USTR flags ‘widespread’ PH customs corruption
Corruption remains a sticking point in trade between Manila and Washington, with the United States Trade Representative (USTR) again flagging irregularities across Philippine institutions as a major trade barrier.
In its 2026 National Trade Estimate report, the USTR described corruption in the Philippines as “pervasive and longstanding.” The agency warned that graft and bribery could disrupt markets and “frustrate broader reforms and economic stabilization programs.”
“Corruption is a pervasive and longstanding problem in both the private and public sector in the Philippines,” the report said. “National and local government agencies, for example the Bureau of Customs (BOC), are beset with various corruption issues, including allegations of overt bribery.”
Singling out the BOC, the USTR said some shipments are subjected to 100-percent inspection and testing. Others face inconsistent fee assessments and processing delays.
The report also cited complications in customs valuation, such as the continued use of reference pricing for certain goods. This, even when importers submit complete transaction documents, such as contracts and purchase orders.
While noting strides the Philippine government has made in digitizing customs procedures and curbing corruption, the USTR said these issues remain a persistent concern for US stakeholders.
“Both foreign and domestic investors have expressed concerns about the lack of transparency in judicial and regulatory processes,” it said.
The report also identified a range of structural trade barriers, including tariff regimes, import restrictions and regulatory requirements.
The Philippines maintains an average most-favored-nation tariff rate of 6 percent, with higher rates for agricultural goods. Tariff-rate quotas on products such as pork, poultry and corn continue to limit access for US exporters.
Non-tariff measures also pose challenges. The USTR cited import permit systems and sanitary clearances with limited validity periods that complicate shipment timing and increase compliance costs.
Further, the report flagged “inconsistent enforcement activities” in intellectual property protection. In its 2025 Review of Notorious Markets for Counterfeiting and Piracy, the USTR retained Greenhills Shopping Center in San Juan City on its watch list.
The USTR also noted that the Philippines does not prohibit the importation of goods produced with forced or compulsory labor.
