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Fraud crackdown at Customs: ‘We’re going after smugglers, their financiers, and their government allies,’ says commissioner

Fraud crackdown at Customs: ‘We’re going after smugglers, their financiers, and their government allies,’ says commissioner
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The situation, in brief

The Bureau of Customs (BOC) has filed 84 cases for customs fraud under a crackdown that targets high-value misdeclarations, including the infamous example of a Bugatti luxury vehicle declared as a pick-up truck to pay lower import duties, Commissioner Ariel Nepomuceno said Saturday. Nepomuceno…

The Bureau of Customs (BOC) has filed 84 cases for customs fraud under a crackdown that targets high-value misdeclarations, including the infamous example of a Bugatti luxury vehicle declared as a pick-up truck to pay lower import duties, Commissioner Ariel Nepomuceno said Saturday.

Nepomuceno made the disclosure in an interview on DZRH News program Special on Saturday on August 8, as part of the DZRH SONA 2026 Series featuring the Department of Finance.

“Ang ibig sabihin niyan sa mas madaling maintindihan: bawal nang mandaya sa deklarasyon. Ibig sabihin, kung ano ‘yung dumating na mga produkto mo, dapat ‘yun din ang babayaran mo. Hindi na dapat mangyari ‘yung dumating sa’yo luxury vehicle kagaya ng Bugatti, idineklara ‘yan noon na pick-up truck,” Nepomuceno said.

He said the crackdown on misdeclaration is central to the bureau’s revenue gains, as correctly declared goods mean correctly assessed and collected duties, eliminating a longstanding source of revenue leakage.

Nepomuceno said the 84 cases filed by the BOC target not only low-level operatives such as drivers and porters, but also higher-level offenders responsible for orchestrating customs fraud schemes.

He said the crackdown comes directly from a clear directive issued by President Ferdinand Marcos Jr. and Finance Secretary Frederick Go when Nepomuceno took his oath of office in July last year.

“Pinapanagot natin ‘yung mga nagkakamali kahit sino pa ‘yan. Dahil ‘yan ay again utos ni Pangulong Bongbong Marcos at nandun si Secretary Frederic Go when I took my oath,” Nepomuceno said.

He said the BOC, with the help of the National Bureau of Investigation and other agencies including the CIIS-ADG, will pursue not just smugglers themselves but the full network that enables them.

“Kakasuhan natin ‘yung mga may-ari, protektor, financiers, at mga kakampi nila dito sa pamahalaan. Sa tulong ng NBI and other agencies, kagaya ng CIIS-ADG, tutugisin namin sila at sasampahan ng kaso dahil ‘yan ay importante upang mapalago natin ‘yung tamang koleksyon para sa bansa,” Nepomuceno said.

Go confirmed that the BOC’s collection growth rate of around 8%, above the country’s GDP growth rate of 5.8%, reflects improved collection efficiency driven by stricter enforcement of misdeclaration rules.

He said the BIR and BOC together represent the twin pillars of the government’s revenue collection effort, with the BIR’s ₱3 trillion milestone and the BOC’s pursuit of its ₱1 trillion target combining to deliver the double-digit annual growth in collections the Marcos administration has recorded since 2022.

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