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THE
Federation of Philippine Industries (FPI) called for a
thorough review and full public reporting of all
questionable shipments of some big importers that the
Bureau of Customs (BOC) subsequently cleared through the
agency’s “flawed” voluntary disclosure program.
In FPI’s
assessment, the voluntary disclosure has allowed certain
importers to pay only very little taxes just because
they have joined the program, which automatically puts
them on the “least priority” category of companies for
audit. Often, said the FPI, the importers resort to
generic tags like “assorted bags” in order to assign
ridiculously small price tags on their items even though
some of them are luxury goods that are worth at least 10
times more than what is listed with customs.
The FPI
stressed it was not accusing any of the importers or
Customs officials of any crime yet, but underscored the
serious need to review the voluntary disclosure program.
The FPI
made the demand after the Presidential Antismuggling
Group (PASG) brought up in a congressional hearing last
week the case of Rustan Corp., which was reportedly
given a clean bill of health by Customs Commissioner
Napoleon Morales for some 271 batches of importation
that the company enrolled into the program late last
year.
In that
hearing, the FPI said PASG head Undersecretary Antonio
Villar called the attention of the lawmakers and Customs
officials to the generic classifications made by Rustan
for the bags, shoes, apparel and other items that were
imported by the company, “also at abnormally low
values.”
FPI
president Jesus Arranza said domestic manufacturers hit
heavily by imported items that are tagged at at low
value simply want fair competition. They want to make
sure they will not lose their business just because
importers are being given, wittingly or unwittingly,
undue advantage by the BOC under this
voluntary-disclosure program.
Arranza
said they received reports that at least 20 companies
have already availed themselves of this program, so it
is but right that Customs reviews all these cases for
the interest of the domestic industries and the public
as well, since what are stake also are government
revenues.
“Without
making conclusions as to the guilt of the importers and
to avoid speculation as to their legality, it is the
demand of the FPI that those who availed of the program
be subjected to a thorough review,” Arranza said.
In the
case of Rustan’s, Arranza said in a statement there is a
possible case of undervaluation because the imported
bags, for instance, were reported to have been valued at
$6.50 each, while the bags being sold in the company’s
high-end stores are priced up to as high as P100,000
plus.
He also
supported Villar’s stand that there is an apparent error
in product description committed by Rustan because it
used generic entries like “assorted bags” and “assorted
shirts” in the importation documents.
Arranza
said despite all these apparent lapses and considering
the large number of shipments, Rustan’s was only made to
pay P20 million in surcharges by Customs.
Rustan’s
was also given immunity from postentry audit after it
was put on the least-priority list for auditing by
Morales for two years as a bonus for availing itself of
the program.
Arranza
said one reason why the BOC should review the cases of
the 20 companies is the fact that some of them,
including Rustan’s, had already received an audit
notification letter (ANL) from Customs when they availed
themselves of the voluntary disclosure program.
If an
importer has already received an ANL, it should no
longer be considered under the voluntary program,
although he admitted that this is the flaw in the
Customs Administrative Order (CAO) that implemented the
program, particularly Section 2, Paragraph C of CAO
5-2007. This states that “the program shall be available
(a) prior to the receipt of an ANL, or (b) upon receipt
of the ANL but prior to the scheduled date of field
audit.”
“We
strongly urge the Customs to revise this program which
we feel is so ineffective in the fight against technical
smuggling. It should be time-bound and those that have
been issued ANLs should not be allowed to avail
[themselves] of the program anymore,” he said. |
