BOC automates post clearance audit, plugs revenue leakages

The Post Clearance Audit Group-Trade Information and Risk Analysis Office (PCAG-TIRAO) of the Bureau of Customs today reported 492 importers recommended for post-clearance audit in 2022.

The move resulted from the BOC’s improved Computer-Aided Risk Management System (CARMS) that determines import transactions that pose revenue-related red flags. The system ensures the recovery of the deficient duties and taxes and the imposition of sanctions provided in the Customs Modernization and Tariff Act (CMTA).

The BOC launched the system in 2022 pursuant to Customs Administrative Order 01-2019.

The system aims to automate and computerize the process of risk profiling analysis and selectivity, resulting in identifying potential priority audit candidates.

It can determine transactions manifesting potential revenue leaks arising from possible undervaluation of customs value and other components of the dutiable value and landed cost.

In addition, the CARMS database provides easy access to analytics of the Bureau’s import transactions from 2009 to the present, which allows the conduct of systematic benchmarking and reviewing of historical trade data to determine compliance markers of a group of importers or a specific industry.

The bureau also intensified its implementation of the Electronic Tracking of Containerized Cargo System (E-TRACC), a real-time monitoring system of containerized cargoes using GPS-enabled tracking locks, to prevent smuggling by diversion of cargoes.

The BOC monitors the movement and location of all containers and obtains real-time alarms through the system 24/7.

In 2022, the system documented 517,992 trips, of which 3.50% (18,099 visits) were alarmed due to irregular movements.

In deploying the Quick Reaction Team (QRT) and other concerned offices, the Commissioner issues Mission Orders to verify the status of containers through immediate investigations and other appropriate enforcement actions.

The minimal number of alarms manifests the high compliance rate of consignees due to the BOC’s strict monitoring of cargo movements to suppress illegal activities, including route deviations, unauthorized start and end trips, and tampering with alarms, to name a few.

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