Philippine customs stays on track for collection goal despite broker protests

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Customs meets collection target

Highlights

Despite broker-led strikes and digital protests in early October, the Bureau of Customs expects to meet its P1.011-trillion annual collection target for 2023.
Between Oct. 1 and 9, the BoC collected P27.217 billion—12.7% below the period’s P31.191-billion target—reaching 78% of the full-year goal as of Oct. 9.
An additional P10 billion from Congress aims to support BoC modernization after its proposed 2027 budget was slashed to P5.9 billion, targeting technology upgrades and anti-smuggling operations.

Collection performance and October disruption

As reported by BusinessWorld Online, the Bureau of Customs says it remains on track to meet its P1.011-trillion collection target this year despite disruptions caused by customs brokers' protests in early October.

Commissioner Ariel F. Nepomuceno says the agency has been challenged by both a physical strike and a digital protest, but describes the impact as temporary. On Oct. 5, the Practicing Customs Brokers Association Philippines, Inc. urged licensed customs brokers and importers to voluntarily stop visiting the BoC's import processing website to protest the buildup of empty containers and depot congestion.

The BoC says it is in constant discussions with protest leaders and warns that any disruption to port operations may further aggravate existing challenges affecting cargo movement, supply chains and the broader trading community. On Oct. 7, PCBAPI Chairman Reynaldo T. Soliman says the group will suspend its digital protest and rest day at the port starting Oct. 8 after improvements in port conditions, while continuing to press foreign shipping lines to remove empty containers.

Between Oct. 1 and 9, the BoC collects P27.217 billion, 12.7% below the P31.191-billion target for the period. Average daily collections of P3.888 billion reach 87% of the P4.456-billion daily target, while total collections for the period represent 28% of the P98.028-billion goal for October.

For the year to date ending Oct. 9, collections stand at P784.624 billion, equivalent to 78% of the full-year target. Nepomuceno also says collections usually peak in October and November because of higher shipment volumes, although cargo volumes remain weak this year.

Tax, budget and modernization pressures

Nepomuceno says a second round of excise tax suspensions on kerosene and liquefied petroleum gas is expected to weigh on revenue, adding that the first round led to foregone monthly revenue of about P700 million. To offset that impact, he says the BoC will continue enforcing a strict assessment regime.

Inflation stands at 7.2% in September, up from 6.1% in August and ending four straight months of easing. The September reading brings the nine-month average to 5.4%, adding to the broader operating backdrop for trade and revenue agencies.

The BoC also says Congress has promised an additional P10 billion after the agency's proposed 2027 budget was cut to P5.9 billion from roughly P29 billion originally requested under the 2027 National Expenditure Program. The added funding is intended for modernization projects, including maintenance of existing X-ray machines, acquisition of information technology systems, sensors for radioactive shipments and three vessels for anti-smuggling operations in Philippine waters.

Nepomuceno also calls for amendments to the Anti-Agricultural Economic Sabotage Act to include the BoC in the council, saying the agency cannot directly charge alleged smugglers because it is not a member. Separately, the bureau is pursuing a public-private partnership for a Customs Processing System that is set to be piloted in three of its 59 ports and subports by mid-2027, with Batangas Port and Ninoy Aquino International Airport identified as the first two sites and Cebu or Davao under consideration as the third.

Our earlier article on Bangko Sentral ng Pilipinas term deposits tracked how money markets were pricing in another policy rate hike ahead of the central bank’s Oct. 22 review, with the average accepted yield on the seven-day facility edging higher. It also highlighted the inflation backdrop—September inflation at 7.2% and a 5.4% year-to-date average—and explained how BSP liquidity operations help steer market rates and absorb excess funds.

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