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Cebu News

Gov't lost P273 million in BoC revenues a year

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The government could have earned at least P273 million in revenues last year had the Bureau of Customs forfeited the outstanding or matured bonds for the 259 unliquidated warehousing importations of Atlas Consolidated Mining and Development Corporation.

In its annual audit report for the BoC, the Commission on Audit found out that the mining firm's importation bonds had already expired as early as September 18, 1991.

The head of the BOC-Cebu bonds division explained that several communications in the past have been made to facilitate the forfeiture of these bonds from the surety company and to demand payment of duties and taxes from the principal and the sureties involved.

The COA report said Customs-Cebu administrative officer Edward Dy Buco explained that the BoC has standing policy that if collection of long outstanding accounts is filed before the court it is the deputy commissioner who will sign the complaint.

Dy Buco had promised the COA that he would make a follow up on the development of the case. But COA learned that ACMDC officials have already signified their intention to pay their obligations when they would become financially stable.

Aside from failing to initiate for the forfeiture of the bonds, the Customs officials also failed to conduct the auction of several seized vehicles and other properties stocked at their impounding area of the Cebu International Port. Some of those seized vehicles were destroyed when a fire hit the Customs warehouse at the CIP.

Dy Buco explained that the delay in the auction was caused by the lack of funds to cover the stripping expenses. He also cited the delay in the examination due to non-availability of examiners.

To correct the deficiencies, Dy Buco recommended for the immediate disposal of all abandoned, seized and forfeited goods to prevent them from further deterioration.

In Cebu, the state auditors have found out that there were several forfeited goods/vehicles that have not been disposed of and appraised by the BoC for approximately 19 to 237 days from date of forfeiture, depriving the government of the revenue from their sale.

Cebu Customs officials failed to immediately furnish the COA with an inventory of all seized/abandoned and forfeited goods available for auction despite two written requests. They only submitted the report on the status of seizure cases for 2004.

A provision of the Tariff and Customs Code of The Philippines provides that the BoC collector shall cause the list of the seized property and an appraisement should be made by at least two appraising officials.

Section 2306 of the TCCP also states that if within 15 days after the notification no owner or agent would appear before the collector, the latter shall declare the property forfeited in favor of the government.

The COA has found out that various seized goods/vehicles were being held for forfeiture proceedings for approximately 10 to 295 days from date of issuance of the Warrant of Seizure and Detention (WSD) and without any appraisement.

It is recommended that the BoC district collector should immediately appraise and dispose of all seized items found at the CIP and the CPA to avoid further losses brought about by deterioration, depreciation and theft.

An inventory of all undisposed goods should be conducted on a regular basis for control purposes. - Rene U. Borromeo

ATLAS CONSOLIDATED MINING AND DEVELOPMENT CORPORATION

BUREAU OF CUSTOMS

CEBU CUSTOMS

CEBU INTERNATIONAL PORT

DY BUCO

EDWARD DY BUCO

IN CEBU

RENE U

SEIZED

TARIFF AND CUSTOMS CODE OF THE PHILIPPINES

WARRANT OF SEIZURE AND DETENTION

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