Brokers to play key role in revitalizing Customs collection

Concerned brokers will play a key role in revitalizing the collection efforts of the Bureau of Customs (BOC) which have been showing signs of a slowdown the last two months. A group of brokers and importers has agreed to increase the duties and taxes being imposed on their shipments. The group said they want to help the government in reducing the projected windfall budget deficit for the year.

"We all have to make some sacrifices for the betterment of our economy or our country for that matter. We know our decision to agree (with the increase in duties imposition) may be unpopular and face stiff opposition from some of our members, but what else can we do?, the economy is ailing. We are asked to help. That’s why we agreed," June Manimtim, a member of the Customs Checkers Representatives Organization (Cuchero), said.

Based on the agreement entered into by Manimtim, president of Junedit Brokerage, with Deputy Commissioner for Intelligence and Enforcement Group (BOC-IEG) George Jereos and Customs Intelligence and Investigation Service (CIIS) Director Bams Africa, the brokers will now double the amount of duties and taxes they pay for their cargoes.

This means, the BOC will increase by 100 percent the assessment or valuation it usually imposes on dutiable cargoes.

It was not clear however, how the BOC and the brokers will work out the mechanics of the agreement as far as the increase in the value of dutiable goods is concerned. The government is now using the transaction value (TV) in determining the dutiable amount of imported goods in compliance with the country’s commitment with the World Trade Organization (WTO) and the exit of the Societe Generale de Surveillance (SGS). The SGS used to determine the value of dutiable goods for the BOC.

In TV, the duties and taxes to be imposed on any imported articles will be based on the official receipt (OR) presented by the importer to the BOC.

Jereos lauded the initiative of Manimtim and his group saying the decision of the brokers to increase the amount of taxes they are paying the government will help the government limit budgetary deficit this year.

"Well, we have to thank Manimtim and his group. As it is, the bureau is experiencing a collection shortfall since September as there are less importers doing business now because of the weak peso. Hopefully, that will change in the coming days because of the Christmas season. But then, the increase in tax valuation is a welcome one," Jereos said.