Bribery, corruption, and persistent trade barriers at the Bureau of Customs (BOC) have been flagged by the United States Trade Representative (USTR) in its latest National Trade Estimate (NTE) report released March 31.
“Corruption is a pervasive and longstanding problem in both the private and public sector in the Philippines,” the report said, noting that agencies such as the BOC face “various corruption issues, including allegations of overt bribery.” It added that both foreign and domestic investors continue to raise concerns over weak transparency in judicial and regulatory processes.
Despite ongoing reforms, the NTE said irregularities in customs procedures remain widespread, citing costly delays, inconsistent fee assessments, valuation disputes, and excessive inspections.
While the BOC rolled out the Enhanced Value Reference Information System in 2020 to align with global valuation standards, importers report that reference pricing is still being applied to certain goods even when documentation is complete.
The report also flagged risks tied to the pre-border technical verification (PTV) system introduced in 2024. US stakeholders warned the measure could raise costs, slow shipments, duplicate processes, and open new avenues for corruption, particularly in overseas inspections.
Trade data underscored the strain in bilateral commerce. The US goods trade deficit with the Philippines widened to USD8.6 billion in 2025, with total goods trade reaching USD26.9 billion. Services trade likewise posted a growing deficit, pointing to deeper structural challenges.
The Philippines ranked as the 34th largest market for US services exports in 2024.
