THE chief of the Bureau of Customs (BOC) cited reforms are being instituted by his agency to curb bribery and conflicts of interest after receiving a ‘most corrupt’ tag from the US State Department (US DoS).
A statement issued by the BOC last Thursday stressed that institutional reforms have been underway under the leadership of its new commissioner, Ariel F. Nepomuceno, even before the release of the ‘2025 State Department Investment Climate Statements’ report.
The report noted that the US DoS ‘still considered [the BOC] to be one of the most corrupt agencies’ in the Philippines, America’s long-time ally in Southeast Asia.
According to the report, corruption has long hampered the government’s efforts to attract foreign investments in the country. It added that various organizations, including the World Economic Forum, cited corruption among the ‘top problematic factors’ for doing business in the Philippines.
‘The reforms we introduced within my first 100 days were not reactionary. They were proactive measures rooted in our commitment to clean governance. These measures directly respond to the very issues highlighted in the US State Department report, and we will continue pushing forward with both short and long-term solutions,’ Nepomuceno said.
Among the solutions the BOC cited as proof of reforms is the strict policy prohibiting any form of bribery or unlawful monetary transactions within the bureau. According to the BOC, violators of this ‘No Take’ policy face ‘immediate disciplinary action and possible prosecution.’
Nepomuceno has also issued a memorandum banning all BOC officials and employees from holding any business or financial interest in customs brokerage operations and requiring them to disclose familial ties to brokerage firms.
To strengthen internal oversight, BOC personnel are now mandated to submit affidavits on past or present connections to customs-related businesses to prevent hidden conflicts of interest.
In addition, the BOC has also temporarily suspended unserved ‘Letters of Authority’ and ‘Mission Orders’ to allow for a review of audit and inspection protocols to respond to complaints from the private sector over intrusive enforcement activities. The review would recalibrate procedures to ensure that enforcement remains risk-based, targeted and respectful of due process while avoiding undue disruption of legitimate trade.
The BOC will also maintain and strengthen the Customs Industry and Advisory Council (CICAC), which serves as a formal mechanism for engagement between the BOC and key stakeholders in trade, logistics and foreign investment. According to the BOC, it aims to institutionalize through the CICAC regular consultations, improve policy transparency, and co-develop solutions that improve efficiency in customs processes.
While these initial reforms are short-term solutions critical to restore trust and accountability, Nepomuceno said the BOC will focus on full digitalization and automation as its long-term strategies to reduce discretion and close systemic gaps.
Reducing human discretion and streamlining transactions will eliminate systemic vulnerabilities and build a modern, efficient and corruption-resistant customs administration, the statement read.
‘We are fully committed to transforming the Bureau of Customs into a model of integrity and professionalism. Corruption has no place in our agency, and we will continue to pursue reforms that protect investors, promote fair trade, and uphold public trust,’ Nepomuceno said.