Antismuggling body sees P6.8B in revenues

The Presidential Anti-Smuggling Group expects to collect at least P6.8 billion in customs revenues from oil, vehicles and other commodities smuggled through the country’s various ports, the agency’s reports to President Macapagal-Arroyo showed.

“In the brief time that the PASG is in existence, it has achieved some degree of modest but meaningful success, thanks largely to your patronage and the show of political will that sent a strong signal to the public that this time, we really mean business,” Undersecretary Antonio Villar Jr., PASG chief, told the President in a letter last month.

Villar described the success of the PASG as “smashing” because it pounced on “hitherto untouchable car and oil smuggling, two vicious illegal activities that were committed left and right before the very noses of the authorities concerned.”

Ms Arroyo created the agency through Executive Order No. 624 that she signed on May 21, 2007.

Villar said PASG’s operations “did not only bring to fore the evil of power but likewise, the way laws and rules and regulations were circumvented to perpetrate corruption in the highest order.”

The haul includes oil that were not properly taxed and kept in the tanks of the PTT (a subsidiary of Petroleum Authority of Thailand), Tri-Solid Movers and Oillink International Corp.; 343 motor vehicles seized at Port Irene (Cagayan), Subic Bay Freeport (Zambales), Port of Cebu, yard in Mandaue City, showroom in Quezon City, auto shop in Makati City and a warehouse in Imus, Cavite; and 167 motorcycles and spare parts and engines for 400 motorcycles in Valenzuela City and Imus.

The PASG also seized 12 container vans of used clothing in the Port of Cebu, Port of Manila, Manila International Container Port and Port of Davao.

It also seized shipments of rice, vegetables, textiles, pyrotechnic products, and computer parts and accessories.

A PASG report said that of the P6.8-billion revenue projection, at least P743.4 million in duties and taxes had been paid as of January this year. This came largely from PTT’s P450 million and Tri-Solid’s P302 million payments.

PTT and Tri-Solid, both based at the Subic Bay Freeport, were expected to pay the Bureau of Customs maximum penalties of P3.15 billion and P2.115 billion, respectively, one of the reports showed.

The agency estimated the value of 343 seized cars at P336.04 million, which could be earned if these were auctioned off.

The PASG has filed at least six cases and prepared 79 more cases in relation to violations of tariff and customs laws. The cases involved 12 BoC officials and employees, and 12 brokers.

Villar said the PASG has designed a “more comprehensive operation” against oil smuggling.

This was done to compensate for the possible losses that the national government may incur in case a bill exempting oil importation from the expanded value added tax is approved.

Villar said these efforts would not have been possible if not for the cooperation of the Federation of Philippine Industries, Sugar Regulatory Commission, Chamber of Automotive Manufacturers of the Philippines and Cebu Auto Dealers Association.
By Tonette Orejas - Inquirer Central Luzon Desk