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    Vessel operators investigated
    for tax evasion
    By VG Cabuag
    Reporter

    THE Bureau of Customs is inspecting the registration papers of various vessels in the country after their owners were suspected of having evaded payment of duties and taxes.

    Customs Commissioner Napoleon L. Morales said that he has already signed about 20 discrepancy letters to vessels operators, suspected of tax evasion.

    “After that we will issue a demand letter,” Morales said, declining to reveal the names of the said companies.

    The move came more than two months after the Customs officials and Maritime Industry Authority (Marina) signed an agreement to compel vessel owners to show that they have paid the necessary taxes before their ships can be registered.

    Prior to the agreement, Marina, the shipping industry regulator, only requires operators to show a certificate indicating that they paid the correct import duties.

    For its part, the bureau is expected to generate P 1 billion from the agreement since information would be shared between two agencies to determine which among owners and operators failed to pay the correct taxes.

    Morales said a shipping line already paid P8 million to settle a case of undervaluation.

    Marina administrator Vicente T. Suazo Jr. earlier said that the customs bureau should give a one-month ultimatum to shipping lines to pay taxes before applying necessary penalties.

    Before acquiring vessels, companies interested in bringing in ships to the country are required to secure import permits from Marina, which include basic requirements such as a provisional certificate from the Philippine Embassy in the country from which the vessel originally came.

    Marina will also ask importers to present their ship plans, before giving its approval.

    Previously, according to Suazo, imported vessels—usually Japanese-made barges—are rehabilitated locally and then passed off as having been manufactured by a domestic shipyard. Upon registration, vessel owners declare that the ships are locally-made, allowing them to evade taxes.

    “Now they can not any more do that,” Suazo said. “It must be preapproved. When it arrives here we will inspect if it followed the plan including the specifications.”

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