BoC goes after sugar smugglers

Apart from the Cebu port, Alvarez said he has instructed the special team to monitor the sugar shipments that particularly arrive in the Port of Subic, Zambales.

Sugar smugglers will find this news a little bittersweet.

The Bureau of Customs (BoC) has created a special team to look into the influx of illegal shipment of sugar products.

Customs Commissioner Angelito Alvarez said the newly formed group is tasked to determine the veracity of reports about rampant sugar smuggling that has affected adversely hundreds of local sugar planters.

“Sugar smuggling is one of our grave concerns right now. We have received reports about it,” Alvarez confirmed at the sidelines of the inspection of seized petroleum products recently.

He said he has basis to believe the reports “so I formed a group.” It is made up of Customs officials from the Intelligence and Enforcement Group.

The National Federation of Sugar Planters of the Philippines has reported rampant sugar smuggling in Cebu, based on the successive operations of joint operatives of the Sugar Anti-Smuggling Office (SASO), the Philippine National Police, the Sugar Regulatory Administration, and the BoC in the province.

The report, however, is being contested by Ronnie Silvestre, BoC district collector for the Port of Cebu, who denied the existence of sugar smuggling in his area of responsibility.

Based on initial estimates, more than 300,000 metric tons of sugar is spirited into the country by smugglers annually to the domestic market.

This amounts to around P9 billion in lost revenue to the industry, at P1,500 per 50-kilo bag.

Apart from the Cebu port, Alvarez said he has instructed the special team to monitor the sugar shipments that particularly arrive in the Port of Subic, Zambales.

Alvarez said he also got reports that some Customs officials may be involved in the sugar smuggling, but refrained from indicting anyone, pending investigation by the special team.

He said part of the task of the team is to unmask any unscrupulous Customs personnel or members of the Sugar Regulatory Administration (SRA) who are allegedly involved in the illegal activities.

Alvarez said the crackdown on sugar smugglers is a priority, following mounting reports that reached his office. “Based on these leads given, we immediately pursue it. As the saying goes, when there is smoke, there is fire.” By RAYMUND F. ANTONIO - mb.com.ph

Customs, Subic adopt common gateway system

The Customs bureau and the Subic Bay Metropolitan Authority have agreed to enforce a gate management system to prevent smuggling at the Subic Freeport.

Under the new system, which takes effect on July 15, cargo trucks going in and out of the free port will bear automated gate passes for easy identification, the agencies said.

No truck will be allowed to leave and bring out its cargo if it has not pais duties and taxes to the Customs or any port and wharfage charges to the Subic port authorities.

“There will be no place for smuggling or irregularity or inefficiency or lapses as far as the transfer of documents and shipments are concerned,” Customs deputy commissioner Alexander Arevalo said.

The cargo will be jointly examined by the representatives of SBMA and Customs in the presence of the importer. Both agencies will be liable in case of technical smuggling, officials said.

The system has already been pilot-tested with oil firm PTT Philippines and Microbase Transport and Equipment Inc. using the electronic gate passes.

The system is expected to remove an irritant between Customs and Subic following charges that oil products and second-hand vehicles are being squirreled into the country through the free port.

Early this year, Customs commissioner Napoleon Morales ordered a crackdown on blue plate cars that have been sold outside the free port.

Morales also created Task Force “Oplan Subic Blue Plates” to recover 184 motor vehicles that have been brought in by importers who exploit the loopholes in the law creating the Subic free port.

“Blue plates” are tax-exempt vehicles that enter the Port of Subic and can can be brought out of SBMA territory for official business but must be returned to the zone after 15 days. By Joel Zurbano - manilastandardtoday.com

Customs execs feud over Subic

Two Customs officials assigned to the Port of Subic are locked in a dispute over control of the issuance of gate passes for those bringing imported goods in or out of the free port.

The dispute erupted after Customs collector Marietta Zamoranos issued a special order removing from deputy collector Errol Albano the function of signing gate passes and issuing permits for temporary transfer of goods from the Subic free port.

Zamoranos designated a Customs personnel, Belma Limbaga, to perform the task that used to be Albano’s.

But Albano refused to heed Zamoranos’ order and sought the opinion of the Customs legal service department which ruled in his favor.

Invoking the legal department’s opinion, Albano issued a memorandum for Customs Commissioner Napoleon Morales to nullify Zamoranos’ order, which the deputy collector said violated Executive Order 127.

On May 22, Morales issued an endorsement letter ordering Zamoranos to strictly comply with the mandate of Executive Order 127 expressly vesting upon Albano, as the deputy collector for operations, the supervision over the release of cargos within the Subic Customs zone.

A week later, Morales reiterated his order for Zamoranos to comply and return to Albano the authority to issue gate passes. Morales also asked Zamoranos to submit her position paper on the issue.

But Zamoranos countered with a memorandum for Morales, stating that she “may not comply with the mandate of EO 127 as directed by the commissioner.”

But she explained that she was not disregarding the order of the commissioner and that she had valid and legal reasons not to comply with Morales’ directive.

The principal issue that was resolved by the legal service is the validity of Subic special order, which “does not automatically mean that the deputy collector of operations is the proper person to exercise the various functions,” Zamoranos said.

Zamoranos cited Administrative Order 296 issued in October 1996 which created the Customs clearance area and vested it with the function to issue gate passes inside the freeport zone.

Zamoranos said she would abide by the legal services department’s opinion as endorsed by Morales “but with respect only to the invalidity of the Subic special order pending submission and eventual resolution of our position paper to defend such orders.”

Zamoranos justified her action on Albano, saying that as a district collector, she is the executive officer of the port and has command responsibility over the effective discharge of the bureau’s mission in his jurisdiction such as collection of rightful duties and taxes, prevention of smuggling, and trade facilitation and promotion of a healthy business climate.

Zamoranos, in her memorandum for Morales, said that she would assume the role of “exclusive signatory” of all gate-passes and permit for temporary transfer of imported goods at the Subic free port.

On July 2, Zamoranos released another memorandum as “supplemental” to her earlier memo for the commissioner stating that AO 296 must prevail over EO 127.

“AO 296 is a latter issuance than EO 127,” Zamoranos said.

She further explained that EO 127 is a general law reorganizing the Finance Department and defining its duties and functions including the Bureau of Customs while AO 296 is a special issuance created specifically to meet the needs and requirements of the various economic and free port zones.

Last Friday, Albano positioned himself inside the gate pass issuance office but brokers opted to secure cargo passes directly from the office of Zamoranos who posted a memorandum directing all importers and exporters to have their gate passes processed in her office. By Cecille Garcia - Journal online

Subic steps up drive against smuggling

SUBIC BAY Freeport: It seems like officials of the Subic Bay Metropolitan Authority (SBMA) had learned their lesson after the alleged attempt by suspected drug lord Anthony Ang to smuggle some P14 billion worth of shabu last year.

Over the weekend SBMA Administrator Armand Arreza said they have already finished the first phase of added security at its seaport to closely monitor incoming and outgoing vessel in an effort to prevent smuggling in this Freeport.

Some of this security features, according to Arreza, include surveillance equipment like radars and closed circuit television CCTV system that will provide 24/7 monitoring of Subics piers and docks.

He added that by providing cameras at all ports of Subic, SBMA through its seaport department could now easily monitor the movement of all vessels.

SBMA, according to Arreza, has also implemented the Vehicle Management Tracking System (VMTS) that requirer vessels to have a GPRS system in order for them to enter Subic waters.

Arreza explained that once a vessel is suspected to have departed without notice, the protocol is to immediately contact the SBMA Harbor Patrol or the Philippine Coast Guard to intercept the boat.

Before we have to rely on the captains of each ship to inform us their location and who they are, now if they have a GPRS we can easily monitor where they are and we can identify the vessels in an instant, Arreza explained.

Close monitoring is basically our key requirement. Thats why we want a modern maritime set-up, said Arreza, who previously outlined the same plan to the House committee on dangerous drugs.

Unfortunately, according to Arreza, the system (VMTS) was only turned over to SBMA in June 2008, a month short of the shabu smuggling incident.

The suspected drug lord in one of the biggest drug hauls on record, Anthony Ang, remains at large and is the subject of a massive manhunt by the Philippine Drug Enforcement Ageny, Presidential Anti Smuggling Group and other government agencies. --Anthony Bayarong - Manila Times

Smuggling of 409 used vehicles out of Subic foiled

THE presidential anti-smuggling group has foiled an attempt to smuggle some 409 second-hand vehicles worth more than P200 million out of the Subic free port zone.

Group head undersecretary Antonio Villar Jr. said a Customs official in Subic yesterday tried to facilitate the release of the vehicles, which included Korean and Japanese models Delica and Pajero.

“It is legal to import vehicles inside the free port, but when you bring these vehicles out of the free port, then that is smuggling,” Villar said in a telephone interview.

He said Customs deputy collector Erol Albano signed the release orders for the used vehicles, saying they were to be brought to Hong Kong aboard m/v Han Lord.

“He does not have the authority to sign those papers. It is only the Subic Bay Metropolitan Authority that can do that, and they have to get our approval first,” Villar said.

“When we contacted Starwin Trading Co., the consignee in Hong Kong, they denied the shipment, so we suspect these vehicles will be brought to other areas within the country—probably in Cagayan [Port Irene]. We will use this as basis to file appropriate charges against Albano,” he said.

Villar said a Pakistani locator based in the free port zone, Peter Perouz, allegedly facilitated the processing of the documents for the vehicles for at least P90,000 a unit, while Albano reportedly charged P20,000 a unit.

Of the total number of vehicles, 221 were imported by Subic Shonan Corp., 59 by DCB Trading Inc., 15 by S.A.H. Platinum Inc., nine by Phil-Pan Ventures Inc., eight by Avira Export and Import Corp. and Lucky Dale Subic, and four by Northeast Freight Forwarders Inc. into the free port. Joyce Pangco Pañares - Manila Standard Today

Councilor's wife eyed in Subic smuggling case

At least P5 million worth of imported cigarettes smuggled out of the Subic Bay Freeport allegedly by a wife of a Pampanga politician was seized Tuesday.

Mei Jocson, the suspected consignee, appeared at the Presidential Anti-Smuggling Group-Task Force Subic (PAGS-TFS) office in Subic also on Tuesday to admit ownership of the 132 boxes, said Superintendent Manuel Obrera, PASG-TFS chief of staff.

But Councilor Benny Jocson of Mabalacat, Pampanga, denied that the contraband belonged to his wife.

"Those are not hers. She has stopped doing business," the official told the Philippine Daily Inquirer by phone. He confirmed that she came to the PASG-TFS office but only to help a certain Alvin Guzman.

Councilor Jocson did not say how Guzman was involved in the case.

The 46 boxes of Black Devil, 26 boxes of Kent Blue Futura, 30 boxes of Kent Silver Neo and 30 boxes of Mild Seven Lights had been loaded into a Mitsubishi L-300 van and two Hyundai Grace vans.

These got past the Morong Gate of the freeport. PASG operatives stopped the vehicles at the Morong town proper at past 7 a.m.

Only two of the drivers, Alvin Mamangon and Ramon Santos, were arrested. The third driver escaped, Obrera said.

The drivers failed to show gate passes from the Subic Bay Metropolitan Authority and clearances from the Bureau of Customs, Obrera said.

He said the lack of proper documents indicated that the contraband was possibly bought from a freeport-based importer.

Obrera ruled out reports that the cigarettes were bought from duty-free shops. A law on the operations of duty-free shops inside Subic and the Clark Freeport in Pampanga limits individual purchases at $25 daily. By Tonette Orejas - Inquirer Central Luzon Desk

PASG nets P12-billion additional taxes

Subic Bay Freeport: Presidential Anti-Smuggling Group (PASG) head Antonio Villar Jr. orders its campaign against smugglers intensified on Monday after netting more than P12 billion in additional taxes, duties and illegal goods. Likewise, he warned his men that engaging in illegal activities would translate to criminal and administrative charges.

“Spare no one,” Villar told retired PASG Director for Operations Chief. Supt. Danilo Mangila, PASG-National Bureau of Investigation (NBI) Special Operations Group and PASG-Task Force Subic Director Atty. Edmund Arugay and Intelligence Director Guillermo “Jaih” Francia in a meeting.

He added that smugglers are using all their connections in government to smuggle in goods in the country.

“I did it to my deputy director in Zamboanga last week, There is no reason for me to spare you should you deviate from the normal course of our mandate,” Villar said, referring to deputy director Joseph Gonzales whom he ordered arrested and charged for effecting the release of a seized container van loaded with plastic toys.

Arugay has already tapped the help of the NBI to further augment his men in Subic while Francia has asked the help of the Customs intelligence for reinforcement.

Villar also warned his men that criminal and administrative charges would be waiting for them in case they are found in cahoots with smugglers and other illegal activities.-- Anthony Bayarong - Manila Times

Chinese honey importers used Olongapo-Subic to fake source of goods

Federal agents said they tracked Chung's honey from a producer in Henan, China, to Olongapo City in the Philippines. There, after false documentation was created and the contents of the drums relabeled as a product of the Philippines, the honey was quickly shipped again -- from the site of the old U.S. naval base at Subic Bay to Seattle and Tacoma.

Government coffers were cheated out of more than $3 million by two Bellevue men who illegally laundered hundreds of thousands of pounds of Chinese honey to avoid paying import fees, federal authorities say.

Some of the seized shipments have been found to be contaminated with banned antibiotics, investigators say, raising concerns about tainted honey possibly making it onto store shelves.

The two longtime brokers of foreign honey, Chung Po Liu and Robert Coyle, falsely claimed that the shipments in question were from Thailand or the Philippines, Assistant U.S. Attorney Darwin Roberts states in court documents filed this week in Seattle.

For more than a year, Special Agents Thomas Penn and Bram Urbauer of Immigration and Customs Enforcement have been investigating Chung, who owns Rainier Cascade and Evergreen Produce, and Coyle, who heads the Coyle Group.

A Seattle P-I investigative report published last week revealed how some honey importers are developing schemes to avoid paying stiff import tariffs on Chinese honey. The fees were imposed to keep the cheap imports from undercutting the meager profit margins of U.S. honey producers.

It's not illegal to import noncontaminated honey from China if the tariffs are paid, and no criminal charges have been brought so far against either man.

However, in what could be a prelude to an indictment, the federal government has filed forfeiture actions to seize Chung and Coyle's upscale homes. The government claims the houses -- located within a half-mile of each other -- "were used to facilitate the unlawful importation of honey from China."

Chung allegedly used his home office to place orders for the honey and wire funds to the Chinese manufacturers. Coyle is accused of writing checks from his home to fund the wire transfers.

"Various business records, documents and shipping records are being analyzed, and additional records are being obtained from overseas sources," said Emily Langlie, a spokeswoman for the U.S. Attorney's Office.

"Computerized records are also being analyzed," she said. "These are time-consuming processes that are required to meet a high legal standard."

Customs believes Chung was involved in at least 20 falsely labeled shipments to the U.S. between December 2005 and March 2008, each containing tons of honey. Had the shipments been accurately declared as Chinese, anti-dumping duties of more than $3.3 million would have been required.

The detailed paper trail the feds collected after search warrants were served on Chung and Coyle last spring documents the circuitous route the steel drums of honey took from China to the Pacific Northwest.

Federal agents said they tracked Chung's honey from a producer in Henan, China, to Olongapo City in the Philippines. There, after false documentation was created and the contents of the drums relabeled as a product of the Philippines, the honey was quickly shipped again -- from the site of the old U.S. naval base at Subic Bay to Seattle and Tacoma.

Another series of shipments from a different Henan honey producer was traced to two companies in Thailand, where the federal agents say it was similarly laundered and sent to the U.S.

Rainier Cascade claims another company, Loader Freedom and Custom Service Air of Bangkok, was responsible for several of the disputed honey shipments, according to court documents. But authorities say Chung has registered with the Food and Drug Administration as the manager and U.S. agent for the Bangkok company.

A customs agent who checked out the Thai company's facility last year reported in court documents that it was "a dilapidated building and not suitable for normal business practices."

The agent reported that the same was true for another Bangkok company, Na-Rich Overseas Ltd., which reported making another three shipments to one of Chung's companies.

Shipping papers and other records show that much of Chung's honey was eventually sold to Mike Ingalls, the owner of Pure Foods, a honey packer in Sultan.

Some shipments allegedly laundered in the Philippines were shipped to the Iowa-based Sioux Honey Association, one of the nation's biggest honey distributors under the Sue Bee label.

In April, Ingalls watched customs agents raid his business, seizing 66 drums of honey imported by Chung and Coyle. Ingalls has insisted the honey is Thai and defended Coyle as "a real white hat ... who has really fought against illegal honey imports for years."

The government is convinced the seized honey is really Chinese but has yet to show any proof of that allegation. Testing honey for its precise country of origin requires analytical sophistication that most honey experts believe doesn't exist in this country.

Documents seized when the search warrants were served on Chung and Coyle show how insidious honey smuggling is -- and that many of those involved knew some of the honey they were selling was contaminated with antibiotics that the FDA has banned in food products.

In a March 7, 2006, e-mail to Coyle and Chung, a Chinese honey seller named Wei Min Zhang discussed the presence of fluoroquinolones, an illegal antibiotic, in the honey he was handling.

He wrote to his U.S. clients, "There is definitely this problem. ... I'm worried whether the FDA or USDA may get involved. Our future shipments will definitely have this fluoroquinolones, and it may take a couple of years to improve."

Reached Wednesday, Coyle said his lawyer advised him not to comment on the federal investigation.

Chung's lawyer, John Lundin, said his client was told the honey he imported was produced in Thailand, shipped by Thai exporters, and came with certificates of origin issued by the government of Thailand, certifying the honey was produced there.

"We have seen no evidence that would cause us to doubt the validity of those certificates of origin," said Lundin, who earlier commented that the forfeiture action was "inappropriate and unfounded."

Ingalls, meanwhile, is lamenting that his profession has become a rough business.

"You've got to keep your eyes open all the time, or you're going to get burned by buying bad honey," he said. "Today, I'm ordering for April and May deliveries, from people that I believe are honest.

"But I'm surely not going to pay for it until it's sitting in my warehouse and has been tested."

By ANDREW SCHNEIDER .. P-I SENIOR CORRESPONDENT - http://seattlepi.nwsource.com

Audit of 2 Subic-based oil companies sought

By. Paolo Romero – Philippine Star

The President Anti-Smuggling Group (PASG) has requested the Commission on Audit (COA) and the Bureau of Internal Revenue (BIR) to conduct an audit of two Subic-based controversial oil companies that were earlier caught smuggling billions of pesos worth of petroleum and other fuel products.

PASG chief Undersecretary Antonio Villar asked to Audit Unioil and its sister company Oilink to find out if they have enough stocks of oil to cover their unpaid customs duties and taxes amounting to P2.7 billion.

He said he made the request in preparation for the possible filing of appropriate charges against the two oil companies if they failed to settle their obligations.

“I just want to make sure these firms would not be able to short-change the development. Last year, we found out that Oilink was importing oil without paying the corresponding Customs duties and taxes.”

“When it was grounded, it put up Unioil for reasons which are not hard to deduce. And now they are at it again. PASG will definitely not allow anyone to just simplify deceive the government of billions of taxes,” Villar said.

In his letters of request to COA Chairman Reynaldo Villar and BIR Commissioner Sixto Esquivias IV dated Oct.22, 2008, Villar cited the need for auditing of the two companies due to the temporary closure of their depot in Mariveles, Bataan pursuant to the provision of the Traffic and Customs Code of the Philippines, Section 1508.

PASG closed the depot after it found out that Unioil has been siphoning off the grounded oil stocks of Oilink charged last year for not paying billions of pesos worth of taxes and duties for its oil importations.

The closure has again placed Villar at loggerheads with officials and stockholders of Unioil and Oilink. Complicating matters is the move of the BoC to declare the closure as illegal, “raising doubts on the BoC’s sincerity in eradicating big-time smuggling that tolls heavily on the national coffers,” he said.

He explained the request for audit is in the best interest of the two companies as this may result in the lifting of the orders for them to temporarily stop withdrawing oil from their depot in Mariveles.” Pending investigation and audit by COA and BIR.”

The investigation and audit are essential to protect the interest of the government as Customs collectors in Bataan discovered the huge amount of taxes and duties Oilink should have paid.

PASG seizes P30-M cargo

THE Presidential Anti-Smuggling Group confiscated some P30 million worth of cargo at the warehouses of a British national in Parañaque City, Angeles City and Clark Freeport Zone in Pampanga.

PASG head Antonio “Bebot” A. Villar, Jr. identified the Briton as Laurence Springthorpe, of West Service Road, Sun Valley, Parañaque City.

Springthorpe will be charged with violation of the Tariff and Customs Code of the Philippines, also known as technical smuggling.

Villar said Springthorpe owns the Se Comp Solutions, Inc. with warehouses in Parañaque City, Magalang Road, Pandan Angeles City and at Clark Freeport Zone, Pampanga.

The series of raids on the three warehouses were done by operatives of the Strategic Information Service led by Director Peter de Guzman following intelligence report that Springthorpe was involved in technical smuggling.

The PASG chief said the Briton used his privileges as locator at the Clark Economic Zone in diverting cargoes from Clark to his warehouses in Parañaque City and Angeles City.

Seized from the warehouses of Springthorpe were assorted printing and photocopying machines, power hand tools, household equipment, imported wine and assorted mechanical specialized tools worth P30 million. By: Jess V. Antiporda - Journal online

Senate moves to plug massive tax leaks from car smuggling

By. Butch Fernandez – Business Mirror

Two Senate Committees are looking to craft remedial legislation aimed at making sure that tax-holiday incentives offered to investors are not misused in alleged technical smuggling activities by conniving customs officers and why car importers to dodge billion of pesos in taxes that should have gone to government coffers.

“We will see, we will find out whether the amount of jobs and the added value to the economy generated by the people given incentives is commensurate to the tax that we have given up because of the incentives,” Sen. Juan Ponce Enrile, finance committee chairman, told reporters following a public hearing on smuggling issues conducted by the ways and means committee chaired by Sen. Francis Escudero.

Enrile echoed suspicious that the switch in government policy from the progressive car-manufacturing program to the new motor-vehicle development program could be one of the sources of the tax leakage taking advantage of the government incentives originally intended to create jobs for local folks.

“We heard there is no more progressive car manufacturing. They’ve reportedly changed it into motor-vehicle development program. That’s why I’m asking: Why are they allowing entry of completely built cars, if we have car manufacturing here? We have assembly plants. SO we have to produce cars here that are sold in our country because it generates employment to our people, that’s why we are giving incentives to them. We are reducing their taxes in exchange for the jobs they generate for our people,” said.

But Enrile explained that this did not materialize. “But what this happening is, that’s not what we understand is going on. They allow the entry of completely built cars, which did not generate jobs for our people or use of local content, and they don’t benefit from the incentives given by the government,” he said.

Escudero agreed with Enrile that the tax leak could also be traced to a memorandum of agreement between the Bureau of Customs (BoC) and the Chmaber of Automotive Manufacturers of the Phils. Inc. which allows Camp to register several imported cars using only one certificate of payment (CP) of customs duties.

“There is the potential in the issuance of one CP to cover many cars. There is the potential leak when LTO (Land Transportation Office) receives inventory which is not prepared by a government official who has accountability, but only by an individual from the private sector with no liability in case there is an error in the inventory he submits,” Escudero explained.

During the hearing, Sen. Richard Gordon confirmed the lucrative smuggling schemes taking place at the Subic Bay Metropolitan Authority area, involving not just cars, but also liquor, cigarettes and even illegal drugs, as authorities uncovered recently.

Gordon revealed that he obtained reliable information that the so-called for the boys fund, amounting to at least P25,000 each, goes to officers of the Subic Bay Metropolitan Authority, the BOC and the LTO for every imported car smuggled out of the Subic Freeport.

“I have the documentation, I can prove this,” Gordon said, adding that the tax leaks were estimated at P4 billion for smuggled liquor; P13 billion for cars; and P9 billion for cigarettes. “What are the customs authorities doing to plug these tax leaks that allowed the continued flow of smuggled goods into the country without paying the right taxes?”

Senate begins probe of smuggling

Two committees in the Senate will jointly probe the rampant smuggling of cars and food stuffs starting today.

The Senate committee on ways and means, chaired by Senator Francis Escudero and committee on finance, chaired by Senator Juan Ponce Enrile, will look into the extent of smuggling and how it has eroded the government’s revenues.

The investigation is triggered by a resolution filed by Enrile who said tougher action should be taken against the unabated smuggling problem.

“We will touch on the smuggling of cars, shabu, steel products, ceramics, vegetables, fruits and other farm crops,” Enrile said. “In other words, all kinds of smuggling going on. We will find out why smuggling has not stopped in this country.”

Enrile, who served as commissioner of customs during the Marcos era, expressed the belief that big-time smuggling of illegal drugs could not happen in the country without the connivance or protection of well-placed public officials, as well as corrupt law enforcers.

A few weeks ago, 74 kilos of high-grade shabu valued at P4 billion was confiscated at the Subic Bay Freeport. The suspected mastermind behind the drug smuggling, a Taiwanese businessman, is still at large but there is speculation that he has been killed by his partners in a drug syndicate.

“These things could not happen without any strong political backing. There must be some influential people involved. If not political backing, then it must be some people in the law enforcement organization who are helping them. But when I say political backing, I am not referring to anyone, let alone anyone in the highest totempole of politics,” Enrile said.

Enrile said he based this on his experience as customs commissioner and finance undersecretary, when he stumbled on many smuggling cases involving members of the First Family, Cabinet members, senators and congressmen.

“I really directed my attention to these types of importers, not the small Angs or Chuas type of people. If you are a commissioner of customs, and you are able to catch the illegal importation of high government officials, then we will believe that you are really stopping smuggling. Otherwise, everything is a charade.”

Enrile said he would investigate even the alleged smuggling at the Port Irene and the Cagayan Special Economic Zone in his home province.

He said he feels this should be done because of reports going around that Port Irene is being used to smuggle rice from neighboring countries. However, he said he has not seen single grain of rice that has been imported through this port. By Fel V. Maragay - Manila Standard Today

PASG’s FEAT

By: Egay Serrano - People's Journal

The Presidential Anti-Smuggling Group headed by Undersecretary Antonio Villar pulled off an incredible feat with the P15-billion drug bust at the Subic Freeport, by far the biggest drug haul in the country to date.

The ineffectiveness of the Bureau of Customs in controlling smuggling nationwide proved to be a lucky break for the multi-billion-peso drug bust with the assignment of Usec. Villar’s men, headed by Edmund Arugay, to guard the Freeport against the activities of smuggling syndicates.

Note that a Subic custom boarding officer identified as Romulo Labrusca cleared FB Shun Fa Xing, the alleged vessel that brought the shabu shipment to the Freeport with the customs documents declaring that there are “no dangerous cargo on board.” The document was signed by both Jou Jonq Rong, the ship captain, and Labrusca.

Had this regular custom’s officer done his job properly, he would have been the first to discover the attempt to smuggle in billions of drugs via SBMA. Usec. Villar said the drug bust was only triggered when task force agents observed a vehicle suspiciously roaming in the vicinity of a Taiwanese vessel, FB Shun Fa Xing, which had arrived from Vietnam.

This only confirms our view that the anti-smuggling group is a better alternative in preventing rampant smuggling in the country than that group headed by Customs Commissioner Napoleon Morales.

Meanwhile, SBMA Administrator Armand Arreza said that Subic Bay Freeport is not a transshipment point of illegal drugs, reacting to a statement from an obviously sour graping Philippine Drug Enforcement Agency Director Dionisio Santiago. For the record, PDEA seized about 330 kilos of shabu last year as compared to PASG’s 745 kilos in a single operation.

True to his form, Usec .Villar says he is not really satisfied with their historic drug bust, knowing that there may be more illegal drugs being smuggled into the country through hundreds of big and small ports dotting the country.

And this early, he is now training his eyes on an even more sinister group of smugglers -- those involved in human trafficking.

Daang milyong halaga ng ‘airsoft’, nakalulusot

Ang dahilan umano ng pagbaha nito sa ‘market’ ay malaking ‘demand’ at ang maluwag na pagpupuslit ng mga ‘airsoft gun’ at ‘paintball guns’ sa mga ‘international airport’ natin tulad ng Ninoy Aquino International Airport (NAIA), Davao International Airport(DIA), Cebu International Air-port(CIA), Laoag International Airport (LIA) , Clark Field, Subic Bay Freeport at Manila International Container Port(MICP).

MARAMI sa mga kababayan natin na ang libangan ay iba’t ibang uri ng magastos at napakamahal na halaga ng libangan para lang malimutan ang iba’t ibang uri ng krisis na nagaganap hindi lang sa ating bayan kundi maging sa iba pang panig ng mundo.

May nahihilig magtungo sa iba’t ibang mga ‘resorts‘ at local tourists spots’ sa bansa upang personal na makita ang ating yamang kalikasan at may mga nag-e-‘scuba diving’, ‘swimming’, ‘fishing’, ‘mountain climbing’, ‘biking’, at may mga namamasayal sa mga malalaking malls at ‘shopping centers‘ upang mag-enjoy.

Pero ang higit na nakatawag ng aking pansin ay ang pagkalulong ng marami nating kababayan sa napaka-gastos o ‘expensive’ na libangan na kung tagurian ay ‘airsoft shooting competition’ at ‘paintball shooting competition’.

At alam nyo ba na ang ‘airsoft shooting competition’ ay idinaraos ng mga pasimuno nito sa mga abandonado at sirang mga gusali sa Metro Manila at iba pang lugar, samanatalang ang ‘paintball shooting competition;’ ay idinaraos naman sa mga ‘open field’ at mga kabundukan at kagubatan tulad ng Fort Bonifacio, Clark Field, Subic Bay, La Mesa Dam at lalawigan ng Rizal at Bulacan, Laguna na maraming kagubatan.

Ang ‘airsoft competiton’ ay medyo mapanganib at nakakasakit at nabubutas ang balat at maaari pang mabulag ang isang tao na tatamaan nito sa iba’t-ibang bahagi ng katawan partikular sa mata samantalang ang ‘paintball’ ay malalagyan lang ng kulay ang balat at damit ng tatamaan nito.

Mahal po at hindi ‘affordable’ sa mga walang pera ang mga ‘expensive’ na ‘airsoft’ at ’paintball guns’ na ginagamit sa mga competition at nagkakahalaga iyon ng mula P20,000 hanggang P50,000 at magdaragdag pa ang isang may-ari nito ng humigit-kumulang sa P100,000 para maging ‘top of the line’ ang gamit niya.

Karamihan po ay gawang Amerika at Chekoslovakia ang mga ‘airsoft’ at ‘paintball guns’ na dinadala sa bansa.

Marami pong nagkalat at nabibili nito sa mga ‘malls’, ‘shopping centers’, at mga ‘hobby center’ gayung ang ‘importation’ nito ay kasing higpit din at singdami rin ng mga ‘requirements’ na ipinatutupad ng mga awtoridad tulad ng Bureau of Customs (BoC) at PNP-Firearms and Explosives Office(FEO) at maging ng Bureau of Internal Revenue(BIR) para ang isang ‘importer’ ay makapa-import nito.

Ang dahilan umano ng pagbaha nito sa ‘market’ ay malaking ‘demand’ at ang maluwag na pagpupuslit ng mga ‘airsoft gun’ at ‘paintball guns’ sa mga ‘international airport’ natin tulad ng Ninoy Aquino International Airport (NAIA), Davao International Airport(DIA), Cebu International Air-port(CIA), Laoag International Airport (LIA) , Clark Field, Subic Bay Freeport at Manila International Container Port(MICP).

Regular pong dumarating ang nasabing mga baril sa mga bodega ng NAIA at sa Airmail Distribution Center sa Pasay, DIA, CIA, LIA at kalimitan din ay bitbit ang mga iyon ng mga pasahero atbiyahero na may mga kakuntsabang ‘airport’ at‘customs authorities’ na naka-‘detail’ sa ating mga ‘international air at seaports’.

Samantalang nasa mga ‘balik-bayan boxes’ naman ang mga dumarating sa MICP, Clark at Subic Freeports na sinasalubong ng mga awtoridad nang nasabing mga lugar upang walang aberiyang maipuslit ang mga iyon nang hindi ipinagbabayad ng buwis.

Milyun-milyon pong halaga ng tax at duty ang hindi naibabayad sa pamahalaan partikular sa custom at sa Bureau of Internal Revenue (BIR) ng mga nagupuslit nito sa bansa. Sa kasalukyan, may 200 piraso pang mga ‘airsoft guns’ at 300 ‘paintball guns ‘ ang napipigil ngayon sa ilang bodega sa NAIA at tila hindi mailabas ng ‘importer’ o ‘smuggler’ nito dahil medyo hindi pa nagkakasundo sa halaga ng salaping ipanglalagay kina kolektor at examiner at sa mga tauhan ni hepe.

Hindi po kumikilos ang karamihan sa ating mga awtoridad lalo na ang mga taga-Bureau of Customs at mga taga BIR gayung naglipana at naka-display pa sa mga pangunahing ‘outlets’ ang nasabing mga baril.

Tinitiyak ko sa inyong walang mga permiso para mag-import mula sa Philippine National Police PNP-Firearms and Explosive Office (FEO) ang mga nagpupuslit nito at lalong walang ‘clearance’ ang mga nagpupuslit nito mula sa BIR na magpapatunay na sila ay bayad ng buwis.

Kailangan pa bang ang Presidential Anti-Smuggling Group (PASG) pa ni Undersecretary Antonio Bebot Villar Jr., ang kumilos para paghuhulihin ang mga ito at upang kayo ay matauhan? Journal Online By: Jess V. Antiporda JVA'S FOLDER

Daang milyong halaga ng ‘airsoft’, nakalulusot

Ang dahilan umano ng pagbaha nito sa ‘market’ ay malaking ‘demand’ at ang maluwag na pagpupuslit ng mga ‘airsoft gun’ at ‘paintball guns’ sa mga ‘international airport’ natin tulad ng Ninoy Aquino International Airport (NAIA), Davao International Airport(DIA), Cebu International Air-port(CIA), Laoag International Airport (LIA) , Clark Field, Subic Bay Freeport at Manila International Container Port(MICP).

MARAMI sa mga kababayan natin na ang libangan ay iba’t ibang uri ng magastos at napakamahal na halaga ng libangan para lang malimutan ang iba’t ibang uri ng krisis na nagaganap hindi lang sa ating bayan kundi maging sa iba pang panig ng mundo.

May nahihilig magtungo sa iba’t ibang mga ‘resorts‘ at local tourists spots’ sa bansa upang personal na makita ang ating yamang kalikasan at may mga nag-e-‘scuba diving’, ‘swimming’, ‘fishing’, ‘mountain climbing’, ‘biking’, at may mga namamasayal sa mga malalaking malls at ‘shopping centers‘ upang mag-enjoy.

Pero ang higit na nakatawag ng aking pansin ay ang pagkalulong ng marami nating kababayan sa napaka-gastos o ‘expensive’ na libangan na kung tagurian ay ‘airsoft shooting competition’ at ‘paintball shooting competition’.

At alam nyo ba na ang ‘airsoft shooting competition’ ay idinaraos ng mga pasimuno nito sa mga abandonado at sirang mga gusali sa Metro Manila at iba pang lugar, samanatalang ang ‘paintball shooting competition;’ ay idinaraos naman sa mga ‘open field’ at mga kabundukan at kagubatan tulad ng Fort Bonifacio, Clark Field, Subic Bay, La Mesa Dam at lalawigan ng Rizal at Bulacan, Laguna na maraming kagubatan.

Ang ‘airsoft competiton’ ay medyo mapanganib at nakakasakit at nabubutas ang balat at maaari pang mabulag ang isang tao na tatamaan nito sa iba’t-ibang bahagi ng katawan partikular sa mata samantalang ang ‘paintball’ ay malalagyan lang ng kulay ang balat at damit ng tatamaan nito.

Mahal po at hindi ‘affordable’ sa mga walang pera ang mga ‘expensive’ na ‘airsoft’ at ’paintball guns’ na ginagamit sa mga competition at nagkakahalaga iyon ng mula P20,000 hanggang P50,000 at magdaragdag pa ang isang may-ari nito ng humigit-kumulang sa P100,000 para maging ‘top of the line’ ang gamit niya.

Karamihan po ay gawang Amerika at Chekoslovakia ang mga ‘airsoft’ at ‘paintball guns’ na dinadala sa bansa.

Marami pong nagkalat at nabibili nito sa mga ‘malls’, ‘shopping centers’, at mga ‘hobby center’ gayung ang ‘importation’ nito ay kasing higpit din at singdami rin ng mga ‘requirements’ na ipinatutupad ng mga awtoridad tulad ng Bureau of Customs (BoC) at PNP-Firearms and Explosives Office(FEO) at maging ng Bureau of Internal Revenue(BIR) para ang isang ‘importer’ ay makapa-import nito.

Ang dahilan umano ng pagbaha nito sa ‘market’ ay malaking ‘demand’ at ang maluwag na pagpupuslit ng mga ‘airsoft gun’ at ‘paintball guns’ sa mga ‘international airport’ natin tulad ng Ninoy Aquino International Airport (NAIA), Davao International Airport(DIA), Cebu International Air-port(CIA), Laoag International Airport (LIA) , Clark Field, Subic Bay Freeport at Manila International Container Port(MICP).

Regular pong dumarating ang nasabing mga baril sa mga bodega ng NAIA at sa Airmail Distribution Center sa Pasay, DIA, CIA, LIA at kalimitan din ay bitbit ang mga iyon ng mga pasahero atbiyahero na may mga kakuntsabang ‘airport’ at‘customs authorities’ na naka-‘detail’ sa ating mga ‘international air at seaports’.

Samantalang nasa mga ‘balik-bayan boxes’ naman ang mga dumarating sa MICP, Clark at Subic Freeports na sinasalubong ng mga awtoridad nang nasabing mga lugar upang walang aberiyang maipuslit ang mga iyon nang hindi ipinagbabayad ng buwis.

Milyun-milyon pong halaga ng tax at duty ang hindi naibabayad sa pamahalaan partikular sa custom at sa Bureau of Internal Revenue (BIR) ng mga nagupuslit nito sa bansa. Sa kasalukyan, may 200 piraso pang mga ‘airsoft guns’ at 300 ‘paintball guns ‘ ang napipigil ngayon sa ilang bodega sa NAIA at tila hindi mailabas ng ‘importer’ o ‘smuggler’ nito dahil medyo hindi pa nagkakasundo sa halaga ng salaping ipanglalagay kina kolektor at examiner at sa mga tauhan ni hepe.

Hindi po kumikilos ang karamihan sa ating mga awtoridad lalo na ang mga taga-Bureau of Customs at mga taga BIR gayung naglipana at naka-display pa sa mga pangunahing ‘outlets’ ang nasabing mga baril.

Tinitiyak ko sa inyong walang mga permiso para mag-import mula sa Philippine National Police PNP-Firearms and Explosive Office (FEO) ang mga nagpupuslit nito at lalong walang ‘clearance’ ang mga nagpupuslit nito mula sa BIR na magpapatunay na sila ay bayad ng buwis.

Kailangan pa bang ang Presidential Anti-Smuggling Group (PASG) pa ni Undersecretary Antonio Bebot Villar Jr., ang kumilos para paghuhulihin ang mga ito at upang kayo ay matauhan? Journal Online By: Jess V. Antiporda JVA'S FOLDER

Smuggling flourishing, says Sen. Gordon

Corrupt government officials, indifferent Filipinos blamed for profitable illegal trade

By Ernie B. Esconde, Manila Times Correspondent

MARIVELES, Bataan: Sen. Richard Gordon claimed that smuggling is flourishing because it is profitable and some corrupt government officials are receiving payoffs from it.

Meanwhile, he said, the people are not doing anything to stop the illegal trade. He blamed the apparent complacency on government leaders who set bad examples.

Gordon also claimed that when he was eased out as chairman of the Subic Bay Metropolitan Authority, the government lost millions of pesos in revenues from smuggling of second-hand cars, liquors and oil products.

The senator made the claims on Friday on reports that freeports have become vehicles for increased smuggling during the first on-site consultative hearing conducted by the Senate Committee on Economic Affairs here.

Sen. Loren Legarda, committee chairman, also raised concern on smuggling in the freeports with Region 3 Director Remigio Mercado of the National Economic and Development Authority.

“The predicament on smuggling is not institutional but a law-enforcement problem,” Remigio said.

Legarda led a hearing on a proposed bill seeking to convert the Bataan Economic Zone located in Mariveles to the Bataan Special Economic Zone and Freeport Authority. She was met by placard-bearing supporters of the conversion.

The proposed law under Legarda’s Senate Bill 2188 and House Bill 1425 authored by Rep. Albert Garcia of Bataan’s Second District also seeks the creation and appropriations of funds for the proposed economic zone and freeport authority.

Gordon, first chairman of the Subic Bay Metropolitan Authority, said he favored the conversion. He recounted his pitch for the transformation of Subic Naval Base into what is now the Subic Bay Freeport Zone.

Under the proposed changes, Gordon said, local government units will be accountable for any smuggling activities.

Congressman Garcia and his father, Gov. Enrique Garcia, said officials of the Philippine Economic Zone Authority had admitted that the Bataan Economic Zone has been losing money and only survives with the support of other economic zones in the country.

Francisco Legaspi, an engineer and newly installed administrator of the Bataan Economic Zone, said that when the Philippine Economic Zone Authority took over the administration of the former Bataan Export Processing Zone in 1995, the economic zone has made remarkable accomplishments. He admitted, though, that the Bataan Economic Zone has been operating at a loss for the past three years at P30 million annually.

Former Mariveles Mayor Oscar de los Reyes voiced the objection of the Mariveles People’s Coalition against the conversion of BEZ.

Legarda and Gordon urged the oppositors as well as those in favor of the conversion to submit additional documents to the committee. Legarda said she will create a technical working committee to study the recommendations.

Ways to curb smuggling at Subic free port bared

CUSTOMS Commissioner Napoleon Morales urged Subic Bay Free port authorities to adopt a systematic boarding of all fishing vessels as well as place these on high alert status to prevent their use for smuggling.

This developed shortly after operatives of the Presidential Anti-Smuggling Group and free port authorities intercepted in Subic this week some 710 kg of high-grade methamphetamine hydrochloride (shabu) with a street value of P5 billion.

In a report to Morales, Subic district collector Marietta Zamoranos said the shabu came from Shun Fa Xing, a Vietnam-registered fishing vessel, that docked at the free port at 8 a.m. of May 25.

She added there was no notice of arrival of the vessel and the Customs Immigration Quarantine team did not inspect the vessel.

They said the vessel departed on May 27 without an exit clearance from the Bureau of Customs and the Subic Bay Metropolitan Authority.

“I think that I will need to meet with [SBMA] administrator Armand Arreza to devise measures to tighten security and prevent a repeat of such incidents,” Morales said. Joel E. Zurbano - Manila Standard Today

SBMA: Subic as ‘illegal drugs transshipment point’ an exaggeration

SUBIC BAY FREEPORT - The Subic Bay Metropolitan Authority (SBMA) has strongly denied a statement by Philippine Drug Enforcement Agency (PDEA) that the Subic Freeport has become a transshipment point for illegal drugs from several countries in Asia.

"That is a sweeping statement," stressed SBMA Administrator Armand Arreza in a media statement released on Friday.

"To say that Subic has become a transshipment hub just because of one shipment is an exaggeration. It is also grossly unfair, particularly to the SBMA patrol who was instrumental in breaking the case," he added.

Arreza’s statement came in the wake of a statement by the country’s top drug enforcement official that Subic is being used by international drug syndicates to transship illegal drugs.

PDEA director Dionisio Santiago was quoted in media reports as saying that the confiscation by law enforcers here on Wednesday of 770 kilograms of methamphetamine hydrochloride, or shabu, "proved that Subic is being used as a transshipment point."

"In the 15 years that the Subic Bay Freeport had existed, this was the first time this happened," Arreza pointed out. "This is certainly an isolated case," he said.

Arreza also said that the fact that it was an SBMA patrol who first caught on the attempt to smuggle the drugs "only proves the diligence of SBMA law enforcers in preventing illegal activities" in Subic.

"PDEA should not blame law enforcers in Subic if narcotics agents find it difficult to operate here," Arreza also said in reaction to Santiago’s claim that team work among law enforcement agencies "is not solid."

Arreza said that as a free port, Subic is primarily under the jurisdiction of the Presidential Anti-Smuggling Group (PASG), which has recently taken over the operational control of Task Force Subic (TFS), the anti-smuggling unit here.

"But the SBMA is willing to cooperate with any agency, as we closely work together with the PASG," he added.

Arreza also stressed that Subic has "one of the highest levels of security found in any economic zone in the country." This has proven to be a great deterrent to criminal syndicates wanting to exploit the free port status of Subic, he added.

Arreza said SBMA law enforcers discovered the smuggling try when they chanced upon the suspicious offloading on Sunday night of eight boxes from F/B Shun Fa Xing, a Taiwanese fishing boat docked at Subic’s Riviera Pier.

Anthony Ang, a Chinese national living in Olongapo City who allegedly tried to bring the boxes out of Subic’s SRF compound, purportedly initially declared that the boxes contained "sensitive computer parts."

But Ang, who co-owns the Subic import-export firm Hualong International, Inc., reportedly went missing with his family after failing to provide documents for the cargo on Monday, prompting PASG-TFS and SBMA-LED to open the boxes on Tuesday.

The eight boxes turned out to allegedly each contain five packets of crystalline substances that chemists from the National Bureau of Investigation (NBI) analyzed and confirmed to be "high-grade" shabu, weighing more or less 90 kilos.

Subsequent operations led to the discovery of more shabu allegedly at the Hualong warehouse, as well as another vehicle parked near the building. On Wednesday afternoon, joint PASG-SBMA operatives said they had already seized a total of 770 kilos of the illegal drug.

Meanwhile, PASG chief Antonio Villar Jr. said he has ordered manhunt operations against Ang.

PASG has also coordinated with the Bureau of Immigration and Deportation (BID) for the issuance of a hold-departure order against the suspect, Villar said. - Jess Malabanan - ABS CBN NEWS

PASG clears horse trader

THE Presidential Anti-Smuggling Group (PASG) has cleared seven horses imported by Engr. Felizardo Jun Sevilla from Australia, which nearly died of dehydration after the animals were held by the authorities recently for hours at Subic Bay Metropolitan Authority (SBMA).

PASG deputy director Edmund Arugay apologized to Sevilla, of Quezon City, for the inconvenience and public embarrassment he experienced after the authorities seized the horses, which was consigned under the engineer’s name, Tonight gathered.

Earlier, the Bureau of Customs, through Napoleon Morales, said the shipping documents of Sevilla is in order, pointing out that the U.S.$800 declared value per horse corresponding to the value of the horses jived with those posted on the Internet at the Magic Millions Sales Pty of Australia.

“I did not cause the smuggling of the said horses from Australia to the Philippines,” Sevilla declared.

The former Philracom commissioner deplored that the horses almost died of dehydration after being held for 13 hours in Subic.

Sevilla said he was constrained to dispatch a veterinarian to Subic to care for the animals and have them dextrosed later at their stables to keep them alive and well. “May buhay din ang mga kabayo, at napabayaan sa loob ng Subic,” he stressed.

Stressing that he is a registered horse owner and a bona fide member of the Metropolitan Association of Race Horse Owners (Marho), Sevilla -- a former commissioner of the Philippine Racing Commission -- said it is impossible to slip into the country such thoroughbred horses from Australia. Each horse is assigned an individual computer chip and passbooks which served as their passports.

The passbook contains vital information about the horses including their lineage, even their birth date and birth place.

Besides, Sevilla explained that the sale results of horses could easily be viewed on the Internet, citing as an example the website of the Magic Millions Sales.

Sevilla tossed the blame to kinks in his importation to a local broker, Sir J Express, Inc. which he assigned to attend to the importation of the horses from Australia to the Philippines. He belied any knowledge of transactions made by the broker for the shipment and release of the horses from Australia.

The trader said that he engaged the services of Johnny Tionloc and his son Mark John of the same firm to take care of the processing of their papers, payment of appropriate taxes with the BoC, including the release from the BOC, and to their delivery to his stables.

Sevilla said that he paid the Tionlocs the sum of P258,000 inclusive of the taxes and duties due him for the imported horses as shown in the voucher he showed the authorities.

The horses arrived in Subic last May 19 on board a Federal Express cargo plane at the Subic International Airport until PASG elements apprehended them on suspicion that they had been undervalued to evade higher taxes.

Sevilla bared that he was earlier invited personally by David Chester , managing director of Magic Millions Sales, to take part in the said auction sale of race horses last March 31 to April 2.

Also, he strongly denied any links with the Disconnect Trading as well as with a certain Noah Corpuz, who was earlier reported to be his partner , and trying to facilitate the bribery attempt on some officers at Subic Freeport. By: Efren Montano - Journal online

Authorities probe Australian racehorse smuggling ring

SUBIC BAY - Philippine customs authorities are investigating a suspected smuggling ring that illegally brought in Australian racehorses, port authorities said Thursday.

A special anti-smuggling task force seized a consignment of 15 racehorses on Tuesday following a complaint by the Philippine Horse Racing Commission that the animals would be used for racing and not for breeding as declared in their shipping papers.

Subic Bay official Joenel Aurelio told reporters the importers had paid $163 each in taxes for the horses which were brought in through the port.

The tax on horses imported for racing is $30,000.

A number of Subic Bay customs personnel were under investigation for allegedly having "conspired to smuggle the horses," Aurelio said.

He did not say where in Australia the horses came from or how much they were worth.

The horses are now in the care of the authorities until the investigation is completed. Agence France-Presse - ABS CBN NEWS

= = =

Intercepted horses in Subic legally imported - Customs

The Bureau of Customs (BOC) on Thursday ruled the recent importation of horses in Subic Port was legal based on the documents submitted by the importer.

“Upon verification, we found out that all the needed papers were properly secured by the importer,” Customs Commissioner Napoleon Morales said.

Contradicting earlier reports that the horses were undervalued, Morales said that the declared value of $800 per animal matches the internet value.

Agents from the Presidential Anti-Smuggling Group (PASG) intercepted the animals for technical smuggling last Monday.

On Wednesday, the Customs chief ordered Subic Port Collector Marietta Zamoransos to furnish him with a copy of the import entry of shipment to check if there were discrepancies on the documents submitted.

Based on documents submitted to the Office of the Commissioner, the shipment was consigned to a Mr Felizardo Sevilla Jr of Disconnect Trading and sourced from Australia from Crispin Bennet International Horse Transport Pty. Ltd. in Sunbury, Victoria, Australia.

The shipment contained seven live horses each valued at $800 and were classified as thoroughbred horses for breeding purposes.

The discrepancy report also showed no difference between the declaration of Customs duty of P10,172 per animal and Value Added Tax of P42,768 each, which amounts to a total of P53,730.

The importer also presented a Veterinary Quarantine Clearance to import equine from Australia and certification from the Philippine Racing Commission that the importer is a bona fide horse breeder.

On the other hand, Morales said that he is leaving to the Bureau of Animal Industry (BAI) on the classification of the animals on whether they are for breeding or for racing. - GMANews.TV