Metro Manila (CNN Philippines) — Brokers and importers better shape up or they will lose their accreditation from the Bureau of Customs.
Customs Commissioner Nicanor Faeldon issued the warning in an interview by CNN Philippines’ The Source, after an unidentified broker charged the Philippine National Police more than five times the value of a shipment valued at ₱72 million. Charges ballooned to ₱400 million.
“I’m telling you guys: I am reviewing all of you,” he warned. “I may reduce you to half… I will be removing from the list.”
Faeldon said an investigation is underway and the broker “will definitely” be removed from the list of accreditation.
The BoC topped the list of most corrupt government agencies in a Social Weather Stations survey last year. While brokers overvalue shipment costs, importers sometimes undervalue, under-declare, or misdeclare their goods. Then they bribe customs officials to let shipments go through.
Related: Collusion among importers, brokers, Customs officials
“In the next several days I will be writing to (11,000 importers) individually. I would like to sit down with them again,” said Faeldon.
Since Faeldon was appointed in May, he has suspended some 20 BoC officials for unscrupulous activities. He is confident of a conviction based on the evidence.
Last month, he filed administrative cases against 18 employees because of under-valued fire trucks.
New systems
A former marine colonel, Faeldon was tasked to implement reforms in the BoC.
“There’s no system in the Bureau that really regulates and identifies offenders,” he said.
With no existing records, Faeldon has to visit 17 ports to retrieve information on brokers and importers.
He is taking steps to acquire 20 speedboats in 2017 to help patrol against smugglers along secluded parts of the country’s coastline.
“Today, we don’t even have one boat… these smugglers are not just bringing commodities right in front of our ports, but in the very wide long shores of this country,” Faeldon pointed.
The BoC chief also trying to create a “single national window” with the Philippine Port Authority and the banks to address delays and the long processing of shipments. The United Nations is donating a computer system to the BoC by next year to help in this project.
In 2015, the BoC came under fire when it adopted a policy of random checking balikbayan boxes which are opened without permission. The rule has been withdrawn, and the BoCnow uses K-9 dogs and x-rays for inspection.
“I would like to guarantee to the Filipino people, your balikbayan boxes will be handled like a personal thing,” said Faeldon. “I will guarantee you it will not be touched or opened if there is no reason to open it.”
Faeldon said his office is complying with the public call for transparency. Footage from CCTV cameras at the BoC can now be streamed online for public access.
“These CCTVs have caught so many offenders already,” he said. “If we file cases against those who are already identified (in) this CCTV, we’re looking at… (an) additional hundred people. But these are not big corrupt practices.”
With its x-ray machines, the BoC can only scan 8 percent of total shipments to the country. Faeldon has raised the new capability target to 25 percent as he wants to buy more machines.
Related: How the Customs Bureau monitors shipments
Six more x-ray machines are needed at the ports of Manila and Batangas, Faeldon said.
