Republic of The Philippines

Republic of the Philippines
University of Southeastern Philippines

College of Development and Management
Master in Public Administration
X-ray Inspection Project of the Bureau of Customs: Continuous Smuggling
and Fraud
In partial fulfilment of the requirements for Public Fiscal Administration (PA 231)
Submitted to:
Dr. Antonio M. Faunillan Jr.
Submitted by:
Juliean T. Akiatan
2nd Semester, S.Y 2018-2019
May 2019
INTRODUCTION
Nowadays, operational efficiency and effectiveness is everything. The X-ray
baggage scanner plays a very important role in our daily lives and is designed to
ensure safety and security especially to public places. X-ray scanners can be used
in many places, like airports, transport terminals, buildings, factories, courthouses,
embassies, military installations, prisons, hotels, schools, convention centers,
security checkpoints and special events location.
In the case of the Philippines, an X-ray Inspection Project under the Bureau
of Customs has been implemented as part of the agency’s ongoing objective to
harmonize its anti-smuggling drive and border protection functions. The X-ray
Inspection Project in the Philippines started on January 30, 2002, former Customs
Commissioner Titus Villanueva, with the approval of then Finance Secretary Isidro
Camacho, issued Customs Administrative Order No.1-2002, which provides for
the use of X-ray machines as an alternative to actual physical examination to speed
up the examination of shipments and the movement of cargoes in the Bureau of
Customs. As pointed out under the provisions of this Customs issuance, the use of
X-ray machine in cargo examination is meant to promote global competitiveness of
the country by using modern technology in the examination of cargoes as well as
to enhance the enforcement capabilities and collection efforts of the Bureau.
Moreover, this order recognizes the need of container X-ray machine to handle the
examination and lists down the system specifications of the equipment that the
Bureau should acquire.
The X-ray Inspection Project started on May 2006. As it aims to enhance the
country’s capability in monitoring and protecting the border against contrabands
and smuggled goods, 19 x-ray units were newly-installed in the Ninoy Aquino
International Airport and Davao International Airport. Two mobile x-ray machines
are now installed in NAIA terminals 1, 2, 3; seven hand-carried baggage x-ray
machines installed in NAIA terminals (3 in Terminal 1; 2 in Terminal 2; and 2 in
Terminal 3); eight fixed baggage x-ray machines installed in NAIA terminals; one
unit of fixed baggage x-ray machines installed in Central Mail Exchange Center;
and one unit of fixed baggage x-ray installed in Davao International Airport. The
new x-ray units will help the Bureau of Customs detect smuggled items in the
airports where foreign travellers and balikbayan usually land. It can be recalled that
on April 2017, President Duterte called on the Bureau of Customs and Bureau of
Immigration to stop the opening of baggages and balikbayan boxes sent by the
OFWs. Aside from the new x-ray units, the Bureau of Customs received from the
US Embassy 20 units of radiation detectors for the interdiction and location of
nuclear materials and weapons.
ANALYSIS
The X-ray Inspection Project has been able to apprehend various
misdeclared, undeclared and prohibited shipments. And for its contribution to
revenue collection, it has effected for the payment of additional duties and taxes,
coming from suspected shipments after passing through the X-ray machines. It
only means that the project has achieved its targeted goals. In addition, the scope
and coverage of shipments that may be X-rayed has been expanded in the
succeeding years after its implementation.
On the other hand it cannot be denied that there were instances that
controversies have been faced by the bureau on the matter of X-ray machines.
Looking back on the late 2018, the P11-billion shabu (methamphetamine) escaped
Customs checks through magnetic lifters delivered (Talabong, 2019).
CORE-PROBLEM SUMMARY
The newly purchased X-ray machines can double or triple the ability of the
existing machines (Almonte, 2019). The main problem is the government has spent
money to the old X-ray machine which in the later time cannot be used as it
functionality is not the same with the expensive X-ray machines. In addition,
amidst the claim of the Bureau of Customs that the new X-ray machines are
capable of 2D and 3D imaging and identifying organic and inorganic materials

including drugs and other narcotics, there has been cases of smuggling and other
customs frauds.
Conclusion
The Bureau of Customs is mandated to assess and collect the lawful
revenues from imported articles and all other dues, fees, charges, fines and
penalties accruing under the tariff and customs laws. Being the government’s
second largest revenue generating-agency, contributes to the notable growth of the
Philippine economy. It enables the national government to provide for the needs of
the country and achieve continuous socio-economic gains.
However, data says that this mandate has not been followed and most of the time,
being violated. Smuggling and fraud has been deeply entrenched as a form of illicit
trade; it has become a norm for smugglers to evade payment of duties and taxes.
Most often, smugglers find it more convenient to circumvent legal trade channels
-through misdeclaration and undervaluation, than smuggling items outrightly. The
manipulation of importers and cooperation of the trade channels resulted in the
practice of smuggling which caused billions of revenue loss in the government
coffer as revealed by disparity in the volume and value of goods exported by other
countries to the Philippines. The highest return, of course, goes to the pockets of
unscrupulous individuals while true Filipino people bear the burden of the losses
In line with the implementation of the X-ray Inspection Project, which,
based on the evidences is not the answer to the continuous customs smuggling and
frauds. The problem is rooted in its system and workforce. It is necessary that the
bureau review its mandate and carry out measures in case violations were made.
Recommendation
In light with the discussed problems, the following recommendations are
highlighted:
a.) The need for a motivated, productive and honest workforce is the
most important factor to achieve the resurgence of the Bureau of
Customs. Only through this kind of workforce will enable the Bureau
to be freed from the captive image of a tainted bureaucracy.
b.) The Bureau of Customs should continue to implement programs,
activities and events needed for the improvement of employees’
knowledge, skills, and proficiency on various aspects of Customs
administration.
c.) Joint effort by the enforcement units must be strengthened.

REFERENCES:
Introduction About X ray Baggage Scanner. Retrieved on May 17, 2019 from
https://sites.google.com/site/safeeastimage/introduction-about-X-ray-
baggage-scanner
Talabong, R. (2019). Whistleblower Mangaoang returns as Customs X-ray Chief.
Retrieved on May 17, 2019 from
https://www.rappler.com/nation/politics/elections/2019/231092-samuel-co-
wins-mayor-pagadian-city
Almonte, L. (2019). BOC to purchase 50 X-ray Machines worth P 1.2 Billion.

Retrieved on May 17, 2019 from https://www.portcalls.com/boc-purchase-
50-xray-machines-worth-p12b/.
Bureau of Customs. (2017). Enabling a Secured Cross-Border Trade. Retrieved on

May 17, 2019 from http://customs.gov.ph/wp-
content/uploads/2018/09/2017_Annual_Report.pdf

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Republic of the Philippines

University of Southeastern Philippines

X-ray Inspection Project of the Bureau of Customs: Continuous Smuggling

2nd Semester, S.Y 2018-2019

in many places, like airports, transport terminals, buildings, factories, courthouses,

embassies, military installations, prisons, hotels, schools, convention centers,

security checkpoints and special events location.

of Customs has been implemented as part of the agency’s ongoing objective to

Camacho, issued Customs Administrative Order No.1-2002, which provides for

the use of X-ray machines as an alternative to actual physical examination to speed

up the examination of shipments and the movement of cargoes in the Bureau of

X-ray machine in cargo examination is meant to promote global competitiveness of

the country by using modern technology in the examination of cargoes as well as

to enhance the enforcement capabilities and collection efforts of the Bureau.

Bureau should acquire.

country’s capability in monitoring and protecting the border against contrabands

are now installed in NAIA terminals 1, 2, 3; seven hand-carried baggage x-ray

machines installed in NAIA terminals (3 in Terminal 1; 2 in Terminal 2; and 2 in

US Embassy 20 units of radiation detectors for the interdiction and location of

nuclear materials and weapons.

misdeclared, undeclared and prohibited shipments. And for its contribution to

succeeding years after its implementation.

Customs checks through magnetic lifters delivered (Talabong, 2019).

capable of 2D and 3D imaging and identifying organic and inorganic materials

The Bureau of Customs is mandated to assess and collect the lawful

penalties accruing under the tariff and customs laws. Being the government’s

second largest revenue generating-agency, contributes to the notable growth of the

the country and achieve continuous socio-economic gains.

-through misdeclaration and undervaluation, than smuggling items outrightly. The

manipulation of importers and cooperation of the trade channels resulted in the

practice of smuggling which caused billions of revenue loss in the government

In line with the implementation of the X-ray Inspection Project, which,

most important factor to achieve the resurgence of the Bureau of

to be freed from the captive image of a tainted bureaucracy.

b.) The Bureau of Customs should continue to implement programs,

activities and events needed for the improvement of employees’

knowledge, skills, and proficiency on various aspects of Customs

c.) Joint effort by the enforcement units must be strengthened.

Almonte, L. (2019). BOC to purchase 50 X-ray Machines worth P 1.2 Billion.

Bureau of Customs. (2017). Enabling a Secured Cross-Border Trade. Retrieved on

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