Under the Customs and Tariffs Act, the BOC has the right to acquire grossly undervalued goods based on their declared value.

Jesus Arranza, chairman of the Federation of Philippine Industries (FPI), said this was one of the concerns they brought up in their recent meeting with the team of Customs Commissioner Ruffino Rozzano Biazon, who was appointed to the post in September.

“We reiterated to Commissioner Biazon our recommendation on the use of compulsory acquisition. Considering that 90 percent of smuggling is being done through undervaluation, this is the key to practically emasculate the smugglers,” Arranza said.

Arranza said Biazon should not worry about funding and warehousing for the acquired undervalued goods, as well as their buyers. He said if the BOC does not have enough money to buy the confiscated goods, he has already sought the commitment of the United Coconut Planters Bank for a financing facility for it.

As for warehousing, he said the domestic industries have committed to provide them. The local manufacturers have also committed to buy the confiscated items from the BOC.

The FPI already recommended the use of compulsory acquisition to former Customs Commissioner Angelito Alvarez. At first, Alvarez welcomed the idea. However, it did not push through due to differences in opinion with some officials of the Department of Finance.

The FPI, in the meeting with Biazon, also submitted other recommendation to the BOC on how it could stop smuggling.

“We submitted to him the resolution passed by the 1st Anti-Smuggling Summit together with the list of our recommendations divided into those implemented and those wanting implementation,” Arranza said.

He said the BOC takes seriously the recommendations of the domestic manufacturers since they are the most adversely affected sector of the economy by smuggling.