Government to reduce number of CBWs

New Customs Commissioner Bert Lina, said yesterday government will continue to trim the number of Customs bonded warehouses (CBWs), particularly multi-purpose warehouses which are often linked to smuggling.

Lina told reporters that the Bureau of Customs intends to pursue the rationalization and streamlining of CBWs to cut down on smuggling and corruption.

"We will probably keep some of these CBWs, but the foremost question now is whether we need them at all," Lina said. "These CBWs have actual and legitimate use after all."

According to Lina, CBWs could also begin consolidating instead of proliferating. "That will make monitoring a lot easier and their operations more efficient," he said.

Lina said the BOC wants to maintain what he called a "critical mass" in the number of CBWs but said going beyond this critical mass only opened opportunities for corruption and illegal activities.

This year, Lina said the BOC had agreed to raise its collection target to P145 billion compared to last year’s P112-billion target. The BOC’s actual collection amounted to P122 billion, mainly from the depreciation of the peso which raised the value of tariffs from importation.

If successful, the Customs collection for 2005 would be a historical high. The BOC’s highest collection thus far was in 2003 when it collected P106.1 billion.

Lina said the surge in BOC collection would come from both the depreciation of the peso and the rise in importation that would accompany the projected increase in exports this year.

The BOC also expects additional revenues from the lifting of the exemption of oil products from import duties.

Lina’s appointment as Customs chief has been by far the most controversial since President Arroyo won a second term. As the owner of AirFreight 2100 which in turns owns the Federal Express franchise in the Philippines, Lina admitted his company owned 18 CBWs.

He said he intends to divest all his holdings in AirFreight 2100 but did not say when.

The Arroyo administration admitted that it was losing at least P17 billion in taxes and import duties due to smuggling, most of which were being channeled through CBWs.