By Angela Celis

The Department of Finance (DOF) has laid out its five main strategies for revenue operations to combat smuggling and illicit trade.

In a statement, the DOF identified its BRAVE plan, which translates to Border security enhancement; Revenue collection and revenue-base protection; Adaptive regulations and compliance monitoring; Vigilant enforcement operations and vigorous intelligence gathering activities; and Effective engagement with stakeholders and inter-agency cooperation.

“Bolstered by digitalization, these BRAVE Strategies for revenue operations will drive our initiatives to improve efficiency, transparency and accountability,” DOF revenue operations group undersecretary Charlito Mendoza said.

Administrative Order No. 23 will be implemented by the Bureau of Customs (BOC) through a digital and integrated system for the Pre-border Technical Verification and Cross-border Electronic Invoicing of all import commodities.

This will strengthen national security, safeguard consumer rights and protect people against substandard and hazardous imported goods.

Finance secretary Ralph Recto convened the first committee meeting to operationalize the system last June 11. The DOF is also finalizing the joint administrative order that will lay out the implementing rules to carry out this project, simplify customs procedures and expedite the inspection of all imported goods in the Philippines.

The project is in line with BOC’s initiatives on pre-arrival, arrival and post-arrival of imported goods, which also include the strict implementation of the Certificate of Registration for all importers, exporters and brokers; and the fuel-marking system to mark and trace duties-paid fuel imports.

The bureau also implements the X-ray inspection project which expedites the clearance of goods and enhances the BOC’s capability to detect contraband; and the exercise of the inspection and visitorial powers of the Commissioner to scour the local markets for smuggled goods.

Meanwhile, the DOF assured the government is on track to meet its revenue target for the year as sound revenue measures and anti-smuggling and anti-tax evasion measures are being continuously implemented.

With the recent passage of the Ease of Paying Taxes Law, taxpayers can now conveniently file and pay their taxes through any accredited payment channel, digital platform or authorized-agent banks anytime and anywhere in the country.

The Bureau of Internal Revenue (BIR), for its part, has been strictly implementing its Tax Compliance Verification Drive to determine legitimate businesses; the Oplan Kandado to ensure proper value-added tax compliance; and has visited over 112,000 businesses and collected over 250 million in tax penalties.

The DOF’s revenue agencies have also been continuously updating and adapting rules to address emerging economic opportunities, threats to legitimate trade and compliance challenges in excise taxation and customs duties.

For instance, the BIR has tightened regulations and monitoring for excisable products through updated rules like Revenue Regulation No. 14-2022, which regulates the online trading of vapor products on e-commerce platforms.

The BOC is integrating the customs declaration into the e-Travel System, allowing departing and arriving passengers to complete their customs baggage declaration and currency declaration forms electronically for faster and heightened security.

Meanwhile, the BOC has seized almost P19 billion-worth of counterfeit goods; over P13 billion-worth of smuggled general merchandise; and over P5 billion-worth of cigarettes and tobacco products in just the first half of this year.

Additionally, over P2 billion-worth of illegal drugs have been intercepted and seized.

Through its Bureau’s Action Team Against Smugglers, the BOC conducts profiling, case build-ups and filing of administrative and criminal charges against violators.

The BIR’s Run After Fake Transactions initiative uses advanced mathematical modeling to develop a proprietary risk-assessment system to pinpoint sellers and buyers of ghost receipts.

Thus, it has successfully sent over 1,500 assessment notices, collected over P1.3 billion additional taxes and filed 24 cases against ghost sellers and buyers.

Lastly, both the BIR and BOC have institutionalized their respective Industry Consultative and Advisory Councils.

The agencies hold regular consultations and briefings with industry stakeholders to update them on regulations and gather feedback, ensuring full transparency and cooperation.

One of the projects borne out of these consultations is the recently launched the Swift Corporate and Other Records Exchange Protocol––a web portal that allows the Securities and Exchange Commission to share its electronic database of corporate records with partner regulatory and enforcement agencies to boost bureaucratic efficiency.

Another is the full implementation of the ATA Carnet, an international merchandise passport that will showcase Filipino-made products globally and provide wider access for local businesses to leverage opportunities in foreign markets.

With this, Mendoza encouraged fellow government and industry partners to further intensify its collaborative efforts to fight against smuggling and unfair trade practices.

“Let us resolutely work together to protect our markets, uphold the rule of law and secure a prosperous future for our nation,” he said.