Customs collections decline to P32.6B in September

MANILA, Philippines - Depressed import prices pulled down the Bureau of Customs’ revenue collections by more than a fifth last month, although the agency remained optimistic it could meet its target by year-end.

In a statement, Customs said it collected P32.65 billion in September, down 0.8 percent from last year’s P32.9 billion and was also 20.6 percent lower against the P41.109-billion target for that month.

The figures are based on the final tally for September. Last week, preliminary figures obtained by The STAR showed the bureau collected P32.1 billion in September.

 “Over-all the decline in collection was driven by a drop in the total value of imports,” Customs commissioner Alberto Lina said.

According to BOC data, total import values dipped 1.8 percent, which offset the increase in import volumes by 17 percent.

By value, oil import values fell 32.4 percent, while those for non-oil shipments grew 5.5 percent. By volume, the former increased 20.6 percent, while the latter rose 16 percent.

Import costs and volumes are directly proportional to Customs revenues, whereas higher valued and number of goods are charged higher levies and vice-versa.

The increase in import volumes were not enough to offset the lower values, data showed. For oil imports in particular, revenues plummeted by almost a third in September.

For the first nine months, oil collections decreased 32 percent from last year, but breached the target by 11.7 percent as Customs adjusted targets in light of price developments.

Global oil prices have tumbled by an average of 48 percent over the past 12 months on the back of weak demand and supply glut. Specifically, the Dubai crude price, the benchmark for the Philippines, has decreased to $46.14 per barrel from $97.

Meanwhile, non-oil collections rose 11.3 percent in September and 13.2 percent in the first three quarters. Against its nine-month goal, the non-oil segment was behind 18 percent.

The bureau did not provide absolute amounts on oil and non-oil collections.