RTC injunction forces BoC to delay modernization program

THE Bureau of Customs (BoC) said it is delaying its modernization program pending the resolution of a legal challenge.

According to Customs Assistant Commissioner Vincent Philip C. Maronilla, the Philippine Customs Modernization Program (PCMP) is subject to an injunction “prohibiting us from pursuing any modification or change in our customs systems.”

Speaking to reporters on the sidelines of an event on Tuesday, Mr. Maronilla said he was looking forward to “any advancement in our legal case (which) would allow the Bureau of Customs to move forward with the Customs Processing System (CPS), which he described as “the core component” of the modernization program.

The World Bank approved the project in 2020. It aims to streamline operations and processes through upgrading customs systems.

The project has a total cost of $104.38 million, of which the World Bank will be providing $88.28 million.

In a follow-up text, Mr. Maronilla said the injunction was issued by the Manila Regional Trial Court (RTC) in response to a petition against the cancellation of a P650-million computerization contract.

Mr. Maronilla said delays to developing the CPS would undermine the other components of the modernization, which would “not be beneficial to the Philippine government and the Bureau of Customs specifically.”

He said the BoC will re-engage with the World Bank on the project once it settles its legal issues.

“This project has been delayed because of this case and we’ve tried to look at all other legal options available to us. And yet, we’re still in a bind,” he said.

“We do understand that the World Bank that they’re also apprehensive about pursuing the CPS because of this legal case. So, I think the best way to move forward is to take a step back and re-engage when we’re ready to do so.”

Due to the delays, Mr. Maronilla said that the initial project completion target of 2025 is no longer attainable.

“I don’t think it’s right that we’re borrowing money and paying for something where the important component which we really needed is not there,” he said.

Meanwhile, Mr. Maronilla said the BoC is still working on its Customs laboratory project.

“That’s still on the table. That’s still being discussed. There are movements towards establishing the Customs laboratory in cooperation with the Japan International Cooperation Agency (JICA),” he said.

“But right now, no concrete plan is set other than close negotiations with JICA on how to move forward with funding and what are the other requirements needed for that to happen,” he added.

He said the agency is hoping to have the agreement finalized by this year.

The laboratory will improve the BoC’s technical capacity in classifying goods in aid of curbing smuggling, he added.

Mr. Maronilla expressed confidence in meeting the BoC collection target for February.

“Chinese New Year being early this year, it’s going to affect about two weeks of our collections. So, even with the drop in volume, we’re hoping to still have a surplus. We remain pretty confident that we’ll be able to meet the February target,” he said.

The BoC collection target for February is a little less than P70 billion.

In January, the BoC collected P73.329 billion, up 3.88% from a year earlier and exceeding the month’s target by 2.16%. — Luisa Maria Jacinta C. Jocson