Full digitalization key to address US woes on customs corruption — commissioner
Metro Manila, Philippines - Full digitalization in processes will help ease concerns of American businessmen on alleged corruption within the Bureau of Customs (BOC), Commissioner Ariel Nepomuceno said.
The US Department of State said the BOC was “still considered to be one of the most corrupt agencies in the country.”
When asked about the issue during a Senate budget hearing, Nepomuceno said it will persist if the agency does not fully digitalize its processes.
“This is already being done in other countries… The technologies are available, we just have to adapt one of them,” the customs chief said on Tuesday, Oct. 14.
Nepomuceno said digitalization must happen from submission of import documents up to assessment and payment.
He said the BOC could explore artificial intelligence or blockchain to minimize human intervention.
Finance Secretary Ralph Recto said around P1.9 billion has been set aside for customs digitalization in the 2026 budget.
In its 2025 Philippines Investment Climate Statement, the State Department reported: “Some US investors describe business registration, customs, and immigration processes as burdensome.”
“Customs processes, in particular, can present challenges and the Embassy has received multiple reports from US businesses of overly invasive searches, inconsistent customs charges, and solicitations of ‘facilitation fees’ (e.g., bribes) from some customs officials,” it added.
Malacañang said the BOC is getting in touch with the US Embassy and the American Chamber of Commerce to better understand the sentiment and act on reported issues.
“Nais nilang ipaliwanag at ipakita na merong sweeping reform agenda ang bagong pamunuan, nire-reinforce rito ang transparency, accountability, and professionalism,” Communications Undersecretary Claire Castro told a briefing on Tuesday.
[Translation: They want to explain and show the sweeping reform agenda under the new leadership, reinforcing transparency, accountability, and professionalism.
President Ferdinand Marcos Jr. named Nepomuceno as customs commissioner, replacing Bienvenido Rubio, in late June.
Castro said the administration is expecting a positive response from the State Department after the meeting.
