Silvestre sure of hitting

CEBU, Philippines - Cebu Customs district collector Ronnie Silvestre is optimistic to hit their target this year despite the economic slowdown affecting the import industry after the Department of Finance has lowered its collection target.

Silvestre said he got word from Manila that their original P9.3 billion collection target this year has been reduced to P7.6 billion.

“Masyadong mataas yung goal namin to the point that it has become very unreasonable and unrealistic,” Silvestre said.

As of October, the Bureau of Customs- Cebu Port has already collected P6.4 billion.

BOC deputy collector for operations Ahmed Erpe said that the “assumption target” made by the government for BOC to collect does not happened. He explained that the volume of importation is down by 30 percent while the projected exchange rate of P45 to $1 did not happen.

According to Erpe, if the exchange rate is lower the computation of importation value also decreases. Another factor contributing to the collection shortfall is the zero tariff commodities imported from China.

Silvestre said that some products like tiles from China now have zero tariffs because of the free trade agreement in the Association of Southeast Asian Nations wherein the Philippines is a signatory.

Silvestre said that because of the free trade agreement the government is losing at least P250 million in revenue from January to July alone.

The booming real estate industry in Cebu, however, gives customs officials the optimism that they will be able to meet the target. According to Silvestre, he is seeing an increase in steel importation because of the booming real estate industry.

Silvestre said that steel importation is one of the top three importations in Cebu. The others are fuel and coal. He said fuel and coal importations are among the top in Cebu because of the presence of oil depot and power plants.

The target collection for BOC is set by the country’s committee of economic managers composed of the Department of Finance, Department of Budget and Management, National Economic and Development Authority and the Office of the President.  (FREEMAN)