Customs shuts down more warehouses

The Bureau of Customs (BOC) ordered yesterday the closure of 91 more customs bonded warehouses (CBWs) tagged as possible conduits for smuggling activities.

Customs Commissioner Antonio Bernardo said the number of closed bonded warehouses now totals 411.

Bernardo reported that 70 of the closed warehouses were registered as private and public, while 12 were registered as customs bonded warehouses (CBWs) for miscellaneous goods and nine were used by garments firms.

"We fully intend to rationalize the operations of bonded warehouses in the country," Bernardo said. "I have already issued an administrative order directing the shift to industry-specific bonded warehousing."

Last month, the BOC padlocked 320 bonded warehouses and all other bonded warehouses were given until this month to renew their license to avoid being shut down.

Bernardo said the bureau was auditing customs bonded warehouses (CBWs) that have been inactive for the last 12 months in order to prevent them from being used to smuggle imported goods.

Bonded warehouses were originally intended for use by exporters as part of the incentives offered by the government. The facilities are used to store and isolate tax and duty-free raw materials imported by exporters who use them to manufacture goods for export.

However, CBWs have long been tagged as the biggest conduit for smuggled goods because they have been used by unscrupulous traders who register as exporters but instead import the goods that are eventually sold in the domestic market.

The closure of the CBWs was applauded by local businessmen who said the move was long overdue.

According to Donald Dee, director of the Philippine Chamber of Commerce and Industry (PCCI), bonded warehouses have been notorious as conduits for smuggling for years.

"That’s why this is significant. No administration has ever done this," Dee said. "It’s a big move for the Bureau of Customs, but it shouldn’t stop there. There should be a review of all other CBWs."

Dee said the BOC should trim the number of CBWs to at least 30 percent of the existing accredited warehouses now estimated to total a little less than a thousand individual warehouses.

Dee estimated that of the total number of CBWs, only about 30 percent were being used for their intended purpose. Majority were most likely being used for smuggling.

According to the BOC, on the other hand, existing CBWs were now being required to renew their licenses and prove that the facilities were being used for legitimate imports that were being used in legitimate export activities.