Corruption 101: Bureau of Customs

Ask any Filipino about the Bureau of Customs and they'll tell you it's one of the most corrupt government bodies in the country. Most of the time, their judgments are based on hearsay and perception. The general public does not really have much interaction with the agency, so where is this branding coming from?

Well, because it's based on the truth, that's why. The Bureau of Customs is really one of the most corrupt agencies in the Philippines, and I have the lowdown on transactions take place between importing companies and the agency (thank God for friends who directly interact with them).

Before I go to the details, can i just say that the Bureau's vision sucks? "A custom's administration which is among the world's best that every Filipino can be proud of"? C'mon guys! I'm sure you can do better than that!

Anyway, here's how the corruption takes place in the bureau. To better illustrate, let's assume I'm a business owner importing shoes from China to sell into the local market and doing everything (paperwork) on my own.

DOING IT THE RIGHT WAY

1. I'll give the purchase order to the Chinese guy I'm buying from. He will then give me an invoice and basically I'll settle the transaction between us.

2. So the Chinese guy will be hiring a courier to send the shoes to me. So far so good.

3. The courier company then sends a transit manifest to the Bureau of Customs, and the agency sends confirmation. Basically this step is required so Customs will know something's coming.

4. I'll then have to send an import declaration to the bureau. They're supposed to assess the papers and give approval. --> This is where the corruption first takes place.

Ideally they're only supposed to check papers and make sure everything is in order. However, the bureau is so corrupt that they frustrate the importer into bribing them in order to approve their papers. These are some of the tactics they do:

a) They look for the slightest mistake in my application and tell me they will not release my goods unless they receive the "correct" details

b) They'll process my application very slowly in order to frustrate me in looking for "alternative" ways. It's because they know if I don't get those shoes soon, I'll keep losing money because I will not be able to sell and make profit.

c) Sometimes they'll even resort to creating fake violations in order to not release the goods.

The worst part about this is, if my cargo has not been released to me due to "problems", Customs is not liable if anything happened to my shoes. Most of the time, some of the goods get stolen. Best part is, it's mostly the people from customs who steal the goods and sell it themselves! Amazing!

NO CHOICE...

5. So I'll have no choice but to bribe them into approving my imports. Because I didn't bribe them right from the start, they are going to ask for a LOT MORE.

6. Customs approves my papers, and will only then release the goods so I can finally sell them.

Doing the right thing just cost me precious time and money. If my business involved constant importing of products, I'm pretty much screwed and will go out of business soon.

SUCCUMBING TO EVIL

I'm just a business owner, I will not be able to change the system because corruption has deeply rooted itself in every aspect of the government body. So to keep myself sane, I'll just have to succumb in doing it the corrupt way.

1. So I'll have an agreement with the Chinese guy in buying my shoes. I settle the transaction and he sends the goods.

2. I'll have to hire a Broker. Basically, a Broker is someone who knows importation inside and out. Basically, he'll be the middleman in charge of securing the goods for me so I do not have to directly liaise with the Bureau of Customs.

3. The Broker will ask me for money, which will be split up into 3 payments:

a) Payment to the broker for his services. He would never do it for free! :)

b) Tariff and Importation fees. This is what importers pay Customs for. This is the legal processing fees for my goods.

c) Bribe money for the Customs officials. Apparently, the bribe system in the Bureau of Customs is so orderly and systematic that they only ask for one fixed amount. The bribe money distribution follows a certain hierarchy; big boys get the most, middle ones get enough and the smallest share goes to the lower ranked employees.

Also, bribes follow seasons. In Christmas season, the prices actually rise because of the holidays. :D This is funny. :)

4. The Broker will take care of everything. And after the Bureau releases the goods for the Broker's company, they'll "sell" the goods to me. So it would appear as if it's a local transaction on my end instead of something I imported from China.

Advantages: Quick and Easy. Minimal transaction as all I have to do is talk to the broker. Being corrupt is actually less time consuming and less expensive than doing it the right way. Plus, the broker even has guarantee the goods will arrive at my doorstep intact, else he will be paying me for damages / missing goods.

The problem lies very very deep in the organization. The government culture is so bad that not only have they lost hope for changing for the better, they're taking advantage of businessmen and making them corrupt as well. I asked my sources about their thoughts on this corruption cycle. They said given a choice, they would rather settle transactions the right way. However, it's the government agency that's making it impossible for them to live their lives guilt free.

Change for the better is easier said than done, when the actual system has gotten so bad, it multiplies evil by the thousands.

layman