Among 'most corrupt'? Customs bureau defends reforms after US bribery report
MANILA, Philippines — The Bureau of Customs said it has already taken “proactive measures” to clean up its ranks well before the US State Department released a report that cites bribery at the bureau as one of many barriers to courting more foreign investment in the Philippines.
In a statement on Thursday, October 9, the bureau said Customs Chief Ariel Nepomuceno – who took office in July — introduced a series of reforms within his first 100 days in office to curb corruption and conflicts of interest inside the bureau. These included a ban on accepting any form of “take” money and new rules requiring employees to disclose business or family ties to customs brokerage firms.
“The reforms we introduced within my first 100 days were not reactionary,” Nepomuceno said. “They were proactive measures rooted in our commitment to clean governance."
"These measures directly respond to the very issues highlighted in the U.S. State Department report, and we will continue pushing forward with both short and long-term solutions," the customs chief said in the press release.
The bureau said it “acknowledges the concerns” raised in the U.S. State Department’s 2025 Investment Climate Statements report, which cited complaints from American companies about bribes, inconsistent fees, and intrusive customs inspections in the Philippines.
The report, released September 26, says the US Embassy in Manila received reports of “facilitation fees,” or informal payments allegedly solicited to speed up transactions, as well as complaints of inconsistent customs charges and intrusive inspections.
It Bureau of Customs as “still considered to be one of the most corrupt agencies in the country” and said corruption in the country remained a key factor discouraging foreign investment.
The bureau's response to the report also included that it "acknowledges the concerns" raised in the report.
Reforms under Nepomuceno
The BOC said its "No Take” policy strictly prohibits any form of bribery within the agency. Employees caught violating the directive face immediate disciplinary action and referral to law enforcement.
In July, Nepomuceno also banned customs personnel from owning or holding interests in brokerage businesses, saying this was to prevent conflicts of interest in processing import and export transactions.
Staff were ordered to declare any family connections to brokers and to file affidavits detailing previous ties to customs-related firms, according to the BOC statement.
Responding to complaints from traders about their "overly intrusive audits and enforcement activities," the BOC said it has temporarily suspended unserved Letters of Authority and Mission Orders — documents used to authorize raids and inspections — while the bureau reviews its procedures to make enforcement “more targeted and risk-based."
The BOC also said Nepomuceno intends to increase the bureau's dialogue with business groups and foreign chambers through the Customs Industry and Advisory Council (CICAC), a body meant to formalize consultations and promote policy transparency.
Long-term reforms, according to the bureau, will focus on digitalization and automation of customs systems to reduce "human discretion" and prevent corruption.
The bureau also encouraged the public to report irregularities via its complaint channels and assured that all reports would be handled confidentially. — with reports by Ian Laqui
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