The Federation of Philippine Industries (FPI) expressed strong support for sweeping reforms implemented by the Bureau of Customs (BOC), saying the measures could finally deliver President Ferdinand Marcos Jr.’s promise to end the reign of smugglers in the country.
FPI chairman emeritus Jesus Arranza said the reforms, which include a push for full digitalization, are “bold and systemic changes” that could turn the BOC “from one of the most corrupt to one of the most reformed.”
“These reforms will help restore the credibility of the Bureau of Customs. We in the FPI, who have long been victims of smuggling, feel their impact firsthand, and we will be the first to commend genuine reform efforts,” said Arranza.
He said Commissioner Ariel Nepomuceno’s agenda center on the full digitalization of customs processes to remove face-to-face transactions between importers and BOC personnel.
Implemented through a Public-Private Partnership (PPP) model, the modernization will automate import documentation, inspection tracking, and valuation—eliminating opportunities for collusion, bribery and technical smuggling.
Nepomuceno issued a memorandum barring all Customs officials and employees from holding any business or financial interest in customs brokerage operations. All BOC personnel should also disclose relatives up to the fourth degree involved in brokerage businesses.
“This is part of our commitment to good governance and transparency. There should be no conflict of interest in Customs service,” Nepomuceno said.
Nepomuceno also ordered the suspension and review of all unserved letters of authority and mission orders issued before July 2, 2025, to ensure they are legally sound and properly documented.
Arranza also cited a new memorandum of agreement between the FPI and the BOC, which institutionalizes cooperation to curb smuggling and illicit trade through joint monitoring and regular feedback mechanisms.
The deal also supports reforms such as real-time sharing of cargo manifests, deployment of industry experts, declaring smuggling a non-bailable offense, and tighter monitoring of smuggling cases.
Arranza said these efforts could help erase the BOC’s tarnished image, which was recently cited in the US Department of State’s 2024 Investment Climate Report for issues of corruption and red tape.
