Modernizing frontlines of trade: Inside BoC’s digitalization drive

In an era increasingly defined by digital governance, the modernization of border control and customs administration has become a strategic imperative for national development.

The Bureau of Customs (BoC) has embarked on an extensive digital transformation program designed to enhance trade facilitation, increase operational efficiency, strengthen transparency, and reinforce border security.

Anchored on the Philippine Customs Modernization Program (PCMP) and aligned with international frameworks such as the World Trade Organization’s Trade Facilitation Agreement (TFA), the BoC’s digitalization agenda reflects a long-term commitment to building a modern, responsive, and globally competitive customs administration.

The BoC’s digitalization drive is firmly rooted in the implementation of the Customs Modernization and Tariff Act (CMTA), which mandates the adoption of information and communications technology (ICT) to simplify procedures, improve regulatory compliance, and promote efficiency in cross-border trade.

To operationalize this mandate, the agency launched the PCMP, supported by the World Bank Group. Central to this program is the development of a unified Customs Processing System (CPS), which consolidates multiple customs modules into a single digital platform, enabling end-to-end electronic processing of import, export, and transit transactions.

The CPS builds on the legacy of Electronic-to-Mobile (E2M) system, enhancing its functionality by integrating risk-based compliance management, advanced cargo targeting, and non-intrusive inspection services.

This integrated digital architecture enables the BoC to shift from labor-intensive manual processes to data-driven operation.

Over the past years, the BoC has rolled out a wide range of digital solutions that collectively form a comprehensive e-customs ecosystem.

By 2023, the agency had successfully digitalized 160 out of 166 custom processes, achieving a digitalization rate of approximately 96.39%. This remarkable feat contributed to the Philippines ranking second among ASEAN member states in the 2023 United Nations Global Survey on Digital and Sustainable Trade Facilitation, with a score of 87.10%.

Among the major systems introduced were the Liquidation and Billing System (LBS), Electronic Customs Baggage and Currencies Declaration (iDeclare) System, Raw Materials Liquidation System, National Customs Intelligence System (NCIS), and the integration of E2M system with the Electronic Tracking of Containerized Cargo (ETRACC).

In addition, the Payment Application Secure 6 (PAS6) system was deployed to enhance electronic payment processing, ensuring secure, real-time exchange of transaction data. Meanwhile, the ASEAN Customs Declaration Document (ACDD) system supports cross-border data exchange among ASEAN member states, facilitating faster verification of trade documents.

Advancing trade facilitation

In 2025, the BoC intensified its digital reform agenda through the deployment of advanced platforms designed to further streamline trade processes.

Notably, the upgraded Online Tax Estimator enables importers to forecast duties and taxes more accurately before submitting declarations, thereby reducing valuation disputes and compliance risks.

The launch of the Origin Management System (OMS) automated the issuance of Product Evaluation Reports for exports under free-trade agreements, significantly cutting processing time and enhancing export competitiveness.

To improve export documentation, the agency also proposed the integration of the Automated Export Declaration System (AEDS) across economic zones, expected to standardize export submissions, reduce human error, and enhance regulatory oversight.

Parallel upgrades included the full rollout of the electronic Certificate of Origin (e-CO) portal and the ASEAN Electronic Document Exchange, which strengthens cross-border paperless trade.

Strengthening transparency and integrity

Digitalization has also been leveraged as a strategic tool to combat corruption and enhance institutional integrity. By automating discretionary processes and minimizing direct contact between Customs officers and traders, the BoC reduces opportunities for rent-seeking behavior.

The near-complete digitalization of procedures ensures that transactions are traceable, auditable, and governed by standardized workflows.

Complementing technological upgrades, the BoC has institutionalized stakeholder engagement through the establishment of the Customs Industry Consultative and Advisory Council (CICAC). These platforms foster structured dialogue between Customs officials and the private sector, facilitating the identification and resolution of operational issues while reinforcing trust and accountability.

Enhancing regional and international cooperation

The BoC’s digitalization efforts extend beyond national borders, aligning with regional and global frameworks on paperless trade. Through its participation in ASEAN initiatives and cooperation with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), the Philippines has committed to the Framework Agreement on the Facilitation of Cross-Border Paperless Trade.

The framework aims to promote interoperability among national single windows and facilitate the mutual recognition of electronic trade documents.

By adopting common data standards and digital protocols, the BoC enhances the Philippines’ integration into global value chains.

Operational efficiency and service delivery

Operational gains from digitalization are evident in faster cargo clearance times, improved risk profiling, and more effective border surveillance.

The integration of cargo electronic tracking systems enables real-time monitoring of containerized cargo, enhancing supply chain visibility and reducing the risk of diversion or smuggling.

Moreover, the rollout of the e-Travel System, a joint initiative with the Bureau of Immigration and other government agencies, allows passengers and crew members to submit baggage and currency declarations electronically prior to arrival or departure.

For traders, the expansion of the Authorized Economic Operator (AEO) and Super Green Lane (SGL) programs, supported by digital risk management tools, provides expedited processing and preferential treatment to compliant businesses. These trust-based facilitation mechanisms reward good governance while allowing Customs authorities to concentrate enforcement efforts on high-risk shipments.

Challenges and future directions

Despite substantial progress, the BoC’s digitalization journey still has its difficulties. Interoperability among legacy systems, cybersecurity risks, capacity-building requirements, and resistance to organizational change remain critical concerns.

Sustained investment in ICT infrastructure, human capital development, and regulatory harmonization will be essential to ensure the longevity of digital reforms.

The digital transformation of the BoC represents a landmark reform in Philippine public administration. Through sustained investment in technology, institutional restructuring, and international cooperation, the BoC has redefined the delivery of customs services, aligning national practices with global standards.

With over 96% of processes now digitalized, the agency stands as a regional leader in trade facilitation and digital governance.

As the Philippines continues to pursue inclusive economic growth and deeper integration into the global trading system, the BoC’s modernization agenda will remain a critical pillar of national competitiveness. — Krystal Anjela H. Gamboa