House Ways and Means Committee Chairman Rep. Joey Salceda believes that digitalization is a simple solution to the Bureau of Customs' (BOC) perennial problems of undervaluation of goods and smuggling.
“Let’s revisit the BOC’s computerization programs to prevent smuggling and undervaluation. What can we do with current systems so we can collect more duties and taxes from imports. Otherwise, our tariffs lose their ability to protect domestic industries," Salceda, Albay's 2nd district congressman, said in a statement Wednesday, Jan. 25.
Salceda, during his committee’s Monday hearing on customs undervaluation and smuggling, recommended an automatic alert system that will record and make notice of shipments that are 'grossly undervalued compared to a benchmark price for the same commodity'.
Customs officials told the panel that they are constrained from enhancing their computerization program to effect Salceda’s recommendation because of a 2015 injunction by Manila Regional Trial Court (RTC) Branch 47 which sought to stop the BOC from aborting the award of the contract to Omniprime Marketing Inc. and Intrasoft International Inc. for the Philippine National Single Window 2 (PNSW2) project.
The Supreme Court subsequently issued a temporary restraining order (TRO) on the injunction, which has placed the PNSW2 project in what Salceda called “procurement limbo".
"A mere issue of procurement with one contract should not prevent the from modernizing its valuation safeguards," the economist-solon said.
“I will be seeking the opinion of the Department of Justice (DOJ) on whether the injunction prevents them from starting anew with a different project to prevent customs undervaluation," he said.
In particular, Salceda says he “want to know whether the BOC can just procure for the system from scratch and not have to depend on the resolution of the PNSW2 case. It’s a different system after all.”
The Bicolano added: “that question should be answered, and I think the BOC has been studying that option. We should resolve that matter in time for the budget discussions for 2024.”
“The Constitution and jurisprudence uphold the police power of the State – that is, its ability to enforce the law to protect public welfare. And taxes are the lifeblood of the government. We shouldn’t prevent this mess from enforcing the law more effectively," he further said.