Lawmaker files Customs amnesty measure to collect P7.9B

 MANILA, Philippines - A senior administration lawmaker has sought the granting of amnesty to importers and sureties with unsettled obligations with the Bureau of Customs (BOC) to raise additional revenues for the government.

Oriental Mindoro Reynaldo Umali has filed House Bill 9 or the proposed “Customs Amnesty Act of 2013” where he pushed for the granting of amnesty from civil and criminal prosecution of importers and sureties, who voluntarily disclose previously unliquidated or matured bonds to secure payment of customs duties and other charges..

 He said the BOC should now focus its attention to previously uncollected taxes and duties which can be done through an amnesty. The bureau has been missing its collection targets.

“The proposal is our answer to the challenge of this administration to raise additional revenues for better government services without imposing new taxes,” said Umali, a former customs deputy commissioner.

He said presently there is no law encouraging importers to voluntarily disclose their matured or unliquidated surety bonds.

 He said surety bonds are usually posted by importers to secure payment of customs duties and other charges or fees so that the BOC may release their importations conditionally.

“The uncollected amount from the matured bonds is huge enough for the BOC to be able to augment its national revenue collection. As of Jan. 1, 2009, the total overdue amount covered by surety bonds is over P7.9 billion,” he said.

He said the duties and taxes covered by his proposed amnesty are those, which accrued during the periods January 1, 1997 to December 31, 2007.

“The taxes and duties which accrued January 1, 2008 onwards are not covered by this amnesty and are subject to audit in line with Republic Act 9135,” he said.

Umali said revenues collected under the proposed amnesty act will be used for the following: 60 percent to supplement the BOC operating budget; and 40 percent shall go to the National Export and Competitiveness Fund.

House Bill 9 provides it is the declared government policy to provide funds or property to promote the general welfare and protection of its citizens.

The proposed law provides that amnesty from civil and criminal prosecution should be granted to those importers and sureties who voluntarily disclosed previous unliquidated or matured bonds to secure payment of customs, duties and other charges of fees, including increments and penalties in relation thereto and complied with the requirements of the proposed Act.

Such amnesty shall not be applicable in the following circumstances: criminal cases have already been filed in court or with the Prosecutor’s Office on or before December 31, 1997 by the BOC or any other government agency; and customs duty and tax involving civil liability which are the subject of a pending criminal action in the Prosecutor’s Office or court prior to December 31, 1997 filed by the BOC or any other government agency.

The Customs Bond/Surety Amnesty Return should be filed in the prescribed form with the Office of the Port Collector, District Collector, Collection Agent or the authorized Municipal Treasurer designated as collection officer of the BoC where the taxpayer has his legal residence or place of business in the Philippines, or if he has none, then with the BoC Commissioner on or before January 31 of the year after the passage of the proposed Act, the bill provides.

The bill provides that any taxes and duties due as disclosed by the taxpayer in his amnesty return must be paid at the time of filing it. If the taxes and duties exceed P50,000, the same should be paid based on the following schedule:

a) If the amount exceeds P50,000 but does not exceed P100,000, the amount may be paid in two equal installments, the first to be paid upon the filing of the amnesty return, and the second installment, on or before April 30 of the taxable year;

b) If the amount due exceeds P100,000, the amount may be paid in three installments, the first one upon filing of the amnesty return, the second one on or before April 30 of the taxable year, and the third one on or before April 30 of the next taxable year.