Inside the Bureau of Customs: Ariel Nepomuceno on modernizing government and protecting OFWs

[00:00:00]This is the daily. [music] >> Our guest today has an extensive experience in public service from the office of civil defense. He's now handling one of the government's century old institutions responsible for generating revenues through customs tax collection. Please welcome customs commissioner Ariel Nepomo.

[00:00:22]Hello. Good afternoon. Thank you for coming.

[00:00:24]>> Yes, this is a live chat and we're so happy that you were brave enough to say yes. [laughter] Kidding aside, kidding aside, we're very honored to have you here [music] with us.

[00:00:32]>> Thank you, too.

[00:00:32]>> So, maybe let's start off with you actually getting the job. It's been 11 months. How has it been?

[00:00:39]>> Very challenging. [music] Of course, the BOC is one of the most uh sensitive and controversial agencies in the government. [music] BOC is always being >> uh really wrongly misconceived as having a lot of problems. So, 11 months very challenging. But of course when I took the job because uh President Bong Bong Marcos entrusted this to me with two very specific instructions. Number one to make sure that we will collect properly meaning okay is of course good governance.

[00:01:14]>> Mhm.

[00:01:15]>> What made you say yes though to the position?

[00:01:17]>> Cuz it's not easy like what you said.

[00:01:18]>> It's one of the hardest uh I guess agencies. Yeah. Actually, when the when the president won in May 2022, I was already invited to head the to handle the Bureau of Customs. During that time, I really sincerely believed that uh I would rather serve under the Office of Civil Defense. [music] OCD is in charge of calamity preparations, response, long-term solutions supposed to be main task. So during that time when uh then secret esc Rodriguez asked me to join customs I would rather go to OCD preparations because we're not really as prepared every year we have more than 20 typhoons >> and then Lindol very strong earthquakes strong tremors are really visiting us striking especially our southern provinces. So However, June last year, June 30, I was called in President I take my oath for the second time.

[00:02:36]So, I said yes and I think not that easy. Impossible meant to be second time around.

[00:02:49]Okay, we're going to go straight to it.

[00:02:50]Later on, we can have fun already.

[00:02:57]DPWMS.

[00:02:59]How are you crushing that myth to take that out to clean up the name? Yeah, we have more than 5,000 employees.

[00:03:13]They also want to be proud of themselves.

[00:03:27]True.

[00:03:32]or improve. uh we're happy for example when when we took over number one number two number three most complained agencies >> then uh early late last year top top 10 number 10 but as of today I'm so happy congratulations wait this is important to know because that stigma you're actually fighting through it so wala top 10 that doesn't mean it doesn't mean admittedly and uh we have put a lot of initiatives or programs in place so that we can address not this misconception but we have to admit similar to other agencies bureau of customs and at the center of really addressing all these issues will be the digital transformation of the bureau meaning full automation of the processes that's the only way Otherwise if we depend on the willingness of individuals to improve to be more honest you have to create an environmental naman choice >> but to do a good job full automation that's the only solution >> I really love what I'm hearing because this is what the people have been asking for the system should be in place it works >> actually what's the biggest misconception that the Filipinos don't know about the Bureau of Customs that will shock them to know duties and taxes.

[00:05:12]>> Okay. uh very seldom that people know enforcement duties like the armed forces of the the Philippines military tradition PNP also and even the coast guard enforcement function frontline officers personnel smugglers corrections Okay.

[00:05:48]Sad to say, we don't exactly know yet because we're disrupting their very lucrative businesses. So left and right, we have already apprehended billions worth of smuggled goods, drugs, agricultural products, illicit cigarettes. It's a total of around more than 61 billion peso worth of smuggled goods.

[00:06:23]I'll take this opportunity.

[00:06:28]That's not true. We have already filed since last year uh 78 criminal cases involving 241 respondents and then 11 cases full conviction.

[00:06:50]for taking this difficult task.

[00:06:55]>> Actually, on the lighter side of things, Chal and I want to [snorts] know what's the wildest, funniest thing that was smuggled that you were like, >> Yeah. Out of those 78 cases, >> obviously drugs, yes. Uh animals, yes.

[00:07:07]And other things, yes. But what's like the wildest parang, what is this?

[00:07:13]Actually, I can say okay. Uh last month uh late last month worth 1.2 2 billion worth of different or assorted smuggled goods.

[00:07:35]Alcohol or [laughter] actually interesting how people think and how people get okay if I were a 10-year-old because you gave us the most important or the most risky part of also of what you do. No, the you know illegal products and but if I were a 10-year-old, how would you explain to a 10year-old what the job of someone from?

[00:08:13]Illegal drugs is lotion baby aspect.

[00:08:44]Okay.

[00:08:51]Taxes.

[00:08:57]100 pesos 100 pesos meaning.

[00:09:14]So uh we're losing before now we're losing billions of pesos to smuggling leakages that would translate to lost opportun Having you here makes everything so clear.

[00:09:35]>> He does a lot.

[00:09:37]>> It's a lot.

[00:09:40]>> I like I want to know what the typical day looks like for you. But apart from that, com if you're not doing your job as BOC commissioner. What do you do for fun?

[00:09:49]>> Um [snorts] always well unbelievable. But we really work almost 247 even Sundays.

[00:10:00]talaga small funds like I have I'm lucky I'm able to recruit friends to be my immediate staff or core group department of national defense or office of civil defense group so during very seldom very rare waiting time waiting time in between meetings we make fun of whatever whatever can be discussed.

[00:10:34]You'll be surprised. So, it's an anti-stress to be lucky enough to be working with friends.

[00:10:41]>> I guess my question is how many cups of coffee do you drink in a day?

[00:10:50]So, it seems as if on call when you say 24 hours anything can happen in a day.

[00:10:55]Is that how it is as as for your work?

[00:11:05]executives priority really it doesn't have any meaning in the Bureau of Customs because in BOC we have to do 10,000 things at the same time while we're apprehending uh agricultural smuggling for example Congress at Senate what are we doing with uh illicit cigarettes There's no excuse. You're busy with one one uh item, then you're not taking care of the other item. When we took over last July 1, very highprofile investigation uh flood control. So at the start, how will we apprehend the cars luxury cars? So BOC modestly aside, BOC was one of the first government agencies that really moved to support the call of President Bong Marcos to really have a retribution, but we have to get back all those assets and then we were able to sell those vehicles.

[00:12:24]It's a luxury that seldom really happens. Yeah.

[00:12:36]Yes.

[00:12:42]Go ahead. one as of today collection target we were able to to deliver a surplus of more than 9 billion pesos uh in so far as the target is concerned between January until today 9 billion plus excess collection target aside from the financial benefits because of the surplus Because before the worry was or the mindset was target.

[00:13:28]Of course we don't believe that. We did not believe that for a second.

[00:13:34]Then you you have to reform. Then reform means you become very strict computation.

[00:13:43]You have to remove them.

[00:13:45]>> Okay. Looks like you've been doing a lot. So we're going to do a quick fun thing right now. We're going to be asking you about things that people are really curious of. Okay. So I'll go first. For example, Commissioner tips.

[00:13:56]If I'm a shop girl and I want to order online and I get my stuff in tips process charges rulings typically come right it's if it's 10,000 or above that's when you pay the fees. Yes.

[00:14:18]Okay.rival about that before.

[00:14:38]Estimator. Okay.

[00:14:54]Okay. But if they will be able to go to that estimator expected [laughter] because of you correct insurance unfairly break insurance cost and 12% VAT of the total.

[00:15:37]Yeah. Well, real quick, before we let you go, since it's Independence Day, if you were to be the one sending a package, Balik Bayan, to your family abroad, what Filipino products would you put that would probably represent the Philippines? Give me like three products to friends or loved ones. Palabas.

[00:15:53]>> Yes. Um, yes. Okay.

[00:16:00]not really like the pinion or very distinct that's what another thing you would put [laughter] of course I'm I'm not proud I'm known not to be that thoughtful but probably I'll buy or something marina. I buy marina shoes.

[00:16:31]Yeah, the marina shoes are the best.

[00:16:34]>> Yeah, I really buy shoes. I do too.

[00:16:40]>> And I'm so happy if you are able to value for money.

[00:16:48]>> Yeah. And the leather's amazing.

[00:16:50]20,000 plus.

[00:16:53]Uh I admire I'm so happy if you are able to really buy quality at 3,000 plus.

[00:16:59]Yes, that's my last what food or health permits abroad.

[00:17:20]>> [laughter] >> com. Thank you so much for joining us or it's so short, but we are so honored to have you. We know you came from a meeting and you're so busy all throughout. So, thank you so much, Commissioner Ariel. We're so happy and proud to have you here with us. Thank you so much once again. That was Commissioner Ariel Nepoen.

[00:17:42][applause] This is the daily. [music] This is the daily. This is the daily.