Co-author: Dyan Angela A. de la Fuente-Tandingan l May 29, 2026 l The Manila Times
The Bureau of Customs’ (BOC) total collection of P325.8 billion from January to April surpassed its target by 3.5 percent, 6.4 percent higher than the P306.1 billion in the same period in 2025, and its highest cumulative surplus in the last 10 years.
Under the leadership of Customs Commissioner Ariel Nepomuceno, the agency implemented internal reforms such as the “No Take” policy — a zero-tolerance directive against receiving payments or benefits from importers, and “Isumbong kay Commissioner,” a direct reporting online platform for complaints against personnel.
It has also launched campaigns on digitalization, transparency and anti-smuggling.
The BOC has partnered with key government agencies to heighten interagency regulatory visits and port inspections on heavily taxed, restricted and/or regulated industries. These include joint operations with the Philippine Drug Enforcement Agency, Philippine Ports Authority, Philippine National Police Maritime Group, and the Food and Drug Administration.
It has likewise intensified its Post-Clearance Audit (PCA), a review process conducted after goods have been released from customs custody, aimed at verifying whether all import declarations, duties, taxes and documentation are accurate and comply with existing laws, rules and regulations. A PCA is triggered upon receipt of an Audit Notification Letter. If discrepancies are found, violators are slapped with penalties (up to 600 percent for fraud) and criminal prosecution.
PCAs focus on valuation and/or classification issues, as well as doubts on the origin of goods with heightened scrutiny across three main risk categories:
– Misdeclaration of goods under a different Harmonized Systems (HS) Code or description to attract lower tariff rates or bypass permit requirements.
– Undervaluation or lowering the declared transaction value of goods to reduce customs duties and value-added tax on importation.
– Technical smuggling or using legal procedures in illegal ways, such as routing of dutiable goods through freeport zones, falsifying certificates of origin, or exploiting bonded warehouse rules.
Top Importers Office
Imports play a vital role in many businesses, with enforcement and compliance being critical issues for legitimate importers and manufacturers. However, there will always be unscrupulous players who resort to undervaluing of goods, circumventing permit requirements and other schemes that deprive the government of rightful revenue and create unfair competition against legitimate businesses.
But the BOC is now more capable, equipped, data-driven and more willing to impose the law.
It has also issued Customs Memorandum Order 6-2026 establishing the Top Importers Office to serve the country’s largest economic contributors, which account for 70 percent of the agency’s annual revenue.
While this elite office aims to strengthen coordination, facilitate the resolution of operational concerns, and support the secure and seamless movement of goods, the BOC has yet to issue regulations on compliance checks and audits of companies in the list.
In a trade environment where competitors may still be cutting corners at the risk of huge penalties, cessation of business and criminal prosecution, legitimate importers can turn rigid compliance and internal discipline into a competitive advantage. To protect their business, staying PCA-ready at all times is the best defense.
Some important housekeeping measures are:
– Leverage on legal remedies to verify the HS Code. Engage professionals to ensure that goods are classified correctly under the Harmonized Systems. Misclassification, intentional or not, leads to confiscation and penalties. If unsure, secure an Advance Ruling.
– Control risks and accurately document transactions. Keep complete records of invoices, bills of lading, contracts and payment records to support declared customs valuation. Unsupported transactions can lead to higher dutiable values.
– Secure permits prior to arrival of shipments. Regulated goods require permits from government agencies. Arrival of the goods without these could lead to immediate confiscation.
– Conduct a Customs compliance health check. Engage the services of a third party to review customs compliance ratings. Correction of erroneous practices prior to actual BOC audit mitigates the risk of penalties and prosecution.
– Designate a compliance officer. Assign a dedicated team or staff to oversee records, ensure up-to-date and strict adherence to import/export laws, free trade agreements and supply chain security standards, liaise with the BOC, brokers, freight forwarders and other relevant third parties.
The optimal approach is to go beyond testing enforcement limits and proactively institutionalize compliance across the supply chain process. Stay compliant amid stricter BOC oversight.
***The views expressed herein are their own and do not necessarily reflect the opinion of their office as well as FINEX. For comments, email msgorriceta@gorricetalaw.com. Photo is from Pinterest.