P100B a year lost to technical smuggling

[mazdamazda]

Just read the other day, the WTO is claiming that there is a discrepancy between their records of Philippine imports versus the one recorded by the BOC.

The reason? Technical smuggling or the undervaluation and/or misclassification of imported items.

At fault? Partly the BOC... but mostly it is the businesses that import goods.

[BlueBimmer]

dami...sa 168 mall n divisoria mall pa lang dami ka na makikita na smuggled goods...

[mazdamazda]

To add, two petroleum importers have been charged recently due to non payment of P30M in duties & taxes:

2 oil importers face tax raps
By Edu Punay
The Philippine Star 04/23/2007

The Bureau of Customs (BOC) has uncovered the apparent technical smuggling of gas oil imports by two importers allegedly engaged in the undervaluation of their shipments.

Customs Deputy Commissioner Reynaldo Umali said they are set to file charges of violation of Tariff and the Customs Code of the Philippines against Andan Enterprises Inc. and Mawab Resources Inc. after the BOC intelligence and investigation service found that the two importers did not pay P37 million in duties and taxes.

Investigation conducted by BOC intelligence officer Eric Albano showed that Andan had wrongfully declared at $286.05 per metric ton the value of its three entries of imported gas oil from the Taiwan-based Formosa Petrochemical Corp. It was learned the average value of imported gas oil amounts to over $500 per metric ton.

In his report, Albano said the value used by Andan was substantially low compared to the values used by other firms like the Oilink International Corp., which imports the same commodity from the same country of origin at $516.97 per metric ton.

"It must be stressed that aside from Oilink, the importation of Total Corp. used a much higher value of US$ 536/MT for the commodity gas oil coming from the same country of origin," he said.

Albano said Andan Enterprises had gotten away with over P11 million in unpaid duties and taxes by undervaluing its shipments. He said a similar case was discovered in the previous gas oil imports of Mawab from Korea.

Customs records showed that Mawab declared the value of its gas oil imports earlier this year at $344 and $286.05 per MT for its five entries that came in two shipments.

"Similarly, their shipments were found to be grossly undervalued in contrast to the previous importation of gas oil from Korea by Petroleum Inc. which used the value $653 per metric ton last year," Albano noted.

He further revealed said Mawab’s undervaluation cost the government some P25 million in unpaid taxes and duties.

Albano has recommended that the Customs district collector demand additional payment of duties and taxes, including penalties and surcharges, from Andan and Mawab, the importers of Gasoil and both operating in Mariveles, Bataan.

Citing the Tariff and Customs Code, and other pertinent laws, Albano said oil importers Andan and Mawab may be held liable for technical smuggling.

[ghosthunter]

Just read the other day, the WTO is claiming that there is a discrepancy between their records of Philippine imports versus the one recorded by the BOC.

The reason? Technical smuggling or the undervaluation and/or misclassification of imported items.

At fault? Partly the BOC... but mostly it is the businesses that import goods.

and how did they get that value?... of P100B and how does that compare to the amount of money that goes into corruption practices in the rest of the government? ... You can't blame businesses who undervalue their products because the government is already taxing honest people and companies out of business.

[mmanson]

wow.that is a pretty hefty amount of money that our country is losing right now. i guess that's why there are a lot of good accountants in private sectors

[mazdamazda]

and how did they get that value?... of P100B

The declared value of exported goods from other countries to the Philippines versus the value of declared imported goods recorded by the Bureau of Customs. Then from there, compute the lost duties & taxes due to undervaluation & misdeclaration.

and how does that compare to the amount of money that goes into corruption practices in the rest of the government? ...

It is the same. People always say that *only* the government is corrupt but fail to see that some business out there are also withholding money that is due the Filipino people.

You can't blame businesses who undervalue their products because the government is already taxing honest people and companies out of business.

Why can't I?

I pay my taxes religiously while some businessmen can get away with this? It is bad enough that some businesses already misdeclare their net income/loss then this? Another thing, the influx of artificially CHEAP imported items (since they were smuggled) is killing our local industries. Think about it.

[oldblue]

and how did they get that value?... of P100B and how does that compare to the amount of money that goes into corruption practices in the rest of the government? ... You can't blame businesses who undervalue their products because the government is already taxing honest people and companies out of business.

that doesnt justify that importers should break the law. it's this mentality that makes everything worse in all of us. pag gumagawa sila ng masama (accdg. to negative media), gagawa din kami ng masama.

ilan lang ba naging corrupt sa govt. natin, 10-20%, pero importers karamihan gagawa ng kalokohan. we must not forget that from time to time, na-refresh ang batch ng custom duty officers, yun mga baguhan, mga idealistic na bata na fresh from the academy. these new batch of grads will really enforce actual tariff duties pero syempre used to na ang importers by paying low taxes kaya yun iba sa kanila pa ang magpapatubo ng sungay sa mga bago batch. let's face it, if our govt. is really corrupt as in 70% above, we should be no better than Africa or War Zone Afghanistan and Iraq. I believe otherwise.


________________________________


here's one thing that really puzzles me. since importers can really offer low-priced products coming from our neighbors (by misdeclaring taxes), that will mean lower prices of goods and commodities. hence, lower standard of living and affordability for the masses. pero bakit ang hirap hirap pa din ng karamihan ng kababayan natin?

bec. low prices do not mean it's always good. cutthroat competition kills legit businesses. legit businesses that can pay the right amount of salary for pinoys. kahit na tig 1k lang ang DVD player ngaun, mayroon P18 na isang kilo ng bigas from China, hirap pa din ang pinoy kasi wala nga makuha ng trabaho.

and how 'bout the middle working class as sir *mazdamazda pointed out, our taxes are withheld even before we work for the present month. even if may corruption sa govt. and ayaw na di namin magbayad ng tax katulad ng katwiran ng importers, we are helpless about it kasi nga kuha na kagad ng gobyerno.

there is a saying that we work from January to May just to pay our tax dues. this is true kasi 30% of our income are taxes. so I guess, mas maswerte talaga ang mga importers bec. they can choose not to pay the right amount of taxes. and the corruption issue is a convenient excuse for them to be symphatized on. yun nga lang pano naman kami mga regular taxpayers?

[CVT]

Root cause? Corruption, whether 10% or 70% ng mga tao sa gobyerno, corrupt.

Nalalagyan ang mga iyan, kaya ang lakas ng loob ng mga smugglers na mag undervalue ng mga goods na ipinapasok..... Kahit nga pakikisama o kahiyaan na lang,- corruption pa rin.....

Sana nga ang mga bagong pasok ay hindi malunod sa sistema natin at maging mga corrupt din....

Sana ang motto nila...."Huwag ninyo kaming susubukan....."

2501:showoff:

[mazdamazda]

Root cause? Corruption, whether 10% or 70% ng mga tao sa gobyerno, corrupt.

Nalalagyan ang mga iyan, kaya ang lakas ng loob ng mga smugglers na mag undervalue ng mga goods na ipinapasok..... Kahit nga pakikisama o kahiyaan na lang,- corruption pa rin.....

Sana nga ang mga bagong pasok ay hindi malunod sa sistema natin at maging mga corrupt din....

Sana ang motto nila...."Huwag ninyo kaming susubukan....."

2501:showoff:

Root cause is the government?

The root cause is the Filipino... period.

Both the government & the private sector has a part in this. If those in the private sector wouldn't give a bribe (like our company) then this wouldn't flourish.

[nicolodeon]

Root cause is the government?

The root cause is the Filipino... period.

Both the government & the private sector has a part in this. If those in the private sector wouldn't give a bribe (like our company) then this wouldn't flourish.

Agree.

IMO, values ang root. Aside from the private & public sector, sa households/homes may corruption din. For example, ilan sa atin ang nagbi-bribe ng anak to perform well in school? Ako, I admit to this - and I know I had to stop it kaya I did. Ilan sa atin ang kumukumsyon sa office purchases sa offices e.g. "Pre, ikaw i-recommend kong supplier ha? Basta, bahala ka na sa 'kin." Kahit sa mga churches or religious groups eh may corruption din.

Kung gaano kataas at kataba ang puno, at ka-dawag ng kanyang mga sanga at dahon eh mas malalim at mas malawak ang ugat. Ngayon, ang puno eh hindi mabubuhay ng walang ugat - at hindi lang naman iisa ang species or klase ng puno: nuknukan ng dami.