BOC urges voluntary payment of duties, taxes for imported goods
After seizure of P2.8B luxury vehicles
THE Bureau of Customs (BOC) is enjoining owners or claimants of imported goods covered with Letters of Authority (LOA) to settle the correct duties and taxes through voluntary payment instead of a Warrant of Seizure and Detention (WSD).
Section 224 of the Customs Modernization and Tariff Act (CMTA), allows the owners/claimants to execise this optiom within 15 days from the implementation of the LOA. Commissioner Rubio stated that a voluntary payment will spare the government and the concerned parties the complicated and tedious process of Warrant and Seizure proceedings while the imported goods or articles are being held and exposed to government forfeiture.
He cited Section 5 of Customs Administrative Order (CAO) 10-2020, which allows the immediate release of the goods by simply presenting proof of payment of correct duties and taxes for the goods/articles subjected to LOA and proof of local purchase by the owners/claimants.
“If the claimant cannot produce the proof of payment of correct duties and taxes by the original importer despite diligent efforts to produce the same, he may voluntarily offer to pay the duties and taxes due on the imported items,” Rubio said.
“This is available to claimants who can prove that they are bonafide purchaser of the imported goods,” the commissioner added.
The BOC chief issued a notice that payment of the correct duties and taxes can be made voluntarily in light of the successive BOC operations leading to the seizure of P2.8 billion worth of high-end vehicles, including brands such as Ferrari, Porsche, and McLaren, from warehouses in Makati, Taguig, Parañaque, and Pasay this month.
Agents from the Customs Intelligence and Investigation Service (CIIS) went to the luxury car seller’s address to serve a LOA to the shop owner or representative.
The owners, lessees, lessors, occupants, representatives, or any parties responsible for the warehouses and vehicles have 15 days from the receipt of the LOAs to submit the necessary documents proving that all duties and taxes have been paid correctly.
“Registered owners of imported vehicles who can prove that they are bonafide purchasers must settle the customs duties and taxes within the 15-day period,” said Rubio.
To reclaim a seized vehicle, the registered owner must provide substantial evidence that their luxury car was purchased locally, did not cause nor participate in its importation, and was unaware of any deficiencies of the original importer in paying the required customs duties and taxes.
Failure to provide valid documentation will result in charges for violating the Customs Modernization and Tariff Act.
Deputy Commissioner for Intelligence Group Juvymax Uy said the voluntary payment is aimed at collecting more tax revenues in favor of the government and at the same time protect the interests of innocent parties.
“This proactive approach will empower the Bureau to significantly bolster its revenue collection efforts while effectively safeguarding seized goods from deterioration pending seizure and forfeiture proceedings,” he said.
