THE Bureau of Customs (BOC) is accelerating efforts to modernize its operations through full digitalization and technology-driven services as part of the Marcos administration’s push to strengthen trade facilitation and economic growth, Commissioner Ariel Nepomuceno said.
Speaking at the Asean Growth Forum, Nepomuceno said the reforms are being carried out in line with the vision of President Ferdinand Marcos Jr. to build a more efficient, transparent, and globally competitive trade environment.
A key component of the bureau’s modernization program is the full digitalization of the Customs Processing System (CPS), which is expected to streamline transactions and reduce processing delays.
The Customs chief also revealed plans to integrate artificial intelligence into selected customs services to improve operational efficiency and strengthen risk management capabilities.
Nepomuceno said adopting advanced technologies will help the bureau detect suspicious transactions more effectively and intensify efforts against smuggling and other forms of illicit trade.
He pointed out that modernization is not merely a technological upgrade but a critical reform toward transparency and accountability across customs operations.
“The system is intended to foster transparency and competitiveness, and the bureau remains fully committed to its successful implementation,” Nepomuceno said.
Also, he emphasized that the benefits of customs modernization extend beyond importers and exporters, ultimately serving the broader interests of the Filipino people through improved government services and stronger economic performance.
He likewise underscored the importance of maintaining close collaboration with stakeholders, noting that sustained engagement between government and the private sector is essential to creating a more responsive and efficient customs environment.
Nepomuceno said strong partnerships with businesses and industry players are crucial in identifying challenges, improving processes, and ensuring that reforms deliver tangible benefits to the trading community.
The forum brought together key stakeholders to discuss cross-border transactions, emerging trade opportunities, and strategies for unlocking economic growth across the Asean region.
Efforts at Customs computerization began decades ago with the primary aim of eliminating person-to-person transactions to curb rampant corruption and technical smuggling.
In 1998, the Management Information System and Technology Group (MISTG) was formally established under Executive Order 463 to oversee, ensure progress, and manage the bureau’s computerization program.
At the heart of the BOC's modernization agenda, Nepomuceno said, is the Integrated Customs Processing System, an AI-enabled platform that will replace the legacy E2M system with end-to-end automated processing for imports, exports, transits, risk assessment, and digital payments.
E2M, the electronic-to-mobile system, enables all customs stakeholders to access the bureau's services, while the CPS will create a fully paperless, transparent, and compliant trade environment.
Also, the BOC is expanding digital services through the OneClient Portal, enabling stakeholders to receive real-time updates on their shipments, benefit from pre-arrival processing, and easily access regulations and performance dashboards.
Nepomuceno said that full computerization will eradicate smuggling and other irregularities, and make the BOC comply with its international commitments, including integration into an Asean-wide electronic exchange of certificates of origin that prohibits manual submission.
Nepomuceno noted that the bureau's present E2M system cannot trace which employee performs each transaction.
He admitted that unless fully digitalized, recurring problems of technical and outright smuggling, which could only happen with the connivance of customs personnel, will remain prevalent.
"The right solution [to really stop corruption] is to digitalize the entire process to avoid face-to-face interaction between customs personnel and brokers, importers, and other stakeholders or so-called customs players," added Nepomuceno.
