Slashing the Bureau of Customs’ (BOC) proposed budget of over ₱28 billion for next year could mean depriving the country’s second-largest tax collection agency of ample equipment to modernize its operations and strengthen its border control against sea-based smuggling.

Customs Commissioner Ariel F. Nepomuceno told reporters last Monday, Aug. 17, that the BOC is seeking to raise its current ₱7.7-billion budget by nearly fourfold in 2027 to modernize its operations.

However, the reflected figure in the National Expenditure Program (NEP) is even lower than the existing appropriations.

Nepomuceno disclosed that the BOC’s original budget request stood at more than ₱28 billion, while the approved allocation so far stands at ₱5.9 billion, massively thinner than the funding the agency requires.

According to the BOC chief, the Department of Finance (DOF)-attached agency intends to appeal the emerging budget.

“We need radiation detection capability. We need that equipment. It’s equipment-driven,” Nepomuceno said, referring to where the budget will be spent. This was turned down at the NEP level, he said.

Nepomuceno said that the current allocation would not suffice to procure essential tools such as scanning machines and radiation equipment to be installed at every port. “How can you modernize if you don’t have the necessary systems and equipment?” he said.

He refused to disclose the existing number of scanning machines, but the BOC is in need of an additional 124 machines to fully secure the borders against illicit transactions.

Currently, the BOC relies on other agencies like the Philippine Coast Guard (PCG) and the Philippine National Police (PNP) Maritime Command for sea operations. He asserted that while these agencies are helpful, they also have separate mandates, such as securing the West Philippine Sea (WPS).

As such, Nepomuceno pushed for the BOC to establish its own dedicated fleet to effectively curb and combat smuggling in open waters. “There should be a dedicated and accountable agency to do the job of preventing high-seas smuggling—smuggling of cigarettes, drugs, oil.”

Nepomuceno said that the modernization plan is intrinsically linked to the BOC’s revenue performance. A higher budget for the agency could help sustain the revenue haul for this year, targeted to breach ₱1 trillion.

Procuring the needed equipment will directly enhance the BOC’s anti-smuggling capabilities and consequently increase revenue collection, Nepomuceno said. President Ferdinand R. Marcos Jr.’s economic managers have set the agency’s target at ₱1.07 trillion.

Even as he fights for a higher modernization allocation, the BOC chief noted that he is also reviewing existing internal expenses to ensure fiscal responsibility.

Nepomuceno led cuts to the BOC’s maintenance and other operating expenses (MOOE) for information technology (IT) projects, as he disagreed with the high costs of various IT subscriptions, specifically cloud services.

“I don’t agree with a lot of subscriptions. If you can get it at a lower, reasonable price, I prefer that,” he said, indicating a preference for cost-efficient digital solutions over overpriced existing contracts.