE SERVICE SERVICE OFFICE OFFICE ERLINDA GARCIA OIC - IAG GLORIA SANTOS ANTONIO AGUILAR RAMON SALAZAR III VIRGILIO M. DANAO JOSEPHINE MAGALLO BERNARDO SALES ROLANDO LIGON JR. REYNALDO UMALI BUDGET HUMAN RESOURCE VALUATION AND AUCTION & CARGO RULING REVENUE COLLECTION INTELLIGENCE PLANNING MNGT SYSTEM TRADE INFO CUSTOMS POLICE AUDIT DIVISION MANAGEMENT DIV CLASSIFICATION DIV MONITORING DIV RESEARCH DIV ACCOUNTING DIV PERFORMANCE DIVISION & INFOR DIV MANAGEMENT ANALYSIS DIV I DIVISION DIVISION I DIVISION RAFAEL CRISOL JR. ERLINDA P. LAZARO MELITA DEL ROSARIO ANTONIO AGUILAR LILIBETH SANDAG EMILIO JACINTO EVALUATION DIV JARUS PAGUNTALAN JOSE YUCHONGCO DENNIS PANTASTICO BENJAMIN SANTOS MA. LOURDES LLAMZON OIC JONATHAN SORIANO PLANNING & POLICY PUBLIC AND ASSESSMENT EXPORT & PROSECUTION & STATISTICAL LIQUIDATION & INVESTIGATION & SYSTEM DEV'T. TECHNICAL TRADE INFOR WATER PATROL AUDIT RESEARCH DIVISION ASSISTANCE DIV COORDINATING COORDINATING DIV LITIGATION DIV ANALSIS DIV ASSESSMENT PROSECUTION DIV DIVISION SUPPORT ANALYSIS DIV II DIVISION DIVISION II JOHN SIMON FE T. JUSAYAN & MONITORING DIV CORAZON SORIANO ROBERTO MADRID EDNA BARRIDA AUDIT DIVISION JAVIER ALPAÑO JOSEPHINE NAGALLO DIVISION WIVINA PUMATONG ACCOUNTING GENERAL WAREHOUSE PORT APPELLATE BONDS AUDIT INTERNAL INQUIRY RADIO AUDIT DIVISION SERVICES DIV COORDINATING DIV OPERATIONS DIV DIVISION DIVISION & PROSECUTION DIV COMMUNICATION DIVISION III ALFREDO PALMA BUENAVENTURA SAMSON ALVIN GUIAM EDMUNDO MAGDARAOG ORENCIO BARANDA ANJU CASTIGADOR DIVISION PRISCILLA GRANA CENTRAL RECORDS TAX EXEMPT MANAGEMENT DIV DIVISION AUDIT GLADYS CABUGAWAN EDNA GARCIA DIVISION IV MEDICAL AND AUDIT DENTAL DIVISION DIVISION V FE PADRE COLL. DIST. IV COLL. DIST. VII COLL. DIST. XIII COLL. DIST.XIV COLL. DIST. I COLL. DIST. II COLL. DIST. II - B COLL. DIST. III COLL. DIST. V COLL. DIST. VI COLL. DIST. VIII COLL. DIST. IX COLL. DIST. X COLL. DIST. XI COLL. DIST. XII PORT OF PORT OF PORT OF PORT OF PORT OF PORT OF MICP NAIA PORT OF PORT OF PORT OF PORT OF PORT OF PORT OF PORT OF BATANGAS CEBU SUBIC CLARK INT'L AIRPORT SAN FERNANDO MANILA REYNALDO NICOLAS CELSO TEMPLO LEGASPI ILOILO TACLOBAN SURIGAO CAGAYAN DE ORO ZAMBOANGA DAVAO ALBERTA IGLESIAS RONNIE SILVESTRE NAPOLEON MORALES ENRICO TURINGAN JUAN TAN BILLY BIBIT MARIETTA JAMAORANOS WILLIAM REYES LOURDES MANGAOANG TOMAS ALCID ANICETO SANCHEZ ARNEL ALCARAZ ALEXANDER ARCILLA EPZA-BAGUIO LIMAY NORTH HARBOR MLA. DOM. AIRPORT SIAIN TABACO PULUPANDAN MACTAN ISABEL BISLIG OZAMIS ZIA DADIANGAS APARRI MARIVELES Airmail Distribution Center PUERTO PRINCESA JOSE PANGANIBAN DUMAGUETE CATBALOGAN NASIPIT ILIGAN JOLO MATI CLAVERIA MASINLOC SAN JOSE TAWI-TAWI PARANG SUAL FTI BASILAN LIA POSTAL OFFICE SALUMAGUE 5 Overview of the Philippine Customs Administration Number of District Ports - 15 Number of Sub-ports - 37 Collection District Subports I. Port of San Fernando EPZA Baguio Aparri Claveria Sual Laoag International Airport Salumague II.A Port of Manila Limay Mariveles Masinloc FTI Customshouse Postal Office Rosario Cavite PEZA Laguna PEZA II.B Manila International Container Port North Harbor III. Ninoy Aquino International Airport Manila Domestic Airport Airmail Distribution Center IV. Port of Batangas Siain Puerto Princesa V. Port of Legaspi Tabaco Jose Panganiban VI. Port of Iloilo Pulupandan VII. Port of Cebu Mactan Dumaguete VIII. Port of Tacloban Isabel Catbalogan San Jose IX. Port of Surigao Bislig Nasipit X. Port of Cagayan de Oro Ozamis Iligan XI. Port of Zamboanga Zamboanga International Airport Jolo Tawi-tawi XII. Port of Davao Dadiangas Mati Parang XIII. Port of Subic - XIV. Port of Clark International Airport - 6 Overview of the Philippine Customs Administration Personnel Complement Collection District Port/Offices Per Plantilla Actual Office of the Commissioner 1,404 1,004 I District 1 – Port of San Fernando 64 49 II-A District 2A – Port of Manila 1,621 1,319 II-B District 2B – MICP 382 549 III District 3 – NAIA 704 861 IV District 4 – Port of Batangas 107 128 V District 5 – Port of Legaspi 57 57 VI District 6 – Port of Iloilo 55 47 VII District 7 – Port of Cebu 167 208 VIII District 8 – Port of Tacloban 69 51 IX District 9 – Port of Surigao 69 32 X District 10 – Port of Cagayan de Oro 168 150 XI District 11 – Port of Zamboanga 85 72 XII District 12 – Port of Davao 201 226 XIII District 13 – Port of Subic 46 70 XIV District 14 – Port of Clark 27 54 TOTAL 5,226 4,877 7 Size of Total Trade as a Percentage of GDP and Importance of BOC in Revenue Generation National Revenue Bureau of Customs 17% 83% 1.0 0.8 0.6 Other Agencies e d a r T 0.4 l a t o T 0.2 0.0 2000 2001 2002 2003 Budget 8 Philippine Strategy and Experience in Customs Reforms/Modernization • The ISSP – Information Systems Strategic Plan • Acquisition of Hardware and Software • Creation of a Change Management Team 9 Philippine Strategy and Experience in Customs Reforms/Modernization a) Electronic Manifest System • Electronic copies of manifests were received from shipping/airlines and inputted to the BOC’s system to cross- match with the entries filed b) The Electronic Entry into the Bureau’s computers • Direct Traders Input (DTI) • Entry Encoding Center (EEC) • Electronic Data Interchange (EDI) c) Assessment Module • Automatically computes taxes and duties to be paid 10 Philippine Strategy and Experience in Customs Reforms/Modernization d) Selectivity System • Determines the Risk Profile of shipments by subjecting the data of the shipments to some criteria “screens” or “tests” e) The Collection System • Payment of duties and taxes in advance through 160 bank branches • Payments are matched against what importers must pay as determined by the Assessment Module • Remitted to the National Treasury • Combination of several computer sub-systems, among which are: 1. Project Abstract Secure 2. Automated Matching of Payments & Payables 3. Project Reconcile 4. On-Line Release System (OLRS) 11 Recent Enhancements Status of BOC Application Systems Automated Customs Operations System (ACOS) • Import Entry Processing System • Bonds & Liquidation System • Manufacturing Warehouse Liquidation System • Informal Entry Processing System • Transshipment & other Transfers Processing System • Licensing and Clearance System • Export Entry Processing System • Assessment/Selectivity/Automated Release System • Passenger Entry Processing • Passenger Database Assessment Module/Collection System/ Baggage Handling Monitoring System • Cargo & Baggage Tracking • General Purpose Cargo & Baggage Handling System 12 Recent Enhancements Status of BOC Application Systems Operations Support Management System (OSMS) • WTO Valuation System • Value Reference Information & Statistical Analysis using Data Warehouse • Trade Compliance System • Intelligence System • Intelligence Database • Client Registration Profiles Systems • Goods Intelligence System • Statistical Analysis & Reporting System • Legal Management System • Legal Database System • Cases Tracking System 13 Recent Enhancements Status of BOC Application Systems Resources Management & Information Support System (RMISS) • Human Resources Management System • Human Resources Information System • Leave Monitoring System • Payroll
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