BOC hit for P8-B collection deficit

Lax implementation of customs and tariff rules, overstaying of containers in ports, as well as low auction sales were just some of the reasons cited by the Commission on Audit (COA) for the Bureau of Customs’ P8.112-billion deficit in its collection for 2017 as against its target for the year.

In an annual audit report posted on its website yesterday, the COA said that from January to December 2017, the BOC was only able to post total collections of P459.774 billion as against its P467.896-billion target for the year.

The COA, however, noted the shortfall rate in the BOC’s annual collections versus its annual target, has been decreasing for the past three years or from 16 percent or P69.685 billion in 2015 to 1.7 percent or P8.112 billion in 2017.

Nonetheless, the audit body said the total collections last year could have been higher had Customs officials been stricter in the imposition of customs and tariff duties against importers in accordance with Republic Act 10863 or the Customs Modernization and Tariff Act (CMTA).

The COA said a total of P6.147 billion in revenues was lost as the BOC failed to collect demandable dues from various importers in the form of taxes, duties, bond, import violation fees and other charges.

“Had the BOC been able to collect these additional revenues, it could have lessened the shortfall and provide the government with the much needed funds to support its programs and projects,” the COA said.

BOC spokesman Erastus Sandino Austria said they have yet to receive a copy of the COA report.

“I have not seen the COA report. I’ll have to look it up first before I can comment,” Austria added.

A breakdown provided by COA showed that P5.6 billion of the lost revenues was due to the failure of Customs officials assigned at the Manila International Container Port (MICP), Port of Manila (POM) and Ninoy Aquino International Airport (NAIA) to compel the importers to settle their “due and demandable bonds.”

The COAsaid some importers at the MICP, POM and NAIA have also yet to settle their additional taxes, duties and other charges amounting P448.057 million. The COA said a total of P11.547 million in duties and taxes was not collected from an importer at NAIA whose tax exemption privilege was cancelled.

The audit body also put to task the Customs officials assigned at the Port of Aparri in Cagayan over their delayed seizure of a vessel whose owner earlier failed to show proof of payment of customs duties and taxes.

The COA estimated the uncollected customs duties, taxes and fines against the owner of the vessel at P50 million. It added the inaction or lack of vigilance of the Customs officials had also “provided the opportunity for the owner to illegally dismantle the ship, leaving only approximately 50 percent of the ship remaining, as per estimates.”

Meanwhile, the COA said Customs officials at the Port of Cagayan de Oro had allowed the release of the two shipments of Vietnamese Long Grain White Rice totaling 40,000 bags, which arrived in the country on March 9 and 16, 2017.

The COA said the shipments were seized by the BOC after importer Cebu Lite Trading Inc. (CLTI) failed to file the corresponding import entry and submit an import permit from the NFA.

Following the importer’s lapses the shipments were declared “abandoned,” which means that they were already considered as property of the government.

But in June of that year the Customs port officials allowed the release of the shipments, allegedly with the approval of then BOC chief Nicanor Faeldon.

“Had (BOC) pursued the forfeiture of the subject goods, the Port of CDO could have collected a revenue of approximately P36 million based at P900 price per bag,” the COA said.

The release of the two shipments of smuggled Vietnamese rice had earlier been the subject of controversy in the BOC.

Sen. Panfilo Lacson earlier filed graft and economic sabotage complaint before the Office of the Ombudsman against Faeldon and other Customs officials.

Faeldon resigned in August last year amid allegations of involvement in the smuggling of P6.4 billion worth of shabu from China. President Duterte, however, appointed him as deputy administrator III of the Office of Civil Defense in December.