CUSTOMS COMMISSIONER ANGELITO ALVAREZ: GETTING RID OF THE RATS
MANILA, APRIL 3, 2011 (STARweek) By Iris Cecilia Gonzales - In the land of cowboys and Indians, only the tough survive and this is the lesson that Customs Commissioner Angelito Alvarez has learned by now.
The Bureau of Customs (BOC), after all, is not unlike the wild, wild, west – a netherworld of gangsters, smugglers, their protectors in Congress and in other halls of power, and probably the most corrupt individuals ever to be born.
Money talks in this agency and the number of digits can go as high as the stakes involved. Secret codes are prevalent, with million-dollar deals sealed in the wink of an eye.
Alvarez, whose private sector experience ranges from heading the Philippine franchisee of a global logistics company to heading the country's professional basketball association, admitted that he was blown away by the difficulty of the task handed to him.
But Alvarez, who took over the helm of the BOC in July, is determined to face the challenges and even change the way the public perceives the BOC.
"It has thus far been a very fulfilling journey, the occasional bumps notwithstanding. I love the challenges that come with the job, I enjoy being tested to the limits of my capabilities and that should explain why it has been easy for me to treat every pressure as part of a character-toughening process and every adverse situation as a learning experience," Alvarez tells STARweek.
He said that his first six months in office focused on putting in place the fundamentals for reform and renewal in the agency.
There's still a daunting task ahead but Alvarez believes that he has succeeded in instilling fear among smugglers.
Government estimates put the cost of smuggling at P200 billion a year but the practice continues because of patronage politics, connivance with BOC insiders and, simply, the lack of political will to reform such wrongdoings.
Alvarez believes that the problem is being addressed.
[Photo -The commissioner examines a bag of smuggled sugar]
"I believe we have succeeded in planting the seed of fear in the hearts and minds of smugglers and their partners in crime in the BOC. These days, our focus is on sustaining those early initiatives while launching new ones that will result in reducing the time and cost of doing business with the agency," he says.
He said smuggling is being addressed through programs and projects that put emphasis on automation and paperless transactions, interconnectivity with other government agencies that issue import permits and extension of express lane privileges to companies with proven records of engaging in ethical business.
The BOC has been filing before the Department of Justice (DOJ) cases against smugglers every other week.
It's a gargantuan task, Alvarez says.
"I had no illusion that this would be an easy task but I have to admit that I did not expect it to be this difficult," he admits.
[Photo - Customs Commisioner Angelito Alvarez, with deputy commisioner for enforcement Horacio Suansing and enforcement and security services director Nestorio Gualberto, inspects confiscated bikes]
The agency's biggest problem is, he believes, "the lack of control features." At every step of the way in which the Customs process operates there is the potential for corruption, he says.
Along side the need to immediately eliminate corruption, Alvarez also has to meet revenue goals set by the interagency Development Budget Coordination Committee (DBCC), the group that sets the country's macroeconomic assumptions and targets.
This adds to the difficulty, Alvarez admits.
"I would say that meeting very high, at times unrealistic, expectations is a major concern. The general sentiment is that by now, we should have successfully stamped out smuggling and corruption in the Bureau," Alvarez says.
Alvarez, echoing the sentiment of Bureau of Internal Revenue Commissioner Kim Henares, says that "we will not be able to eliminate corruption in our lifetime."
[Photo - The commisioner examines a box of yellow onions intercepted by Customs Intelligence and Investigation Service's officer-in-charge Marissa Rae Galang and director Filomeno Vicencio Jr., and Federation of Onion Growers of the Philippines president Magtangol Alvarez]
"The most I can commit is to reduce corruption in the BOC by as much as 80 percent in three years. As for revenue generation, the high target that has been assigned to us this year in spite of a new international trade regime that puts emphasis on free trade and reduced/preferential tariff is forcing us to tap non-traditional income sources to come up with a decent revenue performance report," Alvarez says.
This year, the BOC has a revenue goal to collect P320 billion, 14 percent higher than the P280 billion set for last year. The agency missed last year's collection target, raising only P220 billion.
Aside from meeting the revenue goals, Alvarez said he is determined to fast track the modernization of the BOC.
"The idea of being able to make a difference in the difficult task of changing the tarnished image of the Bureau of Customs and playing a leading role in fast-tracking the modernization of the agency excites me the most," he said.
Along this line, the BOC has also strengthened its Valuation Reference Information System (VRIS) to ensure proper customs valuation and correct tariff classification.
[Photo - TELLING BETWEEN GOODS AND BAD: Alvarez and Vicencio seize smuggled television sets]
"To date, our Valuation Classification Division has published and disseminated updated values with their corresponding tariff classification references for assessment purposes. The revised compilation covers more than 8,800 mandatory tariff lines provided under the Tariff and Customs Code of the Philippines," Alvarez said.
Furthermore, the agency has also strengthened its Post-Entry Audit Group (PEAG).
"The objective is to improve our capability to check and validate the compliance of importers with rules and regulations with respect to customs value declaration and record keeping requirement," Alvarez said.
Through its conduct of compliance audit, PEAG is able to detect some additional cost or price adjustments which should have been declared and computed as part of dutiable value and landed cost by importers but which they did not.
"We have also put back on track our agency's Voluntary Disclosure Program (VDP). The program allows importers who voluntarily disclose mistakes in their import entry declaration to pay deficiency duties and taxes and other charges without having to worry about fines and penalties. I find it reassuring that there is a growing number of companies that are taking advantage of the benefits of the VDP," he said.
[Photo - The commissioner briefs Finance Secretary Cesar Purisima during a visit to the Port of Manila]
Ultimately, Avarez says, he wants to make the BOC an investor-friendly revenue-generating arm of the government.
He believes that his skills as head of Air21 – he served as president and chief operating officer of the Philippine licensee of Federal Express Inc. (Fedex) from 1990 to April 2010 – gives him the managing prowess to successfully put in place reforms in Customs.
Alvarez also has extensive background as an auditor. From 1978 to 1983, he worked as senior auditor at Sycip, Gorres, Velayo & Co. (SGV) then moved on to Advance Micro Devices from 1983 to 1988 where he started as internal audit manager to comptroller.
A certified public accountant, Alvarez obtained his Bachelor of Science in Commerce from the Far Eastern University.
At the end of the day, Alvarez says what is important is to remove the image of corruption and inefficiency that has stigmatized the agency for so long.
"I want people to instead see the Bureau as an ethical, efficient and investor-friendly revenue-generating arm of the government," Alvarez says.
Now, that is a day to look forward to indeed.
[Photo at right: Alvarez takes time off to enjoy the company of customs officials and employees during a dance competition in celebration of the agency's 109th anniversary.]
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Chief News Editor: Sol Jose Vanzi
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