Plywood import valuations flagged by Tax Watch

THE FINANCE department flagged large discrepancies in the declared value of plywood imports from China, with prices per board ranging from P145.69 to P2,540.64.

“How can plywood from the same country be valued so differently?” the Department of Finance (DoF) said in its latest Tax Watch advertisement released yesterday.

From October to December last year, the country sourced from China 99% of its imported plywood classified under the Harmonised System (HS) code 441232.

This type of plywood, which has at least one outer ply of nonconiferous wood, comprises 90% of the total value and volume of plywood imported to the Philippines as well as the government’s collections from such shipments.

Duties and taxes levied on imported plywood totaled P1.02 billion last year. In the fourth quarter, the government collected P256 million from the importation of 79 million kilograms of HS 441232, with value amounting to P1.5 billion.

Formaply Industries, Inc. and Rolin Panel Products Corp. declared the highest prices equivalent to P2,540.64 and P1,181.68 per board. On the other hand, YTL3 Philkore Corp. and Copperfield Marketing declared the lowest prices of P291.14 and P145.69.

The advertisement also cited varying prices declared by Hocheng Philippines Corp. ( P975.12), Huayou Construction Development ( P910.60), Interphil Marketing ( P884.78), Castilex Trading Corp. (P851.38), Manuchar Philippines, Inc. ( P844.52), Moldex Products, Inc. ( P839.42), Matimco, Inc. ( P775.27) and K. U. S Structural Components, Inc. (P747.95).

Other importers cited by DoF were ES Hernandez Construction ( P385.24), Don Mandin Enterprise ( P382.40), Marped Enterprise (P380.77), Mintrade Corp. ( P378.10), Seventh Hussar International Trading Corp. (P374.55), Charlyn Agricultural Products Import and Export ( P364.10), Sanfred Trading ( P349.33) and Queen E Enterprises (P347.68).

ES Hernandez Construction, Sanfred Trading and Copperfield Marketing paid for the regular 15% duty, instead of availing the lower 4% rate under the Association of Southeast Asian NationsChina Free Trade Agreement.

“Building the nation starts with proper valuation,” the DoF noted in the advertisement. —