EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
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S E N A T E
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 crucial 
functions of 
government: collection of revenues to fund government programs, ensuring border 
protection, and to 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$182 billion in trade1. Currently, the 
BOC has an allowed plantilla of 6,264 employees, but only 2,726 positions2 are filled.
Due to the shortage of competent personnel, the government has suffered 
substantial losses brought about by smuggling, misdeclaration, misclassification and 
undervaluation of goods and other schemes employed by unscrupulous taxpayers. 
These corrupt practices are sometimes made in collusion with errant Customs 
officials.
In order to address problems in the BOC, the Congress passed Republic Act 
(RA) No. 10863 or the "Customs Modernization and Tariff Act (CMTA)" on May 30, 
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
1 Source: PSA data PH external trade - https://psa.qov.ph/content/hiqhliqhts-2018-annual-reDort-international- 
merchandise-trade-statistics-philippines
2 Source: Staffing Summary 2019 -
https://www.dbm.ciov.ph/wp-content/uploads/Stafrinq/STAFFING2019/DOF/B.pdf


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 further strengthen the BOC through its removal 
from the coverage of Republic Act No. 6758 otherwise known as the "Compensation 
and Position Classification Act o f 1989" or the "Salary Standardization Law". With 
competitive salaries, it is expected that corruption will be eliminated and will attract 
and retain young and highly qualified professionals to provide improved 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 o f 1989" 
or 
the 
"Salary 
Standardization Law"
NNYANGARA


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SE N ATE 
S. B. No. 7 R 7
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Tf JUL24 P5:10
Introduced by Senator SONNY ANGARA
-R£C£iv. ni^y._
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 o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. Declaration o f Policy. -  It is the policy of the State to reform tax
2 
administration and ensure efficient and effective collection of taxes by employing
3 
and maintaining competent and professional customs officials and personnel to
4 
collect taxes and enforce customs tax laws. Towards this end, the State shall exempt
5 
the Bureau of Customs (BOC) and its employees from the coverage of Republic Act
6 
(RA) No. 6758, otherwise known as. the Salary Standardization Law, as amended.
7 
Sec. 2. Exemption from Salary Standardization. -  The BOC and its employees
8 
shall be exempt from the coverage of the Salary Standardization Law.
9 
The BOC is hereby authorized to formulate its own Compensation and
10 
Position Classification System based on the following principles:
11 
a) 
BOC personnel shall be paid just and equitable wages in accordance with the
12 
principle of equal pay for work of equal value;
13 
b) 
Basic compensation for BOC personnel shall generally be comparable with
14 
those in the private sector doing comparable work and must be in accordance
15 
with prevailing laws on minimum wages;


1 
c) 
The 
BOC Compensation 
and 
Position 
Classification 
System 
shall be
2 
determined through a comprehensive analysis and audit of actual duties and
3 
responsibilities of the Bureau's officials and employees;
4 
d) 
The total compensation provided for 
government personnel must be
5 
maintained at a reasonable level in proportion to the national budget; and
6 
e) 
A review of government compensation 
rates, taking into account the
7 
performance of the Bureau, its overall contribution to the national economy,
8 
and the possible erosion in purchasing power due to inflation and other
9 
factors, shall be conducted periodically.
10 
Sec. 3. Incentives to Bureau Officials and Personnel. -  In addition to the
11 
rewards and incentives as provided under Republic Act No. 9335 otherwise known as
12 
the Attrition Act of 2005, the Bureau, upon recommendation of the Secretary of
13 
Finance and subject to the approval of the President, may provide for other
14 
incentives not provided under existing laws and Civil Service laws.
15 
Sec. 4. Approval o f the President. -  The BOC Compensation and Position
16 
Classification System implemented pursuant to this Act shall be approved by the
17 
President, and shall be subject to periodic review by the BOC, in consultation with
18 
the Department of Budget and Management (DBM), Department of Finance (DOF)
19 
and the Civil Service Commission (CSC), not more than once every three (3) years,
20 
without prejudice to yearly merit reviews or increases based on performance.
21 
Sec. 5. Non-diminution o f Salaries. -  The BOC Compensation and Position
22 
Classification System to be developed and recommended by the BOC, as approved
23 
by the President, shall apply to all positions, on full or part-time basis, now existing
24 
or hereafter created; Provided, That in no case shall there be any diminution in the
25 
authorized salaries of incumbent employees of the BOC as of December 31, 2018,
26 
upon the implementation of the approved BOC Compensation and Position
27 
Classification System.
28 
Sec. 6. Appropriations. -  The amount necessary to implement this Act shall be
29 
included in the General Appropriations Act of the year following its enactment into
30 
law.


1 
Sec. 7. Separability Clause. -  If any portion or provision of this Act is
2 
subsequently declared invalid or unconstitutional, other provisions hereof which are
3 
not affected thereby shall remain in full force and effect.
4 
Sec. 8. Repealing Clause. -  All other laws, acts, presidential decrees,
5 
executive orders, presidential proclamations, issuances, rules and regulations, or
6 
parts thereof which are contrary to or inconsistent with any of the provisions of this
7 
Act are hereby repealed, amended, or modified accordingly.
8 
Sec. 9. Effectivity. -  This Act shall take effect fifteen (15) days after its
9 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,