From the Sidelines
By: Ray G. Talimio Jr.
The 2nd Regular Meeting of the Customs Industry Consultative and Advisory Council or CICAC, held on May 28, 2025 at Limketkai Luxe Hotel in Cagayan de Oro City, became a timely forum for strategic alignment on customs reform, agricultural protection, trade facilitation, and infrastructure development. Spearheaded by the Bureau of Customs Collection District No. 10, the session gathered key stakeholders from both government and industry to tackle critical policy and operational matters.
District Collector Engr. Arthur G. Sevilla Jr., in his welcome remarks, highlighted the district’s consistent overperformance, with ₱42.7 billion in collections in 2024 and a strong showing in the first quarter of 2025. He attributed the success to tighter enforcement, better port coordination, and continued support from trade and logistics partners. He reaffirmed the value of CICAC as a mechanism for stakeholder consultation, transparency, and policy feedback.
The centerpiece presentation came from Dr. Jesus G. Llorando, Deputy Collector for Assessment, who offered a detailed walk through of Republic Act No. 12022, or the Anti Agricultural Economic Sabotage Act of 2024. The law now classifies agricultural smuggling, hoarding, profiteering, cartel operations, and financing of such acts as economic sabotage. Offenders face life imprisonment and fines amounting to five times the value of the smuggled goods.
Dr. Llorando emphasized that RA 12022 does not weaken the powers of the Bureau of Customs. Section 20 reaffirms that enforcement functions remain with the BOC, alongside the NBI, PNP, PCG, DOF, and DOJ. The law also mandates the creation of a Daily Price Index, managed by the Department of Agriculture, to detect manipulation and abnormal price spikes. The Court of Tax Appeals is given exclusive jurisdiction over related cases, while a Special Team of Prosecutors will be formed by the DOJ.
In the open forum, stakeholders raised several unresolved operational issues. These included:
• The sustained increase in annual collection targets without corresponding volume growth
• Unresolved unpaid demand letters and prolonged protest decisions
• Delays in the proper turnover and disposal of seized and abandoned cargo
• Gaps in the registration and licensing of Customs Facilities or Warehouses (CFWs), also known as Customs Bonded Warehouses, which are essential to secure storage and trade flow continuity
• The ongoing challenges with the e2m system, particularly the transition to PGD, issues with ATRIG visibility, manual processing delays, and data sync problems between BOC and other government systems
• Consistency and fairness in the valuation of bulk commodities, such as coal, where discrepancies continue to impact importer compliance
BOC District X reaffirmed its commitment to working with enforcement partners, citing its active coordination with PNP Region 10, led by PBGen Jaysen Carpio de Guzman. Their collaborative efforts have resulted in synchronized operations against smuggled agricultural products and counterfeit tobacco shipments, anchored on clear protocols and operational accountability.
Adding a forward-looking dimension, Aboitiz InfraCapital, represented by Mr. Raymond Esperat, presented the proposed modernization of Laguindingan Airport (CGY). Originally designed for only 1.6 million passengers annually, CGY has already exceeded 2.8 million. Phase 1, to be implemented from 2025 to 2028, will renovate and expand the terminal to handle 3.9 million passengers. Phase 2, spanning 2027 to 2032, aims to further increase capacity to 6.3 million passengers with new infrastructure, boarding bridges, and commercial facilities.
New routes are being developed for both domestic and international travel, including services to Puerto Princesa, Tagbilaran, Bacolod, Dumaguete, Bohol, Singapore, Hong Kong, Incheon, Bangkok, and Kuala Lumpur. These improvements are expected to strengthen Cagayan de Oro’s role as a regional trade and logistics hub.
As emphasized throughout the CICAC discussions, policy reform, system efficiency, and infrastructure modernization must move in step. RA 12022 gives government the legal power to punish economic sabotage, but it also demands tighter coordination, smarter systems, and stronger port operations. At the local level, platforms like CICAC show that listening to stakeholders is not only useful. It is essential to crafting responsive, inclusive, and effective customs governance.
Photo credits: Ray G. Talimio Jr., BOC Port of Cagayan de Oro, Llave Review and Training Center, Aboitiz InfraCapital, RDC X Secretariat
Sources: Republic Act No. 12022, CICAC Memorandum dated May 14, 2025, BOC Meeting Notes, Aboitiz InfraCapital Presentation, May 28, 2025
Disclaimer: This article is intended for public information and policy dialogue. The views expressed are those of the author in his personal capacity.
About the Author: Ray G. Talimio Jr. is Past President and Past Chairman of the Board of the Cagayan de Oro Chamber of Commerce and Industry Foundation Inc. (Oro Chamber), Co Chairman of the Economic Development Committee of RDC X, Chairman of the MSME Development Council of Misamis Oriental and Cagayan de Oro City, Chairman of BIMP EAGA for Northern Mindanao, and National Officer, Past Senior Regional Director, and Past Chapter President of the Philippine Institute of Certified Public Accountants (PICPA). He is also an advocate for MSME development, public accountability, regional infrastructure, and customs and trade facilitation reform.
