BOC surpasses Jan-April target

The Bureau of Customs (BOC) surpassed its collection targets during the first four months of the year due to the combined effects of the peso depreciation, a slight increase in imports and aggressive duties collection.

BOC Commissioner Antonio Bernardo revealed over the weekend that based on preliminary results, the agency’s cumulative collection from January to April amounted to P35.645 billion, about P5.019 billion or 16.4 percent more than the P30.626-billion target during the period.

On an annualized basis, Bernardo said the BOC increased its revenues by P6.569 billion or 22.6 percent against its 2002 collections.

Bernardo attributed the robust performance to an aggressive duties collection campaign that plugged a number of administrative loopholes.

Under rumors of various death threats from shady organizations, Bernardo has been cracking down on systemic smuggling operations that have been exploiting various BOC programs, particularly its bonded warehousing system.

The BOC’s operations has led to the closure of over a thousand customs bonded warehouses and the suspension of warehousing privileges of several hundred importers.

The incremental revenues from plugging these leaks, according to Bernardo, has contributed to the overall increase in BOC collection.

Likewise, the depreciation of the peso right before the Iraq war also increased the peso value of imported goods and consequently, the resulting import duties as well.

The BOC is still cleaning up its bonded warehouses, facilities that were originally intended for use by exporters as part of incentives offered by the government. The facilities are used to store tax- and duty-free raw materials bought by exporters from abroad who use them to manufacture goods for re-export.

Bernardo said most of the bonded warehouses he had ordered closed were classified as inactive even as they continued to maintain their warehouse facilities.

Bernardo said this was the primary indication that some facilities were being used for undeclared activities like smuggling.

But the Customs chief said their closure does not prevent the BOC from recovering outstanding tax liabilities that may have accrued from unliquidated entries, unexplained withdrawals, and missing inventory.