The Bureau of Customs (BOC) collected a single-month record total of P32.87 billion in September, but still fell short by almost 5 percent of its collection target for the month.
In a statement on Thursday, the BOC said its collections reached P32.87 billion in September, up 27.2 percent or P7.03 billion from the P25.84 billion collected a year earlier.
Compared with the P34.56 billion revenue target for the month, however, the bureau fell short by almost 4.89 percent or P1.69 billion.
The bureau did not offer an explanation for falling short of the revenue goal for the month, but rather focused on the year-on-year increase in its collections, which it attributed to continuous improvements in valuation and an increase in the volume of imported goods.
“For the month of September, volume of imports grew 15.7 percent, driven by the growth in imports of petroleum products; motor vehicles; iron and steel products; as well as electrical machineries and equipment, which accounts for about 72 percent of total customs revenue,” it said in a statement.
Oil prices offset by peso movement
The BOC also noted that valuation of imported goods also improved, offsetting a decline in the prices of petroleum products. The bureau cited reports from the Department of Energy that showed that Dubai crude decreased by about $6.10 per barrel in September, while imported diesel and gasoline went down by $7.10 and $3.00 per barrel, respectively in the Mean of Platts Singapore.
The P0.98 depreciation of the peso versus the US dollar also helped defray the decline in the price of petroleum products, which accounted for about 27 percent of total imports last month, it also explained.
“On the average, every P1 movement in the exchange rate of the US dollar against the Philippine peso has an estimated P2.7-billion impact on the bureau’s revenue collection,” it added.
The BOC said September’s milestone in revenues was also supported by a growth in imports of motor vehicles, which grew 31 percent, as well as record sales of cars and trucks, which surged 41.72 percent.
Cumulative collections in nine months to September were up 18 percent year-on-year at P265.78 billion from P225.01 billion for the same period last year. The nine-month total represents about 65 percent of the bureau’s full-year target of P408 billion.
“Improvements in the bureau’s system for the valuation of goods, coupled with enhanced enforcement and apprehension efforts, yielded an 18.23 percent hike in the customs value for imported products and a 19 percent increase in the duties and taxes collected, offsetting a slight decrease in the average tariff rate,” the BOC stated.
At the port level, revenue collections by the bureau’s 17 Collection Districts nationwide for the first three quarters of 2014 grew by an average 18.23 percent year-on-year.
The BOC reported that the ports of Batangas, Iloilo, Cebu, Davao, Subic and Aparri exceeded their collection targets for the period.
For October, the BOC has a revenue collection target of P36.81 billion, as projected by the inter-agency Development Budget Coordination Committee.
For full-year 2014, the bureau is tasked to collect about P408 billion in revenues for the government, or 22 percent of the government’s overall revenue target from all sources for this year. MAYVELIN U. CARABALLO