New Customs chief vows to surpass goal

MANILA, Philippines - Newly appointed Customs Commissioner Angelito Alvarez vowed yesterday to exceed the agency’s P280-billion revenue goal this year even with only six months remaining.

Alvarez said he would use his background as a businessman and auditor in improving the operations of the agency.

“We are confident we would be able to exceed that. Everyone is optimistic and people expect changes,” he told reporters in a turnover ceremony yesterday at the Bureau of Customs (BOC).

Prior to his Customs post, Alvarez headed logistics company Air 21, the local franchisee of global firm Federal Express (FedEx) and BT Titans Inc., owner of Perf Restaurants Inc. and master franchisee of Burger King in the Philippines. He was also president of Sumisho Global Logistics Philippines, a joint venture logistics firm owned by Airfreight 2100 and Sumitomo Corp. 

“I will use the same approach as in business where our aim is always to exceed goals,” Alvarez said.

Alvarez, who also worked as senior auditor at SGV and Co. before becoming a businessman, said he would also be able to use his background as an auditor in improving the efficiency of the BOC.

“I would be able to take advantage of my background as an auditor in putting in place control measures,” said Alvarez.

In his speech yesterday, he said Finance Secretary Cesar Purisima’s first marching order is to identify smugglers and to address the problem of rampant smuggling in the country.

With these new policy changes, Purisima said he expects the agency to exceed its P280-revenue goal for the year by at least P7.4 billion which is the agency’s revenue surplus for the first six months of the year.

As of June, the BOC collected P23.952 billion or 4.7 percent higher than the target for the month of P22.867 billion, former Customs Commissioner Napoleon Morales said.

Morales attributed the rosy collection to higher import volume during the month.

The latest monthly collections brought the January to June revenues to P131.420 billion, or P7.4 billion above the target for the six-month period of P124.056 billion.

Since the start of the year, the BOC’s collections have been improving, along with the recovery in the global economy. In January, it collected P17.605 billion, above the P14.404 billion generated in the same period last year.

In February, it raised P18.071 billion, above the P13.850 billion collected a year ago and similarly in March, the BOC collected P24.900 billion, above the P14.861-billion generated a year ago. In April, the BOC collected P22.8 billion, higher than its monthly target by P83 billion. In May, the BOC raised P24.1 billion, or 21.8 percent higher than the P19.8 billion it raised in May last year.

‘Shape up or ship out’

Alvarez said yesterday that he would give the 16 district collectors three months to meet their collection targets otherwise they would be booted out of their offices.

Alvarez, a certified public cccountant (CPA), would be applying the “shape up or ship out” policy. Meeting their collection targets was one of the marching orders he would issue to his 16 district collectors.

They would be given three months to prove themselves and failure to do so would mean their relief from their position. “The time frame of six months is too long, normally (it is just) three months. If after three moths (and they were unable to meet their target) drastic measures would have to be implemented. They would lose their position.”

In their collection report for June, there were four of five collectors who were unable to meet their target.

To guide them, a support team would be assigned to those who fail to meet their targets for the first month. “If you do not perform in the first month, I will assign a team to work closely with you. I will put up a parallel organization and ask ‘What is your problem? Why were you not able to attain your target?”

But if even after providing the collector with a support staff, he or she continues to fail for three consecutive months, then this would raise the possibility that it is the head of the district that is the problem. “Maybe you are not cut out for the job.”  – With Evelyn Macairan