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Business

BOC to tap services of SGS, US survey firm

- Iris Gonzales -

The Bureau of Customs (BOC) will tap the services of two global goods inspections companies — the Switzerland-based SGS (Societe Generale de Surveillance SA) and United States firm Dun & Bradstreet — as part of efforts to curb smuggling.

BOC Commissioner Napoleon Morales said the two firms would help the agency with the pre-shipment inspection of goods going in and out of the country.

Morales said the expenses would be shouldered by industry groups which have been complaining against technical smuggling.

“This will be at no cost to the government,” Morales said, adding that the agency does not need to bid out the inspection contracts as it would not be shouldering the expenses.

He said it was necessary for the BOC to outsource the inspection services given the volume of shipments entering the country.

“I think this is the best way because even big corporations are using SGS and Dun & Bradstreet,” Morales told reporters.

SGS, which the BOC previously tapped, specializes in pre-shipment inspection. Without SGS, the Customs bureau is responsible for the valuation, classification and clearance functions for imports.

Dun & Bradstreet, the leading provider of global business information and technology, is being used by the United States Customs, Morales said.

Morales said the agency is now drafting the terms of reference (TOR) for the inspection contracts.

The project may be implemented in three months, he added.

The Customs chief is optimistic that SGS would not be discouraged by an incident in the past when the Philippines was unable to pay the company for a previous contract.

“I don’t think it will be an issue because this would still mean business for them,” Morales said.

Earlier, the Philippines agreed to pay P6.2 billion to SGS for unpaid services rendered from September 1998 to March 2000.

The Philippines agreed to settle the amount following a recent ruling of the International Centre for the settlement of investment disputes favoring SGS and the Commission of Audit’s recognition of government’s financial obligation to SGS.

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