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The proposed Customs Processing System is still under negotiation with completion and approval eyed for October
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Customs commissioner Ariel Nepomuceno said negotiation is taking some time because he was “not satisfied yet” with the system’s features, which will still have some human intervention
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Nepomceno said there will be another presentation by the proponent next week, and he was told the system features will be 100% fully-automated
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BOC was also able to further bring down the transaction fee for the system to P317 from P330
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The project will undergo a comparative challenge (Swiss challenge) process wherein other firms will be invited to submit their own proposal and challenge the original proponent’s project
The proposed Customs Processing System (CPS) is still under negotiation with completion and approval eyed for October, according to Customs commissioner Ariel Nepomuceno.
The Bureau of Customs (BOC) chief, in a recent chance interview with media, said negotiation is taking some time because he was “not satisfied yet” with the system’s features, which based on the proponent’s last presentation will still have some human intervention.
Nepomceno said this “defeats the purpose” of automation.
He noted though that there will be another presentation next week, and he was told the system features will be 100% automated.
Nepomuceno said BOC was also able to further bring down the transaction fee for the system to P317 from P330. The initial proposed fee was P350.
READ: BOC negotiating lower fee under proposed customs processing system
The joint venture composed of ADR Holding Corp., Ascent Solutions Philippines, Inc., JAMC Holdings Corp., Omniprime Marketing, Inc., and Arcilla Margaroli Salazar Holding Inc., which submitted the unsolicited proposal for the CPS, has also been granted original proponent status, Nepomuceno said.
The proposed CPS is 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 Public-Private Partnership (PPP) Center 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.
Nepomuceno said following the target approval in October, the project will undergo a comparative challenge (Swiss challenge) process wherein other firms will be invited to submit their own proposal challenging the original proponent’s project.
The Swiss challenge was initially planned for this month.
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.
Nepomuceno said they are eyeing to pilot test the CPS in the middle of next year, probably in Subic and Batangas.
In a presentation last March during its General Assembly of the Customs Industry Consultative and Advisory Council, BOC said contract execution is scheduled for the fifth week of March 2027, with a 12-month development period for the system, which means roll out will be in March 2028.— Roumina Pablo
