DOF unveils BRAVE strategies to combat smuggling

The Department of Finance (DOF) has launched its BRAVE strategies to combat smuggling and illicit trade in the Philippines, emphasizing the role of digitalization in enhancing efficiency, transparency, and accountability.

These initiatives were revealed by DOF Revenue Operations Group Undersecretary Charlito Mendoza during the National Anti-Illicit Trade Summit on July 25, 2024.

“Bolstered by digitalization, these Brave Strategies for Revenue Operations will drive our initiatives to improve efficiency, transparency, and accountability,” Mendoza said at the summit hosted by the Federation of Philippine Industries (FPI).

B-Border Security Enhancement

The implementation of Administrative Order No. 23, issued by President Ferdinand R. Marcos Jr. on May 13, 2024, will see the Bureau of Customs (BOC) employ a digital and integrated system for the Pre-border Technical Verification and Cross-border Electronic Invoicing of all import commodities.

The system aims to strengthen national security, safeguard consumer rights, and protect against substandard and hazardous imported goods.

Finance Secretary Ralph G. Recto convened the first committee meeting to operationalize the system on June 11, 2024.

The DOF is finalizing the Joint Administrative Order to implement this project, streamline customs procedures, and expedite the inspection of all imported goods in the Philippines.

R-Revenue Collection and Revenue-Base Protection

The government is on track to meet its revenue target, with various measures in place to curb smuggling and tax evasion.

The Ease of Paying Taxes (EOPT) Law allows taxpayers to file and pay taxes through any accredited channel anytime and anywhere in the country.

The Bureau of Internal Revenue (BIR) has also been enforcing its Tax Compliance Verification Drive and Oplan Kandado, collecting over PHP 250 million in tax penalties from over 112,000 businesses.

A-Adaptive Regulations and Compliance Monitoring

DOF’s revenue agencies continuously update regulations to address new economic opportunities and compliance challenges.

The BIR has implemented Revenue Regulation No. 14-2022, regulating online trading of vapor products, and requires internal revenue stamps on vape products as per Revenue Memorandum Circular No. 59-2024.

The BOC integrates customs declarations into the e-Travel System for improved security and efficiency.

V-Vigilant Enforcement Operations and Vigorous Intelligence Gathering

The BOC has seized nearly PHP 19 billion worth of counterfeit goods and PHP 13 billion in smuggled merchandise in the first half of the year.

The BIR’s Run After Fake Transactions (RAFT) initiative has successfully collected over PHP 1.3 billion in additional taxes and filed 24 cases against violators.

E-Effective Engagement with Stakeholders and Inter-Agency Cooperation

The BIR and BOC have institutionalized Industry Consultative and Advisory Councils, ensuring full transparency and cooperation with stakeholders.

Projects like the Swift Corporate and Other Records Exchange (SCORE) Protocol and the ATA Carnet aim to enhance regulatory efficiency and market access for local businesses.

Undersecretary Mendoza concluded by urging government and industry partners to intensify collaborative efforts against smuggling and unfair trade practices.

“Let us resolutely work together to protect our markets, uphold the rule of law, and secure a prosperous future for our nation,” he said.