DOMADALUG, FATIMA JEHANNE L.
MBA – Student No. 2024492476
July 09, 2025 Comprehensive Exam
Scenario: Upon review of the Liquidation and Billing Unit (LBU), a 15 million discrepancy was discovered
between the declared value and the post-entry reassessment of value based on revised commercial
invoice. The importer paid the additional duties and taxes.
PART I: Public Financial Management / Government Accounting
1. Reporting the Discrepancy
The ₱15 million discrepancy must be:
- Documented in the Liquidation and Billing Unit (LBU) Report and entered in the Post-Entry Modification
Log.
- Supported by the revised commercial invoice and other supported documents.
- Reported to the Office of the Collector and Assessment Division for the collection of the additional
revenue.
2. Legal and Procedural Basis
- Section 403, CMTA: Allows for post-entry modification and re-liquidation based on verified documents.
- CAO 01-2009: Guides proper valuation and re-computation of duties/taxes.
- RA 11032 (Ease of Doing Business Act): Supports lawful and timely rectification processes.
3. Fiscal Implications
- Reflects government efficiency in capturing correct revenues.
- Upholds transparency and accountability in public finance.
- Strengthens trust in customs' role as a revenue-generating agency.
PART II: Strategic Management – Customs Bureau Setting
1. SWOT Analysis of BOC Modernization
Strengths:
- Strong legal mandate (CMTA)
- Revenue generation power
Weaknesses:
- Resistance to change among staff
- Technical gaps in IT infrastructure
Opportunities:
- ASEAN and WTO partnerships
- Donor-funded modernization projects
Threats:
- Smuggling through cybercrime
- Political interference
2. Strategic Framework
Vision: A tech-driven, risk-based, and people-centered customs bureau.
Objectives:
- Increase automation (e.g., E2M, ECTS).
- Build staff capacity in data analytics and compliance.
- Improve service times through digitization.
Initiatives:
- Strengthen partnership with the private sector.
- Expand use of Pre-audit prior to Post Clearance Audit Group (PCAG) auditing.
- Engage in regular trade consultations.
3. Leadership Style Needed
Transformational leadership is essential to inspire and influence staff toward innovation.
PART III: Financial Management – Customs Revenue Collection
1. Cost-Benefit Analysis
Option A – Risk Profiling:
- Pros: Additional revenue.
- Cons: Delays in release; trader dissatisfaction.
- Hidden cost: Could affect Ease of Doing Business ranking.
Option B – Automated Post-Clearance Audit:
- Pros: Consistent revenue; reduced HR cost.
- Cons: Lower expenses but more sustainable.
2. Recommendation
Choose Option B: More sustainable, aligns with WTO-TFA Article 7.5, and promotes compliance.
3. Long-term Risks
Requires system security and skilled data analysts.
PART IV: Marketing / Public Administration – Citizen Perception and Trust
1. PR Strategies
- Transparency portal for seizures and collection stats.
- Customs Watch Facebook page.
- Honest officer storytelling campaign.
2. Successful Model
Singapore Customs – known for professionalism and technology.
3. Internal Culture and Perception
Culture shapes public trust. Internal inefficiency reflects on public image.
PART V: Ethics and Governance in Public Service
1. Ethical Framework
Deontology and RA 6713 prohibit acceptance of gifts regardless of intent.
2. Appropriate Action
Politely decline the gift, report incident, and document it.
3. Promoting Integrity
Regular training, rewards for ethical conduct, and visible reminders
Bonus Essay:
Impact of MBA in Customs Work
My MBA education has significantly transformed the way I carry out my duties as a Customs
Officer. Beyond gaining theoretical knowledge, it sharpened my critical thinking and strategic decision-
making, which I now apply in complex, real-time customs scenarios.
In Financial Management, I gained a deeper understanding of the link between customs revenue
collection and national economic planning. I now appreciate how accurate valuation, classification, and post-
entry audits not only meet our targets but also support macroeconomic goals like fiscal sustainability.
Through Strategic Management, I became more aware of the need to align customs operations with global
trade norms, such as WTO trade facilitation measures, ASEAN integration and digital transformation. This
helped me contribute meaningfully to initiatives involving modernization, risk management, and compliance
programs.
My learnings in Organizational Behavior and Public Administration helped me handle internal office
dynamics better. I understand now that performance, motivation, and accountability must be balanced with
empathy and institutional discipline. I also became more proactive in communication, particularly during
inter-agency coordination and stakeholder meetings.
The MBA also taught me to analyze problems systemically, which is crucial in resolving disputes
involving technical smuggling, fraud indicators, or system bottlenecks. I now approach each task with an
enterprise-wide view, considering legal, operational, financial, and reputational implications.
Lastly, the ethics and governance modules reminded me that integrity is not just compliance with
the rules, it is a commitment to public trust. I am more confident navigating ethical dilemmas, declining
undue influence, and promoting fairness and professionalism in every transaction I handle.
Overall, my MBA journey made me not only a better Customs Officer, but also a more responsible
civil servant, one who understands the larger purpose of customs work in nation-building, and the value of
continuous learning in public service.
