Finance Secretary Ralph Recto called for the completion of a customs cooperative arrangement between the Philippines and Hong Kong that seeks to strengthen trade facilitation while protecting consumers from risks posed by smuggled goods.
In a statement on Wednesday, the Department of Finance (DOF) said the draft arrangement is intended solely for the mutual administrative assistance between the customs administrations of the Philippines and Hong Kong.
The draft bilateral arrangement was the product
of extensive discussions between the Bureau of Customs and its Hong Kong counterparts in response to heightened global concern over supply chain security and the growing sophistication of cross-border smuggling operations, the DOF said.
The salient provisions on general assistance that may be mutually provided by each customs administration to the other include the sharing of information and intelligence to ensure the proper application of customs laws; the prevention, investigation and combating of customs offenses; and the security of the international trade supply chain.
“I thank the Government of Hong Kong for collaborating with us on this very important matter. This arrangement is necessary to ensure that both our Customs administrations are functioning together in the most efficient way possible,” Recto said.
“We owe it to our nations to ensure that what crosses our borders is legitimate, safe and lawful,” he added.
Earlier this month, the DOF said the Philippines and the Hong Kong Special Administrative Region have successfully completed the first round of negotiations for a tax treaty that will pave the way for stronger economic ties and increased investments.
The DOF and the Bureau of Internal Revenue led the negotiations for the Comprehensive Agreement for the Avoidance of Double Taxation and the Prevention of Fiscal Evasion with Respect to Taxes on Income (CDTA) on May 21 to 23, 2025.
The CDTA aims to eliminate double taxation on income, prevent fiscal evasion, promote trade and investment, enhance mechanisms for information exchange, reduce tax barriers for businesses and individuals and foster deeper economic collaboration.
“This not only strengthens our bilateral relations, but it is a concrete step towards deepening regional integration and greater investor confidence in the Philippines,” Recto said in a previous statement.
