To the Greatest Author and Publisher

He investigates, He encodes, He types, He drafts, He edits, He

proofreads, He prints, and He bindsmy most profound thanks

for watching over me everyday of my stint in the Bureau of
Customs (BOC);
To those who have contributed in any manner to the completion
of this work

and, there are many of them only that they all didnt want

their right hands to know what their left hands were doing as
they gave inputs, helped type the manuscript, edited the final
draft, and provided their erudition in areas I was greatly
inadequatemy heartfelt appreciation;

To those I may have offended as I pushed myself to the limit,

hoping that this work will eventually see printmy sincere
apologies; and

To the unbelieversyoure the reason for this book.

To God Be The Glory.

Why write anew?

. . . because of a pledge;

yes, my CES PLEDGE, thus

I AM A MEMBER OF THE CAREER EXECUTIVE SERVICE
TO IT, I PLEDGE A DEEP AND ABIDING COMMITMENT:
That I may sincerely participate in its

goal of building a community of equals

and an environment of shared humanity.

TO IT, I PLEDGE LOYALTY AND DEVOTION:
That I may perform my assigned tasks with
integrity, imagination, and optimism,

I shall bring change where this is needed,

expertise where this is missing, and
leadership where this is wanting.

TO IT, I PLEDGE A FIRM DETERMINATION

AND RESOLVE:

That I may share in the noble purpose of

making my countrymen free to develop
to the fullness of their potential.

Thus, I shall also be ennobled and be free.

ALL THESE, I PLEDGE WITH PRIDE
AND HUMILITY AS A MEMBER OF

THE CAREER EXECUTIVE SERVICE.

dedicated to all the CESOs in the Bureau of Customs, whose quiet competence amidst the

ruckus, confusion, and pretentions, has provided the necessary anchor that prevented the
BOC from being tossed about like a cork and washed away to distant shores of uncertain

fate. Straight ahead, CESOs! Just like Florence, you shouldnt be needing a multitude of

witnesses for [your] good deeds; just an accolade of an approving conscience. RGC

Preface
_____________________________________________________

During the 2013 State of the Nation Address (SONA), the

country's Chief Executive challenged every Tom, Dick and Harry
to come forward and help the government address the many
problems plaguing the Bureau of Customs (BOC) today, notably
smuggling.
Addressing both houses of Congress, and the millions of
Filipinos glued on their TV sets, Pnoy minced no words in
excoriating the BOC. The President let loose a scathing rebuke
against the agency that is unparalled, so far, in recent memory.
Then he hurled the challenge to those who would like to rebuild
the BOC.
Great! Count me in, I hollered, raising my clenched fist
up in the air.
But, it dawned on me very swiftly: What can I possibly
do? With my office's manpower complement virtually
emasculated; and with immediate bosses I am not in sync with, I

should think of other ways to respond to that presidential call for

civic mindedness. Aha!
The idea of writing a book came to the fore once more.
Initially, I thought of titling this work simply as: Customs
Sine Qua Nons. But, I told myself: if clear and direct words about
the agency are drowned by the BOCs complacency; if vulgar and
scathing remarks of Pnoy didnt move its people to action, what
more with a phrase that sounds weird like Customs Sine Qua
Nons?
Id rather make what keeps the BOC oblivious to reforms
as the title of this workits SMUGNESS.
Webster defines SMUG, adj., as full of self-satisfaction;
complacent. It would not be hard to understand, therefore, if the
public perceives the port zone as the LAIR where self-satisfied and
complacent people nestle.
Thus, the idea of CUSTOMS SMUGLAIR came to being;
and let it be the final title.
In my MEMO TO THE NEXT COMMISSIONERTEN
FAILINGS IN THE CUSTOMS BUREAU1 (2010), I already
wrote the things that were wrong, and the things that were never
done right. Yet nothing happened. So what difference will it make?
In that MEMO, I identified what ails the bureauGUYS
1

Unpublished;

ADRIFT. I also suggested what can arrest themCLEAR

FOCUS. I got some audience from customs bosses. They
invariably asked me, Can we really fight smuggling? When I
pointed out that my MEMO contained a matrix of specific doables, they didn't bother to call me anymore.
So, why write anew?
Paring Bert, writing is basically expressing one's mind. If it
educates others, it's a bonus.
So, go solo! Go incommunicado until you finish Customs
SMUGLAIR, I told myself. After all, the late Vince Flynn was
right when he said, writing is by necessity a solitary process.
Simply moved by a desire to educate those who would like
to play a part in cleaning the Augean Stable, this work is being
rushed to catch the fervor brought about by the Presidential
SONA whose fire might just fade and lose steam if not taken
advantage of.
And, even if just a lonely soul will get enriched with just a
modicum of knowledge and ideas on customs operations, this
work shall have achieved its purpose.
Whatever! Senator Jose W. Diokno comes as a source of
inspiration for this book, he said:
Why be honest, when it pays to be dishonest? Why fight for
others, when they won't fight for you? or even for themselves?...

The answer I think lies in what life means to you. If life means
having a good time, money, fame, powers, securitythen you don't
need principles, all you need are techniques. On the other hand, if
happiness counts more than a good time, respect more than fame,
right more than power, and peace of soul more than security; if
death doesn't end life but transforms it, then you must be true to
yourself and to God, and to love the truth and justice and freedom
that are God's other names.
Ramon Gazo Cuyco
19 September 2013
Right at the sidelines of the 3rd Integrity Summit
Makati City, The Philippines

CONTENTS
Acknowledgments
Why write anew?
Preface

PART I: Todays realities

Introduction (Ground Level Realities)

Chapter 1 (Top Heavy Just Like Barbie)
Chapter 2 (Doom! Tara Tara)
Chapter 3 (RATSA Good Program Gone Wrong)
Chapter 4 (Off the Mark, Most of the Times)

PART II: What we ought to do

Chapter 5 (Yes, Peter Wallace, Customs Can Be Cleaned)
Chapter 6 (The Mustard Seed of Reforms)
Chapter 7 (A Matrix and a Dashboard)
Chapter 8 (Change in Mindsetthe Road Not [yet] Taken)
Chapter 9 (Sunshine Imperativethe Graceful Push of Poe)

PART III: The sparks for a new beginning

Chapter 10 (The Last Quarter Storm)
Chapter 11 (My Roadmap Towards a TAR Customs
Administration)
Chapter 12 (The Urgency of Green Ports)

PART IV: Growth must be inclusive; it must be security-impressed,

too

Epilogue

Appendices (Proposals Seeking for An Audience)

AM ADU (Asset Management And Disposal Unit)
P ATAS (Pro-poor Access To Auction Sales)
TR IP 4COOP (Tax Relief and Incentives Programs for Cooperatives)
JCCIQSA (Joint Chiefs of Customs-Immigration-Quarantine-Security
Agencies)

Those who insist theyre infallible

because they had the President's support
must not have seen the movie, Titanic
the Unsinkable.
Just because you're handpicked
by the President, you instantly become
infallible? Or, unsinkable?
Paring Bert, presidential support
is a big thing, but it's not everything; it's a
plus factor, a super lifeline, but it will not
necessarily make you The Commissioner
in the rough and murky waters of the
Aduana. You have to define your course
your way; steer clear of turbulent waters
along the way; and incessantly watch out
for icebergs in your sea lane.
Failing in this, you're bound to
hear yelling, and shouting, and panicking,
and crying; then, finally, you'll hear nothing
more. You go down into the cold depths
interred with what you believe you were
unsinkable.

Introduction

Ground Level Realities

___________________________________________________
Customs is older than Christianity.
Stephen Kershaw, wrote what may have been
the beginning of trade in goods and services (TIGS)
by sea, thus:

Greece has many small fertile plains but only a

few large ones, although the jagged, indented
coastline means that nowhere is more than about 80
km from the sea. This led many Greeks to become
first-rate sailors despite the capriciousness of the
Aegean Sea, where winter sailing was out of the
question. The many islands acted like steppingstones to Asia Minor, and Hellenic mariners were
enticed eastwards, making the Aegean basin a hub of
exchange for goods and (perhaps more importantly)
ideas between Europe, Asia and Egypt. 2
And, out of Greeces Age of Tyrants, through
the days of Drakonwhose laws where known for
their severityemerged Solon, a man of good
birth,

respected

for

his

integrity

and

moderation,3who later on introduced an export

ban on all agricultural produce except olive oil. 4
Yes, in the days of yore, dutiable goods were
traded,

bartered,

or

simply

changed

hands

anywherein the markets, on the shores, and in

public squares. Even places of worship and other
hallowed grounds were not spared; they were
2

A Brief Guide To CLASSICAL CIVILIZATION (From the origins of democracy

to the fall of the Roman Empire), p. 82;
3
Ibid, p.84;
4
Ibid;

teeming with people, traders, financiers, pawners,

and barkersthey're all there. Those places were
not off-limits to tax collectors, facilitators, pirates
and other shady characters.
Customs

transactions

happened in areas

wherever money flowed abundantly.

Paring Bert, tariff and customs were already

talked about, practiced, or observed as early as
2000 years ago, dating back to the time when The
Man in Ragged Clothes was doing his ministry.
Customs

played

major

roles

in

every

nation's economyit still does, up to this day. It

has become a major cog in the global wheel of
progress; a vital component of international trade
and commerce; andas seen in the recent past
has even served as venue for critical fora on global
and regional security discussions. It will remain as
such, and will continue to be so. In fact, with the
advent of free trade agreements (FTAs) brought
about

by

the

demands

of

globalization,

its

importance can never be overemphasized.

In

the

Philippines,

it

cannot

be

any

differentcustoms is vital; customs is crucial. It

can build the nation; it can destroy the nation.
A few years back, the Bureau of Customs
(BOC)

observed

its

centennial

celebration

highlighting its major accomplishments since its

constitution into the Philippine bureaucracy. Yes,
it's that long the bureau has been with us in our
daily systemsmore than a hundred years now.
The BOC is old; very, very oldthe POM 5
building speaks volume about that. Except for some
changes in the regime, and the introduction of
technology into its processes, the BOC, by and large,
has

remained

the

sameantiquated

in

style,

hackneyed in mindset, and obsolete in procedures.

It doesnt seem to move forward. Even the law upon
which

it

draws

its

authoritythe

Tariff and

Customs Code of the Philippines (TCCP)has been

5

Port of Manila;

out of sync with the winds of change. This is true in

both the local, as well as, global stages of trade and
commerce. And we're not babbling; were speaking
right here at Ground Zero.
Today, from the perspectives of the boots
on the ground, BOC is still stuck where it was
since over two decades ago. Yes, we still talk about

tara, about picture, about OT. And we still

talk about Fridays, about particular, and, we
still talk about bukol. We are married to what we
call kalakaran.

We seemed we havent severed

our umbilical cord from our past practices. And it

saddens many that we in BOC are not taking the
extra mile to overhaul the system; were observed to
easily throw in the towel when reforms seem to
get

nowhere.

Then

we

easily

surrender,

by

dismissing every attempt to straighten things out by

saying, kultura na yan.
While the outside world is changing at a
dizzying pace, changing the way things are done in
the waterfront may take some time; not just

because of the scarcity of political will but by the

alacrity of political won't as well.
And, let's not get hoodwinked by the muchballyhooed computerization program which is not
really taking off the ground. It may have migrated
from AsyCuda to AsyCuda+ then to AsyCuda++
then to AsyCudaWorld, and now to E2M; yet, it has
not really left the place where it was poised to polevault onto the level where the good intentioned
guys envisioned Customs to be. No; not as yet!
We're still miles away, and with miles to go! Our
present computer system does not even have a
business intelligence capability.
Administration

after

administration,

commissioner after commissioner, reshuffle after

reshufflethe more BOC moves, the more it's stuck.
Today, the customs lingo remains the same; and the
public impression about Customs hasn't changed.
Its customarily Customs, quips a critic. And
he may be perceptively right, because were not

moving. If at all, were headed somewherebut not

forward. Jean-Baptiste Alphone Karr, a French
critic and novelist, has an apt quip for this: The

more things change, the more they stay the same.

More than motions, we need actions if we
are to leapfrog into the higher level of customs
administration.
But why are we stuck where we are? Why?

This is my take: our bosses weren't believers of

Sun Tzu. They ignored his warningknow the

terrain.
Most customs chief who came our wayand
had the opportunity to change our BOC waysdid
not care to know the terrain before they launched
their offensives. There were no reconnaissance, no
surveillance.

They came with a pre-conceived

notion of what BOC is. And, they came prepared

they had a ready prescription for what they
perceived as ailments of the agency. They babbled

their prescriptions during turn-over ceremonies

where we hear no voice, only noise. They seemed
suspended in the stratosphere of the POM Social
Hall; theyre buoyed up by their instant celebrity
status conferred by the rounds of applause coming
from captive audiencesa mix of BOC employees,

importers, brokers, and players as wellwho had

no choice but to listen. These instant rock stars
didn't care if they had yet to conduct their own
diagnostic exercises with the men and women
they'd soon be working witha classic case of
giving the patient medicine, even before the doctor
has conducted diagnosis. But, that didnt bother
them at all. What mattered to them was to have
something to say during the turn-over ceremonies.

Whew! What a surefire formula for failure!

With few exceptions, most of them drifted;
some were aimless, others were even clueless. They
had no idea about the BOC vision, its mission, its
roadmap. They're not aware of the agency's core
values; if at all, very vague only. Believing they're
infallible, or Men of Steel, they did their thing

their way. Nevermind if theirs were not the right

way, they just wanted to impress the public right
away! So, wham!
As always, theyre in for their great surprise
they've found rather too late that BOC is boss-

driven! It means that everything revolves on the

Commissioner. Whenever the BOC succeeds, it's
because of the Commissioner; if otherwise, then,
there is no other conclusionthe Commissioner is
the problem. Yes, the buck stops in the OCOM 6!
And since a Commissioner is just as good as
his/her relationship with his/her bosses, his/her
peers, his/her sub-alterns and the rank-and-file, it
is essential that s/he takes extra time to fellowship
with them, cultivates relationship with them, and
builds trust with them. As leadership coaches say,
they don't care how much you know, until they
know how much you care. Yes, every newlyminted Customs chief must communicate his/her
vision, mission, direction, priorities and thrusts to
6

Office of the Commissioner;

his/her co-workers. S/he must allow, if not trigger,

and accept buy ins from his/her vertical and
horizontal stakeholders.
Unfortunately, most of them did not.
Had they only cared to know before they
babbled their prescriptions, they would have
found out that the BOC is:
operating under a vintage law;
burdened

by

top

heavy

organization;
afflicted

with

overlapping

and

duplicitous functions of and among

operating units;
running under a set of systems and
processes

that

were

devised

to

insure the absence of the Kliitgard

equation of corruption7;
detached

from

the

realities

and

Dean Robert Kliitgard of the Rand Graduate School puts forth his formulaic
expression of corruption thus: Corruption (C) equals Monopolized Authority (M)
plus wide latitude of Discretion (D) minus Accountability (A);

10

demands of the times unaware of

the

imperatives

of

triple

bottomlines8;
deprived of citizen's participation in
most

of

its

business

processes

needing good governance;

nurtured by a community with a
high tolerance for mediocrity; and
burdened by the Ten Failings in the
Customs Bureau9.
Yes, Paring Bert, these are observations from
Ground Zero. Ground level realities, if you may.
One more problemand it has something to do
with chemistry: the Commissioner of Customs
should learn to live with his/her administrative
supervisor, the Secretary of Finance. Under the
present set up, the Commissioner of Customs will
rise and fall on the ACTIVE support of the Chief

(a) revenue collection; (b) trade facilitation; and (c) peace, order, and
security;
9
Atty. Ramon G. Cuyco, CESO V, Memo To The Next CommissionerTEN
FAILINGS IN THE CUSTOMS BUREAU (April, 2010) [Unpublished];

11

Executive ANDnot ORthe Secretary of Finance.

You may have a direct line with the President,
if the Secretary of Finance feels you're not in sync
with the fiscal thrusts of the economic team with
which s/he heads, then you may find yourself using
an operating system that is not compatible with
your gadgetry. Or, have you tried playing lawn
tennis using a ping-pong racket?
Those who insist theyre infallible because they
had the President's support must not have seen the
movie, Titanicthe Unsinkable. Just because
you're handpicked by the President, you instantly
become infallible? Or unsinkable?

Paring Bert, presidential support is a big thing,

but it's not everything; it's a plus factor, a super
lifeline, but it will not necessarily make you The
Commissioner in the rough and murky waters of

Aduana. You have to define your course your way;

steer clear of turbulent waters along the way; and
incessantly watch out for icebergs in your sea lane.

12

Failing in this, you're bound to hear yellings or

shoutings, and panickings, and cryings; then,
finally, you'll hear nothing more. You go down into
the cold depths interred with what you believe you
wereunsinkable.
The Secretary of Finance is your immediate
boss10. You cannot ignore him/her or bypass
him/her simply because of your nexus with the

Palace By The Pasig River. The Commissioner has to

realize that the acts of the Secretary of Finance are

considered acts of the President expressed through

his alter ego and shall remain valid unless
reprobated.11 The Commissioner cannot distance
him/herself from powwows called by the Finance
chief, neither can s/he disobey the policy directions
of the latter. When the Finance chief says, revenue
is my priority, that's it Commish; you have to go
crack the whip, and raise revenue. The Secretary
has the say, and s/he says it ex cathedra; her/his
instructions

are

deemed to

carry

presidential

imprimatur. This is the reality in Ground Zero! It

10
11

See Executive Order No. 292 (The Administrative Code of 1987);

Known as the doctrine of qualified political agency;

13

should be your reality, too.

Here's a situation that never fails to pose a
problem: today's mindset in the Aduana is still
revenue-dedicated,

that

is,

the

BOC's

primary

function is revenue collection. This has been so for

decades; and continues to preoccupy the minds of
the gods and deities in the Finance Department.
Everyone in Customs should agree (or, are made to
agree), even if they see the obsolescence of the
mindset. Yes, BOC is here principally to raise
revenue (and they're tasked to hit unreasonably
astronomical targets); others are only secondary.
So, embrace your targets no matter how high; scale
the Himalayas up to the blue sky; after all, targets
are there to be worked on. So, revenue, revenue,
and

more

revenues!

BOCs

revenue

collection

function is the star of them all; other functions

have only supporting roles. Again, this is speaking
from Ground Zero. And this is another reality.
But, what if the Chief Executive directs you to

lay

emphasis

on

transparency

14

and

good

governance? What if he personally summons you to

The Great Riverbank and relay his instructions to
go hammer and thongs on graft and corruption, or
on smuggling, or on security in the Aduana? Yet,
the powerful Development Budget Coordinating
Council (DBCC) has unilaterally set for you a
revenue target that is as high as Mount Everest
without even the benefit of a sherpah. Should we

sacrifice integrity in favor of revenue? Should we

sacrifice security in favor of revenue? Cannot
integrity and revenue go hand in hand? Or, security
and revenue go together?
These questions are poised to bring you to
decision

pointsmost

likely

involving

your

preference over clashing demands. Should you

continue adopting the dreaded benchmarking just

to jack up the revenue take? Even if benchmarking
abets forgeries and other frauds in documentation?
Should you collapse control and other choke-points
in the whole stretch of the clearance process, in
deference to the dictates of trade facilitation even
when doing so exposes our borders to untrammeled

15

entry of anti-social goods?

Fortunately, you don't have to make a choice
the three bottomlines are complementary. But this
is jumping the gun this early. These are better
discussed in the succeeding chapters. Nonetheless,
these are some of the ground level realities one has
to face as Customs Chiefall the way from Ground
Zero. It will put you in good stead, if youre
conversant

with

the

terrain.

So,

know

the

conditions of the battlefield; everything in there

including your yourself, your foes and friends.
Sun Tzu again: If you know the enemy and

you know yourself, you need not fear the result of a

hundred battles. If you know yourself but not the
enemy, for every victory gained you will also suffer
a defeat. If you know neither the enemy nor
yourself, you will succumb in every battle.

16

The BOC, pre-occupied with one single

purposerevenue collection, yet run by
a Commissioner of Customs who has
direct access to the President of the
Republic, supervised by a department
secretary, assisted by 6 deputy
commissioners and
1 assistant
commissioner, in addition to 13
directors all presidential appointees,
is outrageously heavy at the top.

Chapter 1

Top heavy like Barbie

_____________________________________________________
The Bureau of Customs (BOC) is not a collegial
body. It is not a commission; neither is it a board. It
is

bureau

headed

by

single

entitythe

Commissioner of Customs.
In other economies, the heads of their customs
and excise departments are called Directors-General.
They're not called commissioners, and their offices
are not called commissions.

17

But, while the BOC is headed by a single

individualThe
assisted

by

Commissioners/he
seven,

repeat,

is

however

seven

deputy

commissioners, to wit:
1. Deputy

Commissioner

for

Assessment

Operations Coordinating Group (AOCG)

2. Deputy

Commissioner

for

Internal

for

Revenue

Administration Group (IAG)

3. Deputy

Commissioner

Collections Monitoring Group (RCMG)

4. Deputy

Commissioner

for

Management

Information Systems & Technology Group

(MISTG)
5. Deputy Commissioner for Intelligence Group
(IG)
6. Deputy

Commissioner

for

Enforcement

Group (EG)
7. Assistant Commissioner for Post Entry Audit
Group (PEAG)
Top heavy, by any count, isnt it?
Im reminded of comic books and cartoons that

18

are

replete

with

drawings

of

curvaceous

girls

performing smart, if not, daredevil moves; theyre

skinny,

very

pretty,

long-legged,

Caucasian

in

features, and, noticeably, with well-endowed bosoms.

Yes, gorgeous girls with brave hearts. Some were
even depicted to have outsmarted, outwitted, or
outboxed bad guys. They dart onto situations where
people are in dire straits. They suddenly surface as
some sort of sheroes ready to save people in
distress. OMG! Theyre such a bunch of wonderful
creatures.
Little girls have their 3D version of these
charactersthey have Wonderwoman, Catwoman,
Miss America, etc. But, ask the little kids whos the
prettiest of them all? Hands down, theyll show you
Barbie. Yes, that very gorgeous woman with shapely
legs and heavy breasts.

Paring Bert, if Barbie were real, she wont have

any chance of standing erect, even just for a few
minutesshes top heavy.

19

The

BOC,

pre-occupied

purposerevenue

collection,

with
yet

one
run

single
by

Commissioner of Customs who has direct access to

the President of the Republic, supervised by a
department

secretary,

assisted

by

deputy

commissioners and 1 assistant commissioner, in

addition

to

13

directors

all

presidential

appointees, is outrageously heavy at the top. Its a

Barbie, at that!
Similarly, BOC may be likened to a match stick
with broad shoulders of 7 deputies, big frontage of
13 directors, and abnormally long legs made so by
bureacratic red tape.
If you don't consider its structure TOP HEAVY,
you must be enamored with Barbie.
This situation cannot go on, it has to be
altered; somethings gotta give, and its going to be
its Barbie.
Yes, the BOC is not for kids, its not for the

20

fainthearted; its for serious men and women tasked

to build a nation. Its for people who are willing to
get bruised, prepared for the fall, ready to take the
heat, willing to pay some price; and, certainly, not for
the weak-kneed.
The BOC should be reorganized, its functions
rationalized, its systems and processes revised, its
facilities

retrofitted,

and

its

people

reoriented,

retrained, or retooled. The BOC should be stripped of

its non-essentials, down to the barest minimum.
One can run the bureau with only three
deputies each heading a group or a cluster, to wit:

(1) the Enabler Group; (2) the Operations Group;

and (3) the Oversight Group.
The Enabler Group (EG) shall consist of the
administrative, legal, ICT, research and development,
budget and planning, finance and other concerns
that will provide logistical support to the bureau.
The Operations Group (OpeG) shall consist of

21

the bureau's field operations, that is, the affairs of the

collection districts and their respective sub-ports, the
police and enforcement functions (with the present
CIIS mainly going to the Enabler Group for purposes
of an intelligence-based planning), and the X-ray
operationsthe same being component part of the
districts or sub-ports assessment function and
operations.
The Oversight Group (OveG) shall embrace the
compliance audit monitoring (CAM), the liquidation
and deficiency audit (LADA), as well as the post-entry
audit (PEA). The LADA should be distinguished from
PEA in the sense that LADA is instantaneous and on
a per-transaction-basis, while PEA is conducted to
cover the entire business operations of the importers,
their systems and processes, their books and records,
as well as those of their brokers.
Lets pretend, were doing a complete-staffwork (CSW) for the President. Heres a discussion
draft that is easily convertible into a clean copy for
his signature:

22

MALACAANG
MANILA
BY THE PRESIDENT OF THE PHILIPPINES:
EXECUTIVE ORDER NO. ____
DIRECTING THE RESTRUCTURING OF THE BUREAU
OF CUSTOMS AIMED AT RATIONALIZING ITS
OPERATIONS, AND ELIMINATING DUPLICATION
AND/OR OVERLAPPING OF FUNCTIONS AMONG ITS
DIFFERENT ORGANIZATIONAL UNITS.
WHEREAS, the Philippine Constitution of 1987
declares that [T]he State shall maintain honesty and

integrity in the public service and take positive and effective

measures against graft and corruption. (Section 27, Article

II)

WHEREAS, corruption in the Bureau of Customs

(BOC) has been identified as the single biggest cause of
the agency's failure to collect rightful revenue, suppress
smuggling, and enforce border control against anti-social
goods;
WHEREAS, the organizational structure of the
Bureau of Customs (BOC) is no longer responsive to the
demands of a graft-intolerant and corruption-free
customs administration;
WHEREAS, Section 74 of the General Provisions of
the Republic Act No. 10352, otherwise known as the

23

General Appropriations Act of 2013, authorizes the

President of the Philippines to effect changes in
organizational units and key positions in any department
or agency, as well as adopt institutional strengthening

measures to improve service delivery and enhance

productivity;

WHEREAS, Section 17, Article VII of the 1987

Constitution expressly grants unto the President the
power of control over all executive departments,
bureaus, agencies and offices.
NOW, THEREFORE, I, BENIGNO SIMEON
AQUINO III, President of the Philippines, by virtue of
the powers vested in me by law, do hereby order:
Section 1. Reorganization of the Office of the
Com m issioner. The Bureau of Customs shall be
headed by and subject to the supervision and control of
a Director-General who shall be assisted by three (3)
Deputy Directors-General to be appointed by the
President upon recommendation of the Secretary of
Finance.

Each of the Deputy Directors-General shall head a

specific management cluster, to wit:
a) Customs Compliance Monitoring and
Oversight Cluster
b) Customs Revenue Operations and
Enforcement Cluster
c) Customs Management and Technical
Services Cluster
Section 2. Affected Offices . The following

24

groups, services, divisions, committees, and ad hoc

units, are hereby merged, re-aligned, transferred,
and their respective functions annexed to the new
functional grouping pursuant to Section 1 hereof, to
wit:
2.1. The present Revenue Collections Monitoring
Group (RCMG) and the Post Entry Audit
Group (PEAG) are hereby merged with the
following services, divisions, or other
organizational units placed under the
supervision and control of the renamed
Customs
Compliance
Monitoring,
Audit, and Oversight Cluster (CCMAC),
to wit:
2.1.1.

The Collection Service (CS) of the

current RCMG, and the Compliance
Audit Office (CAO) the current PEAG
are hereby merged and renamed as
the Compliance and Liquidation
Audit Service (CLAS). Henceforth,
the Liquidation Assessment Audit
Division (LAAD), and the Bonds
Audit Division (BAD), both of the
RCMG as well as the Transaction
Audit Divisions (TADs) of the PEAG
shall continue to discharge their
respective powers and functions
under the renamed CLAS;
The Trade Information Risk Analysis
Office (TIRAO), PEAG shall continue
to discharge its functions under the
renamed CCMAC;
The

ad

hoc

25

bodies

named

as

Customs Certificate of Payment

Clearing Center
(CCPCC) and
the Motor Vehicle Certificate of
Payment
Verification
Center
(MVCPVC) are hereby abolished and
their functions integrated with the
LAAD;
2.1.2. The present Legal Service (LS) of
RCMG shall continue to discharge its
functions under existing issuances.
It is hereby renamed as Customs
Legal, Investigation and Prosecution
Service (CLIPS) absorbing and
integrating thereto the powers and
functions
of
the
current
Investigation
and
Prosecution
Division (IPD), the Internal Inquiry
and Prosecution Division (IIPD),
Intellectual Property Rights Division
(IPRD) of the Customs Intelligence
and Investigation Service (CIIS).
All ad hoc bodies, units, or task
forces that perform allied and
related services, including but not
limited to the operating units of the
Run After The Smugglers (RATS)
Program, are hereby abolished and
placed directly under the control and
supervision of the CLIPS.
2.2.

The current
Coordinating
Enforcement
merged and
Operations

Assessment and Operations

Group (AOCG)and current
Group (EG) are hereby
renamed Customs Revenue
and Enforcement Cluster

26

(CROEC) with the following services,

divisions, or other organizational units
placed under its supervision and control,
to wit:
2.2.1. The current Port Operations Service
(POS), AOCG;
2.2.2. The current Import Assessment
Service (IAS), AOCG;
2.2.3. The current Enforcement and
Security Service (ESS), EG; and
2.2.4. All divisions of the foregoing service
units that are currently existing
under their respective plantilla.
2.3. The current Internal Administration Group
(IAG), the current Intelligence Group (IG)
and current Management Information
Systems and Technology Group (MISTG)
are hereby merged and renamed as
Customs Management and Technical
Services Cluster (CMTSC) with the
following services, divisions, or other
organizational units placed under its
supervision and control, to wit:
2.3.1. The current Administration Office
(AO) and the current Financial Office
(FO) shall continue to discharge
their present functions, as well as
exercise supervision and control
over their various organizational
units, except over those that have
been
ordered
reassigned
as

27

provided elsewhere in this Order;

2.3.2.

The current Budget Division is

detached from the FO and is hereby
realigned to a new Office as
provided
in
the
succeeding
paragraph;
The current Revenue Accounting
Division is detached from the
Financial Service (FS), RCMG, and is
hereby realigned to the FO.

2.3.3. The present Interim Internal Control

Office (IICO) shall be renamed the
Management Office (MO) which shall
be responsible for the pursuit of the
Integrity and Good Governance
Roadmap of the agency.
2.3.4. The current FS of the RCMG and the
current Customs Intelligence and
Investigation Service (CIIS) of the
IG are hereby merged and renamed
as Customs Budget and Planning
Office (CBPO) and shall have
supervision and control over the
following re-aligned divisions, to wit:
2.3.4.1. Collection Performance
Evaluation Division (CPED), CS
2.3.4.2. Statistical Division (SD), FS
2.3.4.3. Production Unit (PU), CIIS
2.3.4.4. Intelligence Division (ID), CIIS
2.3.4.5. Policy and
Research Division (PRD), AO
2.3.4.6. Budget Division (BD), FO

28

Section 3. Im m ediate Task s. The foregoing

organizational units shall, within 30 days from approval
hereof, effect and/or undertake the following immediate
tasks:
3.1. adjust, modify and revise their systems and
procedures aimed at incorporating thereto
the
imperatives
of
transparency,
accountability, and responsiveness pursuant
to existing laws, rules, and administrative
issuances;
3.2. inventory, account and turn-over records,
office supplies, furnitures, fixtures, office
spaces and other logistical provisions to the
new or surviving organizational unit;
3.3. re-orient the affected officials and
employees of their new roles and goals in
line with the Bureau's vision and mission
statements; and
3.4. such other activities that shall, under the
doctrine of necessary implication, become
necessary in the furtherance of the
objectives of this Executive Order.
Section 4. M iscellaneous Provisions. The
Secretary of Finance shall, in coordination with the
Department of Budget and Management (DBM), craft a
compensation package for those who might opt to retire
from service, or otherwise fail to qualify into the new
organizational structure of the agency.
Section 5. Separability Clause. In the event,
any part of this Order is rendered unconstitutional, illegal

29

or invalid by competent authorities, the remaining portion

thereof not otherwise affected shall remain in force and
effect.
Section 6. Repealing Clause. All Orders, rules
and other administrative issuances that are in conflict
herewith are hereby amended, repealed/revoked, or
modified accordingly.
Section 7. Effective Clause. This Executive
Order shall take effect immediately upon publication in
two (2) newspapers of general circulation.
Let copies of this Executive Order be furnished the
Office of the National Administrative Registry (ONAR), UP
Law Center, Diliman, Quezon City, Philippines.
DONE in the City of Manila, this _____th day of
________________, in the year of our Lord, Two
Thousand and Thirteen.

By the President:

PAQUITO N. OCHOA, JR.

Executive Secretary

Heres the caveat: the foregoing set-up does not

include some organizational units that may be
required to be created or reactivated; or, new ones
that

may

be

vital

in

30

pursuing

new

core

competencieslike

the

deactivated

Water

Patrol

Division. Also, the Tax Exempt Division of the CLIPS

may need some redefinition of functions to include
close monitoring of the sales made in duty free shops
throughout

the

country.

Even

the

creation

of

customs attaches in territories outside the Philippine

customs territory is not included. And, many more.
Nevertheless, heres a development in the
offing: two years from now, the entire Association of
South East Asian Nations (ASEAN) of which the
Philippines is a member in good standing, is set to
integrate in 2015.
If Peter Wallace of the Wallace Business Forum,
a foreigner who has closely watched the Philippine
economy much longer than most Filipinos, is to be
believed, the BOC, will, by then, have very simple
concerns; so simple that a mere task force can be put
up to address the entirety of smuggling and what
remains of the BOCs tasks. Wallaces assessment may
not be exactly accurate. And, I am one with those
who doubts the view that BOC will be reduced to

31

simple concerns needing only a task force to

respond. But, regardless of whether the much-touted
readiness for Asean integration comes in by the end
of December 2015 or not, the BOC is undoubtedly too
heavy at the top that its beauteous Barbie no longer
excites. Barbie should undergo procedure, BOC needs
major reorganization; Barbies limbs must be toned,
BOC needs strong legs to stand upon; Barbies
bosoms must be reduced for proportion, BOCs arms
must be developed for more muscles; Barbies just a
figment of imagination, while BOC is real, and
composed of a corps of breathing homo sapiens who
feel the angst, and the frustration as well; they have
urges and surges; they can be led, and they
certainlycan lead.
Yes, Paring Bert, the new BOC must be primed
for what it should bea lean and mean organization
capable of delivering the tasks it was created for:

revenue collection, trade facilitation, order and

security.
Not a pageant, not a parade, not a scripted

32

movie.
Unlike Barbie, BOC should not be TOP HEAVY.

33

And, the reason why one cannot stand by

its no take policy is because it dreads
letting go of its take in the cake, and,
it's such a delicious cakeit's called
TARA!
Now, can TARA be eliminated? I say, YES!
Of course many will disagree; yet, I
maintain it can be done. But, only when
one inflicts pain upon the selfand
denying oneself his piece of the cake is a
self-inflicted pain.

Chapter 2

Doom! Tara Tara

___________________________________________________
I asked three personsall habitues of the
waterfrontwhat they understand about TARA.
These, I was told:
(a) TARA is what Customs officials and
select

employees

importers,

personeros

receive

brokers,
and

their

employees,
privies

exchange for the expeditious,

34

from
in
and

facilitated

clearing

of

cargoes

from

customs custody;
(b) TARA is essentially a bribe money
intended to influence official actions,
decisions and/or discretion of customs
officials and employees who are called
upon, or may, in the future, be called
upon to decide or rule on any matter
over which the briber may have an
interest; and
(c) TARA facilitates; TARA suffocates. TARA
tin-blocks; TARA lifts. TARA alerts;
TARA allows. TARA padlocks; TARA
unlocks. TARA erases; TARA traces.
TARA pains; TARA gains. TARA is a
boon; TARA is a bane.
And you can go on, and on, and on, en

secula seculurom. Like this one, TARA is what

makes everyone in the port happy every
Friday!

35

All of the above are certainly correct answers.

If you don't get the gist, you must have slept with
Rip Van Winkle.
You'll often hear this: kung gusto mo happy

ka, manatili ka sa Aduana sa araw ng pagpapala.

And

the

Friday

institutionalized12

decade

Show
after

has

been
decade,

administration after administration, Commissioner

after Commissioner.

Ang swerte talaga ng mga taga-Customs, a

friend from way back texted me as Pnoy was
delivering his 2013 SONA13.

Why? I texted back.

Here's his answer: Kasi may opis na, may
12

Once, a Commissioner of Customs ordered every official and employee of the

BOC out of office premises at the strike of 5:00PM every Friday, ostensibly as a
reaction to a legislators accusation of a different kind of 3 oclock habit in the
waterfront. Atta boy! Cannot Mondays become the new Fridays?
13
State of the Nation Address;

36

tanggapan pa; may sweldo na, may sahod pa; may

per diem na, may OT pa; may award na, may
reward pa; may RATA na, may TARA pa. How can
you beat that pare?
Hindi na ako sumagot!
Deeply rooted? Yes!
Can no longer be uprooted? Of course, not! It
can be done.
For the uninitiated, TARA should not be
confused with other terms, like OT for overtime,
or particular, or panggastos. TARA is measured
based on quantity; OT and its ilk are based on
gravity.
TARA is commonly based on the number of
containers that an importer brings out of customs
custody.

For example: Importer A pre-agreed with

37

Office X to shell out P1,000 per container in

exchange for not raising any question on any
cargo that Importer A may bring into the Philippine
Customs territory.
Every Friday, Office X counts the number of
boxes Importer A brings in, then multiplies it by
1000 and that's Office X's TARA for the week. No
brainer, isn't it? Yes, you won't go wrong; you don't
need to wear a wrist band just to distinguish your
right from your left hand.

But, what's so special about TARA? Why

discuss it here? And why devote a chapter solely
for it?
Here's why, Paring Bert. Because, only when
the curse of the TARA is totally obliterated in
customs scheme of things, then and only then shall
we see the dawning of a true and honest customs
reforms; a new day, a new way of doing things, if
you may.
But with TARA still around, even if you
38

sugar-coat it, no meaningful reform can ever see its

day in Customs; the Unity photo-ops, the bold
declarations,

or

any

new

campaign,

notwithstanding. In fact, TARA is the most reliable

indicator in gauging the sincerity or seriousness of
a

good

governance

program

by

any

customs

officials.
Sometime ago, I interviewed an influential
brokera licensed and legitimate oneI asked
him: What will you do if I task you to reform the

Bureau? Assume, I am the President of the

Philippines Without hesitation, he said: Alisin ko
ang TARA! I pressed on, Is that all? He replied,
start from there, and it will end there.

I agree! When there is absence of TARA,

integrity in customs processes will take its roots,
graft and corruption will drastically be reduced,
and high revenue collection will follow as a matter
of course. It is the way it should be, not the other
way around. TARA should go, and it must begin
from the top. As they say, in cleaning a staircase, it

39

is best to start from the top.

But, here's the caveat: Any reformist customs
chief will always be advised to go slow; he will be
urged to listen to the players, or encouraged to
seek them out regularly in a dialogue. During the
initial dialogue, they will promise cooperation,
make the Commissioner realize that they are
indispensable.
Customs

chief

They
gets

will

make

sure

that

the

message: hitting its

their

assigned revenue target is feasible only when the

players support and cooperate with the customs
leadership; then, they will raise the specter of lower
volume of import should they sense the Customs'
top honcho is indifferent.
When the Commissioner is unprepared, and,
he

agrees

with

them,

then

he

is

virtually

hostaged, or checkmated. He will forever be

dictated upon, and will be forced to give in to
players'

demands,

whether

otherwise.

40

these

be

legit

or

On the other hand, should the Commissioner

adopt a posture of The Rock of Gibraltar, and is
seen by the players as a maverick, or belligerent,
he will be portrayed as anti-business and their
next likely move will be to unleash their crafts,
their dogs, and their missiles.
They will resort to mass actions, say, a sit
down strike, in collective protest against customs
reforms (read: we don't file entry as we normally

do; after all, we have the lawful 30-day grace

period within which to file entry, before they
[BOC] declare our shipments abandoned and have
them legally forfeited); or, stage a voluntary
hauling holiday (read: we collectively refuse to

haul our shipments from the customs zone and

create an impression of chaos and disorder thereat,
with big trucks parked anywhere forfeiting ingress
to and egress from the ports); or, bothall
designed to embarrass the bureaus leadership.
If the Commissioner is made of sterner stuff
and holds his ground, still, the players will not

41

stop their antics; they will continue searching for

means to have their way in the Aduanathey will
embark on discrediting the Customs chief before his
patrons, try and convict him by publicity, until the
President, his political allies, and his economic
team succumb to these pressures by sacking the
embattled Commissioner flimsily grounded on the
latter's nosediving collection efficiency, albeit the
same was a natural consequence of the BOC
chiefs refusal to give in to the nefarious demands
of the players. A classic case of the players
having their cake and eat it too.
Here's my take: Yes, the players, the
traders, the importerslegit or otherwisecan
make the life of the Commissioner of Customs
miserable. But, if his agenda were to set the
directions cleara smuggling-intolerant customs,
and is determined to do just that, there is, as
FDR 14 said, nothing to fear but fear itself. One
should not feel blackmailed; he shouldn't get
hostaged, he shouldn't get pressured. Yes, the
14

US President Franklin Delano Roosevelt;

42

players may stage a strike; that is a normal

reaction. But, it's not a justification for the
government agency to look afraid, sound afraid,
and behave afraid. As Marie Curie said, Nothing

in life is to be feared; it is only to be understood.

Just the same, be warned that the customs
community may really stop importingthey can do
that, no doubt. But, for how long, Paring Bert?
Let's assume they can do that for 2 months,
3 months, or maybe 2 quarters . . . but for one year
. . . no importation? Do you think they can hostage
the entire economy? C'mon guys! The Philippines is
a net importing country! What made you think you

can do that?
Nonetheless, reforming customs to make it
graft-intolerant in the long haul is more important
than what seems urgent for the momentthe

revenue take. Put differently, only the revenue that

are generated after reforms shall have been
undertaken, will give us the real revenue take.
Set reforms aside, and you live with the present

43

revenue takedrained by revenue leaks. Stephen

Covey in his bestseller, Seven Habits of Highly

Effective People has an apt prescription for this, he

said: focus on what is important, rather than on
what is urgent.
Finally, Paring Bert, the business community
in

the

portimporters,

brokers,

players,

personerosas well as the senior officials or even

employees of the customs bureau, understand the
situation all too well; they are capable of exercising
restraint and caution; they adjust, they adapt, they
blend well. If the top leadership says, NO TAKE,
then they follow, they observe, they wait; and they
can live with it.
But more than a battle of nerves, a test of wit,
and a show of wares for the brokers, traders and
importers; this phase is believed to be the litmus of
almost all Customs leadershiphow to make good

its No Take Policy. When it says, no take, it

shouldn't just be a talk. If it cannot stand by its
own no take policy, then it's best it adopts, no

44

talk policy.
Many Customs chiefs have, of late, failed
miserably
in this test.
And, the reason why one cannot stand by its
no take policy is because it dreads letting go of its
take in the cake, and, it's such a delicious cake;
it's called TARA!
Now, can TARA be eliminated? I say, YES!
Of course many will disagree; yet, I maintain
it can be done. But, only when one inflicts pain
upon the selfand, denying oneself her/his piece of
the cake is a self-inflicted pain.

45

Result: the RATS became a bureau within a

bureau. A Gestapo-like unit, if you may call
it. It operated with unbridled authority
sans accountability. It alerts, it lifts; it
denies, it grants; it seizes, it releases; it
duplicates the police, the intel, the
assessment,
the
examiners,
the
investigators, the auditors, the lawyers. It
can even overrule the District Collectors,
the Directors, the Deputy Commissioners,
and hold your breath! - it can even
ignore the Commissioner, blind him, or
treat him as if he doesn't exist at all.

Chapter 3

RATSa good program gone wrong

_____________________________________________________

You don't burn the house just to kill the

rodents, my father was wont to say.
This is exactly how well-meaning people in the
Customs bureau reacted to insinuations that the
agency's

run-after-the-smugglers

(RATS)

program

deserved the heel of everybodys boots.

RATS should now be kicked out of BOC's
scheme of things; it is better decommissioned.

46

Wala namang kabutihang naidulot yan!

Pampalaki lang nang gastos yan!
Dapat lang! Sobra na yan! TARA lang naman
ang habol nyan!
These were reactions that could emanate only
from quarters which didnt see the wisdom of RATS.
Knee-jerk

comments

they

may

sound;

but,

apparently, they were all coming from Ground Zero.

Clearly, they must have come from people who did
not have pleasant experiences with the operatives of
the RATS.
RATS

program

has been abused, it was

misused, and it is confused. Yes, it smelled, it failed,

they complained.
They posit that the program failed to deliver;
and there is no more justification to further its
existence. It should be axed pronto, it is just used to
mulct or harass; it has never ever given the BOC a
good name.

47

Paring Bert, I can understand the sentiments

of those opposed to RATS' continued existence. In
fact, many names have been given to it, but good
ones. Many appendages reeking of hate, exasperation,
and denunciation have been attached to it. And they
all came from various sectors in the waterfront.
Rumors, complaints, and accusations flew thick and
wildthey came from all directions where the trade
winds blowthey originated from the North-South
backbone, or traversed the East-West lateral; yes,
complaints against it came from all over, they
crisscrossed the Customs Archipelago.
But, for all its lapses, inequities, and even
excesses, the program does not deserve an early exit.
RATS is a very good program.

Its full of promise,

only that it fell into the wrong hands, and perforce

gone awfully wrong.
Just like that Good Samaritan in the Great
Book, where a man came down the road from
Jerusalem to Jerichohe fell into the hands of

48

robbers; they stripped him of his clothesbeat him

upand left him half dead. Are we going to ape that
Priest, or that Levite? Are we going to walk the
other way, too? Why not bandage the wounds of the
RATS, pour oil and wine on it, lift it and load it on
our donkeys back, bring it to an inn, and treat it?
And, when the morrow comes, why not give the
innkeeper two pieces of silver to make sure that he
attends to the wounded RATS, with a promise that we
shall be coming back to reimburse him for what he
might have expended in curing?

Paring Bert, scrapping the RATS will give a

wrong signal. I am vehemently against its scrapping,
its abolition, or even mere shelving. Yes, it's not
game over for the RATS, it's just a cul de sac. It
should not be shelved; it only needs to be rebooted,
its implementers retooled, and its system retrofitted.
Mainstreamed to where it should bethe Legal
Service, the rightful and mandated office under
existing customs laws, rules and regulationsthe
RATS programs should be allowed to re-start anew,

49

this time with the right mindset, the competent

human assets, the relevant gadgets, and a sufficient
budget.
A

brainchild

of

Finance

Secretary

Cesar

Purisima, ostensibly designed as a twin sister of BIR's

Run After Tax Evaders (RATE), the program was
deprived of appropriate nursing and caring that a
newborn needs from its biological parent. This was
so,

when

the

originator

bolted

the

Finance

Department to join the Hyatt 10, and its Executive

Director eventually left the BOC for a more rewarding
political career. They left Purisimas pet project
prematurely.

Their

sudden

departure

virtually

orphaned the RATS, where the latter was left to

surrogates who knew nothing of the originator's
blueprint. In other words, during the formative years
of the RATS, the creator was no longer there, and the
babysitting chores fell on the lap of willing but not
necessarily equipped husbandmen.
Result: the RATS became a bureau within a
bureau. A Gestapo-like unit, if you may call it. It

50

operated

with

unbridled

authority

sans

accountability. It alerts, it lifts; it denies, it grants; it

seizes, it releases; it duplicates the police, the intel,
the assessment, the examiners, the investigators, the
auditors, the lawyers. It can even overrule the
District

Collectors,

the

Directors,

the

Deputy

Commissioners, and hold your breath! - it can even

ignore the Commissioner, blind him, or treat him as
if he doesn't exist at all.
Yes, Paring Bert, because the RATS' operating
unit was not where it should have beenin the Legal
Service, its operation faltered, its reputation tattered,
and its performance left much to be desired. It was
selective in its drive against mis-declaration; closed
its eyes on undervaluation using the illegal practice
of Benchmarking as a subterfuge; discriminately
turned a blind eye on the entry of prohibited goods.
Clearly, it was not the way it was meant to be, not
structured the way it was designed, and not for the
purpose for which it was devised.
Surely, RATS was a well-intentioned program;

51

only that it has gone haywire. And, as they say: The

road

to

hell

is

paved

with

good

intentions.

Nonetheless, you don't burn the house to kill the

rodents.
It's about time the operating structure of the
RATS program is reformed. And it must be now; not
later. It is deeply saddening, and sadly hurting that
what could be an opportunity for change is slipping
past our hands. We are missing the last flight for

reforms. The BOC leadership is squandering what

could be the silver lining to the clouds that hover
above the Customs bureauyes, the positive side of
the scathing remarks of the President in his SONA.
BOC should take it positively, if it cannot live
with it negatively. If the BOC is not shameless, it
should not however feel blameless. It should shape
upreal shaping up. Not by praise releases, though
it needs praises.
We don't merely change the people, we have to
change the flawed system as well. As Rina Jimenez-

52

David quoted 15 Commissioner Ruffy Biazon: Dont

just change the players, change the game as well.
Unfortunately, someones talk did not rhyme with
his walk.
The BOC leadership should be aware though,
that powerful forces will be obstructing the much
needed reforms in the bureau. They will stand in the
way towards Good Governance, they will throw
monkey wrench into the organization's wheels of
progress, and they will threaten the job security of
anyone who espouses a view opposed to theirs. But
reforming the society, the community, or even
oneself is not for the faint-hearteddefinitely, not a
walk in the park.
RATS

should

be

handled

by

competent

investigators, not by haoshiaos; its cases should be

evaluated by lawyers, not by laymen; the program
should be shepherded by the Legal Service, not by ad

hoc units.

15

Philippine Daily Inquirer, AT LARGE, November 26, 2013;

53

It has to move on, it has to free itself from its

unsavory past. The RATS programs must no longer be
run as if it were a private estate of a top customs
official who had it managed by an ad hoc group,
majority of whom were non-lawyers, operating under
undefined rules, closeted in tightly sealed cubicles.
Its records were theirs and theirs alone; its decision
was an exclusive domain of its head and nobody
elses vetting who should be charged, determining
which cases to pursue, implicating as well as
extricating
encroaching

parties
upon

without
or

clear

abdicating

parameters,
some

powers

whenever convenient. Such is the awesome powers of

the RATS Chiefno accountability, no audit, no
oversight.
No wonder its becoming very difficult to hand
over its operation, records, and ICT hardwaresoftware-peopleware to its rightful implementerthe
Legal Service.
Were we to straighten things, if we are to make
RATS truly work, task the Director of the Customs

54

Legal Service to run it professionally the way a law

firm is run; after all, the Legal Service is the law
office of the BOC.
people,

Support RATS with qualified

competent

and

skillful

investigators,

prosecutors who will not sell their cases; provide

them

with ICT-aided case tracking gadgetry,

document and/or evidence custodial facility, and

funds necessary for a decent law firm appropriately
staffed by competent lawyers. In other words,
empower the Legal Service even as we redefine a
working

compliance

monitoring

mechanism.

Empower the Legal Service chief, but he shouldnt be

caught napping.
And, one more thing: never re-assign lawyers
of

the

Legal

Service

to

other

administrative

assignments anywhere in the BOC, without seeking

the clearance of the Legal Service Directornot even
if the assignment is to RCMG.
Finally, the Administrative of Code of 1987
(Executive Order No. 292) militates against the
Commissioners or Deputy Commissioners ad hoc

55

units assumption of the RATS functions, thus: [t]he

Commissioner and x x x Deputy Commissioners, and
the Assistant Commissioner, shall each have a
Management and Technical Staff, which shall be
limited

to

specific

number

of

personnel

as

determined by the Secretary, to render technical and

secretarial support services.16 Running the RATS
program is certainly not a technical and secretarial
support service.
THIS LAW IS MORE OBSERVED IN THE
BREACH THAN IN THE COMPLIANCE.

16

Sec. 28, Chapter 4, Title II, Book IV;

56

By practice, the approved annual collection

targets are embraced by BOC officials and
employees as their own. They have no
choice, they cant complain. They ask no
questions; theyre not allowed after all.
They simply accept them as if these were
fair; warts and all, so to speak.

Chapter 4

Off the mark, most of the times

_____________________________________________________
Php340

Billion

was

set

as

this

years 17

collection target for the Bureau of Customs. It was

approved by the powerful Development Budget and
Coordinating Committee (DBCC)18 in its meeting last
January 25, 2012.
By practice, the approved annual collection
targets are embraced by BOC officials and employees
as their own. They have no choice, they cant
complain. They ask no questions; theyre not allowed
17

2013
Composed of the Department of Finance (DOF), the Department of Budget
and Management (DBM), and the National Economic Development Authority
(NEDA);
18

57

after all. They simply accept them as if these were

fair; warts and all, so to speak.
Oftentimes, the figures are so high, and devoid
of rational explanation. Just the same, theyre
willing to live with them, albeit they feel bad because
they know they werent consulted. There were no
intelligence-based planning and forecasting exercises
that preceded target-determination. This has always
been the case. I have heard similar complaints many
times before. I heard this during the Bernardo
Watch 19, in Jereos Days20, during Linas Time21, the
Morales

Show22,

during

Alvarez

Race 23,

until

recentlythe Ruffys Days.24

Since 2001 up to September of this year,

19
Antonio M. Bernardo was BOC Chief from March 14, 2002 until July 23,
2004;
20
George Jereos was BOC Chief from September 20, 2004 up to February 22,
2005;
21
Alberto D. Lina was Customs Chief from February, 2005 until July 2005,
when he abruptly left the BOC to join the Hyatt 10, which called for the
resignation of then President Gloria Macapagal-Arroyo;
22
Napoleon L. Morales was BOC Commissioner from January 2, 2006 until
June 30, 2010;
23
Angelito A. Alvarez was BOC Chief from July 08, 2010 up to September 16,
2011;
24
Rozzano Rufino B. Biazon is the incumbent BOC Commissioner since
September 19, 2011;

58

2013a span of a dozen yearsthe BOC hit its target

only in 2003, 2004, 2005, 2006 and 2008. The rest,
the BOC was bracketed in red.
Within this dozen years, five were election
years: 2001, 2004, 2007, 2010 and 2013.
During election years, the BOC was nose-first
every yearend, with the exception of 2004 when BOC
posted a very high 12% over its target.

This was

during the Bernardo Watch, when the top honcho of

the Customs bureau was still enjoying his winning
streak brought about by BOCs breaching the
century mark the year before.
During

Titus

Time 25,

the

BOC

collected

Php99,981B in 2001short by Php5,136B of its

assigned target at Php105,117B; negative by 5%.
The following year, the agency was floundering
in its collection chores whilestillunder the watch
of Villanueva; his near retirement must have been
25

Titus Villanueva was BOC Chief from January 22, 2001 up to February 13,
2002;

59

taking its toll on BOCs collection efficiency. The BOC

was assigned a collection target of Php115,126B for
the year 2002an amount considered too high
during that time. Anecdotal reports had it that it was
the then DOF Undersecretary Tony Bernardo who
was instrumental in assigning that very high target.
The BOC then seemed uncertain on what it had to do
to surmount the Himalayas set up by Bernardo. They
were worried; they felt there was no way BOC can
make it. Yes, not even a chinamans chance.
Interestingly, in a queer twist of fatepoetic
justice is more like itTony Bernardo was plucked
out of his cozy desk in the DOF and was installed as
the new Commissioner of Customs. There, he had to
surpass the target that he himself set for the BOC. He
had no choice; he had to comply; he cannot complain.

He is estopped! So off he went to the customs zone,

functioned as BOC Commissioner and showed what
he was capable of doing.

He proved one thing:

indeed, he pegged a very high target that even him

cannot achieve. Of course, he failed! This must have
been a very good lesson for Bernardo. At yearend,

60

Villanuevas and Bernardos combined efforts were

not up to parthey collected 16% short of BOCs
target. They receipted Php99,322B only out of the
targetedPhp115,126B.
True to his form, this bar placer did his
homework. The following year, 2003, Commissioner
Bernardo had his assigned target locked in his radar;
he devised a focused monitoring program where he
broke down his yearly targets into months, then his
monthly targets into weeks, and weeklies into days,
and he had a fair grasp of how much he had to raise
on a daily basis. He had all holidayswhether
national or local provided they have impact on
customs

operationmarked

in

his

calendar.

watched him closely every Execom; he was a picture

of composure, of focus, and of determination. Yes, he
was very passionate about hitting his target. He
looked for non-traditional sources, revised some
antiquated rules, and even talked to importers,
brokers, and, yes, players. Result: BOC surpassed
its target by 15%.

61

And, for the first time in the agencys history,

it

breached

the

100B

mark,

having

collected

Php117,201B as against its target of Php100,056B.

There was celebration; there was jubilation.
The following year, Bernardo wanted to show
that his was not a fluke. That it wasnt an accident;
that it was calibrated. That, that years output was
the logical offshoot of BOCs determined input; and
he wanted an encore. True enough, he did it again in
2004 where BOC collected 127,269B against the
assigned target of 112,580B, or an increase of 12%,
even when 2004 was coincidentally an election year.
Bernardo vowed out of BOC in July 23, 2004.
Commissioner George Jereos, a career man in
Customs took the helm. Debuted as OIC, he finally got
the plum post as full-fledged Commissionera fitting
reward for his long years of dedicated service that
was marked by quiet competence. He bowed out in
retirement 22 February, 2005. Businessman Bert
Lina

of

Air21

fame

succeeded

Jereos

as

Commissioner. A veteran in logistics business who

62

had regular dealings with the BOC, Bert Almighty, as

Lina was known to some bert-lievers (including
this writer), was poised to make his mark in the
agencys scheme of things. Unfortunately, the now
popularly known Hyatt 10 intervened. Just when
things were starting to heat upwhen he wanted all
arriving vessels immediately liquidated, sportsmanbusinessman Bert Lina cut short his BOC stint,
leaving a vacuum in the Bureaus stewardship in
July of 2005.
The BOC was placed under the care of another
OIC, Deputy Commissioner Valong Arevalo. A tech
savvy, he used his computer knowledge tracking
down all collection variables, spotting gaps, and
plugging loopholesall aimed at collection efficiency.
He laid down his own set of rulesRule #1: Hit the

target! Rule #2: Hit the target! Rule #3: Hit the
target!
2005 was the most uncertain year for BOCs
helmship; the agency was in a state of fluxthree
turnovers in one year. Fortunately, BOC still made it

63

by

2%

over

its

assigned

target;

we

collected

Php154,566B against our target of Php151,185B.

Then Commissioner Napoleon Morales became
the next head. He was Commissioner of Customs
since January 2, 2006 to June 30, 2010.

He was

reputed to be a fair-haired boy of the then President,

Gloria Macapagal-Arroyo. The broadsheets have very
good reportage of him; he was portrayed as having
always exceeded his targets. In fact, he was the only
Commissioner who was able to reap the benefits of
the Lateral Attrition Lawa law that rewards BOC
assessment

officials

for

exceeding

targets,

and

attrites out of service those who flunk their

collection targets. Popularly known as BM, he was
believed as the most effective Commissioner in the
field of meeting targets.

BM is the best, his peers were wont to say.

He doesnt complain; hes hardworking. He just
works and exceeds his target, his believers proudly
proclaim. Unfortunately, these accolades were not
necessarily matched by BOCs record. For the period

64

spanning 2006 to 2010, it was 2 out of 5 for him.

Meaning: he was a passer in 2 credit years, and a
flunkie in 3 credit years.
In 2006, he exceeded by a hairline1% over
his target, and in 2008, he exceeded again by another
forgettable

2%.

In

2007,

he

was

negative

by

Php18,769B (8% below target); in 2009, he was flat

on his face anew by a huge Php52,985B (24% short
of target); and, in 2010, BM missed another big
chunkPhp21,446B (8% short of target). It may be
stressed however that during BMs swan song, he
handed a 7 billion surplus to his successor.
BM disappeared from view after the sun set for
the GMA Administration. Nothing related to Customs
was heard from him again. He is retired; but,
reportedly happyvery, very happy.
Under

the

Aquino

Administration,

Pnoys

Customs commissioners were a big letdownthey

never made their targets, until now.

65

In 2011, the combined efforts of Commissioner

Lito Alvarez and Commissioner Ruffy Biazon, were
short by Php11,315B, or 4% below the target.
Alvareza

logistics

manwas

replaced

by

Biazona politicianin a craft dealing with logistics.

Well, the reasons for replacing him are better
consigned to oblivion.
Commissioner Ruffy took the Customs helm 19
September 2011; he was resigned on the first week of
December, 2013, embroiled in a controversy whose
every twist and turn have been amply covered by the
Fourth Estate.
Interestingly, for the 26 months that BOC was
under this soft-spoken former congressman, it was
only in the month of January, 2011an unusually
up month, with traders focused on inventory; and,
China, our major import source, does its harvesting
rather than exportingthat the BOC posted a measly
Php240M over its monthly target. The rest of the 25
months, the BOC was a big disappointment.

66

As of September of this year, BOC has an

accumulated negatives of Php103,468 BILLIONall
throughout the 24 months of the Biazon Watch.
A couple of months ago, Commissioner Ruffy
Biazon painted a rosy picture of what he loves to call,
his internal motivational target. The Business
(BW) 26

World

reported,

thus:

THE

CUSTOMS

BUREAU expects collections to have hit P300B as of

end-October, which Commissioner Rozzano Rufino B.
Biazon yesterday claimed would keep it on 340billion target.
BW quoted a statement from Biazons office
saying

that

[O]ur

growth

momentum

looks

promising. From preliminary reports, we are poised

to hit our internal revenue collection milestone of
P300 billion in October.
Biazon reportedly said that this would put the

bureau within striking distance of the full-year

26

November 1-2, 2013 issue;

67

target, adding that our personnelcontinue to

perform despite the organizational changes that have
occurred in the past week, the BW notes.
BW further quoted Biazon to have said: I am

confident that we will catch up in the last quarter of

2013, as seasonal import increases and operational
efficiencies are implemented.
We had hoped it turns out right; we had hoped
BOC makes it bright! Unfortunately, until the dying
seconds of November when Commissioner Biazon
resigned, the yawning gap between his cravings and
his actual bites have widened by nautical miles
never before experienced by the Bureau. BOC was in
the red by Php2,645 billion, or 9.49% below the mark
in October; and, still, in the red by Php2,911 billion,
or 10.34% below its target for the penultimate lap of
2013.
By the way, have elections something to do
with BOC collection efficiency? Put differently, is
there a correlation between electoral fundraising and

68

BOC revenue collections?

Heres why I am asking.
From 2001 up to 2013, the country held a total
of 5 national elections. These were conducted during
the years 2001, 2004, 2007, 2010 and 2013. In all of
these 5 election years, BOCs yearend reports showed
collection shortfalls, except in election year 2004.
Thus, the following table:
ELECTION
YEAR

TARGET

ACTUAL

2001

P105,117 B

P99,981 B

P5,136B

(-5%)

127,269 B

14,689B

+12%

209,439 B

18,769B

(-9%)

2004

2007

112,580 B

228,208 B

AMOUNT OF
VARIANCE

DEVIATION
PERCENTAGE

2010

280,686 B

259,240 B

21,446B

(-8%)

2013*

250,437 B

289,860 B

51,545B

(-26%)

*Data only up to September.

Whatever inference you may have, hold it. Keep

it within you. I am not about ready to suggest that
BOC is, indeed, a fundraising conduit in most
69

national elections.

70

Yet, Wallaces observation that it would

be unfair to the honest ones is one thing
that many will agree. I do. But, isnt it true
that almost every sector of our society
condemns smuggling and corruption as
CANCER afflicting every strand of our
societys flesh and bones, and customs is
hopelessly corrupt to the marrow of its
bones? And, if so; isnt it, Peter, that
current medical convention suggests the
administration of chemotheraphy to
cancer patients? And, isnt it, Peter, that
in chemotheraphy, both the good as well
as the bad cells die?

Chapter 5

Yes, Peter, Customs can be cleaned up

___________________________________________________
Peter Wallace, in his October 10, 2013 27
column asked, Can Customs be cleaned up?
Mr. Wallace answered his own question by
suggesting solutions. But before he discussed his
solutions, he first lifted a paragraph from the
State of the Nation Address (SONA) of the President
who said: And here we have the Bureau of
27

Philippine Daily Inquirer, LIKE IT IS;

71

Customs, whose personnel are trying to outdo each

other's incompetence. Instead of collecting the
proper taxes and preventing contraband from
entering the country, they are heedlessly permitting
the smuggling of goods, and even drugs, arms, and
other

items

of

similar

nature

into

our

territory...Where do these people get the gall? Such

practices have no place in government.
Here in essence are what I shall refer to as
The Peters Prescriptions28 courtesy of economic
intelligence guru Peter Wallace, namely:
(a)

The

simplest

solution

is

to

close

Customs down, and start fresh. But the

courts would have a field day with that
one. It would be unfair to the honest
ones, too.
(b)

A solution would be to move all BOC

employees

to

other

government

agencies at the same service level they

28

Dedicated to Mr. Peter Wallaces erudition;

72

are now, but where there's no operation

where money can be made. The honest
ones lose nothing, the dishonest ones
only there criminal revenues.
(c)

Then government personnel of known

probity

can

be

moved

in.

I'd

significantly increase their salaries. I'd

do that for all government employees,
actually. Their salaries should equal
what the private sector pays.
(d)

One

solution

to

minimize

opportunities for corruption is full

computerization. It prevents contact
between the importer and Customs
personnel.
My reactions to the Peters Prescriptions are
these:
A. The
simplest solution is to
close Customs down,
and start fresh. But
the courts would have
Prescription

73

a filed day with that

one. It would be unfair
to the honest ones,
too.

Its easier said than done. Not only because

the courts will have a field day, but because it
cannot be. Wallaces simplest solution is not
really that simple.
Anyone who has closely followed customs
affairs, albeit already in possession of an OSCA 29
Card, will tell us that the Great Purge that was
done at the Luneta during the onset of Martial
Law, failed to aid or assist Customs Moses in his
bivouac to the customs promised land. Customs
Moses became old, had grown tired, and died
without seeing changereal changein customs.
Unlike the biblical Moses, the Customs Moses
had no Joshua, he had no successor, no reliever to
continue the journey. And so, even up to the day
martial

rule

was

lifted,

customs

remained

customarily everything but reformed. And, the rest

is now part of history.
29

Office of Senior Citizens Affairs;

74

Yes, Wallaces observation that it would be

unfair to the honest ones is one thing that many
will agree. I do. But, isnt it true that almost every
sector of our society condemns smuggling and
corruption as CANCER afflicting every strand of our
societys flesh and bones, and customs is hopelessly
corrupt to the marrow of its bones? And, if so, isnt
it, Peter, that current medical convention suggests
the immediate administration of chemotheraphy to
cancer patients? And, isnt it, Peter, that in
chemotheraphy, both the good as well as the bad
cells die?
B.
A
solution would be to
move all BOC employees
to
other government
agencies at the same
service level they are
now, but where there's
no
operation
where
money can be made. The
honest ones lose nothing,
the dishonest ones only
there criminal revenues.
Prescription

Cmon, Peter. Tell me where that is; the one

75

you said, where theres no operation where money

can be made. Havent you heard of news reports
telling us that even in public cemeteries, where the
dead outnumber the living, money can [still] be
made?
And, for those who will be seconded to the
BOC, theyll be faced with technical problems that
are relatively new to themwere talking about
customs administration and operation.
Jame Shaver, former Secretary-General of the
World Customs Organization (WCO), 1998, said:

There are few public agencies in which the classic

preconditions for institutional corruption are so
conveniently

presented

Administration.

The

as
potent

in

Customs

mixture

of

administrative monopoly coupled with the exercise

of

wide

discretion,

particularly

in

work

environment that may lack proper systems of

control and accountability, can easily lead to
corruption.

76

Also, when you said, move all BOC employees

to other government agencies at the same service

level they are now, are you suggesting Mr. Wallace
that

the

items

or

positions

in

those

other

government agencies have to be increased to be

able to accommodate those coming from the BOC?
Or, are you merely suggesting a swapping of
positions or items? If so, are you also insinuating
that

those

dishonest
modifying,

from
and

can

revising,

other

agencies

remain
or

as

are

such

changing

the

not

without
rules,

systems and process that are currently being

observed at BOC?
I certainly agree with Mr. Wallace, that
changing people will make the reform intervention
easier. But, it should not end there. Change in
people, not merely change of people, is what will
effect a change. Customs is what it is today not
necessarily because of bad people; its because of
bad system.

77

Then
government personnel of
known probity can be
moved
in.
I'd
significantly
increase
their salaries. I'd do that
for
all
government
employees,
actually.
Their salaries should
equal what the private
sector pays.
Prescription

C.

I agree with Peter. But, between you and me

and the bedpost, who will constitute the vetting
committee that will determine who among Tom,
Dick and Harry has what we call probity? Who will
devise the parameter that will tell the committee
what constitutes probity? What if 2, or 3, or 4, or
more candidates garner exactly the same statistical
points, how should the issue of who has probity be
resolved?
Isnt it that in the foregoing questions, the
exercise of discretion is not canalized within banks
to keep it from overflowing? And, because of this
thing called exercise of discretion, the person
determining who has probity may indeed suffer
from want of it? A classic case of a pot calling the
78

kettle black.
In other words, if the person tasked to
identify who among the government employees or
officials have probity, suffers from want of it
him/herself, how can s/he be expected to reasonably
find the right one? There is a latin maxim which
says, nemo dat quod non habet. It means: one

cannot give what s/he does not have. To paraphrase:

One

cannot

judge

who

has

probity,

if

s/he

her/himself does not possess it.

Wallaces idea to significantly increase their
salaries. I'd do that for all government employees,
actually. Their salaries should equal what the
private sector pays,must be anchored on the belief
that high salary would put a cap on ones needs.
Maybe, yes!
But, Peter, whats your take on thisI heard
this many times over: while there is limit to ones

need, there is no limit to ones greed?

79

One
solution
to
minimize
opportunities
for
corruption
is
full
computerizations.
It
prevents contact between
the importer and Customs
personnel.
Prescription

4.

You said, [f]ull computerization, Peter? I

agree.

But,

optimize

isnt

mans

computerization
productivity?

And

designed
it

to

doesnt

distinguish legitimate from illegitimate activities?

And isnt mans productivity caused by decisions
that are legal, moral, as well as otherwise?
Who determines when computerization is
full? What about our BOC experience, is it full
computerization or not? What is lacking? But, isnt
it that even those competencies that are presently
obtaining in the current system arent activatedin
fact, deliberately de-activated? Have you heard of
the current audit trail capability not being
activated? Upon whose orders? For whose benefit?

Whew! How many times shall we emphasize that

technology cuts both waysfor good purposes as

80

well as for the bad?

In the MEMO TO THE NEXT CUSTOMS
COMMISSIONER: TEN FAILINGS IN THE CUSTOMS
BUREAU, this author identified computerization as
one of the Ten Failings; thus he wrote, Technology:

Misused, Abused, Confused?

Allow me, Peter, to reproduce a portion of
this article on Failing No. 10, to wit:
In its November 2006 Final Report, the
Center for Advancement of Trade Integration and
Facilitation (CATIF) noted thus:
What BOC may consider as a turning point in
its more than a century of public service is the
automation and integration of its cargo
processing system during the 1990s. Labeled
as Automated Customs Operations Systems
(ACOS), the Philippine cargo clearance system
is a product of collaboration of the Philippine
government, international agencies, and private
sector. All three sectors had put as much
financial and technical resources to the system
that one sector could claim principal credit for
its development.

81

CATIF further notes that (F)ollowing the

introduction of ACOS, the delivery of customs
services in the Philippines was radically changed.
Procedures were streamlined; customs intervention
on release of cargo was reduced; some discretionary
processes were eliminated; more effective controls
on revenues were put in place; and a new division
mandated

to

ensure

the

continuity

of

modernization and reform in customs was created.

Overnight, the Bureaus ICT-aided operations
were hyped as the panacea to all the ills that plague
the Customs community. Thus, the ICT was tagged
as the ultimate tool that could effectively address
corruption issues related to importation.
poised

to

reduce

occasions

of

It was

face-to-face

interactions, to simplify procedures and ensure

consistent application; to minimize opportunities
for exercise of discretion; and to provide paper-free
and

cashless

clearance

process

for

low

risk

shipments.
Admittedly, ICT has revolutionized the ways

82

of doing things, triggered new ways of thinking,

minted brand new concepts of service delivery, and
shifted paradigms that demolished most of the ageold and restrictive frames of reference. Kudos, ICT!
Unfortunately,

not

all

the

hoped

for

outcomes were achieved. On the contrary, ICT has

been in many instances made a tool to further
the ends of vested interests. And they have thrived
in various fronts and different stripes; assumed
varied forms, colors and hues; and are present in
many

areas

from

accreditation

of

importers/brokers to first and last importation,

advance filing of IFM to amendment of the same,
from lodgement of entry to revision through rider,
from risk management profiling to x-ray scanning,
from tax assessment to automatching of payment
and payables, from application of duty stop to
triggering of OLRS, from please do not use display
on monitors to the dreaded pindot technology,
name it, ICT may have a role in it.
Peter, the situation hasnt changed; they are

83

still the same. So, if full computerization were to

cure them all, when can it be considered full? If in
the negative, whats keeping the BOC from levelling
up to full computerization?

84

And even if we go to the extreme, and

assume that the BOC is dead as a driftwood
that can no longer spring back to life; still, we
can seek solace in the thought that while
driftwoods are deadwoods, motionless and
lifeless, yet they can come alive anew and
assume a new creation through the words of a
poet, the brush of a paint artist, or the lens of a
photojournalist.
But BOC is not a deadwood; it may have
drifted for so long, yet still alive, and in
continuous flux of motions. The only problem
is its dysfunction, its going into the wrong
direction, and its continued subscription to an
old organizational mindset that has long
become hackneyed; its systems and processes
that have become irrelevant and obsolete;
and, a reason for being that has long become
altered by the dynamics of the worlds trade
and commerce.

Chapter 6

The Mustard Seed of Reforms

_____________________________________________________
The most comprehensive book ever writtenThe
Bibleis instructive of how the smallest of all seeds
can become a tree upon whose branches the birds of
the air can frolic. Matthew 13:31-32, says: The

kingdom of heaven is like a mustard seed, which a

man took and planted in his field. Though it is the
smallest of all your seeds, yet when it grows, it is the
85

largest of garden plants and becomes a tree, so that

the birds of the air can come and perch in its
branches.
But, the seed must die first before it becomes a
new life. Then, that new life must grow, and
become a large plant, and grow into a tree, with
branches so plenty that the birds of the air can perch
upon and frolic.
Indeed, as all seeds must die to give way to the
emergence of a new life, so must the mustard seed of
reforms die in order to give way to a new BOC. I
cannot yield to the defeatist stance of the many that
BOC is hopelessly corrupt to the marrow of its
bones. The more often cited justification for not
being able to effect a change kultura na yan is
no justification at all.
Things can change, especially for the better. The
goodness of men under the Watchful Eyes of the
Supreme Architect, will make sure that the edifice of
a new Customs rises from the ashes of indifference; a
new customs is extricated from the quicksand of

86

excuses; a new customs is rescued from the sinkhole

of neglect; a new customs is pulled out from the dark
abyss of dysfunction; or, saved from the rip currents
of misdirection. Yes, the indomitable spirit of men
who square their actions by the square of their
virtues will be the inspiration behind the new
customs under One God, One Plan, One Destination.
For as long as there are men and women of
integrity, of fertile imagination, of dedication, and are
willing to pay the price and sacrifice for the common
good, a world-class customs administration that
Filipinos can be proud of may indeed come alive.
And even if we go to the extreme, and assume
that the BOC is dead as a driftwood that, probably,
can no longer spring back to life; still, we can seek
solace in the thought that while driftwoods are
deadwoods, motionless and lifeless, they can still
come alive anew and assume a new creation through
the words of a poet, the brush of a paint artist, or the
lens of a photojournalist.

87

But BOC is not a deadwood; it may have drifted

for so long, yet still alive, and in continuous flux of
motions. The only problem is its dysfunction, its
going into the wrong direction, and its continued
subscription to an old organizational mindset that
has

long

become

hackneyed;

its

systems

and

processes that have become irrelevant and obsolete;

and, a reason for being that has long become altered
by the dynamics of the worlds trade and commerce.
These factors have driven away from the BOC, people
with imagination, people who have no appetite for
patronage politics, people with dedication, and people
who are willing to sacrifice for the common weal.
Former Senate President Jovito R. Salonga once
said: In all areas of national endeavor, there is need

for imagination, careful planning, thoroughness,

hard work, sweat, integrity, dedication, self-discipline
and the willingness to sacrifice all for the common
good.... All the funds in the world will be to no avail
if we suffer from lack of these intangible forces that
make a nation great. These are what he calls, the
intangibles that make a Nation great.

88

Not even the failures of past attempts should

discourage men and women who would like to
reboot, retool, and rebuild the Customs bureau. After
all, failures, they say, are just postponed successes.
We only have to gather some few good men, for
a start; and, there are many of them in the
waterfront. We don't need to look for saints, all we
need are living heroes and sheroes, who would like
to lay the foundation of a purpose-driven, valuesbased, and TAR-dedicated customs administration.
Kevin Costner has an apt description of what the
bureau needs, he said: Real heroes are men who fall

and fail and are flawed, but win out in the end
because they've stayed true to their ideals and beliefs
and commitments.
Having said that, we need not be Diogenes going
about with his lamp in search of some few good
men. Though the exacting public opinion may not
favor exemption from what it opts to believe that he
who stays in the kitchen cannot be any different from
the kettleblack; it should not stop any reformminded individual from pursuing her/his legitimate

89

agenda

until

the

cynics

in

their

midst

are

convincedand finally holler: there is God, after

all.
It

may

be

unfair,

unjust,

and

absolutely

incorrect, but it no longer matters. After all, we can

seek refuge in John 8:7, 10-11: If anyone of you is
without sin, let him be the first to throw a stone at
herWoman,

where

are

they?

Has

no

one

condemned you? Then neither do I condemn youGo

now and leave your life of sin.
Now, if the Bureaus officialdom is to leave its
life of sin, it should start reconfiguring its systems
and processes, reclarifying its corporate values, and
restating its vision and missionall in pursuit of its
purpose.
How

then

should

the

new

customs

be

configured, structured, or designed?

Paring Bert, form follows functionthey say. We

cannot, therefore, hope to answer that question until
we agree on what the new paradigm of customs
should be. Coming to terms on this issue is conditio
90

sine qua non towards reconfiguration, restructuring,

and redesigning. Otherwise, the possibility of a
debilitating

dysfunction

setting

in

during

its

embryonic stage is great.

Of late, some mouthpieces of the capitalist world
have been sounding anew the inevitable ASEAN
Integration come 2015. With it, comes the demand
for trade facilitation, and the knocking down of
tariffs

and

other

barriers,

among

the

many

consequences.
Peter Wallace, in his column Can Customs be
cleaned up? 30 said: [w]ith the Asean Economic
Community coming in 2015, most duties will go
anyway, so the need for a full Bureau of Customs will
be less needed. A task force to catch smugglers of
illegal or banned products can do it.
Fine. Let there be changes in BOC. After all,
uprooting corruption, rebooting customs

is

program long desired by the Finance Department, the

national leadership, and the general public as well.
30

Philippine Daily Inquirer (PDI), October 9, 2013;

91

But, how should the new Customs bureau be

rebooted, retooled, and rebuilt to be able to respond

to the new direction of Philippinezation (for

globalization,

decentralization,

contractualization,

privatization, computerization, rationalization, etc.)?

Should

the

new

BOC

become

mainly

enforcement-driven as suggested by Wallace? Should

it abandon its revenue-dedicated function now that
commodities are being zero-rated and free trade
agreements (FTAs) are signed swifter and oftener?
And, cannot the new BOC be primed for a new role
aimed at achieving President Aquinos mantra of
Inclusive Growth? Cannot good governance be the
linchpin of the new BOCs programs and projects?
Many will resist any changes, for sure. But,
Heraclitus comes to mind when he said: Nothing
endures but change. And, here's John L. Mason, in
his book An Enemy Called Average counseling us
saying: Do not fear change, for it is an unchangeable

law of progress. The man who uses yesterday's

methods in today's world won't be in business
tomorrow. A traditionalist is simply a person whose

92

mind is always open to new ideas, provided they are

the same old ones.
Finally, if BOC is to win the war against
corruption, it may well take some points from the
timeless Sun Wu's Art of War, thus: Discard fixed

rules and change with changes in the enemy

situation....Win victory by modifying your tactics in
accordance

with

the

changes

in

the

enemy

conditions.
Verily, therefore, it cannot be business as
usual if the Mustard Seed of Reform is to be allowed
to grow within this side of the bureaucracy; and, it
cannot be business as usual if it has to change
altogether BOCs tag as the poster boy of corruption.
It has to be business unusual if the BOC has to
serve its triple bottomlinesrevenue collection, trade
facilitation, and security.
All told, what is the mustard seed of reform that
the Customs bureau needs?

Good

governance!

Good

governance!
93

governance!

Good

Unfortunately,[g]ood governance is not easy to

define but [it] includes [many] elements like political

stability, the absence of violence, corruption controls,
a voice and accountability, reports Alfred Romann
in China DailyAsia Weekly.31
Romann,

quoting

economist

Changyong

Rhee, 32reported that [o]ne area of reform that we

believe Asia policymakers have to pay more attention
to is the area of governance.
While Romann correctly noted that [t]here are
difficulties measuring governance because it is quite
a broad and multifaceted issue, these difficulties
should not be taken as a valid excuse for not
pursuing good governance agenda. After all, Romann
notes that, indeed, [b]etter governance matters
because, as empirical studies show, [it] creates the
conditions for faster growth, higher investment and
faster poverty reduction. He adds: [t]he quality of
governance matters for business and impacts their

31
32

October 18-24, 2013 issue, p. 6;

Chief Economist, Asian Development Bank (ADB);

94

willingness to invest and trade with a particular

country.
Romann also quoted Michael Ducker, President
and International Chief Operating Officer of Fedex
Express to have said that [m]aking things easier for
people

who

transparency

trade
of

across

customs,

borders

through

through

standardized

values, we see those kinds of things as being a great

boon, for business.
Said Drucker, as further quoted by Romann:
recent study by eBay in the United States suggested
that 94 percent of their SME customers now export
to at least five countries. All these business are likely
to trade with countries that have efficient and
predictable logistics chains.
Indeed, good governance is, albeit difficult to
define,

understandable

among

different

sectors,

across economies, and among regions. Romann

reported that [i]n a 2010 study, the New Delhi
think tank Research and Information System for
Developing countries noted that trade in Asia is very

95

much contingent upon governance and institutional

quality. Countries with better governance enjoy
better trade.
To

this

writer,

transparency,

good

accountability

governance
and

rests

on

responsiveness

(TAR). Only with TAR can service delivery of any

government agency be truly aligned with good
governance; good governance is essential towards the
attainment of inclusive growth.
And, China Daily Asia Weekly cannot be farther
from the truth when it headlined: Good governance

key to growth.

96

No matter how many people we hold

liable, no matter how many government
officials we send to jail, if the system
remains uncured, the vicious cycle of
corruption will not stop. x x x. The illfated system itself will breed the next
generation of corrupt leaders.
-J. Conchita Carpio-Morales
Tanodbayan,OMBUDSMAN

Chapter 7

A matrix and a dashboard

_____________________________________________________
I took my postgraduate course in Corruption
Studies

in

Hong

Kong

University

School

of

Professional and Continuing Studies (HKU SPACE).

Together with other fellows from as far as South
Africa and Nigeria, to the subcontinent of Pakistan
and India, in nearby Singapore, Hong Kong and
Malaysia, I was with four other Filipinos who took
special graft-busting studies under the tutelage of
anti-corruption expert Tony Kwok of the renowned
Hong

Kong

Independent

Corruption (ICAC).
97

Commission

Against

Hong Kong ICAC was credited for providing a

long lasting relief to the almost insurmountable
police corruption then plaguing the former British
Colony. Now considered a global showcase of
effective anti-corruption framework, the ICAC is the
new benchmark of many governments desirous of
wrestling with the tentacles of graft and corruption.
Against this backdrop, the HKU SPACE crafted a
unique course offering that can only be availed of in
Hong Kong: the Postgraduate Course on Corruption
Studies.
Tapped for his long years of experience in
conducting diagnostics on corruption and other
crimes, Professor Alain Sham, a Senior Prosecutor
at the Justice Department of the People's Republic
of China, was on deck as a member of the faculty of
the University of Hong Kong for this course.
In one of his subjects, he shared with us a
simple tool, where he asked: why does corruption
thrive?

98

And, almost in unison, we hollered: why?

The Matrix
Inscrutable in his looks, and unassuming in
his ways, Prosecutor Sham started his diagnostics
although with cautionhis was still a work in
progress; then he drew this matrix, which for want
of a name I shall callwith apologies to my
Professorthe 7 Scenario Matrix, thus:
Scenario 1: When the Cost (C) is high; and
the Profit (P) is high; and the Risk (R) is low,
corruption

is

likely.

Put

differently,

[H]+P[H]+R[L]=corruption is likely.
Scenario 2: When the C is high; and the P is
low; and the R is low, corruption seems likely. Put
differently:

C[H]+P[L]+R[L]=corruption

seems

likely.
Scenario 3: When the C is low; and the P is

99

low; and the R is low, corruption is likely.

Differently stated: C[L]+P[L]+R[L]=corruption is
likely.
Scenario 4: When the C is low; and the P is
high; and the R is low, corruption is very likely. Put
differently, C[L]+P[H]+R[L]=corruption is very
likely.
Scenario 5. When the C is low; and the P is
high; and the R is high, corruption is still likely.
Put differently: C[L]+P[H]+R[H]=corruption is
still likely.
Scenario6. When the C is high; and the P is
high; and the R is high, corruption seems likely
still

for

corrupt!).

the

thrill-seekers

(read:

recklessly

Otherwise

stated:

C[H]+P[H]+R[H]=corruption seems likely still

for the recklessly corrupt; just for the thrill!
Scenario 7. When the C is high; and the P is
low; and the R is high, corruption is highly

100

unlikely even for the hopelessly corrupt. Put

differently: C[H]+P[L]+R[H]=corruption is highly
unlikely unless you're bratty and you're nuts.
The 7-Scenario Matrix looks like this, even
as I express again my apologies to Professor Sham
for the remarks under REPERCUSSION which are
varied assumptions of the author.

Here goes:
COST
H
H
L
L
L
H
H

PROFIT
H
L
L
H
H
H
L

RISK
L
L
L
L
H
H
H

REPERCUSSION
GO!
GO!
GOI
GO! BINGO! GO!
WHAT DO I
LOSE?GO, GET
THE HIGH!
FOOLISHNESS!

(The remarks under REPERCUSSION are the author's assumptions.

Apologies to Professor Sham.)

You will note that the matrix prominently

shows a potent combination of COST-PROFIT-RISK
equation.
As shown above, it is only in Scenario 7 that

101

the likelihood of corruption is highly unlikely. The

reason I suppose is obvious: one gets to reap

peanuts for her/his arms and legs. And if anyone

still gets a high in such an environment, her/his
business

sense

must

surely

be

skewed

and

skewered!
Let us then make a sense out of Professor
Sham's 7 Scenario Matrix. To make your business
process graft-intolerant, make sure that cutting
corners, waywardness, and other petty corruption
will entail HIGH COST-LOW PROFIT-HIGH RISK
equation.
And here's my sense: it's not the high cost,
neither the small profit, that will dissuade one from
engaging in corrupt ways; it is the high risk of
getting caught, and when caught, the thought that
the books are thrown at her/him where s/he gets
her/his comeuppancein jail or even just ostracized
in

shamethat

will

dissuade

becoming corrupt.

102

her/him

from

Does that make sense to you? If not, what

will?
Let us listen anew to Robert Klitgaard, the
former Dean of the The Rand Graduate School in
Santa Monica, California; he posits this formulaic
definition of corruption, thus: C=M+D-A.
In other words, CORRUPTION is highly likely
in any environment where there is MONOPOLY of
authority

coupled

with

wide

latitude

of

DISCRETION and the absence of ACCOUNTABILITY

on the part of the power holders.

The Dashboard
Until now, this Klitgaard formula is regarded
as the most sensible dashboard used by anticorruption educators in spotting weak or flawed
systems and processes, whether in government or
in private businesses.
Having said that, all that the Customs bureau

103

need to do is to subject its systems and processes

to stress testing using what I shall call the
Klitgaard Dashboard. Any customs reformist who
truly wants corruption substantially reduced, or
effectively nipped in the bud, need only to
identify the business processes where the combo of
MONOPOLY+DISCRETION-ACCOUNTABILITY
(M+D-A) is found lurking in the dark, or worse,
embedded into the bones of customs processes.
And there are plenty of them, Paring Bert. Not to
see them is unthinkable! It is talked about, it is
complained about; it is heard, it is felt. There is no
way missing itnot even if one is deaf, or dumb, or
blind.
And it's a cinch identifying the presence of
the M+D-A trio. When you see the dashboard
blinks, they're surely there. You only need to
watch your instrumentation panel, and watch for
blinking lights; or, red flags, if you may.

Listen to your vehicle, the driver is often

told. Pay a close watch on your dashboard. If it

104

blinks, it speaks volume. And you can't say you're

too busy driving to check your gas tank! You can't
say you'd rather do an F1 race to beat the number
coding window than stop even if you're running
with a flat tire! No, you can't do thatnot even if
youre dumb!
It's the same in waging a protracted war
against shenanigans in government. If you're really
serious about making your systems and processes
graft-intolerant, you have to stop and pause a while,
check what the blinking lights are all about, and
subject them to the fine sieve of examination using
the Klitgaard Dashboard.
Having said that, join me in revisiting some
of the business systems and processes in the
Customs bureau. It is in re-engineering the systems
and processes that preventing corruption can
effectively begin. And prevention is often seen as
the only cure for corruption at this stage. In fact,
the Tanodbayan of the Philippines, Justice Conchita
Carpio-Morales was quoted to have said: ... as

105

there is yet no absolute cure to corruption,

prevention appears to be the only remedy or
antidote against the spread of this social malady.33
And Morales was quoted to have said further:
No matter how many people we hold liable, no
matter how many government officials we send to
jail, if the system remains uncured, the vicious
cycle of corruption will not stop. x x x. The ill-fated
system itself will breed the next generation of
corrupt leaders.
That is why we need to look into the ground
level realities currently obtaining in the Customs
bureau.

We

shall

look

into

its

systems

and

processes and try to identify its dark spots or

vulnerabilities. We shall be as factual as possible,
we shall discuss the problem and not the persons
behind the problem, and try to identify some
interventions that are loaded with the Klitgaard
chromosomes.

33

Philippine Daily Inquirer, October 6, 2013, p.1 and p.A16;

106

Let's stress test a couple of BOC functions:

(1) TIN-blocking of accreditation ID; and (2)

alerting of shipment.
First off, you get to be accredited as
importer, or as broker before your transaction can
get into, or be processed by the computer system of
the Customs bureau. Let's set aside for the moment
how to get accredited; it can, by itself, merit
another compilation of essays discussing the pains
and gains, the ups and downs, as well as the good
and the bad about it. Let us assume you're now
accredited.
Reality A (TIN-blocking of ICARE ID): Your
accreditation

was

subject

of

derogatory

intelligence information. As a consequence, you're

ID was TIN-blocked. So, you're entry documents
cannot be processed, the customs computer system
wouldn't accept it. You're not identified. So, as they
say it somewhere, No way Jose! Now, you're
panicking and worried of additional expenses that
the situation may cost you, like demurrage, etc.,

107

not to mention the possible backlash in the eyes of

your principals who might look for other brokers
the magaling, madiskarte at may 'connect'.
But, you know that the ICARE Office has
TOTAL CONTROL of the situation; it calls the shots
over

all

accreditation

matters,

plus

the

full

discretion to lift the TIN-block; so, you're advised

by friends to do what they normally do: come
across, Gringo! After all, this TIN-blocking and
lifting are not audited by any oversight group.
Yes, there is absence of accountability owing to
unaudited tin-blocking and lifting; there's no
one checking its abuses.
Faced with this situation, what will you do?
Whatever you do, there surely will be pains;
just as there will be gains.
Now, tell me Paring Bert, do you see a
blinking light in the Klitgaard Dashboard?

108

I do. I see a bright and continuous blinking

of an indicator light.

It can only mean that

something is wrong somewhere; yes, a flaw in the

systems and processes of the bureau's accreditation.
One

can

be

sure

of

one

thing:

the

entire

accreditation function of the BOC is a fertile ground

for the microbes of corruption to reproduce, lurk in
the

dark

alleys,

transmogrify

into

evils

of

humongous and systemic magnitude, gnaw and

slurp into every vulnerability of the structural
framework, and, with a big bang! wreak havoc on
the agency's immune system.
We can easily identify these vulnerabilities.
And, we need not be veterans of Cape Canaveral to
be able to know where they exist, where they
hibernate, where they mate, and how they multiply.
Yes, it's so simple that we cannot pretend we don't
know it. If we leave it untouched, it will raise a
doubt on our sincerity to stamp out the menace of
corruption.
So what do we gotta do, Paring Bert? What

109

can we do about it? How do we specifically cure

the

disease?

Tanodbayan

Morales

suggests

prevention. But, how?

First, outsource accreditation, and make it
one time accreditation. It can be let to the private
sector as Mode A; or, it can be co-hosted by and
between the BIR and the BOC as Mode B, with an
NGO operating as a 3rd party compliance-monitoring
outfit in either modes.
Second, draft a protocol that will ensure that
every TIN-blocking must be supported by an ICTaided Merit and Demerit Scorecard where all
derogatory data on the importer's business records
are stored, analyzed, and classified. Lifting of the
TIN-block must likewise be ICT-aided. In both TINblocking and lifting, the protocol must define a
TOPS Matrix where the TASK is defined; the
OFFICER is identified; the PERIOD within which to
act upon is prescribed; and the SANCTIONS are
pre-agreed, announced and published to deter
deviant behaviors.

110

Third, constitute a 3rd party compliancemonitoring and inspection team. The students, the
Boy Scouts of the Philippines, or other anticorruption youth organizations can be tapped.
Together with government inspectors, they shall
troop to the reported or registered locale of the
accredited enterprises, to check their existence or
non-existence. They shall carry a pre-designed
checklist, or template, if you may. The template
shall spell out what to check in order to eliminate
discretion even just on what questions to ask. In
this manner, we are assured that the postinspection reports will indicate current, material
and relevant information that are vital for the
updating of the bureaus intelligence data-bank in
so far as its risk management capability is
concerned.
Fourth,

tripartite

audit

by

the

representatives of the private sector, the BOC, and

the NGO 3rd party compliance-monitor for Mode A;
and the representatives of the co-hosts BIR and

111

BOC as well as the 3rd party compliance-monitor in

the case of Mode B. The tripartite audit shall be
done regularly to prevent abuse and misuse of the
TIN, as well as abuse in the exercise of the power
to TIN-block and the authority to lift. In this wise,
an effective audit trail will be able to prevent the
occurrence of consignees for rent, temporary
lifting,

and

other

shenanigans

attendant

to

accreditation affairs.
My take is: whether the BOC outsources the
accreditation of importers and brokers from the
private sector, or co-hosts it with the BIR or DTI, it
is still crucial that the 3rd party compliance
monitoring be made part of the whole process. This
will operationalize the sunshine principle, or the
Graceful Principle.
Reality B (ALERTING OF SHIPMENT):

At

times your cargo gets to be ALERTED by intelligence

and enforcement operatives, or by a Task Force, or
any operating unit. More often than not, the
alerting

unit

will

cite

112

WITH

DEROGATORY

INFORMATION or FOR POSSIBLE VIOLATION OF

THE TCCP as grounds for alerting and holding
your shipment. What that derogatory information is
all about is not important for purposes of this
illustration it can well merit one whole chapter to
discuss, knowing how it was used, misused, and
abused by anyone given the authority to alert or,
even by those empowered to recommend to alert.
What you can do when your shipment is alerted is
what we shall look into for the moment.

So, what happens after your shipment is

alerted? What are your options? What will you do?
Or, better still, what can a reformist Customs
leadership do to address the problem?
Under existing BOC regulations, ALERT is a
preventive measure; it is issued to make sure that
government interests over highly dutiable goods
are secured. Yes, ALERT does not necessarily mean
that your shipment is prohibited; or was brought
in without the benefit of import permit; or, misdeclared, undervalued, or misclassified. ALERT is a

113

prelude to preliminary investigation the conclusion

of which will result in the issuance of either a
HOLD ORDER, or a RELEASE ORDER. When
violations are found attendant to the alerted
shipment, a HOLD ORDER shall ensue as a matter
of course, and the shipment will not be RELEASED;
instead, it will be subjected to a warrant of seizure
and detention (WSD). In this eventuality, your
shipmentafter due hearing and the decision
thereon attains finalitywill then become property
of the government and is disposable only thru
public auction.
The hearing in the Law Divisions of the ports
is tedious, circuitous, and time-consuming; and the
public auction is reputed to be rigged, prearranged, and irregular as well. But, we shall not
be discussing them here for the moment.
What we would rather discuss are your
options when your shipment is alerted.
Here are your options: (A)Come across,

114

Gringo!; or (B) go legal, and wait till kingdom

come and be branded by customs people as

hindi maayos kausap.

Option A will shorten your agony, so they
say. But, cuidao it will not only be costly not to
mention illegal, it can also make you their suki
where your future shipments albeit regular will be
subjected to their fine-toothed comb hoping they
can find or discover (concoct is the more apt

term) some grounds to make it appear irregular,

knowing pretty well that youre the type who easily
gives, bleeds, gay-bi, or comes across, Gringo!
as you did in the past.
Option B, on the other hand, will make you
look bad to your principals for not being able to
meet their expectations.

To them, you are not

magaling, madiskarte, at may 'connect'.

It will

result in lost opportunity for your principal's

business; just as you'll surely lose your client as
well. In the event you succeed to win the case in the
Law

Division,

said

decision

115

is

automatically

reviewable by the higher authorities. And, it will

take an eternity before it is conclusively resolved by
the courts. The only consolation that you have is
the opportunity to be able to hold your ground,
and having proved your point albeit costlyvery
costly.
But, paying a price for your principles is not
hard to understand; though it pains to know that
the unprincipled ones gain, and unprincipled deals
make real gains as well. This is ground zero in the
customs zone.
I overheard this before: if you stick to your
principles, you'll end up without principals.

Now, what can be done to make the ALERT

function graft-intolerant? How shall the reforms
initiatives be sustained?
Paring Bert, its only with direct citizens
participation that the concentration of authoritydiscretion-absence

of

accountability

116

can

be

neutralized. No other way, believe you me!

And there are many other transactions in
the customs zone where citizens participation is
not only desirable but essential; yes, there are
countless more.
Of course, the pro-status quo elements will
always resist; they will put up thousands and one
reasons to force in their objection. They may even
paraphrase a member of the Judicial and Bar
Council who was quoted by Marites Danguilan
Vitug in her book, Shadow of Doubt (Probing the

Supreme Court), to have said: To be so naked is

blatantly obscene.
Not

anymore,

Mr.

Justice.

Times

have

changed, nakedness for truth is todays fashion,

nakedness for truth is everybodys passion. In fact,
we should all herald the citizenrys shoutsThe
Emperor has no clothes!

117

If were scandalized by the presidential

rebuke during the last SONA; if were
slighted by direct interference of the
Finance Department on strictly customs
affairs; if were really deep into the
trenches, then our Commanders
Estimates must consider changing our
mindsets, rhyming our tactics with
strategy, and rebalancing our scorecards
regularly. It must not be hoodwinked by
the demand for perpetual motion, when
what is needed is meaningful action.

Chapter 8

Change in mindsetthe road not

[yet] taken
____________________________________________________
In the many decades of BOC's existence, one
thing stands out as its officials' and employees'
mantra: Hit the target! Hit the target! Hit the target!
This was never changed, not even an attempt to
do it. Until now, it hasn't. Administration after
another, commissioner after commissionerthey all
adopted the same line. They sort of validated and

118

secured revenue collection functions lofty position

in the BOC's order of priorities. The BOC has
institutionalized making the revenue target as the
lone determinant of what a successful Bureau of
Customs should be. Revenue collection, in effect, has
gained acceptance as BOCs main reason for being.
To them, revenue collection is not just the rubric of
the agencys justifications, its the essence of the
agency.
Fair enough, for even the Tariff and
Customs

Code

identifies

revenue

collection

among the bureau's enumerated mandates. I

have no quarrel with this posture; but, I raise a
question on what the Bureau has been willing to
lose in exchange for its hitting the target.
Past Commissioners, and OIC's as well,
have been overheard telling their Collectors: just

make sure we hit the target, and the public is

willing to forget the rest. Put differently, charges
of

rampant

smuggling,

patronage

politics,

unprofessionalism, shenanigans, pilferages, and

119

many others, will be forgotten, forgiven, or

ignored by the public; in fact, including the
Finance department as well as the Palace. Thats
for as long as they hit their targets.
And, Paring Bert, even the media has
already accepted collection figures as the only
reliable indicator of BOC's performance. Yes, the
media no longer do investigations; it prefers
reporting figures. The Fourth Estateespecially
those in the waterfrontis no longer into
investigative

journalism,

neither

is

it

journalizing investigations. Newsmen abound,

but theyre simply there.
Going back, some Commissioners, dating
back to the Martial Law Era, were reported to
have proudly struck a deal with their Port
Captains (as the Port Collectors were then
called) that if they could hit their monthly
targets in 27 or 28 days, then they could slacken
a bit, celebrate, and share among and between

the government and themselves what they could

120

collect for the remaining days of the month. In

short, after the monthly target was met, the
employees and their officials could take their
rest and partake in their share of the cake. Put
differently, after they shall have collected what
was due the government, what they can collect
over and above that amount shall have to be
incentivized and divided among the people in
governmentthemselves.
So,

various

slogans

cropped

up

in

various fashions and sound bytes, like Go!

Twelve in Ten! which simply means that the
collection district shall endeavor to collect the
12-months target within the span of 10 months,
so they can partake in the collections exceeding
the full years target making Novembers and
Decembers revenue theirs and theirs alone.
Or, theres the 30 in 27 Promo which
means that whenever the Port makes the target
within the first 27 days of the month, the monies
it netted in excess thereof especially those that

121

came in during the last 3 days are reportedly

shared among themselves. Pro rata, that is.
Looks cool, sounds great; but, downright
illegal. Graft!
Fortunately, these were just anecdotalnot
factualstories; devised for slooganeering.

Whatever! This maybe because, the bureau

hasnt as yet metamorphosed into what it should
really bea new BOC with triple bottomlines:

revenue

collection,

trade

facilitation,

and

security (I refer to the last as The Imperatives

of Pax Aduana).
Today,

the

revenue

collection

mindset

continues to linger in the consciousness of the

agency's top echelon. It pre-occupies the mind of
most

customs

leadershipand

Finance

authorities as well. Just make sure you hit the

target, and you'll be fine, goes the usual cavalier

stand of oversight officials.

122

Resultantly, BOC officials go helter-skelter

in searching for ways to raise revenue; they
concoct various modes, craft many ways, and
transform into gold everything that they can
lay their hands on. Never mind if the modalities
are irregular; never mind if the traditional
practices smack of graft, or greed, or even
insanity.
Two examples:
Onetake

the

case

of

imported

raw

materials. They were brought into the Philippine

customs

territory

without

their

duties

correspondingly pre-paid; theyre allowed to be

brought in on the strength of customs bonds.
Conditioned solely on having these bonded raw
materials manufactured into finished products,
these processed/finished products shall have to be
exported to customers abroad. It is irregular to
allow these raw materials to be brought into the
Philippines customs zone and introduced into the

123

local market as raw materials. Doing so, would

violate the conditions of the bonds and will make
these instruments of guarantee forfeitable.
But, in the mad rash for revenue collection,
the Port officials have assigned collection targets to
their respective warehouse operating divisions
(WODs). They even warned them that WODs
officials stand to get attrited in the event they
missed their collection targets. But these WODs are
not assessment units, theyre not collecting units;
hence, they shouldnt be given assigned targets.
They are compliance monitoring units that make
sure the bonded raw materials are processed or
manufactured and their finished products exported
abroad in support of the countrys export agenda.
So,

why assign them

targets? They

are

not

assessment or collection units that are required by

the Lateral Attrition Law (LAL) to be given revenue
targets.
So what happens?

124

Well, the WODs officials would regularly call

the customs bonded warehouse (CBW) operators,
advise them to withdraw bonded raw materials
from

their

depot,

not

for

manufacturing

or

processing, but for selling them to the local market.

This, they allow provided CBW operators pay the
duties corresponding to whatever volume of raw
materials they may withdraw. Clever move. No
losses due the government; they paid the duties
and taxes appertaining thereto. But, is it what the
CBWs

were

constituted

for?

Nyet!

Irregular!

Violative of existing CBW rules and regulations.

Its all because, WODs were assigned
collection targets when they shouldnt have been
given targets in the first place. This is a classic
case

of

trade

facilitation

mechanism

gone

haywire and sacrificed in the altar of revenue

collection.

It looks like a classic case of a prison guard

allowing the inmates to go over the walls. All
because the ports performance indicator hinges

125

on revenue collection, non-compliance to rules

are ignored, neglected, and thrown into the
garbage bins.
Twoand, the most repugnant of them all:
benchmarking. You allow falsity, forgery, perjury
and other crimes provided the importers, brokers
and/or consignees declare a value that falls
within a pre-determined bracket just to make
sure that the dutiable base of the collectibles
shall become higher and the BOC stands a better
chance of making its astronomical target?
Or, you dont look anymore and check into
what the cargoes really were, provided their
value declaration were high enough to fall
within, or even hit the roof of your pre-agreed
benchmark. What matters most is ensuring that
the Mt. Kilimanjaro in your collection target
becomes

easily

surmountable.
contains

scalable
But,

anti-social

and

what if

immediately
the

goodsknock

shipment
off

items,

drugs, or terrorists hardware? You allow them

126

in provided you surpass your Mt. Pulag, Mt. Apo,

or what have you? Cmon! What happens to your
Pax Aduana?
In the Memo To the Next Commissioner
TEN FAILINGS IN THE CUSTOMS BUREAU
(2010), I intimated that Pax Aduana should be
among

the

major

cogs

in

all

customs

administration all over the worldincluding the

Philippines. Pax Aduana is more than just
revenue;

it

is

about

promoting

peace

and

securing development. The situation back then

hasnt

changed.

On

the

contrary,

our

vulnerabilities have grown by leaps and bounds

owing to the confluence of factors: economic,
defense, alliances, andof lateinternational
relief operations.
The Philippine Daily Inquirer34 bannered
16 foreign armed forces helping PH. Said the
report: The 16 countries on the council are the
Philippines,
34

Australia,

united

November 22, 2013 issue, p. A1;

127

States,

Japan,

Canada, Malaysia, Indonesia, Brunei, Sweden,

Vietnam, South Korea, New Zealand, Spain,
Thailand, the United Arab Emirates (UAE) and
Israel.35
Their

engagements

in

the

relief

and

rehabilitation operations are packaged as a joint

action under the Multi-national Coordinating
Council (MNCC) borne out of the devastation
wrought by Supertyphoon Yolanda.
A Philippine defense official36 was quoted to
have said: We expect that there are foreign
militaries that want to take advantage of the
MNCC. We will welcome all the support that we
will be getting, specifically for the MNCC, all the
military support.
The PDI reported US Lt. Gen. John Wissler,
head of the US military contingent to have said:
coordination with the Philippine government
allowed the foreign countries wanting to help to
35
36

Ibid, p.A1-A12;
Defense Undersecretary Pio Lorenzo Batino;

128

hit the ground running when they arrived in the

typhoon-hit areas.
These foreign vessels were loaded not just
with goods coming from governments but from
private groups desirous of sending aid and
assistance to the devastated areas as well. That
being so, there are less restrictions in their entry
into the Philippines shoresnot for taxation, not
for commerce, not even for security. As they say,
emergency knows no law.
I hate to ask this questions: how sure are
we that those relief goods that were sent by
private groups are free from security risks?
Remember, they were sent with the least vetting,
or the scantiest examination. After all, they were
sent for a well-meaning purpose.
If anyone is scandalized by the question
simply because of the donors worthy intention,
just forget that I ever asked about it. Mine was
simply to emphasize that Pax Aduana should

129

now be made a core competence of customs

authorities.
Recently, the Sultanate of Sulus foray into
contested Sabah, the Chinas breaching of its 9dash line, the unconcealed war over gas and oil
within the disputed group of islandscall them
Nansha, or Kalayaan, or Spratlysand, very
lately,

US

Secretary

of

State

John

Kerrys

announcement that the US does not recognize

China

air

defense

zone,37all

these

are

incendiaries that currently make our borders

highly volatile. Yes, with the major powers
flexing

their

muscles,

and

claiming

what

historically belongs to us as theirs, may make our

national defenses and border security crumble in
the heat of military skirmishesour recent
acquisition of Hamilton-class cutter oldies Del
Pilar and Alcaraz notwithstanding.
The trouble really with BOCs fixation on
meeting its
37

revenue

target are

Headline of The Philippine Star, December 18, 2013;

130

the myopic

mindset with which its officials have allowed

themselves to get hooked on; the gullibility of
its assessors and examinerspretended or real
in the face of outright violation of rules; and the
pressures of hitting the targets sidetrack what
are truly important. Yes, Paring Bert, our
assessment people would rather err on the side of
revenue collection, than get honored on the less
dramatic

yet

supremely

important

side

of

securityafter all they dont belong to our police

and defense departments; or, they would rather
err on the side of trade facilitation, than take the
road least traveledafter all daang matuwid is
criticised as nothing but a sound byte.

Whew! How sad it is knowing that this

Simple-Simon-mindset is not really simple. This
over-simplification of a truly complex situation
can become catastrophic.
Such BIG WHAMMIES!
And, the whammies can multiply quickly, it

131

can become three instantaneously; when the BOC

peoplehaving been conditioned to believe that
they can do no wrong when they do things in the
name of revenue collectionwill start making a
higher benchmark as subterfuge for increasing
their leverage for graft, then, may God Bless us
all. The end does not necessarily justify the
means. Its non sequitor, Niccolo!
The incisive Conrado de Quiros, in his
column, THERE'S THE RUB38 said, There's not

just the daang matuwid as opposed to the daang

baluktot, there's also the high road as opposed to
the low road. The road of principle as opposed to
the road of expedience, the road of idealism as
opposed to the road of pragmatism, the road
where the means justifies the end as opposed to
the road where the end justifies the means. The
way things are, the former remains a road not
taken. We still have promises to keep. And miles
to go before we sleep.

38

Philippine Daily Inquirer, Oct. 3, 2013, p. A10;

132

How low, and how deep can we go?

If were scandalized by the presidential
rebuke during the last SONA; if were slighted by
direct interference of the Finance Department
on strictly customs affairs; if were really deep
into

the

trenches,

then

our

Commanders

Estimates must consider changing our mindsets,

rhyming our tactics with our strategy, and
rebalancing our scorecards regularly. It must not
be hoodwinked by the demand for perpetual
motion, when what is needed is meaningful
action.
Jim Hightower in his book, THIEVES IN
HIGH PLACES (They've Stolen Our Country and

It's Time to Take It Back) had a similar quip, he

said: So much scandal, so much outrage, so

much motion. . . so little action.

Heres a view from my boots on the
ground: BOC needs to make its purpose-driven
mindset rhyme with its strategy and tactics.

133

Senator Grace Poea first termer in the

Philippine Senatecan never be more
correct when she commented that the
passage of the FOI bill twice blocked in
the House of Representatives was long
overdue because there was a 'real, genuine
public clamor' for it.
Quite specifically, the lady solon said that
[e]xposing the government to the
sunshine of public scrutiny will kill the
germs and disinfect the microbes that lead
to waste and red tape, abuse of authority
and gross misconduct, and graft and
corruption.

Chapter 9

Sunshine Imperativea Graceful Push

of Poe

_____________________________________________________

All things not exposed to sunlight acquire

germs, the Philippine Daily Inquirer (PDI) 39 quoted
Senator Grace Poe to have said in her sponsorship
speech for the passage of the Freedom of Information
(FOI) bill.

39

September 25, 2013, p. A11;

134

Senator Poea first termer in the Philippine

Senatecan

never

be

more

correct

when

she

commented that the passage of the FOI billtwice

blocked in the House of Representativeswas long

overdue because there was a 'real, genuine public
clamor' for it.
Quite specifically, the lady solon said that

[e]xposing the government to the sunshine of public

scrutiny will kill the germs and disinfect the
microbes that lead to waste and red tape, abuse of
authority and gross misconduct, and graft and
corruption.
That said, the sunshine principle is what
appears vital and prerequisite to any serious attempt
at disinfecting the various systems and processes of
the Bureau of Customs that have become cozy homes
to the many microbes of graft and corruption
resulting in huge tax leaks and systemic smuggling.
Surprisingly, while most of the veteran solons
(who were staunchly pushing for the FOI when they
were still at the opposite side of the political divide)

135

may have dilly-dallied in advocating for the early

passage of the bill, this neophyte legislator (despite
her perceived political umbilical connection with the
administration) went for the jugular; she was
unequivocal,

she

was

determined,

she

was

uncompromisingshe wants the FOI bill passed

pronto!
Not even her close association with the Palace
By The Pasig Riverwhose actions will all be placed
under the glare of public scrutiny when the bill
eventually becomes a lawmattered in her decision
to go full throttle on this FOI measure. To her, the
probing the governments efficiency with the use of
the

peoples

scalpel

through

the

Freedom

of

Information will make our leaders accountable, our

institutions strong, and our democracy secured.
If only for this, it wont be difficult for me to
erect a monumenteven just through the pages of
this bookin honor of this youthful voice in the
Senate. I doff my hats off to Senator Grace Poes
shepherding of this measure, and let me enthrone
her laudable efforts into the pantheon of great deeds

136

as The Graceful Push of Poe. For easy reference,

however, especially when used in the customs zone
I suggest we simply call it the Graceful Principle.
That said, let citizens participation, a democratic
mechanism upon which the sunshine principle is
grounded, be adopted in all systems and processes of
the BOC.
And, we look forward to that day when the
Graceful Principle is adopted on a grander scale. It
can start small (i.e., watcher in public auction of

customs

confiscated

goods),

then

progress

to

substantive roles (i.e., participant in inventory of

seized and confiscated goods), up to more serious

roles

(i.e.,

assessor

of

compliance
customs

monitor,

reviewer,

and

vis-a-vis

the

performance

agencys vision, mission, roles and goals). Then it

can leapfrog to more institutionalized responses, like
Million People March, Peoples Congress, Cultural
Solutions to Cultural Deviations Forum, or Merit
and Demerit Monitor.
In other words, this peoples participatory
mechanism

shall

be

installed

137

in

the

entire

government bureaucracy as a way of preventing and

sustainably eliminating the debilitating yoke of graft
and corruption; thereby, making sure that all our
programs are stress-tested in the bar of public
acceptance; and the Graceful Principle will make
our public servants truly committed to delivering
quality service, in harmony with the constitutional
tenet that public office is a public trust.
Indeed, it is only through the sunshine of
public scrutiny that the forces of darkness in every
nook and cranny of customs premises, systems and
processes can be exposed, sterilized, sanitized, and
sensitized for the public good. After all, citizens
participation is not only politically correct; it is also
economically effective.
Nonetheless, whatever may happen to this bill
(staunchly pushed by those in the opposition and
desperately refused by those in the administration),
the sunshine of public scrutiny has a legal basis
under

our

democratic

scheme

Philippine Constitution of

of

things.

1987 guarantees

The
the

participation of the private sector, the peoples

138

organizations (POs), non-governmental organizations

(NGOs), and even the youth, in various levels of
governance. Yes, the fundamental law mandates the
State to encourage non-governmental, community-

based, or sectoral organizations that promote the

welfare of the nation.40 Further, it shall inculcate in
the youth patriotism and nationalism, and encourage
their involvement in public and civic affairs. 41
More so, when done under any reform-minded
administration.
In my 2004 post-study report to the University
of Hong Kong SPACE in relation to my Postgraduate
Course in Corruption Studies, I titled my paper as
Customizing Customs for 'Quick Win' (Establishing a

Customs Integrity Development Group in the Bureau

of

Customs

Operations

and
and

Constituting
Compliance

Senior

Review

Level

Committee

Therefor Using the Hong Kong ICAC ORC Model: A

Pilot

Anti-Corruption

Strategy

Oversight Authority).
40
41

Sec. 23, Art. II;

Sec. 13, Art. II;

139

Through

PAGC's

Paring Bert, the proposal contains a 1-2 Punch

combinationwhere Punch 1 is internally-initiated;
while Punch 2 is externally-driven. This chapter
touches on punch 2the externally driven.
In essence, Punch 2 actualizes the use of
people power in exposing, preventing, deterring, and
directly interfering with, all types of waywardness
in government services. The Graceful Principle is,
basically, the philosophical framework of citizens
participation, while the operational nitty-gritty shall
be carried out through the CUSTOMS OVERSIGHT &
REVIEW PANEL (CORP).
The CORP is multi-disciplinary in orientation
and tripartite in membership or composition. Its
viability

hinges

on

BOCs

transformation;

its

effectiveness is tested by its credibility. Its weapon is

citizens participation; its ammunition is moral
suasion.
The CORP evaluates, the CORP grades; the
CORP criticizes, the CORP recognizes. It can do what
the general public does in cases of lapses, inactions,

140

excesses, and shortcomings by public offices and

their officials.
In fine, it is citizens participation, it is people
power, it is Million People March, it is the 3rd eye,
and it is everything the public can become whenever
our public institutions fail to function.
How do we propose to actualize it?
It is so easy and simple that a mere Executive
Order will suffice to provide the legal framework for
its implementation. The President and his stable of
organizational development (OD) practicioners are
all too conversant of the yearly commission granted
by Congress to the Chief Executive. Through the
annual budget, the President is virtually empowered
to effect government reorganization; thus, in this
years General Appropriation Act (Republic Act No.
10352),

Section

74

of

its

general

provisions,

authorizes the President of the Philippines to effect

changes in organizational units and key positions in
any department or

agency,

141

as

well as

adopt

institutional strengthening measures to improve

service delivery and enhance productivity.
At the risk of sounding presumptuous, I
present the following draft of Executive Order that,
more or less, captures the whys and wherefores of
citizens participation. More devised for purposes of
instigating, agitating, or triggering a full-blown
discussion than for its being adopted in toto, a draft
Presidential Order is hereunder presented, thus:

MALACAANG
MANILA
BY THE PRESIDENT OF THE PHILIPPINES:
EXECUTIVE ORDER NO. ____
CONSTITUTING A MULTI-SECTORAL AND INTERDISCIPLINARY PANEL FOR THE
BUREAU
OF
CUSTOMS AIMED AT INSTITUTIONALIZING THE
THIRD
PARTY COMPLIANCE MONITORING
MECHANISM TOWARD COMBATTING GRAFT AND
CORRUPTION.
WHEREAS, the Philippine Constitution of 1987
declares that [T]he State shall maintain honesty and

integrity in the public service and take positive and

effective measures against graft and corruption.

(Section 27, Article II)

WHEREAS, corruption in the Bureau of Customs

142

(BOC) has been identified as the single biggest cause of

the agency's failure to collect rightful revenue, suppress
smuggling, and enforce effective border control against
anti-social goods;
WHEREAS, the organizational structure of the
Bureau of Customs (BOC) is no longer responsive to the
demands of a graft-intolerant and corruption-free
customs administration;
WHEREAS, the 1987 Constitution has mandated
the State to encourage non-governmental, community-

based, or sectoral organizations that promote the welfare

of the nation; (Sec. 23, Art. II) further, it shall inculcate
in the youth patriotism and nationalism, and encourage
their involvement in public and civic affairs; (Sec. 13,
Art. II)

WHEREAS, Section 74 of the General Provisions

of the Republic Act No. 10352, otherwise known as the
General Appropriations Act of 2013, authorizes the
President of the Philippines to effect changes in
organizational unit and key positions in any department
or agency, as well as adopt institutional strengthening

measures to improve service delivery and enhance

productivity;

WHEREAS, Section 17, Article VII of the 1987

Constitution expressly grants unto the President the
power of control over all executive departments,
bureaus, agencies and offices.
NOW, THEREFORE, I, BENIGNO SIMEON AQUINO
III, President of the Philippines, by virtue of the powers
vested in me by law, do hereby order:
Section 1.Creation and/ or Constitution.There is
hereby created and constituted a central advisory,
compliance-monitoring, and oversight panel for the
Bureau of Customs. It shall be known as the Customs
Operation Review Panel (CORP) that is attached to the

143

Office of the President. It shall be multi-sectoral in

composition and interdisciplinary in orientation, whose
members shall be appointed by the President for a term
of two (2) years without prejudice to reappointment, to
wit:
The Secretary of Finance, Ex-officio Chairman;
The Director-General, National Economic Development
Authority, Ex-officio Vice Chairman;
Three (3) recognized leaders of church organizations;
Three (3) recognized representatives of the youth,
women and consumer sectors;
Three (3) representatives from reputable nongovernmental organizations;
One (1) representative from the international
development partners;
One (1) representative from recognized professional
management organizations;
One (1) representative from reputable anti-corruption
organizations; and
One (1) representative from the academe or other
institutions of higher learning.
Section 2. P ow ers and functions.The CORP shall
have the following powers, duties and functions, to wit:
2.1. To call and conduct a regular monitoring
and review of the operations of the Bureau of Customs
(BOC) in relation to its vision, mission, as well as core
values and principles. As such, it may seek the presence
of any customs officials and other fiscal authorities to act
as resource persons in any of its meetings or review
conferences;
2.2. To evaluate and recommend enhancement,
modification and/or revision of existing systems and
procedures of the Bureau that are observed to be
restricting or obstructing the agency's performance in the
area of lawful revenue generation, safe trade facilitation,
and the suppression of smuggling;

144

2.3. To collegially address and proactively

respond to undue pressures on the BOC, its collection
districts, as well as its officers and employees, thereby
insulating or shielding the agency from the pernicious
effects of patronage politics;
2.4. To serve as the vehicle for Public Private
Participation (PPP) in areas of: (a) vigilance and
compliance monitoring; (b) systems review, improvement
and modernization; (c) ICT integrity audit and databanking; (d) full disclosure of programs and projects;
and (e) meritocracy and professionalism.
2.5. To promulgate its own rules and regulations
relative to the discharge of its consultative, advisory, and
compliance-monitoring powers and functions aimed at
furthering the ends of this Executive Order;
2.6. To enlist, tap, solicit or engage the
assistance of any national government agency,
professional
organizations,
non-governmental
organizations (NGOs), people's organizations (POs),
academe, media, as well as competent port-based
organizations, in order to achieve the desired results of
the CORP;
2.7. To require the production of records and
other documents from any of the organizational units of
the BOC, the Department of Finance (DOF), the
Development Budget Coordinating Committee (DBCC),
the National Economic Development Authority (NEDA),
and other national government agencies (NGAs) for
purposes of pursuing its mandate under this Order under
a pre-agreed protocol to insure the integrity of
government records and information; and
2.8. To perform such other powers and functions
that are deemed relevant under the principle of
necessary implication.
Section 3. The Executive Office (EO). There shall be

145

a Secretariat to be headed by an Executive Director, who

shall manage the day-to-day affairs of the CORP. It shall
identify and recommend government officials and
employees who may be seconded or detailed to the EO
from any national government agency or local
government unit (LGU), in order to assist the Executive
Director and its staff of volunteers and consultants from
non-governmental
organization
(NGO),
people's
organization (PO), students, professionals, academe, as
well as other professional organizations; Provided, that,
the EO shall, in no case, perform any function that may
duplicate, or encroach into the statutory powers and
technical functions of the BOC and its organizational
units.
Section 4. M iscellaneous P rovisions.Nothing in this
Order shall be construed as establishing another
bureaucratic layer in the organizational structure of the
BOC; Provided, further, that, nothing in this Order shall
be construed as limiting the powers of supervision and
control of the Secretary of Finance over the Bureau of
Customs.
Section 5. Separability Clause. In the event, any
part of this Order is rendered unconstitutional, illegal or
invalid by competent authorities, the remaining part
thereof not otherwise affected shall remain in force and
effect.
Section 6. R epealing Clause. All Executive Orders,
rules and other administrative issuances that are in
conflict herewith are hereby amended, repealed/revoked,
or modified accordingly.
Section 7. Effective Clause. This Executive Order
shall take effect immediately upon publication in two (2)
newspapers of general circulation.
Let copies of this Executive Order be furnished
the Office of the National Administrative
Registry
(ONAR), UP Law Center, Diliman, Quezon City,

146

Philippines.
DONE in the City of Manila, this _____th day of
________________, in the year of our Lord, Two
Thousand and Thirteen.

By the President:

PAQUITO N. OCHOA, JR.

Executive Secretary

It will not strain ones eyes to readily notice

the lopsided membership of the CORP; yes, its
heavily biased in favor of the private sector. Its
deliberate; but it has its reasonsand they are very
good ones.
However, should the President decide to adopt
this discussion draft, a phased-in approach to
implementation shall include an identification of the
specific

areas

of

customs

operation where

the

Graceful Principle should be piloted.

From an inside looking in perspective, the
author suggests the prioritization of the following
areas, to wit:

147

1. Accreditation of importers and brokers

evaluation,

inspection,

monitoring,

and

sanction
2. Xray inspection of cargoes examination,
quick look and lock, and re-Xray
3. DEA operations accreditation, physical
examination, and compliance-monitoring
4. Auction

and

Disposal

inventory,

custodianship, marketing, and price setting

and releasing
5. Liquidation of Bonded Raw Materials
transport,

examination,

withdrawals,

liquidation,

custody,
and

bonds

cancellation
Clearly, the foregoing enumerated functions are
just some of the many in customs operation over
which peoples participatory engagement may be
tapped.
The ground level realities in these functional
areas are ideal for PEDRO (Peoples Engagement,
Disengagement and Reengagement Operation).

148

And, whats the BIG IDEA behind PEDRO?

Paring Bert, it has always been said that
familiarity breeds contempt. Put differently, the evils
of fraternalization are always attendant in every
human activity; with more degree of viciousness in
government functions and processes. This is not to
say, however, that familiarization in government
operations is something that is to be frowned upon, a
status to be avoided, a situation to be prevented. No!

far from that. In fact, in the discharge of official

functions, familiarity has upsidesit makes the job
easy, meets deadlines efficiently, and complies with
deliverables

effectively.

Yes,

there are

certainly

positive effects of familiarity.

But, there are stories of citizens participation
that had gone bonkers; gone awry, and failed to
deliver its promise. And the reason for the failure:
fraternalization!

Why so?
Because,

the

peoples

monitoring

representatives were co-opted by the system. Yes, this

149

suggested measure is not immune from the evils of

too much closeness, too much familiarity, too much
camaraderie; Paring Bert, the evils of fraternalization
can easily gnaw the backbone of this peoples
participative framework. But, the society is better off
erring on the side of peoples participation, than
maintaining the status quo for fear of possible abuse.
After all, democracy is all about peoples power.

But how can we protect it from the corrosive

effects of fraternalization?
Operation Plan: PEDRO, is it!
Under OPLAN PEDRO, a Memorandum of
Implementation (MOI) shall be jointly crafted by and
between the BOC, the POs, the NGOs, or any other
reputable citizens monitoring group. The MOI shall
identify some greenlights that are indicative of the
agencys capability for self-monitoring; it should also
signal the onset of the disengagement phase where
citizens participation in a particular function may,
for the moment, become unnecessary, even as we
strongly suggest that a mechanism for an automatic

150

re-engagement shall be clearly discussed when the

need

for

it

becomes

palpably

necessary.

The

automatic re-engagement shall be deemed activated

upon serving a simple Notice To Reengage (NTR)
without

need

of

approval

from

the

agencys

leadership. The NTR button shall immediately switch

on upon clear signs of backsliding or operational
relapse or retrogression. In fine, the specific action
steps of PEDRO shall be incorporated in the MOI.
Only when the PEDRO Mechanism is clearly
installed,

defined,

adhered

to,

and

relentlessly

pursued, shall Graceful Principle become sustained,

to the delight of the public who has been complaining
interminably about governments daily serving of
mediocrity.

151

In the totem of the BOC, the district

collectors are kingsthey are very
powerful in their respective ports. To detail
them en masse to an office they
considered freezer, was like a 7.2
magnitude temblor shaking the very
foundations of the revenue collection pillar
of the BOC. Such a mass movement was
unthinkable
during
the
previous
dispensations where any attempt to move
even just a minor functionary was stalled
by pressures from congressional leaders,
especially those allied with Malacanang.
This recent mass movement was free from
that. Today, the initial resistance, the air of
defiance, and the noise of protest seemed
to have subsided.

Chapter 10

The Last Quarter Storm

____________________________________________________
During the height of student activism, when
the
democratic
regime
was
threatened
by
untrammeled expression of democratic rights, the
cool and verdant campus of the Diliman Commune,
played host to what is now known in history as The
First Quarter Storm (FQS), after the latter first
sparked in historic Mendiola. Yes, those days when
the baby boomers held swaythey were on top of the
heap, they influenced the community, they defined
the society.
The radical youth, then, triggered all major
152

developments both in and around the metropolis;

and in the countryside as well. Decadence and
lawlessness engulfed the republic. Vital government
installations were bombed, public utilities sabotaged,
classes suspended, and government operations
hampered. The leaders of the militant youth were
arrested, oppositionists were rounded up, and the
Establishment believed the communists were poised
to take over the reins of government anytime soon.
These events led to the suspension of the writ of
habeas corpus where people were placed under
continuous detention even without formal charges.
Eventually, incessant riots, protest rallies, and rising
criminalities reached their tipping points, and
everything went beyond control, until then President
Marcos issued Proclamation 1081, placing the entire
nation under the state of Martial Law.
Then the New Society was established. It was
brought about by a Revolution from the Center.
Public order was restored, national discipline was
demanded, and the Filipinos chanted: Sa ikauunlad
ng bayan, disiplina ang kailangan! This were the
initial years of Martial Lawthe best years of and for
the Filipinos. We proudly marched to the martial beat
of May bagong silang, may bago nang buhay; bagong

bansa, bagong sigla, sa bagong lipunan. Magbabago

ang lahat, tungo sa pag-unlad; at ating itanghal,
bagong lipunan.

Yes, Apo, there was peace; yes Mana, there was

order. But, that peace and order werent meant to be
for long.
When

Congress

was
153

padlocked,

and

the

Supreme Court was packed with pro-Malacanang

nominees, we virtually ended republicanism. The
tripartite separation of powers was ended. When the
press was muzzled, and the military became
politicized, the promise of Martial Law crumbled and
faded instantaneously.
And, the evils of absolutism sat inthis
signaled the beginning of the end. Indeed, power
corrupts,
and
absolute
power
corrupts
in
absoluteness.
Against this environment, those who may now
be in the twilight of their careers, or in their still
active albeit senior years in different government
posts, are just, I am sure, too aware of how it was
back then. Theirs can only be vivid recollection; but
there can be no mistakingtheirs was a restless
world that was theirs and theirs alone. Dekada 70!
Today, after almost half a century, a new storm
entered the BOCs area of responsibility. Another
storm, and it came ahead of Super typhoon Yolanda,
came on the heels of the last quarter of 2013. Thus, I
shall call itthe Last Quarter Storm.
Of late, at the Bureau of Customs (BOC),
considered by many as the poster boy of corruption
in the entire government bureaucracy, the DOFs top
honcho, Secretary Cesar V. Purisima, relieved two
deputy commissioners of the BOC, namely: Juan
Lorenzo T. Tanada of the Internal Administration
Group (IAG) and Peter M. Manzano of the Revenue
Collection Monitoring Group (RCMG). He detailed
them to the newly-created Customs Policy Research
154

Office (CPRO). On even date, the DOF Secretary

detailed one of his assistant secretaries, Maria Edita
Z. Tan, to the BOC as the officer-in-charge of RCMG
Manzanos office; and seconded one Myrna Chua
from the Department of Budget and Management
(DBM), as OIC in place of Tanada.
Earlier, the deputy commissioner for the BOCs
enforcement group (EG) was replaced by a former
chief of staff of the Armed Forces of the Philippines
(AFP) reportedly upon the strong endorsement of the
strong-willed BIR Chief, Commissioner Kim Henares,
concurrently designated head of the DOFs Revenue
Cluster.
A certified topnotch IT guy also replaced the
deputy commissioner of the bureaus Management
Information System and Technology Group (MISTG)
whose incumbent was given a new appointment in
the Finance department.
A long-time practicing customs lawyer (he was
constantly tapped by the BOC as resource-person or
participant in various policy discussions where the
inputs from the port users community were needed)
was appointed deputy commissioner for the BOCs
Assessment and Operations Coordinating Group
(AOCG) replacing the incumbent who, reportedly,
enjoyed the backing of a powerful religious bloc.
Then, all the senior collectors with salary
grades 26 and 25 were detailed en masse to the
CPRO. These senior collectors went to court, got a
temporary restraining order (TRO) and sued for
time, hoping they can get a permanent reprieve from
155

the court. They lost. Then they appealed to the next

higher court. Meanwhile, the TRO lapsed; they have
toand they didreport to, and assumed office at
the CPRO. Some resigned, others opted to retire;
while, still others, opted to stay behind while the case
remains unresolved before the highest court of the
land.
In the totem of the BOC, the district collectors
are kingsthey are very powerful in their respective
ports. To detail them en masse to an office they
considered freezer, was like a 7.2 magnitude
temblor shaking the very foundations of the BOCs
revenue collection pillar. Such a movement en masse
was unthinkable during the previous dispensations
where any attempt to move even just a minor
functionary
is
stalled
by
pressures
from
congressional leaders, especially those allied with
Malacanang. This recent mass movement was free
from that.
Today, the initial resistance, the air of defiance,
and the noise of protest seemed to have subsided.
And Paring Bert, they seemed to have accepted their
fate.
And, the Last Quarter Storm is at hand not
necessarily to wreck its havoc in the entire Customs
archipelago butlike its earlier counterpartis felt
ready to trigger reforms in the entire breadth of BOC.
This LQS, fortunately, shows promise.
Markedly, the LQS signals the offing of what is
sorely missing in every reform initiative. Without
156

touching on its methodology, the building blocks of

reforms clearly show that its headed in the right
direction. This might sound too early; but, handled
effectively, this might just turn out to be the bitterest
of the pills that is painfully needed by the ailing
bureau. LQS is to BOC; as chemotheraphy is to the
cancer
patient.
Long
overdue,
the
pain
notwithstanding.
Tale of Two Offices
In the early part of September 2013, the
President of the Philippines issued two executive
orders, all geared towards streamlining the
operations of the Bureau of Customs (BOC) and other
revenue generating agencies.
These are the following:
(1) The Office of the Revenue Agency
Modernization (ORAM) created under Executive
Order No. 139.
ORAM is the Chief Executives answer to the

need to create a specialized body in the DOF which is

tasked to implement the necessary improvements,
changes and modernization of programs, procedures
and practices in order to maximize the efficiency and
effectiveness of the revenue collection agencies. It
was designed to be responsible for formulating and
implementing the necessary improvements in the
processes, systems and procedures of the revenue
generating agencies in order to bring these at par
with global best practices and standards.

157

To emphasize the importance of ORAM, it was

placed under the direct supervision and control of
the DOF Secretary, who may designate a subordinate
official with the rank of Undersecretary to oversee
the operations of the ORAM.
Heres an enumeration of ORAMs powers and
functions, to wit:

a. Review and evaluate together with other

offices and agencies of the DOF, the implementation
of current administrative systems in the revenue
generating agencies, with due regard to efficiency and
efficacy, and thereafter, propose and implement
improvement to the same;
b. Formulate and implement modern and
enhanced systems, procedure, and organizational
structures appropriate to address the most urgent
needs of the revenue generating agencies;
c. Formulate a Code of Ethics for personnel of
the revenue generating bureaus/agencies and develop
an effective enforcement mechanism to implement its
provisions and enhance accountability and integrity;
d. Recommend to the DOF Secretary such
actions as may be necessary for the implementation
of the proposals cited above; and
e. Perform any and all acts as may be
necessary
and
lawful
to
the
successful
implementation of this Order.
(2) The Customs Policy Research Office (CPRO)
created under Executive Order No. 140.
In one of its whereases, EO 140 states that

there is a need to create a policy-making body in the

158

DOF [Department of Finance] which shall specialize

in
the
identification
and
evaluation
of
internationally-accepted
customs
administration
practices and processes, and shall work towards
maximizing the BOCs revenue collection and
building its integrity while ensuring harmonization
and simplification of customs procedures. Thus,
Section 1 of said executive order created in the DOF
the CPRO, which shall be responsible for reviewing
the customs administration policies, rules and
procedures,
and thereafter
providing sound
recommendations for the improvement of the same.
Just like in the case of the ORAM, the
importance of this newly-created Office, was also
stressed by the Chief Executive when he made sure
that special focus and attention are accorded to it;
thus,[t]he CPRO shall be under the direct

supervision and control of the DOF Secretary, who

may designate a subordinate official with the rank of
Undersecretary to oversee the operations of the
CPRO.

Surely, CPRO is the missing link in improving

Customs administration. It is what is sorely lacking
in the BOC organizational structurethink tank.
While a planning and research unit exists in the BOC
organization, it hasnt really made its mark in its
areas of competenceplanning and research. Its
focus has shifted to international affairs; a function
that is just as important, considering the primacy of
alliance building and international networking in
customs affairs.
In a regime where mutual recognition seems to
159

be pivotal, in building a strong working environment

among trading partners, the planning and research
units foray into international affairs may have been
felt by most customs leadership as more important
than planning.
In broad strokes, EO 140 enumerated the
following powers of the CPRO, to wit:

a. Review and evaluate the provisions of

existing rules, executive issuances, rules and
regulations on tariff and customs, as well as
international commitments of the Philippine
Government on customs matters and recommended
measures to update, rationalize and improve current
policies and practices x xx;
b. Conduct research on modern regulatory
practices on customs and tariff, and determine their
applicability to the Philippines setting;
c. Draft the customs reform bills and work
closely with the appropriate legislative liaison office
for the shepherding of the same in Congress;
d. Formulate a framework for training
modules to be administered to BOC personnel to
ensure smooth transition to the enhanced
procedures, processes, and organizational structures,
with due regard to the role of BOC personnel as
catalysts in the achievement of the BOCs
development;
e. Recommend to the DOF Secretary such
actions as may be necessary for the implementation
160

of the proposals above; and

f. Perform any and all acts as may be
necessary and lawful to successfully implement this
EO.
The demarcation line between the purposes of
the two offices may appear to be blurred, but one
thing is certain, the current affairs of the BOC has
relegated these twin concerns to the back burners of
the agency. Its about time, therefore, that these
specialized offices were created, if the BOC and other
revenue collection agencies are to competently
respond to the demands of the times.
The

Missing

Participation

Link

to

SustainabilityPeoples

There is no doubt in my mind that the twin

offices are essential to lasting reforms in customs
administration. The CPRO can very well get into the
inside track of what the R&D in the private sector
does; while, the ORAM can very well do the clincher
for whatever outputs the CPRO may churn out.
The CPRO can make sure that all systems and
processes at the BOC have taken into consideration
the Kliitgard Dashboard (C=M+D-A), before the
ORAM champions their implementation in the
Ground Zero of Customs offices. And, whenever the
implementation hit some snags, and identifies
roadblocks, immediately the CPRO shall engineer
adjustments, modification, and re-validation, before
the ORAM is put to task anew for the revised systems
and processes. Indeed, there is no other waythis is
161

the only wayto improve.

While these twin offices are building blocks
that were calibrated to ensure meaningful reforms,
whatever the gains that could be derived from these
two vital offices must be sustained. They must be
equipped with overdrive capability; they must be
equipped with sustain buttons.
Unfortunately, the two executive orders have
no clear inclination to install sustain buttons.
These sustain buttons can only be activated by
thermal sensors that detect or recognize the DNAs of
peoples organization or citizens participation.
Yes, citizens participation is essential to
sustain the benefits of the Kliitgard Dashboard.
Without citizens participation, especially in activities
that are highly susceptible to regulatory capture,
the building blocks of reforms built on approaches
that are devoid of 3rd party interventions are likely to
crumble in the crucible of fleeting convenience, high
intensity profit, and everybody-happy-mentality.
And, the customs zone is one area where any
influence-wielder can threaten regulators into
submission by simply uttering the magic line:
everybody happy!
One activity where 3rd party intervention is
believed capable of sustaining whatever gains the
CPRO and ORAM may have, is in the areas of (a) raw
materials liquidation; (b) bonds cancellation; and (c)
export audit and reconciliation. This activity was
never a priority of the BOC, and is not going to be a
priority today; but, essentially, it should be done, if
162

the BOC is to address what I call the evils of paper

liquidation.
In a nutshell, the audit shall be done using
three (3) sets of color coded auditing forms, namely:
Set 1 (Pink Form) which is a self-assessment form
accomplished and submitted by the duly authorized
company officials. It should be signed or concurred
in by a SENIOR company official, who can bind the
customs bonded warehouse (CBW) under audit. Set 2
(White Form) is practically the same form as that of
Set 1. It, however, reflects the audit report over the
operations of the CBW AS FOUND by the BOC audit
officials. A copy of this Set 2 must be served upon,
and received by a concerned official of the audited
CBW. And, Set 3 (Yellow Form) is a copy of the form
that is similar to sets 1 and 2, that contains the
findings of duly accredited 3RD Party Auditors who
are nominees of reputable NGOs and POs duly
endorsed by the Customs Oversight Review Panel
(CORP).
In fine, Set 1 shall contain the fair and
reasonable assessment done by the audited CBW
itself, using its companys representation as the
baseline figures versus its self-assessment of its
accomplishments given a particular period of
operation.
Set 2 shall be the juxtaposition of the selfassessment as reflected in Set 1 and the BOC findings
on the operation of the audited CBW in a given period
of operation; while Set 3 is a completed matrix that
features the self-assessment of the CBW operation
from the standpoint of the owner, the BOC Auditors
163

Findings, and the 3rd Party compliance monitoring

report taking notes of the inputs in Sets 1 and 2.
This way, 3rd Party compliance monitors will
stand in the way of cavalierism between and among
the industry and the regulator. The 3rd party
monitors will, at least, introduce a foreign object
into the whole lot, thereby making honor among
thieves difficult to achieve. It is only with the 3rd
Party intervention that we can kiss the phrase,even
among thieves there is honor, goodbye.
CBW SELF-ASSESSMENT FORM
(SET 1- PINK COPY)

164

BOC MONITORING/AUDIT FORM

(SET2- WHITE COPY)

THIRD PARTY COMPLIANCE MONITORING/AUDIT FORM

(SET 3- YELLOW COPY)

165

The BOC, through its corps of competent,

dedicated, and inspired manpower, using ICTaided processes that are mutually-recognized
by parties to the free trade agreements (FTAs),
their conventions and protocols, shall promote
and facilitate faster pace of commerce, for
purposes of optimizing exchange in goods and
services, thereby effectively managing traderelated risks through the adoption of
appropriate worlds best practices aimed at
preventing smuggling, insuring the collection of
rightful revenues, and preventing the entry of
anti-social goods, with the end view of
protecting planet Earth, its people, and their
businesses, against various threats and
vulnerabilities, where stakeholdersincluding
NGOs and POsare regularly consulted, freely
enlisted, and voluntarily engaged to make sure
that by 2015, BOC is sustainably administered
in a transparent, accountable and responsive
manner.

Chapter 11

My Roadmap to a Graft-Intolerant
BOC
____________________________________________________
In a seminar-workshop conducted by the
Development Academy of the Philippines (DAP), in
tandem with experts from a private firm known as
Institute for Solidarity in Asia (ISA), the BOC family
was introduced to a new thing calledBalanced

166

Scorecard.
The workshop was conducted in H2O Hotel
situated at the Boardwalk near Lunetaa place
considered by many as a floating hotel. Our workshop
rooms were facing the vastness of Manila Bay. And,
we had a glimpse of the hotels Oceanarium.
The

set

up

was

very

fitting

as

it

was

significantly expressive of how things were in the

BOC thendrifting. Yes, we were floating in rough
waters

due

to

the

recent

change

in

national

leadershipwhose advocacy for state affairs and

governance is radically different from what the
previous dispensation had been known for; and, we
were clueless then on what direction the new bureau
leadership will pursue, as our new Commissioner has
yet to lay his priorities before the bureaus workforce.
In fact, the timing of the seminar-workshop
would have been perfect had the new bossman
appointed days earlierparticipated in the activity.
Unfortunately, it wasnt meant to behe opted to

167

attend other pressing matters.

In my ten years at the BOC, this seminarworkshop was one of the three vital engagements
that I have attended while under the employ of the
agency, the other two being: (1) the Visioning
Workshop in warm Mimosa somewhere in Clark; and
(2) the Visioning Workshop in cool Taal Vista Lodge
by the ridges of Tagaytay City.
But what distinguishes this Balanced Scorecard
seminar-workshop from other visioning workshops is
in the details. While in other visioning workshops,
the participants end up crafting, or re-crafting their
agencys

vision

and

mission

statements,

this

Balanced Scorecard thing is more detailed and timebound. Participants are tasked to craft their Strategy
Map complete with the finer points of execution.
Most of us in the BOC were in attendancetop
officials and middle managers. The participants were
actively engagedwe proposed, we discussed, we
compromised; we all agreed to disagree agreeably;

168

we presented, we defended, we got convinced. Once,

we were divided, soon we were onewe were part of
our agencys Roadmap, were all co-authors of our
Strategy Map.
During the output presentation, we were told: a
roadmap must have a story; if it doesnt have one, its
not a good oneit will lead you to Nothingdom.
So, the plenum worked on every detail of our
Roadmap. We engaged each other anew, regardless of
ranks, and irrespective of our titles. No argumentum

ad hominen; only rhyme and reason sustained our

arguments. We had skirmishes with our superiors,
and the latter relished new experiences debating with
their juniorsnot necessarily inferiors; then, finally,
we had our outputa collegial output. Yes, the BOC
had its Strategy Map. Thanks to the ISA; and thanks
to the DAP.
But, convinced that Pax Aduana (Peace Thru

The Ports) should be included as one of the BOC

priorities, side by side with REVENUE COLLECTION

169

and TRADE FACILITATION, I quietly prepared my

personal Roadmap for BOC. Though un-submitted
(after all, they dont need it), it shares a story; and it
has a history.
And, this is the story of BOC, at least, in my
mind. I have deliberately omitted the finer points of
the roadmap; they are better reserved for discussion
in appropriate forum. Here goes:

BEYOND NORMAL
National Security, Rightful Revenue, Faster Trade
Vision:
By
transparent

2015,
(T),

the

BOC

accountable

is

totally

(A),

and

responsive (R) capable of responding to the

needs of the present while securing the
interests of the future.

Mantra:
Towards a transparent, accountable,
and responsive customs administration.

170

Mission:
(1) enhance internal security thru
networking internationally;
(2) generate and collect rightful
revenues;
(3) facilitate faster yet safer trade thru
ICT-aided processes.

Core Beliefs and Values:

Good

governance

brings

goodness to everyone

We do not own the Earth

Inclusive Growth

BOC is just as strong as its

people

Integrity, fairness and justness

The Story:
The
competent,

BOC,

through

dedicated,

its
and

corps

of

inspired

manpower, using ICT-aided processes that

are mutually-recognized by parties to the
free

trade

agreements

171

(FTAs),

their

conventions and protocols, shall promote

and facilitate faster pace of commerce, for
purposes of optimizing exchange in goods
and services, thereby effectively managing
trade-related risks through the adoption of
appropriate worlds best practices aimed at
preventing smuggling, insuring the collection
of rightful revenues, and preventing the entry
of anti-social goods, with the end view of
protecting planet Earth, its people, and their
businesses, against various threats and
vulnerabilities,

where

stakeholders

including NGOs and POsare regularly

consulted, freely enlisted, and voluntarily
engaged to make sure that by 2015, BOC is
sustainably administered in a transparent,
accountable and responsive manner.

172

Paring Bert, it is unfortunate that I have to use

Supertyphoon Yolandathe devastation it left,
the pain and sufferings it caused, and the
thousands of lives it tookas the reason for
reviving that Green Port proposal. I hate it that
I have to do it, Paring Bert. I will use Yolanda,
mindful of the freshness of its havoc; I will use
Yolanda aware of its unparalleled wrath; I will
use Yolanda cognizant of what could have
been, had we not been indifferent to Mother
Earth. Yes, Yolanda is the most eloquent
speaker for my advocacy; Yolanda is certainly
more than the spark that should engage
everyone in a spirited debate capable of
ending all forms of cynicism and apathy;
Yolanda is, decidedly, the incendiary that was
unleashed by Mother Nature to convince the
unbelievers among the many.

Chapter 12

The Urgency of Green Ports

_____________________________________________________

Every revolution begins with a spark, states a

phrase lifted from the movie, The Hunger Games:
Catching Fire.
The relevance of the phrase as opening for this
chapter is better appreciated against an appropriate
backdrop. In 2010, the author was a member of the
BOCs

Customs

Bonded
173

Warehouse

Committee

(CBWC). CBWC is an ad hoc body created to backstop

the Commissioner of Customs in matters affecting the
licensing

and

operation

of

customs

bonded

warehouses (CBWs) nationwide. It is chaired by the

Deputy Commissioner for Assessment Operations
Coordinating Group (AOCG), whose recommendation
over CBW operation is good as approved, with the
Commissioners assent almost always following as a
matter of course; ministerial, in a manner of
speaking.
The

CBWC

deliberates

upon

almost

every

matter that relates to the operation of CBWs

application, operation, compliance-monitoring, audit
and

sanctions.

It

even

recommends

certain

conditions prior to renewal of CBWs licenses to

operate (LTOs); and when it does, CBWs follow
lock, stock, and barrel.
As natural of CBWs, imported raw materials
are

processed

conversion
government

or

manufactured,

formula
agencies,

approved
both

174

by
in

following

appropriate
technological

qualitative

processes

as

well

as

in

material

quantitative conversion. In the process, it becomes

inevitable

that

CBWs

generate

scrap

materials,

wastages and other spoilages. Almost always, their

processes involve the application, use, dispensing,
disposal, storage as well as transport of chemicals,
and other toxic or hazardous substances.
During the time that I made myself active in
the CBWC deliberations, I noticed that even the
technical processes and the material conversion
formula of the CBWs are examined, looked into, and
discussed by the committee (as if its members were
technically competent). In fact, even trivial matters
as

in repair,

additional

repainting,

storage

use of

facilities,

temporary or
are

discussed

exhaustively when the weather is fine, or endlessly

whenever a member gets cranky. The CBWC poked its
dainty finger in anything that the CBWs do.
Having seen the opportunity to push for his
green agenda, the author submitted a proposal where
all applications for accreditation of CBWs, especially

175

those that are involved in processing, transporting,

storing and disposing of bonded raw materials, shall
first be required to submit, as part of the CBWs
supporting documentary requirements, a Wastes and
Garbage

Disposal

and

Management

Plan

(WAGDAMP). This WAGDAMP shall indicate how the

CBWs plan to dispose of its wastes in connection with
the conduct of its manufacturing operations.
As soon as I started explaining my proposal, I
knew I lost their attention. I proceeded anyway,
knowing that the WAGDAMP proposal is just an icebreaker, an introductory offering, an attempt to
beachhead into a territory whose fixation is solely
on tariff and taxation. I knew then that what I was
doing could pave the way for succeeding environment
preservation proposals, where the ports, especially
the BOC, play crucial roles. I wished myself

Goodluck!
But, that wasnt meant to be.
Most of the members werent receptive to the

176

proposal. There were some weird looks, contorted

lips,

raised

eyebrows

as

well

as

unrestrained

whats? from CBWC members as early as I started

presenting my proposal. I surmised I wasnt making
the connection; they looked at me as if I was talking
Greek. Nothing positive happened for some weeks.
But I persisted; until some members sued for time by
inviting each of us for comments. Few submitted,
most didnt. The discussion of my proposal remained
in the agenda almost every meetingthanks to the
copy and paste facility of the computer. It remained
in the cellar; it was chained to unmistakable
doldrums.
In the strangest of coincidences, the CBWC was
reorganized. And, when it was re-constituted, I found
myself un-membered. And, my advocacy for a Green
Port through the CBWC was muted. But, I would like
to believe that my Green Port proposal was not
mooted even if I was mysteriously booted out of
membership; it cannot be, and never will it be. It can
spring back to life when the right time comes.
Indeed, no army is more powerful than an idea

177

whose time has come.

But hasnt its time come, Paring Bert? Isnt the
state of our Ozone layer a clear signal that the green
proposals

time

has

comeand

long

overdue?

Havent we heard of Hurricane Katrina in New

Orleans? Of massive flooding in China? Of tzunami in
Fukushima? Of climate change everywherethere
were

torrential

rains

during

summers;

and

abnormally warm days during cold seasons? Is Pablo,

Ondoy and Co., not enough? Are Dingalan in Aurora
or Cagayan de Oro in Mindanao unheard of? Do we
still have to wait for more tons of garbage to clog our
waterways and cause flooding and claim lives?
A former Environment and Natural Resources
Undersecretary, wrote:
CLIMATE CHANGE is upon us. We
have to act, we have to adapt, we have to
adjust. Climate change is our reality.
We do not have the luxury of time.
Mother Earth is aging. We felt her anger,
her temper, and her fast-changing moods.
There were floods even in high places,

torrential rains during summers, warm

178

days and nights during cold seasons;

ocean levels were rising, sinkholes were
caving in, earthquakes there, and, storm
surges here.
Super Typhoon Yolanda is among
the strongest, the most damaging, the
most crippling, and the most unspeakable
in recent memory. Life in Tacloban,
Guiuan, and other parts of the Visayas,
almost ground to a halt.
You
must
have
seen
the
devastation, the havoc, the pain, hunger,
death and misery. No amount of
commiseration will ease their pain, and
their sufferings; we cannot compensate
the great loss of the victims. We can only
pray for the eternal repose of their
departed. May God bless them all.
We do not have the luxury of time.
Our countrymen cannot wait any longer.
Rightly or wrongly, they wait for
government to solve their problems;
instantly and without delay. Rightly or
wrongly, again, they blame government for
whatever happens to them, regardless of
the causenatural or man-made. And,
the government has no excuse; it has to
respond. It has to act; and it must be now
decisively, responsibly, pro-actively
with or without foreign assistance.
Yolanda happened already, we can
179

only grow stronger, become smarter, and

go wiser from its lessons no matter how
sad and painful.
Climate Change is upon us,
Inclusive Growth is pressuring us, and
Responsible
Environmentalism
is
demanded of us.
Let
me
put
this
present
generations greatest and continuing
challenge: responding to the pressing

needs of today, while securing the

paramount interests of tomorrow, at a
time when the threats to global peace and
security remains a continuing concern.

We need to strike a balance between

clashing interests of economic
development
of
today,
and
intergenerational concerns of tomorrow; yet,
mindful of the threats to peace and
the

national integrity.

Unfortunately, most of the products over which

the

Environment

supervision

are

Department
traded

not

has
just

regulatory
locally,

but

internationally as well; with much quantity and

frequency in the latter market. In effect, the use of
the ports as entry and exit points is inescapable. You
dont transport mineralsblack sand, aggregates,

180

chromite, coal, and the likeout of the Philippines by

air; neither, do you import logs, lumber, as well as
plastic resin into our customs territory, by air. Your
only way is through the ports. Yet, there is no
presence of environmental authorities in our ports;
neither are environmental concerns given much
focus by other agenciescustoms included.
Not even the fact that factoriesincluding the
CBWsdispose of their used diesel, used oil, sludge
oil,

and

bunker

wastes

indiscriminately,

have

merited special attention from our ports and customs

authorities.
Yes, we all have felt the wrath of nature; Al
Gore need not go on a world tour; he doesnt need to
tell us The Inconvenient Truth.
The generation before us did it; our generation
ignored it; the next generation appears unmindful of
it; and the future generation perforce will, unfairly,
suffer the brunt of our generations disregard for
Mother Nature.

181

If I got Gore correctly, he said: today is the

generation of consequences. It simply means: ours
will be to face the consequences of our forbears
mischiefs.

Paring Bert, it is unfortunate that I have to use

Supertyphoon Yolandathe devastation it left, the
pain and sufferings it caused, and the thousand of
lives it tookas the reason for reviving that Green
Port proposal. I hate it but I have to do it, Paring

Bert. I will use Yolanda, mindful of the freshness of

its havoc; I will use Yolanda aware of its unparalleled
wrath; I will use Yolanda cognizant of what could
have been, had we not been indifferent to Mother
Earth. Yes, Yolanda is the most eloquent speaker for
my advocacy; Yolanda is certainly more than the
spark that should engage everyone in a spirited
debate capable of ending all forms of cynicism and
apathy; Yolanda is, decidedly, the incendiary that
was unleashed by Mother Nature to convince the
unbelievers among the many.

182

Certainly, every revolution begins with a

spark, goes that movie. We can no longer run, we
can no longer hide, we can not even take a ride; we
have already entered the time zone when revolution
is inevitable; a revolution that is desirable; a
revolution that is indispensablewhere everyone is
enjoined to support. It shall be known as the
GREENSTREAMING REVOLUTION.
Put differently, all entities, offices, facilities,
and private domains must incorporate environmentfriendly practices into the mainstream of their
systems and processes. Everyone must participate, no
exception. You can act individually, or collectively;
singly or collegially, and locally or globally.
There are no rules, just make it green; there
are no points, just keep on greening. There are no
policies, just make it clean; there are no guidelines,
just make sure it is sustained.

183

Epilogue

Twelve Small Steps for Customs

Quantum Leap
____________________________________________________
WITH ALL THOSE MESSAGES WRITTEN IN
BETWEEN the lines of every chapter of this work, the
author suggests that, more than ever, the Bureau of
Customs (BOC) today, needs to install a GREEN
COMMISSIONER. One who will find pleasure in
taking the Twelve Small Steps for Customs Quantum
Leap, namely:

Comprehensively
reform
Importers
and
Brokers Registration System by immediately
purging
non-existent
and
fly-by-night
importers and brokers; allowing (a) a tripartite
accreditation process; (b) co-hosting with BIR;
and, a continuing compliance-monitoring
system;
Organize filing, storage and custody of
Import/Export
entries,
including
their

184

mandatory supporting documents to secure

this vital repository of evidence, in case of
investigation/prosecution of smuggling cases.
As it is today, a lot of complaints have been
dismissed by the Justice department owing to
the absence of the mandatorily required
original documents;
Modify bonding system on Warehousing, and
institution of other bonds-related reforms (say,
from General to Single Shipment bonds);
Modify bonds issuance, posting, charging,
extension and cancellation; coupled with retroverification of liquidation of raw materials as
well as bonds cancellation;
Intensify audit of liquidated entriesboth
warehousing/consumptionto run parallel
with the post-entry audit of selected companies;
Strengthen
controls
on
transport
of
Transshipment cargoes, PEZA-bound, CY-CFSbound, Transit cargoes, Freeport-bound, and
vice-versa;
Sustain the retro-verification of certificates of
landing of exported products;
Intensify real-time monitoring of the movement
of trucks and other conveyances (including
pipelines) that are transporting fuel, rice,
sugar and other big ticket items;
Overhaul the system of auction and disposal
procedures
by
allowing
private
sector
rd
participation (3 Party Custodianship) in the
acquired Assets Management And Disposal
Office (AMADO);
Network for a nationwide linkages and tactical
alliances for CIQS;

185

Enhance
intelligence
and
enforcement
operations (xray, redeployment of elements,
audit of alert orders, or outsource of
enforcement operations to ex-BOC units, etc.);
Retrofit, reboot, and re-configure all systems
and processes where the 3rd party intervention
(NGOs, POs, & Civil Society) is institutionalized
under a Peoples Engagement, Disengagement
and Re-engagement Operation (PEDRO).

In doing these 12 Small Steps, the

COMMISSIONER must seriously consider GREEN,
namely:

GRAFT
(Genuine
Resolve
to
Address
Fraudulent Transactions)
RAV4GG (Revisitation of the Agencys Vision
for Good Governance)
EARTHs
CPRI
(Earths
Conservation,
Preservation and Restoration Initiatives)
EWAM (Employees Welfare and Meritocracy)
NATION (Nationalist Agenda for Trade thru
Internal and Overseas Networking)

And, the GREEN COMMISSIONER may consider

the following activities for his 1st 100 Days in office,
namely:
(1st 30 DAYS)

Purge
the
Registry
of
Importers/Brokers (exorcise it)

186

Accredited

Re-activate LAAD and BAD audits

Re-boot the VRIS (rid it of garbage)
Empower the Ports by ridding the OCOM of
task forces
Establish Control thru Compliance-monitoring
covering all the Ports
Data-mine Infractions and Deviations by BOC
Personnel
Hold regular Customs Media Forum

(2nd 30 DAYS)

Re-alignment and re-assignment of functions

and personnel
Publicly display Merit and Demerit Scoreboards
for BOC personnel
Constitution of Administrative and Disciplinary
Board
Conferment of Multi-sectoral given Awards and
Incentives

(3rd 30 DAYS)

Profiling of High Risk Importers

Piloting of Compulsory Acquisition
Program
Constitution
of
Customs
Oversight
Review Panel
Piloting of 3rd Party Custodianship
Program
Interfacing with other Stakeholders in
the War against Smuggling
187

Complementary programs for MCArelated affairs

Peoples Engagement, Dis-engagement &
Re-engagement Operations through NGOs
& POs
Re-visitation of the processes of various
activities of ad hoc bodies and
committees (TCC Committees, Committee
on Rewards, etc.)

(LAST 10 OF FIRST 100 DAYS)

Adoption of a Social Responsibility Program

through Oplan P.A.T.A.S. (Pro-poor Access To
Auction Sales).
Adoption of Economic Assistance Package for
Public Transport Cooperatives through Oplan
T.R.I.P. (Tax Relief and other Incentives
Program) for Transport Cooperatives

EXPECTED OUTCOME: Public Acclaim for Achieving a

Transparent, Accountable and Responsive BOC
But, Paring Bert, if there is any single item the
BOC should initiate that is capable of sustaining
whatever gains it may have in the area of good
governance, it is the establishment of an INTERNAL
AUDIT GROUP that is not reporting to the
Commissioner of Customs. As the saying goes, the
fish rots from its head. That said, and having posited
that the BOC is commissioner-driven, the need for a
functioning INTERNAL AUDIT GROUP that is beyond
the influence of the bureaus capo di tutti capi is a

188

must; it is a sine qua non, if the agency is to achieve

its desired vision and mission.
In the event one is constituted, that INTERNAL
AUDIT GROUP should be placed in the Department of
Finance. And, to further the ends of checks and
balance, it is intimated that citizens participation be
encouraged, and thereby enshrine the efficacy of the
Million People March as applied to BOC.
All these, Paring Bert, can be done; only that
they threaten the smugness of everyone.
time.

Finally, allow me to digress a little bit this

The 1987 Philippine Constitution states: The

Philippines is a democratic and republican State.

Sovereignty resides in the people and all government
authority emanates from them 42.
That we are a democratic state has been
discussed extensively, fought for gallantly, and
cherished pricelessly by most freedom-loving
Filipinos, both past and present. That we are a
republican state, however, appears unclear to the
manyespecially the Great Unwashed.
I recalled my law professor in Political Law,
then Justice Ruperto Martin of the Supreme Court,
who quizzed me on the manifestations of
republicanism. I enumerated eight of them; of course,
as it appeared in his own book. Then he expounded
42

Section 1, Article II;

189

on each one of them, delving lengthily on this:

[t]hat we are a government of laws, and not of
men.
Ironically, the country wasduring that time
under the tight grip of Martial Law. As Justice
Martin was giving his discourse on the Philippines
being a government of laws, and not of men, I can
feel our entire class growing uneasy; I can almost
hear my classmates muted vehemence; and I can
sense their suppressed protestation. Yes, even with
the amiable Martin, the class was not in agreement
with him that ours was a government of laws, and
not of men.
Back to my Jaycee days, we often recite our
creed flawlessly; proclaiming, among others, that,
indeed, ours is a government of laws, and not of men.
Most of us recite our creed with backward and
forward proficiency. And, we always did it with
feelings, so to speak. But every time we reached that
portionours is a government of laws, not of men,
we tend to increase our volume more in vehemence
than in reverence. We say it in disbelief!

But why is it so hard to accept that we really

area government of laws, not of men?
Because, to the hoi polloi, the laws of the land
are defined, interpreted, and executed by people who
wields the levers of government; it is dictated and
influenced by the thinking of those who sit in the
drivers seat, made worse by undemocratic and
unequal protection of law expressed more eloquently
by the unlawful demarcation between them on one
190

side, and us on the othershameful and illegal

when they do it, yet honorable and legit when our
group does it syndrome.
Nonetheless, the foregoing sine qua nons are
posited regardless of who gets to sit in the hot seat
of the Bureau of Customs.
After all, we are a government of laws, and
not of men.

191

Appendix 1
MALACANANG
MANILA

ADMINISTRATIVE ORDER NO. _____

ORDERING AN INVENTORY, TURN-OVER, MANAGEMENT
AND/OR DISPOSAL OF UNCLAIMED MOTOR
VEHICLES IN ALL FREEPORTS IN THE COUNTRY,
AS EXCEPTION TO EXECUTIVE ORDER NO. 156
AND CONSTITUTING FOR THIS PURPOSE, AN
ASSET MANAGEMENT AND DISPOSAL UNIT
WHEREAS, Executive Order No. 156 has banned the
importation of certain types or classes of used motor vehicles
into the Philippine customs territory;
WHEREAS, the Supreme Court has upheld
constitutionality or legality of said Executive Order 156;

the

WHEREAS, the said Supreme Court ruling has long

become final and executory, thereby effectively preventing the
entry of used motor vehicles into the Philippine customs
territory;
WHEREAS, numerous vehicles have remained unclaimed
inside the various freeports despite the lapse of unreasonable
time exposing, in the process, part of the Philippine archipelago
to various vulnerabilities, namely: (a) environmental and
ecological hazards, (b) peace and security risks, as well as (c)
unwarranted misappropriation of zone facilities;
WHEREAS, pursuant to the Memorandum of Agreement
between the Subic Bay Management Authority (SBMA) and the
Bureau of Customs (BOC), these articles should now be turned-

over to the BOC for custody and/or appropriate disposal.

NOW, THEREFORE, I, BENIGNO SIMEON C.
AQUINO III, President of the Philippines, virtue of the powers
vested in me by law, do hereby order:
SECTION 1. The Program. - In order to forestall
incidents that are capable of exposing any part of our national
territory to various kinds of vulnerabilities, namely: (a)
environmental and ecological hazards, (b) peace and security
risks, as well as (c) unwarranted misappropriation of zone
facilities, there is hereby established a RISK REDUCTION AND
ASSET RETRIEVAL PROGRAM covering all motor vehicles that
have been brought into the various freeports of the country
emanating from other customs territories, but have remained
unclaimed for unreasonable period of time.
Conformably, there is hereby ordered conducted actual
physical inventory of overstaying and unclaimed motor vehicles
that were brought to these freeports prior to the issuance of this
Order. This actual inventory shall be preparatory to the eventual
turn-over of these assets to the Bureau of Customs for
management, preservative custody and/or appropriate disposal,
taking into consideration the various vulnerabilities cited above.
SECTION 2. The Unit. The Auction and Cargo
Disposal and Monitoring Division (ACDMD) in the Port Operations
Service, of the Bureau of Customs (BOC) is hereby constituted as
the ASSET MANAGEMENT AND DISPOSAL UNIT (AMADU) for
purposes of this Administrative Order.
SECTION 3. Scope and Coverage. Only vehicles that
have been brought into the freeports but have remained
unclaimed prior to the date of this Order shall be covered by this
Program.
SECTION 4. Im plem enting Rules and Regulations.

 The Commissioner of Customs shall, subject to the approval of

the Secretary of Finance, promulgate the implementing rules and

regulations that shall govern the inventory, inspection, transfer,
transport, custody, maintenance, disposal and other modes of
auction, as well as the disposal of monies generated from
auction sales thereof.

SECTION 4. Separability Clause. If any portion

hereof is rendered unconstitutional or illegal by competent
courts, unaffected provisions capable of effective implementation
shall remain in force and effect.
SECTION 5. Supercession Clause. Any Order,
memorandum or other administrative issuances that may be
inconsistent herewith are hereby repealed, amended and/or
modified accordingly.
SECTION 6. Effectivity Clause. This Order shall take
effect immediately upon its publication in a newspaper of general
circulation.
DONE in the City of Manila, this ____th day of
December 2013.

By the President:

PAQUITO N. OCHOA, JR.

ExecutiveSecretary

Appendix 2
Republic of the Philippines
Department of Finance
BUREAU OF CUSTOMS
1099 Manila

CUSTOMS ADMINISTRATIVE ORDER

NO. ________________________
SUBJECT:

ESTABLISHING A DEMOCRATIZED PUBLIC

AUCTION PROGRAM IN THE BUREAU OF
CUSTOMS TO BE KNOWN AS PRO-POOR
ACCESS TO AUCTION SALES (P.A.T.A.S.)
_____________________________________________
PURSUANT TO SECTION 608, of the Tariff and
Customs Code of the Philippines (TCCP), in relation to the rulemaking power of the Commissioner of Customs under The
Administrative Code of 1987, the following is hereby ordered
promulgated:
SECTION 1.The Program. As part of the Social
Responsibility of the Bureau of Customs (BOC), and in order to
promote equal opportunities for all, a democratized public
auction program to be known as PRO-POOR ACCESS TO
AUCTION SALES (P.A.T.A.S.) is hereby established.
As such, fifty (50%) per cent of any/and all goods and
articles identified in the Basic Accessible/ Saleable Inventory
of Com m odities (BASIC) that are eligible for auction shall be
allocated to this Program; provided, that, the transparent,
accountable and competitive character of the auction process
shall in no way be dispensed with.
SECTION 2.Creation of a Permanent Committee.
There is hereby constituted a Permanent Committee in the Office

of the Commissioner (OCOM) to be composed of the following:

Deputy Commissioner, AOCG
Deputy Commissioner, RCMG
Director, Legal Service
Director, Port Operations Service
Director, Import Assessment Service

Chair
Vice-Chair
Secretary
Member (Inventory)
Member (Valuation)

The Permanent Committee may be assisted by a

Secretariat, whose membership it shall determine, and may be
taken from any organizational units of the Bureau whose duties
to the Committee shall be in addition to their regular duties and
functions.
It shall have a regular office where the beneficiaries of
this program may transact business with and be appropriately
attended to.
SECTION 3. Powers, Duties and Functions. The PATAS
Permanent Committee shall have the following powers, duties
and functions:
1.
2.
3.
4.

Determine the goods/articles that shall be

eligible for inclusion in the BASIC list;
Determine the eligibility requirements of those
entitled to participate in the auction;
Determine the areas where the democratized
auction shall be conducted;
Tap, enlist, and/or coordinate with the local
government
units
(LGUs),
national
government agencies (NGAs), NGOs, peoples
organizations (POs), civil society and other
stakeholders of good governance in order to
achieve the objectives of this program;

5.
6.

Formulate a comprehensive plan that shall be

implemented on a regular basis and
nationwide scale; and
Perform such other tasks, duties and
functions that may be assigned by the
Commissioner of Customs.

SECTION 4. Issuance of Implementing Rules and

Regulations. Subject to the provisions of existing laws, the
Commissioner of Customs shall promulgate rules and regulations
as may, from time to time, be necessary to further the ends of
the this Order.

SECTION 5. Supercession Clause. All orders and

issuances that are inconsistent with the objectives of this Order
are hereby amended and/or modified accordingly.
SECTION 6. Effectivity Clause. This Order shall take
effect immediately upon its due publication and its corresponding
registration with the Office of the Administrative Registry, UP
Law Center, UP Diliman, Quezon City, Philippines.

JOHN PHILIP P. SEVILLA

Commissioner

APPROVED.

CESAR V. PURISIMA
Secretary

Appendix 3
ADMINISTRATIVE ORDER NO. _____
DIRECTING THE IMPLEMENTATION OF A TAX RELIEF
AND
INCENTIVES
TO
PROMOTE
TRANSPORT
COOPERATIVISM (T.R.I.P. FOR TRANSPORT COOP)
PROGRAM
WHEREAS, it is a declared policy of the State to foster

the creation and growth of cooperatives;

WHEREAS, Republic Act 6938 mandates that the

government and all its branches, subdivisions, instrumentalities

and agencies shall ensure the provision of technical guidance,
financial assistance and other services to enable said
cooperatives to develop into viable and responsive economic
enterprises;
WHEREAS, Article 61 of said law provides that [d]uly

registered cooperatives under this Code which do not transact

business with non-members or the general public shall not be
subject to any government taxes or fees imposed under the
internal revenue laws and other tax laws;
WHEREAS, transport cooperatives, by the nature of their
business, are not considered transacting with non-members
within the context of Section 61, their dealings being strictly with
their members while their members are the ones transacting
business with the general public;
WHEREAS, the policy of poverty alleviation and inclusive
growth have always been entwined in every program of the
government;

NOW, THEREFORE, I, BENIGNO SIMEON C.

AQUINO III, President of the Philippines, by virtue of the
powers vested in me do hereby order:
SECTION 1. The Program . There is hereby
established a poverty alleviation and inclusive growth program to
be known as TAX RELIEF AND INCENTIVES TO PROMOTE
TRANSPORT COOPERATIVISM (T.R.I.P. FOR TRANSPORT
COOP). Basically, the Program shall implement a tax-free
importation on machineries, spare parts, as well as fuel and
other essential inputs for their members operation, as provided
for in Articles 61 and 62 of RA 6938.
SECTION 2. The Task Force. The Program shall be
administered by a task force to be headed by the Head, National
Anti- Poverty Commission (NAPC) Management Staff with the
following as members:
a)
b)
c)
d)

Chairman, Cooperative Development Authority;

Chairman, Office of Transport Cooperatives;
Commissioner, Bureau of Customs; and
Undersecretary of Finance for Revenue Operations
Group.

The Task Force shall be assisted by an Executive Staff

which shall be headed by a Director, designated by the Task
Force.
The Executive Staff shall, subject to the approval of the
Task Force, establish as many field offices as may be necessary
to effectively serve the interest of the intended beneficiaries of
this Program. It may tap the assistance of volunteers from the
registered transport cooperatives, non-government organizations
(NGOs), civil society, students, local government units (LGUs),
and other national government agencies (NGAs).
SECTION 3. Im plem enting Rules and Regulations.

 The Head, Presidential Management Staff, shall immediately

convene the Task Force to formulate the implementing rules and

regulations of this Administrative Order which shall be published
and implemented not later than 30 days from date hereof.

The Task Force shall submit a periodic progress report to

an Oversight Committee that is hereby constituted to be
composed of the Secretary of Energy as Chair, and the Secretary
of Transportation and Communications and the Secretary of
Finance as members.
SECTION 4. Supercession Clause. Any order, rules
and regulations, or administrative issuances that are inconsistent
herewith are hereby revoked, repealed, or modified accordingly.
SECTION 5. Effectivity Clause. This Order shall take
effect immediately.
Manila.

DONE this ____th of December 2013, in the City of

By the President:

PAQUITO N. OCHOA, JR.

Executive Secretary

Appendix 4

A PROPOSAL TO
ESTABLISH/CONSTITUTE A
JOINT CHIEFS OF CIQS AGENCIES
(Customs, Immigration, Quarantine & Security)
HEADED BY A CHAIRMAN WITH CABINET RANK
__________________________________________________________
1.0

BRIEF DESCRIPTION

A FORMAL ORGANIZATION devised to provide a focused and unified

approach to the myriad issues and concerns that confront the multifaceted task of border control administration and management
[customs and immigration], health surveillance, as well as internal
peace and security affairs.
It shall position itself towards the path leading to the creation of a
Department of Internal Security (DIS), akin to the United States
of Americas (USA) Department of Homeland Security (DHS).
It is proposed to be under the Office of the President upon whose
direction, the task of shepherding the organization until it evolves into a
full-fledged department, shall rest.
2.0

JUSTIFICATIONS

The Philippines has the 4th longest coastline in the world, next only to
Canada (202,080 kms), Indonesia (54,716 kms), and Russia (37,653
kms). Its coastline is placed at 36,289 kilometersalmost twice that of
the United States of America (USA).
It is reported that 60% of the Philippine population live in coastal
communities. Yet, our coasts are basically defenseless, unmanned and
virtually unguarded.

With a porous border, such as ours, our coastal vulnerability cannot be

reasonably addressed by the present capabilities of the Philippine Coast
Guard (PCG).
Today, guarding the borders is no longer so simple a task as it used to
be; it is now compounded by the demands of a borderless global
economy; and, made more complex by shifting geo-political alliances
and coalition build-ups.
The Philippines strategic location cannot be over-emphasized. With
Asia as the most dynamic region in the whole worldboth economically
and politicallyThe Philippines, like the rest of the Association of East
Asian Nations (ASEAN), cannot opt to isolate itself from the various
contending forces crisscrossing the region even if it wants to stay
neutral on any issue. Indeed, no nation in the ASEAN region can ever
assume a leave-us-alone-for-we-do-not-want-to-get-involved stance
nowadays.
In the not so distant past, The Philippines foreign engagement has
been very discrete, i.e., the Angelo Dela Cruz caper when then
President Gloria Macapagal Arroyo unilaterally disengaged the countrys
commitment from the Coalition of Willing involving as it did the
imperiled life of its national in far away Middle East. Whether said
disengagement was a boon or a bane is for the Monday Morning
Quarterbacks to discussnot for this paper.
And, closer to home, the country has been very careful in not taking
sides in the China-Taiwan tiff it adhered to the politically correct tact
of One China policy. With Chinas huge investments vis--vis Taiwans
interests in, and especial relations with the Philippines, disinterest over
the rising political temperature in the Taiwan Strait seemed the correct
approach.
Unfortunately, our neutrality was not meant to be for long. China
embarked on a series of maritime mal-adventures in the West
Philippine Sea. It blatantly and arrogantly built permanent structures
in contested maritime zones, occupied the Scarborough Shoals,
poached on our aquamarine resources, and, very recently, a steelhulled fishing vesselwith twelve (12) Chinese fishermen on board
dubiously opted to ran aground and get stuck in the Tubbataha Reefs.

Yet the countrys reaction to Chinas provocations is clearly unclear.

And, with the build-up of tension in the Korean Peninsula, the
Philippines will likely be confronted with a scenario it is better of not
making any choice at all. It has to weigh its option very carefully
between expressing its approval to any policing moves by the USA as
Big Brother of South Korea on one hand, and the countrys virtual noninvolvement in the conflict in order to avoid North Koreas retaliatory
acts on the other, given our proximity to the reclusive regimes nuclear
arsenal. It has to make a choice.

Yet, who is processing, evaluating, and coordinating our intelligent

options? Who will advise the President? The Foreign affairs
department?The Defense Department? Who is minding the National
Situation Room on a day-to-day basis?
The current Sabah Crisis has shown how easily armed groups can get
out of and sneak into the country through the southern borders. Even
the reported 800,000 undocumented Filipinos now residing in Sabah
crossed the borders unmolested, undetected and definitely unknown to
immigration authorities. And, if their outmigration had been
undetected, would their re-entry into the Philippine borders be
detected?
Yes, we have a seamless border between the Philippine Backdoor with
that of Brunei, Indonesia, and Malaysia, as well as those with Taiwan,
China, Vietnam and Japan in the northern and northeastern corridors.

Whos in charge of our border control administration and management?

Whos minding the gates in these uncertain times?
Even in the absence of war, the need to move goods and services will
require the re-tooling of the Philippine customs and immigration
authorities on the intricacies of the modern realities even as we see the
need to reconfigure our government response-capabilities in the area of
customs-immigration-quarantine-security (CIQS) concerns.
Maria A. Reesa, in her book 10 Days, 10 Years FROM BIN
LADEN to FACEBOOK enumerated some Al-Qaeda operatives, as
well as Jemaah Islamiyah elements who have come to the Philippines
undetected, and financed to embarkand indeed have embarkedon

terror trainings, while some, even engaged in actual terroristic acts.

Even the local Abu Sayaf, have surreptitiously exited and re-entered our
borders so many times in the past; and no one can reasonably doubt
they still do today.
Reesa enumerated some of the celebrated terrorists. For instance:
1. RAMZI YOUSEF: The mastermind of the 1993 bombing of
the World Trade Center, he fled to the Philippines and
began training members of the Abu Sayaf. Working with his
uncle, Khalid Shaikh Mohammed, he set up the first alQaeda cell in Southeast Asia in the Philippines. Xxx;
2. WALI KHAN AMIN SHAH: An Afghan war veteran who
fought with Osama Bin Laden, he arrived in the Philippines
in 1993 and trained members of the Abu Sayaf. Xxx;

3. MOHAMMED JAMAL KHALIFA: Osama bin Ladens brotherin-law, he came to the Philippines in 1988 to create a
financial network that spread an extremist version of Islam
and support terrorist cells. He seemed to have been the
first to try to unite the different Muslin groups. Much of the
financial infrastructure he created still exists today;

4. DULMATIN: JIs third-generation bomb-maker, a skilled

leader who helped build the Bali 2002 bombs, then fled to
the southern Philippines from 2003 until 2007;

5. MUAWIYAH (MOHAMMED ABDULLAH ALI): A Singaporean

sympathizer of the MILF. Muawiyah came to the Philippines
and joined the JI leaders who first found sanctuary with
the MILF, then transferred to Jolo with the Abu Sdayaf in
2005. He participated in the 2009 kidnapping of three
members of the International Red Cross and is a key
Singaporean target;

6. FATHUR ROHMAN AL-GHOZI: An Indonesian veteran of

the Afghan War who helped set up the JI camp inside MILF
territory,Camp Hudaibyah. He was a key figure in the
bombing of the Filipino ambassadors house in Jakarta in
2000 as well as the Rizal Day bombings in the Philippines.
Xxx; and

7. NASIR ABAS: Afghan War veteran who headed JIs Mantiqi

3, which covers the Philippines and parts of Indonesia. He
set up the JI training camps inside the MILF territory in the
early 1990s.
These are just a few of the many personalities in Reesas book.
And not only in the southern borders is the Philippines extremely
vulnerable. Take the case of Filipinos, including a Philippine customs
officer, who got convicted for gun smuggling operation in the United
States of America.

What if it was not a sting operationwould it have been detected? And,

before this sting operation, how many times have this cabal sneaked
out of our country either as origin or transit point high powered
arms to foreign shores? And, what about facilitating the entry of the
same or similar contrabands?
Of all the governmental concerns, the task of guarding our coasts,
ports and borders appear to be the most neglected, fragmented and
disorganized. It is observed to be so, due to the absence of a unified
office that is solely aimed at, and dedicated towards ensuring border
control and internal security.
[I]t has been widely reported that an international drug syndicate
headed by Nigerians was responsible for recruiting Filipinos to act as
drug mules to smuggle heroin and other drugs to other countries.

(Senator Ernesto M. Maceda, SEARCH FOR TRUTH, Philstar, February

24, 2011,p-11).

Also, three Chinese nationals x xx were arrested in another buy-bust

at Mercury Drug Store parking lot somewhere in Paranaque City.
Seized from the suspects were an estimated 8.5. kilos of a substance
authorities suspect is shabu, with an estimated street value of P42
million. While, another group was busted in Caloocan City that yielded
40 kilograms of shabu with estimated street value at P200 million. Still,
in another raid, police also seized P500 million worth of liquid shabu
from a townhouse leased and used as a drug laboratory in Malabon
City. (Philippine Daily Inquirer, p-A26, February 25, 2011)
Down south in Cavite province, a Nigerian, a Guinean and a South
African were arrested for illegal possession of drugs in a buy-bust
operation. (The Manila Times, pA3, February 25, 2011.)
In short, the Philippines is getting to be a haven for characters
belonging to the illicit drug trade. They either come here to buy, to
sell, or recruit Filipinos as drug couriers. Senator Maceda wrote that
639 Filipinos are in jails abroad for drug trafficking. An estimated 72
Filipinos have been sentenced to death in China alone.
The lessons behind the case of Sally Novenario, et. als., are too
precious to be taken lightly, or, worst, thrown into the dustbin of
history.
We are not doing well in the area of trafficking in persons. On the
contrary, we have been bracketed among those nations that are under
tight watch. The Philippines is weak in, 3 areas: as origin, as transit
point, and as destination. So alarming.
3.0

SOCIAL DESIRABILITY

A unified office will complement if not orchestrate government

interventions in the key areas of anti-terrorism, anti-smuggling, antiillegal recruitment, border control and security, international health
surveillance, anti-illegal drugs, etc.
These concerns are presently addressed by several and uncoordinated
agencies of the government.

Whos in charge when an illegal alien enters the country with highly
untaxed cargoes? Documents suspected with ANTRAX? Where high
powered firearms are hidden in his luggages? Where he is highly
suspected of suffering from the dreaded SARS? Or, the H7H9?
Or, who will intercept mail matters that contain the deadly poison
ricin (Philstar, April 18, 2013, p. A-25)
The proposed JOINT CHIEFS OF CIQS AGENCIES under the
administrative jurisdiction of a presidential sub-altern with cabinet rank
will better address the felt gap, not so much as another bureaucratic
layer but as a central coordinative body aimed at addressing these
multifarious priorities of the government.
While this proposed JCCIQSA is not positioned to duplicate, usurp, or
encroach into the mandates of the principal agencies, it should however
be left to operate as an oversight group that shall crack the whip
whenever laxity, incompetence, negligence, or incoherence shall have
become noticeable among the mandated agencies,to the detriment of
peace, taxation, migration, order and internal security of the Republic.
4.0

COMPONENTS

This program shall have the following components:

5.0

Border control and internal security

Census and data-mining on undocumented migrants
Anti-trafficking in persons
Coastal shield and ground defense
Anti-smuggling in unmanned ports
International health surveillance
Capability upgrading programs
Compliance-monitoring office anent ASEAN Code of Conduct on
maritime security and cooperation
AGENCIES CONCERNED

Initially, the following agencies shall be tapped:

6.0

Bureau of Customs (BOC)

Bureau of Immigration (BI)
Bureau of Quarantine (BoQ)
Office of Transport Security (OTS)
Philippine Coast Guard (PCG)
Philippines Drug Enforcement Agency (PDEA)
National Center for Transnational Crime (NCTC)
MODE OF IMPLEMENTATION

To jumpstart the process, the Office of the President (OP), in the

exercise of the Presidents power to effect organizational
strengthening as authorized by Congress (see General Provisions,
General Appropriations Act) as well as by The Administrative Code of
1987, otherwise known as Executive Order No. 292, series of 1987,
may issue Executive Order creating, constituting or establishing the
JOINT CHIEFS OF CIQS AGENCIES as the preparatory office towards
the establishment of a full-fledged Department of Internal Security.
7.0

OTHER INFORMATION

It is informed that a Memorandum of Agreement by and between the

BOC, BI, and BOQ had been forged towards a STRATEGIC
PARTNERSHIP FOR IMMIGRATION, CUSTOMS ENFORCEMENT, HEALTH
AND SECURITY. Unfortunately, it has become inactive and has
remained in the doldrums due to the changing of the guards.
It is suggested that as initial step, the reactivation of the Technical
Working Groups (TWGs) working on this MOA be reactivated and put to
task anew; or new ones be constituted as the present leadership
pleases.

8.0

ESSENTIALS

The most essential element for the success of this undertaking is no

less than a Presidential instruction or directive towards the attainment
of the goal of this Proposal.
9.0

RESPECTFULLY SUBMITTED.

Appendix 5
Republic of the Philippines
Department of Finance
BUREAU OF CUSTOMS
1099 Manila

November ___ 2010

CUSTOMS MEMORANDUM ORDER

NO. _______________________
Subject

: REQUIRING ALL APPLICANTS FOR ORIGINAL OR

RENEWAL ACCREDITATION OF CUSTOMS BONDED
MANUFACTURING WAREHOUSES THE SUBMISSION
OF THEIR FIRMS WASTE DISPOSAL PLANS AS PART
OF THEIR SUPPORTING DOCUMENTS, AND THEIR
STRICT MONITORING BY THE BUREAU OF CUSTOMS
__________________________________________________________
PURSUANT TO SECTION 608 of the Tariff and Customs
Code of the Philippines (TCCP), in relation to the rule-making powers of
the Commissioner of Customs under The Administrative Code of 1987,
otherwise known as the Executive Order No. 292, the following are
hereby ordered:
I.

OBJECTIVE
The following are the goals and objectives of this Order:
a. To initiate pro-Earth mainstreaming activity in the
systems and processes of the Bureau of Customs
(BOC);
b. To complement government initiatives that seek to
uphold the polluters must pay principle; and
c.

To manifest the BOCs adherence to the concept of

inter-generational rights.

II.

ADMINISTRATIVE PROVISIONS
The following administrative provisions are strictly ordered:
a. No applications for accreditation, whether original or
renewal, of Customs Bonded Warehouses (CBW) that
manufacture, process, or, in any manner, transform
raw materials into finished or semi-finished products,
shall be accepted UNLESS accompanied by a verifiable
and/or ascertainable WASTE AND GARBAGE DISPOSAL
AND MANAGEMENT PLAN (WAGDAMP).
b. All pending applications shall NOT, at any stage
thereof, be processed, evaluated, deliberated upon
and/or approved, without PRIOR submission of the
firms WAGDAMP;
c.

All grantees or holders of subsisting CBW Accreditation

shall, within thirty (30) days from the effectivity of this
Order, submit to the CBW their respective WAGDAMP
which shall be inspected, verified, and monitored by
duly authorized Environmental Compliance-monitoring
Officers (ECO) of the CBW Committee or appropriate
offices of the Office of the Commissioner (OCOM);

d. A Merit and Demerit System shall be adopted, observed

and pursued by the CBW Committee to ensure the
sustainability of this intervention; and
e. The CBW Committee shall recommend to the Office of
the Commissioner such other measures
or
interventions that may become necessary for the
effective implementation of this Order.
III.

OPERATIONAL PROVISIONS
The following shall be strictly observed:
a. The District Collectors/Port Collectors shall not accept,
endorse or recommend any application for
accreditation, whether original or renewal, of CBWs

unless said application is accompanied by a WAGDAMP

in a format that indicates its verifiable or ascertainable
elements, pursuant to the CBW Committees
requirements;
b. The WAGDAMP shall contain essential information that
shall aid the CBW ECOs or other duly authorized
officers, to inspect, verify and ascertain the workability,
capacity, and sustainability of the WAGDAMP;
c.

Only ECO-certified WAGDAMP shall validly support

approval of applications for accreditation; and

d. Applications for renewal that are not accompanied by

WAGDAMP shall be considered INCOMPLETE. As such,
they shall not be entitled to the benefits of the nonexpiration of license provisions under existing laws,
rules and regulations.
IV.

AUDIT, OVERSIGHT AND COMPLIANCE MONITORING

The CBW Committee shall ensure that the WAGDAMP is
observed and strictly complied with by the CBW. The CBW
Committee shall ensure that non-compliant CBWs be
appropriately informed, heard, and whenever warranted
administratively sanctioned.

V.

ADMINISTRATIVE SANCTIONS
Any OOCs and ECOs of the CBW committee, who, by their acts
or omission, either singly or in collusion with any party, may be
found to have caused, occasioned, abetted, failed or, neglected
to perform her/his duties as demanded of her/him shall be held
accountable for such conduct that is prejudicial to the interest
of the government or her/his neglect of duty as may be
warranted by circumstances.

VI.

SUPERCESSION CLAUSE
All Customs administrative issuances that are inconsistent
hereto are hereby repealed, amended or modified accordingly.

If any provision of this Order is declared illegal or

unconstitutional by competent authorities, all other provisions
that are not affected and are capable of being implemented
shall remain valid and subsisting.
VII.

EFFECTIVITY CLAUSE

This Order shall take effect immediately within 15 days from its
publication in a newspaper of general circulation.
Let copies of this Order be filed with the Office of the National
Administrative Register (ONAR), UP Law Center, Diliman, Quezon City,
Philippines.

Commissioner of Customs

ANNEX A

WASTE AND GARBAGE DISPOSAL AND

MANAGEMENT PLAN
OF

___________________________________________
(Name of Applicant)
A. BUSINESS-RELATED INFORMATION
Describe your Manufacturing or Conversion
Process
___________________________________________

___________________________________________
___________________________________________
___________________________________________
___________________________________________
What are your raw materials? (Use separate
sheet, if space is inadequate.)
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
What is your finished product?
___________________________________________
___________________________________________
___________________________________________
B. INFORMATION ON THE WASTES AND GARBAGES
Describe the kind/type of wastes and garbage
that are produced by your manufacturing
processes(Use separate sheet if space is inadequate.)
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________
___________________________________________

Volume of Wastes and Garbage

(Use separate sheet, if space is inadequate.)
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
C. DISPOSAL AND MANAGEMENT FACILITY
Is your Waste Disposal Facility company
owned? (If yes, cite the specific address
_____________________________________
_____________________________________
_____________________________________
_____________________________________
________________________________
Enumerate and describe your equipment
[transport, storage, processor, treater, etc.].
(Use separate sheet, if space is inadequate.)
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________

If contracted or outsourced, please indicate

the name and exact address of the facility.
_____________________________________
_____________________________________
_____________________________________
_____________________________________
________________________________

(Please attach the following documents: (1) Contract or

Agreement; (2) Authorization from the Owner of the
Facility allowing the ECOs of the BOC to enter, visit,
inspect, identify and/or ascertain the location, technical
capability, absorption capacity and other relevant data
about the Waste Management Facility, etc.)

D. BRIEF STATEMENT OF THE WASTES AND GARBAGE

COLLECTION, STORAGE, TRANSPORT, DISPOSAL
AND TREATMENT (Please attach a narrative and

power point presentation of the technical process of

your disposal and management system.)
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________

_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
E. OTHER INFORMATION
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
_____________________________________
Respectfully submitted.

__________________________________
(Printed Name/Signature of the Applicant)

ADVANCE PRAISE for Customs SMUGLAIR

I was right after all; the Customs bureau is not beyond redemption. Customs
SMUGLAIR shows us how easily the agency could be reformed. Doable but only
when the President, the Finance Secretary and the Customs Chief go the extra mile
marching the same cadence toward that common objective. Cuyco wrote it from Ground
Zero with the perspectives of the boots on the ground.
Atty. James F. Enriquez
Former Chief of Staff
Office of the Commissioner, BOC

Customs SMUGLAIR is cool; its full of details; pregnant with the whys and
wherefores of every scam and scheme perpetrated in the customs zone. Cuyco narrates
with sufficient clarity what the gods and deities of the Finance department can only
babble with generalities.
Professor PETE T. GALERO
Polytechnic University of the Philippines
& Former OTC Executive Director
Department of Transportation and Communications

Customs SMUGLAIR is a must read for anyone attempting to introduce reforms in

the Bureau of Customs. This book is what we wished we had when we were undergoing
our lawyers training for the Run After The Smugglers (RATS) in the Asian Institute
of Management years back. Id certainly consult this book when called upon to decide a
case involving an element of smuggling. Cuyco has made simple a subject that appeared
too complex before.
Judge Armando B. Rosadino
Municipal Circuit Trial Court of Pambujan-Silvino Lobos;
& Former RATS Lawyer, Bureau of Customs

The progenitor of Oplan Isnabero has done it again! Customs SMUGLAIR is an

honest throughput of someone who has been there, done that, and still endeavors to do
more! Cuyco, a Customs insider, daringly offers readers his views of what ails the
Bureau of Customs and his radical proposals for its cure, with a touch of delightful
irreverence. One can only conclude that Customs is not such a lost cause after all. Not
only that, Ive learned a lot more besides! Bravo!
Atty. Manuelito M. Calubag
Former Senate Legal Counsel
Republic of Palau

Customs SMUGLAIR is a good 120-minute detour from my daily grind. Cuyco

shanghaied me from my usual route, and led me to an alley winding its way up to the
customs zone. From my daily servings of broadsheets, law books, case digests, and
jurisprudence, Customs SMUGLAIR gave me a different high. Intoxicating, mindbending, and, at times, inspiring. I know Cuyco is on a mission; I can feel he likes that
mission; but I am not sure about his safety over his latest decisionto write the unwrite-able wrongs in the customs zone. Cuyco is a tough act; Customs SMUGLAIR is
surely hot stuff. Kudos!
Atty. Marlonfritz B. Broto
Dean, UEP College of Law of Law
& President, IBP Northern Samar Chapter