BoC charges builder over Philippine Arena imports

THE BUREAU of Customs (BoC) filed a complaint against New San Jose Builders, Inc. and its sureties through the Off ice of the Solicitor General on Tuesday, claiming failure to pay duties on construction-related imports for building the Philippine Arena in 2012 and 2013.

In a statement, the BoC said that the company was required to pay customs duties on its shipments in 2012 to 2013, since the Department of Finance did not grant the exemption which New San Jose Builders applied for under Republic Act No. 9593.

Section 86 of the law, or the Tourism Act of 2009, states that “a registered enterprise shall be entitled to an exemption of one hundred percent (100%) of all taxes and customs duties on importation of capital investment and equipment provided that these are directly and actually needed and will be used exclusively by the enterprise in its registered activity.”

In 2012, the investment promotion agency Tourism Infrastructure and Enterprise Zone Authority (TIEZA) approved the Iglesia ni Cristo ( INC)- owned Ciudad de Victoria in Bulacan as a tourism economic zone, where the Philippine Arena is located.

However, New San Jose — INC’s contractor for the Philippine Arena project — was required to post bonds to cover duties and taxes for its shipments amounting to P947.29 million.

In a chance interview with Commissioner Nicanor E. Faeldon Tuesday at the Department of Finance headquarters, he said: “They brought in items with taxes worth about P1 billion even without approval of their exemption by the Department of Finance and Bureau of Internal Revenue,” he said.

“So it’s irregular. The bond is to be forfeited. We have written them five times and they have not replied,” he added.

The bonds were issued by Centennial Guarantee Assurance Corp., Intra Strata Assurance Corp. and Philippine Fire and Marine Insurance Corp.

The Port of Manila District Collector in July 2015 ruled in a final demand letter to the surety companies that the tax assessed must be paid.

The acting chief of the Port of Manila’s Bonds Division recommended on December 2015 the forfeiture of the bonds over the failure of New San Jose and the surety companies to settle their obligations.

Mr. Faeldon also received a recommendation from the Port of Manila’s Law Division on the forfeiture of the bonds in a memorandum dated Sept. 20, 2016. —