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Two industry groups expressed support for the Bureau of Customs’ proposed new customs processing system but said implementation should not translate to additional costs and procedures for businesses
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The Port Users Confederation of the Philippines said the cost of the creation and management of the CPS should be shouldered by government
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The BOC should subsidize costs associated with the development, deployment or maintenance of the new system, according to the Philippine Exporters Confederation
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The exporters’ group also said the CPS should undergo a regulatory impact assessment by the Anti-Red Tape Authority
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PHILEXPORT noted that higher fees will affect stakeholders who will are mostly small and medium enterprises who continue to face headwinds in domestic and international trade
Business and port industry groups expressed support for the Bureau of Customs’ (BOC) proposed new customs processing system (CPS) but said it should not translate to additional costs and procedures for the private sector.
The Port Users Confederation of the Philippines, Inc. (PUC) in a position paper said that upgrading the BOC system at the expense of companies – particularly those involved in port, shipping, logistics, and trade – means they will simply “face the same challenges and difficulties in doing business in the Philippines, albeit under a different name.”
BOC on January 23, 2026 conducted a public consultation on its proposed new CPS and its fees structure, where bureau officials, project proponents, and key stakeholders discussed insights and improvements ahead of the system’s implementation.
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 proposal for the system that will replace BOC’s Electronic-to-Mobile (E2M) System, introduced in the early 2000s and considered highly outdated.
The proposal was submitted as a public-private partnership project with an estimated cost of P742.49 million. It will require a review by the BOC as the user and approval of its mother agency, the Department of Finance.
READ: P742.5M proposal for new customs processing system under review
PUC noted that as a government infrastructure project, the cost of creation and management of the CPS “should reasonably be shouldered by the government, not the private sector.”
“To pass the costs to the private sector would unnecessarily burden private stakeholders and negatively affect the conduct of business in the Philippines,” the group added.
The Philippine Exporters Confederation, Inc. (PHILEXPORT), in its own position paper, also said the CPS is a “welcome response” as an ICT-enabled system to streamline and automate customs procedures, ensuring efficient, transparent, and compliant trade facilitation.
“However, we understand that the fee involved is about P300, an information that we cannot validate at the moment because we were not provided a copy of this proposal,” PHILEXPORT noted.
Based on information on hand, PHILEXPORT expressed “strong opposition” to the project due to the “huge jump in fees.” It noted there are already fees imposed under the E2M System, such as the following lodgement fee of BOC-accredited value-added service providers:
- Cargo Data Exchange Corp.’s P45 per entry, P18 per sea manifest, and P23 per air manifest
- E-Konek Pilipinas, Inc.’s P45 per entry, P15 per air/sea manifest
- GoFast’s P40 per container
PHILEXPORT said fee increases “will impact directly on the costs of products and services and will negatively impact on the competitiveness of our exporters and importers.”
To ensure this does not happen, PHILEXPORT recommends that the CPS undergo a regulatory impact assessment (RIA) being implemented by the Anti-Red Tape Authority to determine how it will affect stakeholders “who are mostly micro, small and medium enterprises that continue to struggle against domestic and international headwinds.”
PHILEXPORT noted these issues continue to dampen consumer confidence and global demand throughout this year, and is a view shared by the government, economists and private sector.
READ: No to higher fees under proposed customs processing system — UPC
Under Republic Act (RA) No. 11032, otherwise known as the Ease of Doing Business and Efficient Government Service Delivery Act of 2018, any new regulation or system must not add undue regulatory burden or cost to stakeholders
Moreover, PHILEXPORT noted that the RIA is in line with RA 11032.
“The result of the RIA should help guide the BOC in assessing the viability of implementing the CPS in the context of trade and economic development,” PHILEXPORT pointed out.
Further, PHILEXPORT recommends the project proponent to break down the cost components of the fee to help stakeholders determine duplications or other external charges, if any, in addition to this.
The group also recommends that BOC subsidize the cost associated with the development, deployment, or maintenance of the new system, “consistent with the principle that modernization initiatives are public investments intended to benefit the entire trading community and enhance national competitiveness.”
PHILEXPORT said the CPS should also be able to integrate with the other BOC systems to facilitate seamless trade transactions through customs. —Roumina Pablo
