Olongapo SubicBay BatangGapo Newscenter

Monday, November 05, 2007

BOC set to sell, not smash, luxury vehicles

IN AN effort to meet its collection goal for the year, the Bureau of Customs asked for and has eceived MalacaƱang's approval to sell the smuggled luxury vehicles the agency seized, instead of smashing them.

"I asked the President if [the BOC] could sell the vehicles, instead of destroying them, because we are in need of additional revenues," Customs Commissioner Napoleon Morales told reporters. "The primordial function of Customs is to collect revenue for the government."

Morales said that, after the President agreed to his request, the BOC placed the luxury vehicles on the list of forfeited assets to be sold.

According to Morales, he is under the impression that MalacaƱang may never again order the destruction of seized vehicles after the BOC received the go-ahead to sell the high-priced items.

Hoping to put teeth into the government's antismuggling drive, President Gloria Macapagal-Arroyo earlier ordered the destruction of smuggled luxury vehicles. Three months ago, 18 such vehicles were destroyed at the Naval Supply Depot in Subic Bay Freeport.

At that time, critics slammed the move, saying the government should have instead sold the vehicles to make money out of them. The luxury vehicles, worth millions of pesos, were all reduced to metal scrap worth an estimated P150,000.

Morales said there were 17 other smuggled luxury vehicles that were supposed to be destroyed but were put on the BOC's auction block. One was sold last month.

The luxury vehicles include, among others, brand new Nissan SUV, Audi, BMW and Cadillac units, whose floor prices range from P2.3 million to P6.5 million.

Morales said he was hoping to sell all the vehicles before the end of the year to boost the BOC's revenue collection.

The Customs chief said the BOC had set the floor prices of the vehicles, which include proper excise tax and duty, to almost match their regular market prices. This was in response to criticisms and suspicion that the smugglers would get to retrieve their vehicles through the BOC auctions.

"If smugglers indeed are the ones participating in the auctions, then they should pay what is necessary if they want to get the vehicles," Morales said. "The floor prices we set were based on market prices."

The BOC, the second biggest revenue earner for the government, after the Bureau of Internal Revenue, is tasked to collect P228.2 billion this year. The amount is consistent with the government's goal of limiting its budget deficit to P63 billion from last year's P64.8 billion.
By Michelle Remo - Inquirer

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