Manila, June 25 -- The Department of Finance (DOF) said a customs cooperative arrangement between the Philippines and Hong Kong special administrative region aimed at strengthening trade facilitation while protecting consumers from the risks posed by smuggled and illicit goods is in the works.

In a statement Wednesday, the DOF said the draft bilateral arrangement was the product of extensive discussions between the Bureau of Customs (BOC) 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 draft arrangement is intended solely for the mutual administrative assistance between the Customs Administrations of the Philippine...