BOC: A Persistent Stain on the Philippines’ Reputation

Customs Commissioner Ariel Nepomuceno

BOC: A Persistent Stain on the Philippines’ Reputation

By Wilma N. Yamzon – TheNationWeek.Com | October 20, 2025

MANILA, Philippines – Despite promises of reform, the country’s Bureau of Customs (BOC) remains plagued by pervasive corruption, according to a recent report by the U.S. Department of State.

The report, part of its annual Investment Climate Statements, paints a grim picture of an agency hindering investment and undermining the country’s economic potential.

The department highlights the BOC’s “unclear” regulatory environment, characterized by bribery and corruption, as a significant barrier to investment in the Philippines.

U.S. businesses have reported facing “overly invasive searches, inconsistent customs charges, and solicitations of ‘facilitation fees’ (e.g., bribes) from some customs officials.”

These issues, the report states, stem from a lack of transparency and inconsistent regulatory enforcement.

The report’s findings cast a shadow over President Ferdinand Marcos Jr.’s 2022 campaign pledge to eradicate corruption within the BOC.

While the President vowed to clean up the agency, critics argue that corruption has not only persisted but may have even intensified, citing reports of flood control ghost projects and kickbacks amounting to trillions of pesos.

Customs Commissioner Ariel Nepomuceno has acknowledged the concerns raised in the U.S. State Department report, stressing that the BOC had already taken steps to address the issues.

Nepomuceno claims to have initiated institutional reforms during his first 100 days in office, including a strict “No Take” policy, prohibiting bribery and unlawful monetary transactions.

He has also issued a memorandum banning BOC officials and employees from holding business or financial interests in customs brokerage operations and requiring personnel to disclose familial ties to brokerage firms.

However, the U.S. report suggests that the measures have yet to yield significant results.

The report’s findings raise serious questions about the effectiveness of the BOC’s anti-corruption efforts and the government’s commitment to tackling this deeply entrenched problem.

The persistent corruption within the BOC not only harms the Philippines’ reputation as an investment destination but also undermines public trust in the government.

Addressing this issue requires a comprehensive and sustained effort, including strengthening regulatory oversight, promoting transparency, and holding corrupt officials accountable.