The Philippines is pursuing full digitalization of its customs procedures as a key strategy to combat smuggling and corruption, according to Bureau of Customs (BOC) Commissioner Ariel Nepomuceno.
Digital Customs to Fight Smuggling
Nepomuceno highlighted the importance of a fully-digitalized customs system while speaking on the sidelines of a meeting between the BOC, the EU-ASEAN Business Council, and the European Chamber of Commerce, among other organizations. The meeting, led by the Department of Finance’s (DOF) Undersecretary Charlito Martin R Mendoza, focused on improving customs procedures in preparation for the Philippines’ 2026 ASEAN chairmanship.
One key digitalization effort is the development of the Customs Processing System (CPS), designed to simplify trade procedures, reduce costs, and minimize manual handling. The BOC is collaborating with other government agencies and the private sector to ensure new systems, including pre-border technical verification and electronic invoicing, meet business needs.
“The primary objectives of full digitalization extend beyond securing proper revenue collection, though that remains the most immediate and critical outcome, as it also addresses the broader challenges posed by smuggling,” Nepomuceno said. Curbing smuggling is expected to boost investor confidence, ensure fair competition, and increase revenue.
The proposed reforms include end-to-end digitalization of import functions – submissions, assessments, and release – supported by technologies like scanning systems, CCTV monitoring, and surveillance. These changes are anticipated to be implemented within the next one to one and a half years, strengthening supply chain transparency.
Global Partnerships to Streamline E-commerce Processes
To modernize and streamline e-commerce, the BOC and the International Trade Centre (ITC) launched the Joint Programme on Inclusive, Competitive and Responsible Digital Philippines (JP Digital-PINAS) Output 3.2 Project. The online kick-off meeting centered on developing an ICT-enabled e-commerce clearance system to enhance trade facilitation and advance the BOC’s digital transformation.
The project aims to streamline trade through simpler, more cost-effective processes and establish a secure, transparent e-commerce system that strengthens public trust and benefits consumers. It also seeks to empower Micro, Small, and Medium Enterprises (MSMEs) to participate in the digital economy.
The project is funded by the United Nations Joint Sustainable Development Group Fund and co-implemented by the Department of Information and Communications Technology (DICT), United Nations Development Programme (UNDP), ITC, International Labour Organisation (ILO), and other partners.
Sustained Efforts Through Capacity Building
The ASEAN Regional Integration Support – Philippines Trade- Related Technical Assistance (ARISE Plus Philippines) project was recently completed in November 2025. Funded by the European Union (EU) and implemented with the ITC, the five-year project expanded market access for MSMEs in the EU and ASEAN and supported the modernization of customs operations, quality infrastructure, and export systems.
According to Nepomuceno, a key achievement of ARISE Plus Philippines was the modernization of customs operations, particularly through strengthened digital trade facilitation measures. This included the implementation of integrated risk management systems, enhancements to the Authorised Economic Operator (AEO) Programme, and improved cross-border controls for e-commerce.
These reforms reduced manual procedures, accelerated cargo clearance, lowered compliance costs, and improved supply chain security. The publication of the AEO Operations Guidelines in the last quarter of 2025 provided a clear, standardized, and technology-enabled framework for traders.
The impact of these reforms was reflected in the Philippines’ improved performance in the 2025 United Nations Global Survey on Digital and Sustainable Trade Facilitation, with the country’s score rising from 86 percent to 91 percent. Nepomuceno emphasized the Philippines’ commitment to maintaining and strengthening the digital systems, policies, and institutional capacities established through these projects.
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