MANILA, Philippines — The Bureau of Customs remains one of the most corrupt agencies in the country, according to the US Department of State’s report on the Philippines.
In its investment climate report, the US State Department said that the government needs to address transparency issues in its regulatory system, characterized by bribery and corruption which serve as barriers to investment in the Philippines.
It describes the country’s regulatory environment as “unclear” in many economic sectors, leading to inconsistent regulatory enforcement.
“Some US investors describe business registration, customs, and immigration processes as burdensome. Customs processes, in particular, can present challenges and the Embassy has received multiple reports from US businesses of overly invasive searches, inconsistent customs charges, and solicitations of “facilitation fees” (e.g., bribes) from some customs officials,” the US Investment Climate Statement for the Philippines read.
Customs Commissioner Ariel Nepomuceno presents the 13 luxury cars confiscated from the Discayas, who have been linked to the flood control project anomalies, to members of media inside the Bureau of Customs office at the Port Area in Manila, on Oct. 1, 2025. PHOTO MIKE ALQUINTO
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“Regulatory agencies are generally not statutorily independent but are attached to cabinet departments or the Office of the President. Inconsistencies in the judicial system affect regulatory enforcement,” it added.
Customs Commissioner Ariel Nepomuceno has acknowledged the concerns raised in the 2025 US State Department Investment Climate Statements report but stressed that the issues have already been tackled prior to the report.
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Nepomuceno claimed that the customs bureau, under his watch, initiated institutional reforms to address these issues during his first 100 days in office.
Among the key anti-corruption reforms implemented early in his tenure are the issuance of a strict “No Take” policy prohibiting any form of bribery or unlawful monetary transactions within the BOC.
This directive, Nepomuceno said, is enforced across all levels of the agency, with violations subject to immediate disciplinary action.
Nepomuceno issued a memorandum in July 2025, banning all BOC officials and employees from holding any business or financial interest in Customs Brokerage operations.
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Personnel were also required to disclose familial ties to brokerage firms, ensuring impartiality and transparency in customs transactions.
