WCO Backs Philippines Customs Modernization with HRM System

The World Customs Organization (WCO) successfully conducted a personnel management diagnostic of the Bureau of Customs (BOC) in the Philippines. This aimed to support BOC's strategic goals and HR modernization by building a competency-based HRM system. The diagnostic highlighted the importance of HR roles, competency-based HRM, and training development. The BOC committed to adopting the WCO's 18 customized recommendations to drive the implementation of future action plans.
WCO Backs Philippines Customs Modernization with HRM System

Imagine a human resource management (HRM) system that functions like a precision algorithm, aligning each employee’s strengths with an organization’s strategic goals to maximize overall efficiency. This is not a distant dream but a reality being shaped for the Philippines Bureau of Customs (BOC) with support from the World Customs Organization (WCO).

Background: Trade Facilitation and Talent-Driven Transformation

In an era where global trade is increasingly vital, efficient customs operations serve as a critical engine for economic growth. To better comply with the World Trade Organization’s (WTO) Trade Facilitation Agreement and meet its own strategic development needs, the BOC has prioritized building a competency-based HRM system. This initiative aligns with the Mercator Program’s requirements and forms a core component of the BOC’s Human Resource Modernization Plan.

WCO Diagnostic Mission: Identifying Gaps and Opportunities

From March 8 to 19, 2021, the WCO conducted a two-week virtual diagnostic mission for the BOC, funded by the UK Foreign, Commonwealth & Development Office’s Trade Facilitation in Middle-Income Countries (TFMICs) program. The mission focused on the WCO’s flagship initiative—the Executive and Professional Competency-Based Human Resource Management Program (EPCB-HRMP). BOC Commissioner Rey Leonardo B. Guerrero and Deputy Commissioner Donato San Juan oversaw the mission’s launch and closing, with participation from over 30 senior BOC officials.

The mission went beyond superficial assessments, delving into the BOC’s HR landscape and offering targeted recommendations. The WCO team deployed specialized tools, including:

  • WCO People Development Diagnostic Tool: A comprehensive evaluation of the BOC’s strengths and weaknesses in workforce development.
  • WCO Competency-Based HRM Implementation Guide for Customs: A framework for designing competency models.
  • WCO Competency-Based HRM Toolkit: Practical resources such as job catalogs, competency frameworks, and competency-based job descriptions.

Key Findings: Challenges and Pathways Forward

The diagnostic results revealed critical challenges and opportunities:

  • HR’s Strategic Role: The report emphasized transforming the HR department from an administrative function to a strategic partner in organizational planning.
  • Competency-Based System: The BOC needs an integrated HRM system covering recruitment, training, performance management, and career development to ensure employees possess the necessary skills.
  • Training Investments: Enhanced and diversified training programs are essential to elevate employee capabilities.

18 Tailored Recommendations: A Roadmap for Reform

The BOC has committed to implementing 18 customized recommendations from the WCO, which include:

  1. Aligning HR planning with strategic objectives
  2. Developing competency models for key roles
  3. Optimizing recruitment processes
  4. Implementing competency-based performance management
  5. Expanding training programs
  6. Creating clear career progression paths
  7. Strengthening leadership development
  8. Establishing a talent management system
  9. Enhancing compensation and benefits
  10. Fostering positive employee relations
  11. Modernizing HR information systems
  12. Building HR department capacity
  13. Managing organizational change effectively
  14. Improving cross-departmental coordination
  15. Mitigating HR-related risks
  16. Ensuring legal compliance
  17. Leveraging data analytics for HR insights
  18. Instituting continuous improvement mechanisms

The WCO will continue collaborating with the BOC to design and implement this modernized HRM system, positioning the agency to achieve its strategic vision.

Looking Ahead: A Talent-Driven Customs Agency

The diagnostic mission has provided the BOC with clarity on its HRM needs and a roadmap for modernization. With WCO support, the BOC aims to build a high-performing, competency-based HR system—a cornerstone for advancing trade facilitation and economic growth in the Philippines.