GRADUATE SCHOOL OF BUSINESS AND MANAGEMENT

A CASE STUDY ON STRENGTHENING BORDERS SECURITY THROUGH

INCLUSIVE EMPOWERMENT OF EMPLOYEES IN BOC-NAIA

A Case Study Presented To

Prof. Ruben A. Sanchez, Ph.D.

of the Philippine Christian University

In partial Fulfillment of the Course Requirements in

Logistics, Operations and Supply Chain Management

Submitted by:

BADAGUAS, JEB NAVEA

BATURIANO, ANGELICA MAY

RACMAN, ABULKHAIR A.

SYLUANCIA, ROSEMARIE L.

TRINIDAD, DIANNE JOYCE O.

December 2023
 1. INTRODUCTION

In the complex world of global trade, the Bureau of Customs, Port of NAIA plays a

crucial role, linking the Philippines to the worldwide economy by ensuring the efficient

movement of goods, and contributing to the nation's economic vitality. The BOC Ninoy

Aquino International Airport (BOC-NAIA) facilitates international trade and ensures the

smooth flow of goods through one of the country's major gateways. As of the latest

available data, the BOC-NAIA boasts a dedicated workforce of 523 permanent

employees. In addition to supporting international trade, BOC-NAIA also navigates the

imperative of fostering a workplace culture rooted in diversity, equity, and inclusivity. In

the ever-changing world of modern organizations, the principles of diversity, equity, and

inclusivity have become crucial pillars for fostering a harmonious and effective work

environment. It is necessary to look at how these ideas are accepted and applied within

the operational framework of the BOC-NAIA.

The mission of the BOC-NAIA is to improve trade facilitation, reinforce border control,

and enhance the collection of lawful revenues while their vision is to become a

modernized and credible Customs administration globally, upholding principles of good

governance and aiming to be among the world's best, guided by core values of

professionalism, excellence, integrity, and accountability (Bureau of Customs, 2020).

Moreover, the BOC’s 5-Point Priority Program for 2023 includes the digitalization of

customs processes, achieving and surpassing set targets, simplifying procedures for

secure trade and combating smuggling by prioritizing the welfare and development of its

employees.
The BOC-NAIA is committed to fostering diversity, equity, and inclusivity, as

demonstrated by its active engagement in the celebration of Women's Month. The

diverse programs initiated during this period, from energetic Zumba events to

workshops on corporate image enhancement, exemplify a proactive approach to

inclusivity and gender equity within the organizational framework. Furthermore, to its

active participation in celebrating Women's Month, the BOC-NAIA is actively addressing

its workforce needs through the publication of vacant positions. The bureau emphasizes

a transparent and equitable hiring process, adhering to the guidelines outlined in its

Bulletin of Vacant Positions. This document not only underscores the commitment to

Equal Employment Opportunity Principles (EEOP) but also establishes a

comprehensive framework for hiring, promotion, and competency-based examinations.

Thus, the primary focus of this case study is to examine the impact of the

implementation of diversity, equity, and inclusivity initiatives within the organization on

carrying out the operational functions of the bureau as well as to determine programs to

improve the borders security throughout the country.

 2. SWOT ANALYSIS

When it comes to prioritizing the welfare and development of its employees as one of
the 5-Point Priority Program of BOC , the researchers conducted a regular SWOT
analysis to determine where to start, understand present status, identify areas where
the company excels and anticipate threats they may encounter along the way.

A. Strengths
1. Established positive reputation - BOC achieved a positive collection
performance under the leadership of Commissioner Rey Leonardo B.
Guerrero, garnering a total of Php 3.465 trillion in revenues from July 2016
to June 2022 which posts an 80.94% or Php 1.55 trillion revenue growth.
Alongside the agency’s revenue collection efforts, the Bureau also
excelled in the field of trade facilitation during the term of President
Duterte as the Philippines ranked 3rd among the best performing
Southeast Asian Nations in 2021. The Bureau ensured the provision of
unhampered quality services for all stakeholders especially during the
onset of the ongoing pandemic. Several feats were also achieved for
border control pursuant to the directives of the President. Among these
are the numerous successful seizures amounting to Php 95.6 billion worth
of smuggled goods and Php 17 billion worth of illegal drugs from 2016 to
2022. Moreover, Php 24 billion worth of forfeited goods were also
condemned under the same timeline.
2. Supportive management - The BOC’s Human Resource and
Management Division (HRMD) has developed a fair system for
compensation, privileges and benefits, as well as performance-based
incentives, and recognition. Its first priority is to boost the organization’s
manpower component to ensure efficiency and professionalism in the
delivery of services. Believing firmly that an organization is not an
organization without its people, we reviewed the recruitment process to
ensure strict adherence to the hiring and promotion procedures
established by the Civil Service Commission Rules and Regulations. One
 of their primary focuses is filling vacant positions, a task which the BOC’s
Human Resource Management Division (HRMD) delivered efficiently. In
fact, BOC has completed the policies and guidelines for participation in
the learning and development programmes, and in the Scholarship
Programme which enables employees to undertake graduate and post-
graduate studies and benefit from other educational opportunities. It is
their belief that enabling employees to develop their skills was identified as
another essential area calling for improvement, and as one of their priority
programmes. Furthermore, BOC-NAIA is committed to fostering diversity,
equity, and inclusivity, as demonstrated by its active engagement in the
celebration of Women's Month. The diverse programs initiated during this
period, from energetic Zumba events to workshops on corporate image
enhancement, exemplify a proactive approach to inclusivity and gender
equity within the organizational framework. The bureau strongly believes
that the practice of diversity, equity, and inclusivity is designed to make
people of various backgrounds feel welcome and ensure they have
support to perform to the fullest of their abilities in the workplace (Heinz,
2021).
3. Innovation and Research - The Bureau of Customs (BOC) continues to
ramp up its digitization efforts to enhance trade facilitation, with 96 percent
of its processes now computerized. Further, the BOC Commissioner has
unveiled six automation projects, which it said are integral to improve the
agency’s services through digital transformation. BOC Commissioner Bien
Rubio said the six automation projects, which will soon be implemented,
are aimed at enhancing efficiency and transparency in the agency’s
operations through the use of the new technology. They are the
BayaniBox, Link.BizPortal, Automated Export Declaration System,
Digitized Official Receipt System, Customs Auction Monitoring System,
and Redesigned BOC Website.
B. Weaknesses
1. High operational cost - Most of the projects of BOC involves acquiring
and implementing the requisite tools and technologies to migrate all
internet accessible systems of the bureau into a unified enterprise portal.
These projects revolved around “immediate wins” that delivered solutions
but “eventually became today’s sources of problems—low hanging fruits
which in hindsight compounded already existing problems while failing to
address the core problem areas that work against achieving operational
efficiency.”
2. Challenging management - BOC has been confronted with challenges
aplenty, from administrative to operational concerns and systemic
deficiencies that made the Bureau vulnerable to corrupt practices. Many
years passed, the bureau’s management has been working tirelessly to
reform the negatives, transform the organization, and perform their
mandate.
3. Security of borders - Agricultural smuggling remains a problem in the
country, with the entry of P120 million worth of livestock and seafood
products the latest to be foiled by the government. This affects locally
produced farm products since these cannot compete with illegally
imported ones that are priced lower.
C. Opportunities
1. Advancement of employees - Customs administrations, due to the
nature of their missions and to the fact that they are operating in an
environment marked by complex interactions, have to constantly engage
in modernization efforts. In other words, they need to regularly update and
upgrade their operating models and working methods. Human Resource
Management and Development (HRMD) professionals in Customs should
hence play a vital role in their organization, especially in order to influence
the adaptive capabilities of their workforce. In a practical way, HRMD
professionals are, more than ever, called to provide innovative responses
to emerging trade, security and health challenges by repositioning their
 contribution and ensuring that their recommendations are aligned to
corporate strategic priorities.
2. Partnership with government agencies/NGOs - The bureau
strengthens partnership with numerous government agencies like the
Department of Justice to enhance measures in the prosecution of cases
and Philippine Economic Zone Authority (PEZA) to enhance trade
facilitation and logistics efficiency in the economic zones. Likewise, the
BOC, through its Customer Assistance and Response Services (CARES)
under the Public Information and Assistance Division (PIAD), establishes
partnership with Digital Minds Incorporated (DMI), a third party agency
that provides Business Process Outsourcing (BPO) services to cater to
BOC stakeholders in resolving their concerns and complaints.
3. Enhancing trade facilitation - BOC will promote the use of the NSW
among stakeholders and will work on the onboarding of 15 additional
regulatory agencies to participate in this internet-based system on
facilitating export- and import-related requirements. The bureau will also
highlight the application of its electronic Advance Ruling System this year
as it provides consistency to the assessment of a good’s value, and adds
certainty and predictability to international trade.
D. Threats
1. Graft and corruption - As to the notions of many, Bureau of Customs is a
place where corruption is the rule rather than the exception. It’s a culture
that was introduced by the Spanish colonial rulers while the Americans
improved it. And the Filipinos made it a part of their daily lives after the
Americans left. Indeed, after years of colonial rule, corruption is inbred into
the Filipino psyche. It is not surprising then that the Philippine government
is deeply immersed in corruption, from the top, down to the lowest levels
of the bureaucracy. And the government agencies where corruption is
most prevalent are the two highest revenue-generating agencies: the
Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).
 2. Transactions of illegal drugs and prohibited goods - The Philippines
ranked 64th globally as to illicit trades. There are three categories that the
country fall short; Government policy (No. 79 out of 84): the extent to
which countries have comprehensive laws targeting illicit trade; Customs
(60 out of 84): the effectiveness of the customs service in managing its
dual mandate of trade facilitation while preventing illicit trade; and Supply
and demand (55 out of 84): the institutional and economic levers that can
stem or amplify illicit trade flows.
3. Changes in policies - Changes in policies or regulations can impact how
the bureau in the Port of NAIA operates and delivers services to the
importers, exporter and transhippers. Some Customs processes that they
need to digitize involve a third party provider and there are still some court
orders that they need to address. There are certain areas that they need
to procure.

3. STATEMENT OF THE PROBLEM

The logistics sector has been historically dominated by male and the Bureau of
Customs (BOC), playing a major role, is not an exemption to this trend. This study aims
to examine the impact of the implementation of diversity, equity, and inclusivity
initiatives within the organization on carrying out the operational functions of the bureau
as well as to determine programs to improve the border security throughout the country.

The following are the key concepts:

1. Socioeconomic Diversity. Equal opportunities in all sectors regardless of age,
cultural background, geography, physical ability, religion, gender identity, or
sexual orientation.
2. Best Practices. Tasks, procedures, guidelines, or processes that are optimized
to accommodate all sectors while achieving best possible results.
3. Technological Disparities. Advanced technology plays a pivotal role in border
security. Ensuring that all individuals, regardless of their background, age, or
 gender should have equitable opportunities to access and benefit from
technology.
4. Comprehensive Policy Framework: A comprehensive policy framework that
integrates inclusive empowerment strategies into border security measures. A
holistic approach is necessary to address the multi-faceted challenges
associated with border security and create a sustainable, resilient system.
5. Workplace Culture. An inclusive workplace culture that recognizes and
embraces diversity, eliminates bias and discrimination, and creates an
environment where every individual feels valued and empowered.
6. Operational Monotony. Revisiting and restructuring the current categorization
policy whose loopholes and blindspots are potentially exploited by unscrupulous
individuals. These loopholes and blindspots arise from excessive familiarity, loss
of vigilance, complacency, and overconfidence.
7. Operational Cost. Carrying out the duties and responsibilities in adherence with
its mandate requires high operational cost since a large amount is needed for
maintenance and acquisition of the necessary tools and technology and other
operating expenses.

Promoting diversity, inclusivity, and integrity within the BOC is crucial not only in
fostering a harmonious, fair, and effective work environment, but also to ensure that the
Bureau accomplished acceptable standards of quality and service while utilizing
professional ethics and best practices throughout the process.

4. ALTERNATIVE COURSES OF ACTION ACA

● The Interim Training and Development Division (ITDD) should give
employees an inclusive training program or seminar that accommodates a
variety of learning styles, updated procedures, process, or guidelines and
cultural backgrounds. Putting in place mentorship programs and weekly
meetings that take into account the particular difficulties experienced by
people from diverse backgrounds creates a welcoming atmosphere that
encourages cooperation and information sharing.
 ● A comprehensive policy framework must be revisited and enhanced
if needed by the BOC Commissioner, and should be strictly
implemented by the Internal Administration Group (IAG). The BOC
Commissioner must also ensure that inclusive empowerment strategies
into border security measures and strengthened risk-based management
and profiling are specified in the policy to create a strong, sustainable and
resilient system. Compliance to this framework must be monitored by the
Post Clearance Audit Group (PCAG).
● Management Information System & Technology Group (MISTG) must
coordinate with different professional developers. Proposals of
developers must be forwarded to the Department of Trade and Industry.
Negotiation of the price is being done through a bidding process. A quality
yet affordable tool and technology must win the project. This is to be
approved by the Department of Budget and Management.

On the other hand, other operational costs must be planned accordingly

before another year starts to properly budget everything for the year to
come.
5. CHOSEN ALTERNATIVE COURSE OF ACTION
● A comprehensive policy framework must be revisited and enhanced
if needed by the BOC Commissioner, and should be strictly
implemented by the Internal Administration Group (IAG). The BOC
Commissioner must also ensure that inclusive empowerment strategies
into border security measures and strengthened risk-based management
and profiling are specified in the policy to create a strong, sustainable and
resilient system. Compliance to this framework must be monitored by the
Post Clearance Audit Group (PCAG).
6. PLAN OF ACTION (GANTT CHART)
REFERENCES:
Simeon, L.M (2023, January 3) Customs delays full digitalization to 2024. Retrieved:

https://www.philstar.com/business/2023/01/03/2234861/customs-delays-full-

digitalization-2024

Bureau of Customs. (2022, July 11) BOC Consistent with Intensified Anti-Smuggling
Efforts for 2022. Retrieved: https://customs.gov.ph/boc-consistent-with-intensified-anti-
smuggling-efforts-for-2022/
Heinz, K. (2021, October 21). What Does DEI Mean in the Workplace? Built In.

https://builtin.com/diversity-inclusion/what-does-dei-mean-in-the-workplace

Bureau of Customs. (2020). Mission and Vision | Bureau of Customs. Customs.gov.ph.

https://customs.gov.ph/mission-and-vision/