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    After BIR, BOC revamp follows
    SHUFFLE OF DISTRICT COLLECTORS COMES AS ONLY 4 OF 15 PORTS MEET TARGETS
     
    By VG Cabuag
    Reporter

    WITH collections going way below target, the Bureau of Customs will reshuffle all its port district collectors. Although the shuffle was announced only on Monday—a day after the Bureau of Internal Revenue (BIR), its twin in the revenue sector, changed assignments of 13 key officers—the recommendation for a Customs revamp was submitted to the Department of Finance much earlier, and the implementation may start as early as next month. 

    BOC Commissioner Napoleon L. Morales said Monday the reshuffle plan was submitted to the selection board of the Department of Finance as early as May, but it could not be implemented due to the election ban.

    The recommendation is now being assessed by Finance Undersecretary Gaudencio Mendoza, he said.

    “We have to do this as part of the measures to improve our revenue generation. We are employing enhancement and alternative measures to eliminate the deficit, but we think a reorganization will help our cause,” he told reporters.

    Morales admitted, however, that collections were affected by various factors including the dollar exchange rate against the peso, downtrend in import volume, and unrealized assumptions of other cargo volumes.

    The district port collectors and other Customs officers are most likely to be affected by the revamp, but there will be “fairness in assessment of performances and transparency in the process,” Morales said.

    For the first half of the year, BOC posted a P92.2-billion collection, more than 12 percent lower than the P105.2-billion target for the period.

    Compared with last year’s collection, deputy commissioner Reynaldo Umali earlier said the revenue collection was P2.4 billion lower compared to January-June 2006.

    Out of the 15 ports, only four surpassed their respective targets: the ports of Cebu, Legazpi, Cagayan de Oro and the Ninoy Aquino International Airport.

    “The realization of assumption of our target is very important. Our collection will definitely be affected since we collect in dollars and remit to government in pesos,” Umali said.

    As a rule of thumb, for every P1 appreciation of the local currency against the dollar, it has an impact of P2.2 billion in revenue for the BOC, Umali explained.

    “We have to take into consideration, for instance, reduction in oil prices in world market in the past months which naturally resulted in lower cost of transaction,” he said.

    Morales said they expect about P10 billion from additional taxes and duties from oil companies through its Post Entry Audit Group, which is now reviewing all oil, chemical and liquefied gas imports in the last three years.

    BOC had already shuffled its collectors last year, since most of its main collection points were off target in 2006. However, the agency ended up surpassing its target as the Office of the Commissioner, which also acts as a collecting agent for other accounts, went after the importing government agencies such as the National Food Authority to plug the deficit.

    In last year’s reshuffle, Port of Batangas district collector Adelina Molina replaced Manila International Container Port (MICP) district collector Carlos So, who was transferred to the Ninoy Aquino International Airport.

    Naia district collector Ricardo Belmonte replaced Port of Cebu district collector Lourdes Mangaoang, who was then transferred to Port of Iloilo.

    Naia deputy collector Grace Caringal replaced Molina in Batangas.

    Port of Subic district collector Andres Salvacion replaced Port of Cagayan de Oro district collector Roberto Sacramento and MICP deputy collector Tita Zamoranos replaced Salvacion in Subic.

    Both the Bureau of Internal Revenue and the BOC, the government’s top two revenue-generating agencies, have mapped out their own separate actions plans to meet the Arroyo government’s 2007 revenue targets of P730 billion and P228 billion, respectively.

    President Arroyo has ordered finance officials to attain the government’s P63-billion budget deficit goal and the P1.1-trillion revenue target for 2007.

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