BOC asks DOF to abolish targets

MANILA, Philippines - Customs collectors are appealing to the Department of Finance (DOF) to do away with the revenue target system in gauging the performance of the respective ports.

The 100-strong Customs Collectors Association of the Philippines (CCAP) said the more practical and realistic way to gauge the performance of the collectors is vis-à-vis their collections the previous year.

“Requiring an increase of at least 10 percent year-on-year is more suitable,” CCAP president Ronnie Silvestre told The STAR in a recent interview.

Silvestre said with so many free trade agreements entered into by the Philippines - which mandate lower tariffs and zero duties on various commodities entering the country — assigning revenue targets on Customs collectors is no longer attuned with reality.

The ability to meet their respective Customs targets is partly the basis for the evaluation of their performance under Lateral Attrition Act.

The Lateral Attrition Act provides for a system of reward and punishment for Bureau of Customs and Bureau of Internal Revenue officials and employees depending on their performance. Those who fall short of their collection targets by at least 7.5 percent would be dismissed from service while those who go beyond expectations would be given incentives which may include cash.

Silvestre, District Collector of the Port of Cebu, said that with yearly increases in collection targets, only the smaller ports are able to meet their respective targets.

Customs Commissioner Angelito Alvarez said the BOC has been having difficulty meeting its targets because of the different trade agreements.

He explained that there are nearly 2,000 products that until June last year were considered traditional big revenue sources for the BOC.

They now come in duty free or with reduced tariff as a result of various free trade agreements and government’s social amelioration initiatives.

Some of the big ticket items that are now zero rated are petroleum products, cereals, plastics and articles thereof, iron and steel, paper and paperboard, fertilizers and cement. The BOC has a revenue target of P320 billion this year.