News
Traders, exporters, importers, port operators, shipping companies, and transport providers in the Philippines - many of them small and medium enterprises employing many workers - are expected to directly benefit from a new project that will modernize operations of the Bureau of Customs (BOC).
The World Bank will grant US$88.28 million loan for the Philippines Customs Modernization Project to improve the country's customs administration, reduce transaction costs and enhance predictability and transparency of the clearance process at the country's borders.
The project will improve customs administration by enhancing the streamlining and automation of BOC's procedures, as well as supporting the development of a world-class customs processing system (CPS).
Prior to the COVID-19 pandemic, the Philippines was one of the most dynamic economies in East Asia and the Pacific Region. Nevertheless, its growth potential was constrained by inefficiencies in trade facilitation and customs administration. For example, a container in the Philippines takes 120 hours to clear customs and associated inspection procedures, much higher than in neighboring Vietnam (56 hours), Thailand (50 hours) or Malaysia (36 hours). This provides a competitive advantage to firms in these countries vis-à-vis their Filipino counterparts.
The unfavorable business environment for firms in the Philippines reduces the incentive to engage in export, thereby foregoing the opportunity to expand markets and create more jobs in the Philippines.
