Philippine E-Journals

Customs Brokers: Their Vital Role in Mediating Transactions Between Selected Importers in Metro Manila and the Bureau of Customs

Catherine B. Pastor | Jaworski G. Nieva | Francis Leonard T. Palomares

 

Abstract:

This study looks at the vital role of Customs Brokers in mediating transactions between importers and the Bureau of Customs. To clearly assess the vitality of their role, this study investigates their importance in trade facilitation, prevention of technical smuggling and securing the revenue collection of the government. The study employed 74 Bureau of Customs representatives and 95 selected importers in Metro Manila as respondents. Descriptive method was utilized using questionnaires to gather data. Percentage was employed for the profile of the respondents; weighted mean using a FivePoint Likert scale to determine the level of importance of the Customs Brokers; T-Test of Independent or Uncorrelated Means is applied in assessing the significant difference on the perceptions of the two groups of respondents. The study revealed that most of the BOC respondents are from the Formal Entry Division (44.1%) and Assessment Division (37.8%). Most of them are regular personnel (98.6%) of the Bureau holding positions as Customs Officers (44.6%) and Examiners (43.2%) with 7 years and beyond experience in the industry (81.1%). On the other hand, majority of the importer respondents are regular employees (82.1%) who came from the Logistics Department (49.5%) of the importing companies with position as staffs (61.1%) and having 1-3 years of experience in the industry (38.9%). The BOC respondents reveal that generally, Customs Brokers are very important (4.44) in facilitating trade; very important (4.47) in the prohibition of technical smuggling and very important (4.35) in securing the revenue collection of the government. On the other hand, the selected importers have an overall appraisal that customs brokers are very important (4.46) in trade facilitation; very important (4.36) in the obstruction of technical smuggling in any form and also very important (4.26) in the security of government’s revenue and income. The BOC representatives and importers have the same perceptions on the importance of the customs brokers in mediating transactions in terms of trade facilitation and preventing the occurrence of technical smuggling. However, they have different perceptions on the importance of the Customs Brokers in mediating transactions in terms of securing the revenue collection of the government. Nevertheless, Customs Brokers are very vital in mediating transactions between the BOC and importers. At the most, they are very crucial and essential in the field they serve.