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    Attrition law hits a snag at BoC
    DISTRICT COLLECTORS REJECT ANEW ACCORD GIVING GOVERNMENT FREE HAND TO FIRE UNDERPERFORMERS
     
    By VG Cabuag
    Reporter

    THE government’s efforts to implement the Lateral Attrition law has run into a legal snag, as collectors of the Bureau of Customs have again declined to sign a binding agreement that would allow the agency to ax them and their staff if they fail to meet the assigned target for the year.

    BoC deputy commissioner Reynaldo Umali warned that the continuing infighting at the agency could jeopardize their P330-million monetary reward for exceeding its target last year.

    The Attrition Law operates on a carrot-and-stick approach, and authorities had hoped that in exchange for the promised reward for overcollection, customs agents would be willing to put their jobs on the line if the opposite, or undercollection, happened.

    At Monday’s meeting between the 15 collectors of the country’s main ports of entry and top BoC officials, the collectors declined for the second time to sign the agreement. Instead, they said they would sign a manifesto supporting the BoC’s target P228.2 billion for the year.

    At one point, the collectors suggested that BoC officials ask the interagency Development Budget Coordination Committee (DBCC) to adjust its targets for the Customs, as these were deemed too high. There were also suggestions to question the implementing rules and regulation of the Attrition Law.

    “Even last year, BoC said the goal of P196 billion was a fighting target. This year it was also a fighting target but I don’t think (DBCC) would agree to adjust our target [lower],” Umali said at the sidelines of the meeting.

    BoC will meet DBCC this week.

    “It’s either they should accept a contract or not, but there are repercussions,” he added. 

    As of press time, the collectors had not signed the manifesto, a draft of which was also not released to the media.

    Adelina S.E. Molina, collector for the Manila International Container Port and the designated spokesman for the Collectors Association of the Philippines, said they are not seeking any concession agreement between BOC.

    “It’s just that this has been our career and for most of us this job has been our life,” she said.

    The P228.2-billion target was assumed on the $60 billion worth of imports expectations for 2007. From the figure, the DBCC computed about P400-billion to P450-billion collections from the 5-percent duties and 12-percent value-added tax.

    “I think the target is achievable since we can always adjust it to what is happening in reality,” Umali said, adding that each port should identify what should be adjusted.

    “Whatever your [collectors] are, you should consider that DBM (Department of Budget and Management) view this reward as an expense item. The DOF (Department of Finance) will view this as a policy issue and would also attack our reward because if we cannot implement the attrition law how can we be rewarded,” Umali said.

    The DOF heads the Revenue Performance Evaluation Board, the body that will implement the Attrition Law, while DBM is a member. The other two members are the National Economic and Development Authority and the BOC.

    Last week, BOC commissioner Napoleon Morales also failed to persuade the collectors to sign in the agreement.

    Based on the IRR, revenue collectors need to sign the agreement that would give the government the position to dismiss them if they failed to reach their target for the year.

    According to the goal, the Port of Manila will have the highest target this year with P74.68 billion, followed by the Manila International Container Port at P57.12 billion. Batangas Port has a goal of P49.9 billion, Ninoy Aquino International Airport at P17.05 billion, Cebu Port at P4.65 billion, Subic Bay at P4.47 billion, Cagayan de Oro at P2.36 billion, Davao  at P1.7 billion, San Fernando at P985 million, Clark Field at P750 million, Tacloban at P490 million, Iloilo at P366 million, Zamboanga at P80-million, Surigao at P70 million, and Legazpi at P24 million.

    BOC is the second-largest revenue generator of the national government.

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