Duties and taxes from imports and exports are major income for the country. But government has almost always fallen short of estimates due to corruption, prominently smuggling, mis-declaration and under-declaration of goods and services.
The Bureau of Customs has even filed in 2018 some 30 cases against importers and brokers valued at P420-million to recover P147-million from duties and taxes.
Ironically, an antidote software, blockchain-based platform, has been in use by Shiptek Solutions of Eugenio Ynion, Jr., son of a ship captain and a former member of the Board of Marine Deck Officers.
Customs Commissioner Isidro Lapeña says the green light is on to build the Philippine Customs and Trade Facilitation Project (PCTFP) to support export-led economic growth by assisting BoC to reduce trade costs, improve transparency and increase revenue collections.
The World Bank underwrites the PCTFP costing about PhP8-billion (US$150-million).
Yet, poised to synergize is XLOG, the world’s first fully-integrated blockchain-based end-to-end shipping and logistics platform to solve all logistics challenges by simplifying processes, improving tracking and security.
And for free to government — offered by Shiptek CEO and founder, Eugenio Ynion, Jr. Nationalism is the prime mover, with pride in the Filipino fueling the gesture.
The XLOG uploads all data to the blockchain which eliminates tamperings such as manipulation of information to misdeclare or undervalue.
Users can also track transactions using its military-grade GPS. Importers are now able to track location of their goods at all times, 24/7.
XLOG helps shipping companies and shippers (exporters/importers) operate efficiently and realize savings by directly connecting them with service providers worldwide. It uses the latest in technology for a seamless experience: complete documentation of door-to-door shipment from country of origin to destination, instant access to historical and current shipments.
The built-in security features discourage fictitious identities, addresses, and businesses by smugglers in cahoots with Customs personnel. Who will take the mindless risk, knowing all data and documents are securely banked and instantly verifiable?
XLOG eliminates corruption with transparency by decentralizing all the steps in trucking and the logistics chain. More parties now has the correct data — the free forwarder and the logistics company — on the same transaction, accessible to an entire community instead of a single centralized authority.
No one can manipulate documents given the situation.
XLOG stops smuggling as it banks data directly provided by the shipping lines, like bills of lading and packing lists. Documents cannot be altered nor faked as it goes into a blockchain which is an openly distributed ledger technology (DTL) that records transactions between parties in a verifiable and permanent way.
By design, a blockchain is resistant to modification of data.