Olongapo SubicBay BatangGapo Newscenter

Saturday, March 08, 2008

LTO to identify 'first' owners of smuggled luxury vehicles

THE House committee on good government has ordered the Land Transportation Office (LTO) to submit a list of first-time owners of luxury vehicles believed smuggled through the Bureau of Customs (BOC) Port of Cebu.

Cebu City Rep. Antonio Cuenco said that second, third or fourth owners may claim they were buyers in good faith and escape prosecution.

Cuenco said they will just invite or summon the first owners because they are presumed to be the ones who imported the vehicles and are the ones who must pay for any tax dues.

The congressman also agreed with Rep. Mitos Magsaysay (Zambales) to ask the BOC to stop issuing demand letters to “buyers in good faith” to pay the tax deficiency, because the Presidential Anti-Smuggling Group (PASG) is allegedly using this to harass vehicle owners.

Magsaysay made the comment after Customs Commissioner Napoleon Morales admitted that he issued demand letters to vehicle owners. While buyers in good faith are not criminally liable, Morales has said, they must pay because under the Tariff and Customs Code, the tax deficiency is attached to the vehicle, regardless of how many times its ownership has changed.

Magsaysay, however, said that using Morales’ demand letters, the PASG, headed by Undersecretary Antonio Villar Jr., ran after vehicle owners who had no idea they had bought smuggled units.

One of the buyers in good faith is Rep. Nerissa Soon-Ruiz (Cebu Province, 6th district) who bought a BMW 2006 model from a legitimate car dealer.

“Why should customs insist on collecting the tax deficiency from the innocent buyers when customs authorities are also liable for the undervaluation of goods?” Magsaysay said.

A customs insider said that in Cebu alone, two businessmen reportedly collect money from alleged importers of used and new vehicles and remit these to the PASG in Manila.

Cuenco said that the LTO has enough time to conduct further investigation and identify the first owners because the next hearing of the committee will be after their recess in April.

Rep. Pedro Romualdo, committee chairman, said that calling the first owners could also speed up the identification of the “influential” and “dangerous” smugglers in Cebu who are said to be close to Malacañang. EOB - SUNSTAR

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