ZTE tagged as shipper of undervalued cables worth P25.7 M

MANILA, Philippines - The Chinese company ZTE Corp. was dragged into yet another controversy yesterday after the Bureau of Customs (BOC) reportedly busted P25.7 million worth of power cables and other telecommunications equipment that it reportedly shipped to the Port of Manila last month.

Customs Commissioner Rufino Biazon said the “ZTE” markings on the box of power cables and panel board accessories raised suspicion that the shipper, ZTE Corp. from Shenzhen, China, is the same company previously linked to the botched $329-million national broadband network deal during the time of former President and now Pampanga Rep. Gloria Macapagal-Arroyo.

“On the boxes, we can see the ZTE logo. Based on the knowledge, I was previously in Congress when this was being investigated, it was the same logo so most likely it is the same company,” Biazon said, adding that ZTE also deals with other telecommunication firms.

The BOC is not ruling out the possibility that the imported 270 pieces of power cables, 29,286 patchcords and 90 pieces of panel board accessories that were found inside a 40-foot container van were intended for other projects in the Philippines.

According to the Customs Valuation and Classification Division, it appeared that the importations of similar kind and quantity should have a value of $589,283.68. But its total invoice value was only $13,700.

Biazon said they would conduct a deeper probe on the importation, which was declared as 196 kilograms of cables and accessories. It was also grossly undervalued.

The BOC would also check if ZTE had previous importations.

The consignee of the equipments was identified as FEC Trading.

Customs Deputy Commissioner for Enforcement Horacio Suansing Jr. said that FEC Trading was also the consignee of a 40-foot container van misdeclared to contain 27 pieces used replacement parts. There were also signs of violation of the Used Motor Vehicles law.

During inspection, authorities discovered that the container van was filled with car bodies of 16 units of Mini Cooper, including the cabs and body shell with an estimated value of P8 million. They reportedly came from Japan.

Suansing said both shipments arrived last month.

“We received a tip from an asset and we immediately placed them under ‘alert’ and that was how we foiled the attempted smuggling of these items,” he said.

BOC hits big

Apart from the car parts and the telecommunication equipment, the bureau also presented other seized items yesterday morning.

Biazon said the haul had an estimated collected amount of P90 million.

BOC-Enforcement and Security Service (ESS) Director George Aliño said a 40-foot container van filled with yarn under the name Asian Bonded Customs Warehouse Corp. was seized.

It was supposedly intended to be delivered to the compound of Pulilan Footwear and Luggage Marketing Corp. located in Barangay Lumbac, Pulilan, Bulacan.

The ESS apprehended the shipment on the grounds of illegal diversion. It was reportedly delivered to the ECCO Food Corp. compound in Barangay Malanday, Valenzuela City, thus violating the Customs laws and regulations on bonded warehouses.

BOC also seized multi-million worth of counterfeit fabrics, clothes, designer bags, footwear and other electronic items consigned to Golden Rainbow Enterprises, which is a violation of the Intellectual Property Code (IPR) and the Optical Media Act.

The seized items would be put up for auction except those that were confiscated for violating the IPR law, which will be destroyed.