THE United States government has flagged corruption and red tape in the Bureau of Customs (BOC) as a key factor making trade more costly and less efficient.
In its 2019 National Trade Estimate Report on Foreign Trade Barriers, the US Office of the Trade Representative (USTR) said customs barriers and port facilitation remain to be a huge concern for American exporters.
The USTR accused the BOC of corruption and red tape, as well as inconsistencies in the reference prices used for valuation, saying these make it difficult for shipments to enter the Philippine market.
“Reports of corruption and irregularities in customs processing persist, including undue and costly delays—irregularities in the valuation, 100 percent inspection and testing of some products, and customs officials seeking the payment of unrecorded facilitation fees,” the report read.
“Some importers have reported that the Philippine Bureau of Customs continues to use reference prices for the valuation of meat and poultry products used in a manner that appears inconsistent with the WTO [World Trade Organization] Customs Valuation Agreement,” it added.
The USTR added that American investors have flagged Manila courts for reportedly being mudded with bribery. This, the USTR revealed, makes several firms reluctant about pouring in capital into the Philippines. “Both foreign and domestic investors have expressed concern about the propensity of Philippine courts and regulators to stray beyond matters of legal interpretation into policy-making, as well as the lack of transparency in judicial and regulatory processes,” the report read.
“Investors have also raised concerns about courts being influenced by bribery and improperly issuing temporary restraining orders to impede legitimate commerce,” it added.
The USTR, in its report, also raised long-standing concerns over the country’s technical barriers to trade, including sanitary and phytosanitary measures.
Washington has long lamented the Philippine government’s maintenance of a two-tiered system for regulating the handling of frozen and freshly slaughtered meat for sale in local wet markets. The US last October announced its intent to collaborate with the Philippines on the development of cold chain requirements and best practices.