BOC reviewing P742.5M unsolicited proposal for customs processing system
Image from Bureau of Customs
  • An unsolicited proposal for a new customs processing system that will replace the Bureau of Customs’ Electronic-to-Mobile System is still under review
  • A joint venture composed of ADR Holding Corp., Ascent Solutions Philippines, Inc., JAMC Holdings Corp., Omniprime Marketing, Inc., and Arcilla Margaroli Salazar Holding Inc. submitted the unsolicited proposal for a CPS designed to streamline and automate customs procedures, ensuring efficient, transparent, and compliant trade facilitation
  • The proposal was submitted as a public-private partnership project with an estimated cost of P742.49 million
  • While there is no definite timeline for completing the evaluation, the project is being prioritized by Customs commissioner Ariel Nepomuceno
  • BOC deputy commissioner Agaton Uvero said they are eyeing to have a CPS implemented by the end of next year or the middle of 2027

AN unsolicited proposal for a new customs processing system (CPS) that will replace the Bureau of Customs’ (BOC) Electronic-to-Mobile (E2M) System is still under review, according to a BOC official.

The proposal was submitted as a public-private partnership (PPP) project with an estimated cost of P742.49 million. It will require a review by the BOC as user and an approval of its mother agency, the Department of Finance.

“With the recent change in the management of Customs, the proposal is still under review,” BOC Assessment and Operations Coordinating Group deputy commissioner Agaton Teodoro Uvero told PortCalls in an interview on October 22 at the sidelines of a joint BOC-PortCalls forum.

Customs commissioner Ariel Nepomuceno was appointed on June 30 and took over in July, along with newly-appointed BOC deputy commissioners.

A joint venture composed of ADR Holding Corp., Ascent Solutions Philippines, Inc., JAMC Holdings Corp., Omniprime Marketing, Inc., and Arcilla Margaroli Salazar Holding Inc. submitted the build-operate-transfer proposal for a CPS designed to streamline and automate customs procedures, ensuring efficient, transparent, and compliant trade facilitation.

Powered by artificial intelligence, the system includes key modules for managing customs declarations, risk assessment, payment processing, and other critical operations, providing a fully paperless trade environment that meets international standards, according to the project profile posted on the PPP Center (PPPC) website.

PPPC said it endorsed the unsolicited proposal to BOC on May 5, 2025 after being determined to be complete pursuant to the PPP Code. BOC in a letter dated May 14, 2025 informed the proponent and the PPPC that it will proceed to the detailed evaluation of the proposal.

Uvero said BOC is currently evaluating the technical and financial terms of the project.

While there is no definite timeline for completing the evaluation, he said the project is being prioritized by Nepomuceno, who earlier said he is pushing for the full digitalization of customs processes.

READ: BOC chief pushes digital shift to curb smuggling, secure supply chains

During a speech at the forum, Uvero said they are eyeing to have a CPS implemented by the end of next year or the middle of 2027.

Under Republic Act 11966 or the PPP Code signed in December 2023, unsolicited proposals must be approved by the implementing agency, after which the company will be given an Original Proponent Status for up to one year. The proposal will be subject to comparative challenge and the original proponent will have the right to match the best offer.

A CPS was also a core component of a previous World Bank-approved modernization project for BOC, but the project was terminated due to legal constraints.

Asked if the unsolicited proposal will not be hampered by the same constraints, Uvero noted that BOC is not the contracting party for the project and that Omniprime is part of the joint venture that submitted the unsolicited proposal.

“Hopefully they will no longer oppose something that they are involved in,” he added.

In 2015, Omniprime Marketing and Intrasoft International Corp. filed a case against BOC officials for the latter’s rescinding during the same year of the bidding for the P650-million Integrated Enhanced Customs Processing System and the National Single Window (NSW) Phase 2. 

The joint venture of Omniprime and Intrasoft is the lone bidder of the project that was shortlisted in December 2014 as eligible consultant. The project was put on hold by then Customs commissioner Alberto Lina to re-evaluate its feasibility.

In August 2015, the Manila Regional Trial Court (RTC) ruling favored Omniprime, ordering BOC to proceed with the procurement and prohibiting from initiating any other procurement to replace or upgrade the current BOC IT system.

In 2020, the RTC ordered BOC to issue a notice to proceed to Omniprime, to which BOC in 2021 filed an appeal for through the Court of Appeals but it remains pending.

In 2021, BOC initiated the procurement for extended support and maintenance of its E2M System, which Omniprime contested and the RTC in 2022 issued an order expanding its previous order to disallow any procurement related to the E2M System and other similar projects.

READ: BOC modernization project temporarily suspended

To challenge this, BOC filed a case with the Supreme Court in 2022 seeking a resolution to this ongoing legal impasse that significantly hinders its ability to modernize its critical systems. The case is still pending.–Roumina Pablo

 

 

 

 

 

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