Subic Improves Procedures to Curb Smuggling of Imported Cars

Asia Pulse - As part of its effort to curb the smuggling of imported motor vehicles here, the Subic Bay Metropolitan Authority (SBMA) has implemented an improved and more efficient method of documenting movements of these vehicles.

A joint effort of the Import-Export Processing Division and the Seaport Department, the implementation of the said system was prompted by the alleged smuggling of 16 luxury vehicles in March 2007 valued at P80 million (US$1.7 million).

"Smuggling happens when goods exit from the Freeport to the customs territory without proper documentation, then that becomes unauthorized, meaning, they have not paid taxes to the Bureau of Customs (BOC) and secured gatepasses from the Seaport [Department]," said Atty. Red Tuazon, Import-Export Processing Division Chief.

Tuazon said steps have been undertaken to implement initiatives to strengthen controls on the importation of motor vehicles since March 7, immediately after the seizure of the said luxury vehicles.

He said identification of the model of motor vehicles is now required of importers for better monitoring of importation.

Auditors have also been hired to reconcile liquidation reports and books of the locators importing motor vehicles against ImpEx records. Physical inventory has also been conducted on more than 30 locators.

In addition, the Seaport Department also requires the submission of the Value Reference Information System Clearance from the Bureau of Customs before a gatepass from the SBMA is issued.

This will ascertain that proper tax values are assessed and collected and government revenues are protected.

"So far, locators involved in trading motor vehicles have been very cooperative. And also, these initiatives have not affected trade efficiency in the Freeport. So far, we haven't encountered any complaint like delay in shipments or inefficiency in the system," Tuazon said.

He further explained that SBMA implements a risk management system wherein goods being imported into the Freeport are classified under green, yellow and red lanes in accordance with best customs practices in other jurisdictions.

Moreover, the Freeport is equipped with the Automated System for Customs Data (ASYCUDA), a software that provides a modernized system for customs and cargo control and allows the online processing of import and export declarations and other customs-related procedures.

The ASYCUDA integrates the computation of duties and taxes payable, the consolidation of various forms of payments and more importantly, the elimination of tedious bureaucratic processes that cause delays and inconveniences among port users.

Tuazon explained that the goods classified under the green lane are those that do not need physical inspection. These are usually companies engaged in the manufacturing business such as Wistron, Sanyo Denki, Hitachi and the like.

Goods that fall under the yellow lane require document verification or table inspection of import documents while shipments that fall under the red lane are those that not only require document inspection but physical inspection as well. These are usually companies engaged in the trading business such as auctioneers.

"In this system, we can concentrate on the small minority who are more likely to violate rules and regulations. If shipments are in the red lane, it means that there is a higher risk of violation that is why they undergo physical inspection," he said.

Tuazon further said that they have already delisted or trimmed down the number of companies engaged in importing vehicles from a previous high of 80, down to about 35 companies.

He admitted that the system may not be perfect but is open for improvements.

One improvement being eyed is the software upgrade from Asycuda++ to Asycuda World, which includes the utilization of warehousing and transshipment modules of the Asycuda.

(PNA)