SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E
S.B. N o .___1 3 8 3
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’17 HAR-9 P3«4
RECtIVtD av;
Introduced by Senator SONNY ANGARA
AN ACT EXEMPTING THE BUREAU OF CUSTOMS 
FROM THE COVERAGE OF REPUBLIC ACT NO. 6758, 
OTHERWISE KNOWN AS THE SALARY STANDARDIZATION LAW, 
AS AMENDED, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The Bureau of Customs (BOC) performs three critical functions in the 
government: collect revenues to fund government programs, ensure border protection, 
and improve trade facilitation. However, the geographical landscape of the Philippines 
makes it difficult for Customs personnel to adequately perform its mandate. This is 
compounded by the fact that the BOC suffers from lack of necessary equipment and 
competent personnel to ably monitor more than 17 ports and sub-ports, which facilitate 
more than US$130 billion in trade. Currently, the BOC has an allowed plnntilln of 6,264 
employees, but only 2,939 positions are filled.
The government suffers substantial losses due to tax leakages brought about by 
smuggling and aggressive tax evasion schemes employed by unscrupulous taxpayers. 
Such corrupt practices are sometimes made in collusion with errant Customs officials. 
Thus, there is a need to incentivize our tax administrators to attract competitive 
professionals and encourage them to remain honest.
After languishing in the legislative mill for two decades, the Congress passed 
Republic Act (RA) No. 10863 or the Customs Modernization and Tariff Act (CMTA) last 
May 2016. The CMTA aims to modernize Customs rules and procedure for faster trade, 
reduce opportunities for corruption, improve Customs service delivery and supply 
chain by adopting some of the world's best Customs practices. Part of the CMTA 
amendments is for the BOC to conduct a compensation study with the end view of 
developing and recommending to the President a competitive compensation and 
remuneration system.
This bill, therefore, seeks to address this urgent concern through the removal of 
the BOC from the coverage of Republic Act No. 6758 otherwise known as the 
"Compensation and Position Classification Act of 1989", or the "Salary Standardization 
Law". With competitive salaries, we expect that corruption would be eliminated, or at 
the very least, minimized. Moreover, competitive salaries can attract and retain young 
and highly qualified professionals to provide better Customs administration and to 
enhance enforcement.


In view of the foregoing, it is proposed that the Bureau of Customs be exempted 
from the coverage of Republic Act No. 6758 otherwise known as the "Compensation 
and Position Classification Act of 1989", or the "Salary Standardization Law".
SONNY ANGARA


SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
S E N A T E  
S.B. No. 
1 3 8 .* ^
of ti)r Si5rcrrlnrj»
MAR -9 P3:04
RECEiVtO b;'. y
Introduced by Senator SONNY ANGARA
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AN ACT EXEMPTING THE BUREAU OF CUSTOMS 
FROM THE COVERAGE OF REPUBLIC ACT NO. 6758,
OTHERWISE KNOWN AS THE SALARY STANDARDIZATION LAW,
AS AMENDED, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Declaration o f Policy. -  It is the policy of the State to reform tax 
administration and ensure efficient and effective collection of taxes by employing and 
maintaining competent and professional customs officials and personnel to collect taxes 
and enforce customs tax laws. Towards this end, the State shall exempt the Bureau of 
Customs (BOC) and its employees from the coverage of Republic Act (RA) No. 6758, 
otherwise known as the Salary Standardization Law, as amended.
SEC. 2. Exemption from Salary Standardization. -  The BOC and its employees shall 
be exempt from the coverage of the Salary Standardization Law.
The BOC is hereby authorized to formulate its own Compensation and Position 
Classification System based on the following principles:
(a) BOC personnel shall be paid just and equitable wages in accordance with the 
principle of equal pay for work of equal value;
(b) Basic compensation for BOC personnel shall generally be comparable with 
those in the private sector doing comparable work and must be in accordance with 
prevailing laws on minimum wages;
(c) The BOC Compensation and Position Classification System shall be 
determined through a comprehensive analysis and audit of actual duties and 
responsibilities of the Bureau’s officials and employees;
(d) The total compensation provided for government personnel must be 
maintained at a reasonable level in proportion to the national budget; and


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(e) 
A review of government compensation rates, taking into account the 
performance of the Bureau, its overall contribution to the national economy, and the 
possible erosion in purchasing power due to inflation and other factors, shall be 
conducted periodically;
SEC. 3. Incentives to Bureau Officials and Personnel. -  The Bureau, subject to the 
approval of the President, may provide for other incentives not provided under existing 
laws and Civil Service laws.
SEC. 4. Approval o f the President. -  The BOC Compensation and Position 
Classification System implemented pursuant to this Act shall be approved by the 
President, and shall be subject to periodic review by the BOC, in consultation with the 
Department of Budget and Management (DBM), Department of Finance (DOF) and the 
Civil Service Commission (CSC), not more than once every three (3) years, without 
prejudice to yearly merit reviews or increases based on performance.
SEC. 5. Non-diminution o f Salaries. -  The BOC Compensation and Position 
Classification System to be developed and recommended by the BOC, as approved by 
the President, shall apply to all positions, on full or part-time basis, now existing or 
hereafter created: Provided, That in no case shall there be any diminution in the 
authorized salaries of incumbent employees of the BOC as of December 31, 2016, 
upon 
the 
implementation 
of the 
approved 
BOC 
Compensation 
and 
Position 
Classification System.
SEC. 6. Appropriation Clause. -  The amount necessary to implement this Act shall be 
included in the General Appropriations Act of the year following its enactment into law.
SEC. 7. Separability Clause. -  If any of the sections or provisions of this Act is held 
invalid, all other provisions not affected thereby shall remain valid.
SEC. 8. Repealing Clause. -  All laws, decrees, issuances, rules and regulations 
inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SEC. 9. E ffectivity Clause. -  This Act shall take effect fTfteen (15) days after its 
complete publication in the Official Gazette or two (2) newspapers of general circulation.
Approved,