Customs to place industrial generators on auction block
The Bureau of Customs is set to auction off 24 imported industrial power generators that were seized in Bataan province last year to raise additional revenue for the government.
Customs Commissioner Napoleon Morales said the importer of the generators, National Petrochemical Corporation Alliance (NPCA), failed to pay about P300 million in tariffs and duties.
“We have no option but to sell the generators immediately through auction to get additional revenues,” Morales said.
He said the NPCA initially wanted to redeem the generators but backed out upon learning that it would have to shell out P300 million.
NPCA is an Iranian company associated with plastics king William Gatchalian.
NPCA imported the generator sets for its Bataan petrochemical plant from Aggreko Singapore Pte. Ltd., which delivered the equipment in three shipments that arrived in February, March and May last year.
But customs examiners suspected the generators to have been misdeclared and undervalued.
Morales said the importer had used tax exemption certificates from the Department of Finance on the pretense that the generators would only be displayed during a 17-week exhibit at their warehouse at PNOC Park.
However, customs agents later verified that there was no exhibit and that the generators were actually for sale.
“This is a new scheme to avoid the payment of taxes,” Morales said, adding that the company had succeeded in selling 13 generators.
Operatives of the bureau’s Intelligence and Enforcement Group under Customs Deputy Commissioner Celso Templo conducted a raid at PNOC Park in Mariveles, Bataan, and seized the generators last year.
A DOF Revenue Express Lane officer had granted the tax exemption on the condition that the Agrekko Generators would be used solely for exhibition purposes and would be re-exported after the exhibit. The consignee was also required to post a re-export bond equivalent to 150 percent of the assessed duties and taxes.
“The certificate of exemption was used in the filing of the import entry to clear and release the shipment,” Morales explained.
He said Port of Subic Collector Marietta Zamoranos conducted a hearing to give the importers a chance to air their side.
“They (importers) filed a motion for reconsideration but the motion has been denied,” he said.
NPCA officials, however, said the company could not be accused of smuggling because the generators were meant to be temporarily used for a polyethylene plant in Bataan before being re-exported to Singapore.
They also argued that NPCA belonged to a Board of Investments-registered pioneer industry which “enjoys a six-year tax holiday and tax exemption on capital equipment, including unlimited consignment of capital goods for its temporary use.” By Margaux Ortiz - Philippine Daily Inquirer
Customs Commissioner Napoleon Morales said the importer of the generators, National Petrochemical Corporation Alliance (NPCA), failed to pay about P300 million in tariffs and duties.
“We have no option but to sell the generators immediately through auction to get additional revenues,” Morales said.
He said the NPCA initially wanted to redeem the generators but backed out upon learning that it would have to shell out P300 million.
NPCA is an Iranian company associated with plastics king William Gatchalian.
NPCA imported the generator sets for its Bataan petrochemical plant from Aggreko Singapore Pte. Ltd., which delivered the equipment in three shipments that arrived in February, March and May last year.
But customs examiners suspected the generators to have been misdeclared and undervalued.
Morales said the importer had used tax exemption certificates from the Department of Finance on the pretense that the generators would only be displayed during a 17-week exhibit at their warehouse at PNOC Park.
However, customs agents later verified that there was no exhibit and that the generators were actually for sale.
“This is a new scheme to avoid the payment of taxes,” Morales said, adding that the company had succeeded in selling 13 generators.
Operatives of the bureau’s Intelligence and Enforcement Group under Customs Deputy Commissioner Celso Templo conducted a raid at PNOC Park in Mariveles, Bataan, and seized the generators last year.
A DOF Revenue Express Lane officer had granted the tax exemption on the condition that the Agrekko Generators would be used solely for exhibition purposes and would be re-exported after the exhibit. The consignee was also required to post a re-export bond equivalent to 150 percent of the assessed duties and taxes.
“The certificate of exemption was used in the filing of the import entry to clear and release the shipment,” Morales explained.
He said Port of Subic Collector Marietta Zamoranos conducted a hearing to give the importers a chance to air their side.
“They (importers) filed a motion for reconsideration but the motion has been denied,” he said.
NPCA officials, however, said the company could not be accused of smuggling because the generators were meant to be temporarily used for a polyethylene plant in Bataan before being re-exported to Singapore.
They also argued that NPCA belonged to a Board of Investments-registered pioneer industry which “enjoys a six-year tax holiday and tax exemption on capital equipment, including unlimited consignment of capital goods for its temporary use.” By Margaux Ortiz - Philippine Daily Inquirer
Labels: customs, generators, Subic Bay
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