BIR, BOC set uniform valuation system for imported vehicles

MANILA, Philippines - The Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC) will start implementing a uniform valuation system for all imported vehicles to determine the correct computation of the duties, VAT, excise taxes, and other charges due to the government.

A joint committee composed of BIR and BOC officials was created by the Department of Finance (DOF), in coordination with the Office of the Presidential Adviser on Revenue Enhancement, to establish the valuations of these imported vehicles. These valuations shall be used by the BIR and the BOC in computing the duties and taxes due on all imported vehicles.

BIR Commissioner Joel Tan-Torres said that the uniform valuation system will guide BOC and BIR officials and the transacting public in determining the correct duties and taxes due on imported vehicles.

Under the former system, the BIR and the BOC used two different valuations of imported vehicles to determine the duties and taxes due to the government. This provided opportunities for corruption among unscrupulous government officials. A common tactic of corrupt officials was to delay the release of the imported vehicles, citing difficulty in determining the correct duties and taxes, thereby forcing the transacting public to give in to their demands.

“This simplified system will give better and fair service to the transacting public,” Tan-Torres said.

Customs Commissioner Napoleon Morales said that the system will also expedite the processing, release, and registration of imported vehicles.

The uniform valuation system will apply to vehicles imported for sale and for personal use.