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The United Portusers Confederation of the Philippines, Inc. supports the Bureau of Customs’ proposed new customs processing system but requests that its implementation should not result in increased fees or additional administrative burdens
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UPC recommends due process and stakeholder consent before any rate adjustment
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UPC wants CPS to undergo regulatory impact assessment by the Anti-Red Tape Authority prior to implementation
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It also asks BOC to ensure that the cost of modernization, if any, be subsidized by the government, as part of its investment in trade facilitation
The United Portusers Confederation of the Philippines, Inc. (UPC) supports the Bureau of Customs’ (BOC) proposed new customs processing system (CPS) but requests that its implementation should not result in the immediate increase in fees or additional administrative burdens.
While it fully supports BOC’s efforts to modernize and improve the efficiency of customs processes, UPC in a position paper “strongly” urges “the Bureau to ensure that the implementation of the CPS shall not result in any additional financial burdens or sudden increases in fees, charges, or related costs currently being paid by port users, importers, exporters, and customs brokers.”
The group recommends, instead, to maintain the status quo in the current fee structure under BOC’s Electronic-to-Mobile (E2M) System and to refrain from imposing new or higher charges under the CPS without due process and stakeholder consent.
“The proposed CPS, being a replacement or enhancement of the existing E2M system, should not be used as a mechanism to introduce higher fees or new charges without clear legal and economic justification, proper cost-benefit assessment, and full stakeholder consultation,” UPC said.
BOC on January 23 conducted a public consultation on its proposed new CPS and its fees structure.
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 a new CPS that will replace the E2M System, which was introduced in the early 2000s and is known for its usual slow down.
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.
READ: P742.5M proposal for new customs processing system under review
According to the project profile posted in the PPP Center website, the 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.
UPC noted that current fees under the E2M System, such as the lodgement fee of BOC-accredited value-added service providers, “are already reflective of the cost of digital and administrative facilitation under the present system.”
UPC listed as example:
- Cargo Data Exchange Corp.’s P45 per entry, P18 per sea manifest, and P23 per air manifest
- E-Konek Pilipinas, Inc.’s P55 lodgment fee plus import fee (which varies by invoice value)
- GoFast’s P40 per container
“Any further increase or imposition of new fees in connection with the CPS would unduly burden the freight forwarding community, particularly at a time when businesses are still recovering from global disruptions and heightened operating costs,” UPC pointed out.
It added that sudden increases in customs-related fees can affect logistics planning, financial projections, and “ultimately the competitiveness of Philippine trade operations.”
UPC also pointed that in line with 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 but rather, should simplify processes, enhance transparency, and reduce compliance costs.
Also pursuant to RA 11032, UPC noted that all proposed regulations and systems introduced by government agencies must undergo a regulatory impact assessment (RIA) prior to implementation to ensure that such measures do not impose undue regulatory burdens on citizens and businesses.
The RIA process also promotes public participation and transparency, allowing affected stakeholders to meaningfully contribute to policy formulation.
“Accordingly, we respectfully submit that the proposed CPS must first undergo full Regulatory Impact Assessment by ARTA [Anti-Red tape Authority] before any implementation or imposition of new procedures and fees, in compliance with the principles of the Ease of Doing Business Act and sound regulatory governance,” UPC said.
The group also noted that modernization of customs systems “should primarily aim to streamline processes and improve service delivery.”
“Efficiency should be measured by faster clearance times, transparency, and improved system reliability — not by increased costs to stakeholders,” UPC said.
Should the new CPS proceed, UPC said they “respectfully submit that any cost associated with the development, deployment, or maintenance of the new system should be borne or subsidized by the government, consistent with the principle that modernization initiatives are public investments intended to benefit the entire trading community and enhance national competitiveness.”
The group said this approach recognizes that the private sector, particularly port users, “already bears significant operating expenses under the current customs framework.”
“It would therefore be equitable and in keeping with sound public policy for the government to shoulder or subsidize the costs of implementing a system that primarily serves a regulatory and facilitative function.
Moreover, UPC said introducing new or higher fees under the new CPS would contradict its modernization objectives and would run counter to the government’s broader thrust to promote competitiveness and reduce the cost of doing business in the Philippines.
READ: BOC commits to sustaining automation initiatives
“In all, UPC supports the Bureau of Customs in its pursuit of digital transformation. However, we respectfully emphasize that modernization must not lead to increased costs, reduced predictability, or additional administrative burdens for legitimate port users,” the group said. — Roumina Pablo
