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Bidding for the proposed Customs Processing System is eyed in July 2026 and contract awarding in February 2027
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The contract execution is scheduled for the fifth week of March 2027, with a 12-month development period
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Roll out will be in March 2028, even as the Bureau of Customs said it will still try to have an earlier roll out next year
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The CPS has an estimated cost of P16.865 billion over a 12-year concession period
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The system will have a P330 plus value-added tax transaction fee for every import/export declaration
The bidding for the proposed Customs Processing System (CPS) is eyed for July 2026 and contract awarding in February 2027.
The contract execution is scheduled for the fifth week of March 2027, with a 12-month development period for the system. This means roll out will be in March 2028, according to a presentation during BOC’s recent General Assembly of the Customs Industry Consultative and Advisory Council (CICAC).
Customs commissioner Ariel Nepomuceno said, however, that the agency will still try to implement an earlier roll-out next year.
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 an unsolicited public-private partnership (PPP) 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.
The CPS will replace BOC’s existing Electronic-to-Mobile System, introduced in the early 2000s and is considered outdated. It will eventually be integrated in phases into the system of 17 major ports and 39 subports across the country.
The unsolicited proposal requires a review by the BOC as the user and an approval of its mother agency, the Department of Finance. Nepomuceno last February said they were already at the negotiation stage.
According to the presentation during the CICAC assembly, the granting of original proponent status to the project proponent was scheduled for the second week of March.
Under the Swiss challenge, other firms will be invited to submit their own proposal and challenge the original proponent’s project.
Under PPP Code rules, the original proponent will have the right to match or better the financial proposal of the most superior comparative proposal. If the original proponent is able to match the proposal of the challenger or if there are no challengers during the comparative challenge period, the project will be awarded to the original proponent. Otherwise, the project will be awarded to the winning challenger.
According to the PPPC website, the project has an estimated cost of P742.49 million but according to the CICAC presentation, the project has an estimated cost of P16.865 billion over a 12-year concession period.
For the first year, the projected cost for system design and implementation is at P633 million. From years 2-12, the operating costs will be about P15.9 billion, with additional financing cost of P332 million and capital expenditures of about P16.7 million.
The CPS will also have a P330 plus value-added tax transaction fee for every import/export declaration.
This is lower than the initial proposed fee of P350.
Of the P330 fee, 10% or P33 will be the government share, while the P297 will support the operating expenses required to run and maintain the system.
Of the P927, P148.5 are for software licensing and system to ensure the platform technology remains secure, scalable, and continuously updated; P139.59 will support salaries and wages for the technical and operational teams responsible for system development, maintenance and support; and P8.91 covers utilities and other operational costs and administrative support. – Roumina Pablo
READ: BOC negotiating lower fee under proposed customs processing system
