Customs foils attempt to smuggle steel bars

The Bureau of Customs (BOC) said yesterday it has foiled an attempt to smuggle a shipment of steel bars at the Port of Manila that would have cost the government some P7 million in unpaid taxes.

Customs Commissioner Napoleon Morales said he ordered the seizure of some 3,000 metric tons of reinforced steel bars after the shipment was found to be misdeclared and grossly undervalued by its importer.

In a telephone interview, the Customs chief said the imported product was declared as round bars, a raw material for the production of steel bar, which cost $0.22 per kilo in its import entry.

"It was grossly undervalued because according to our experts in the local industry, a kilo of this product costs $0.48. The importer would have gotten away with P15 million in unpaid taxes, and we cannot just allow that," Morales explained.

The shipment from China was consigned to Kingson International Trading Corp.

Morales also acknowledged the cooperation of local steel industry experts in foiling the smuggling attempt. He said the experts, who serve as the bureau’s watchdog, help in the examination procedures.

After discovering "fraudulent entries" in the import declaration of the shipment that arrived last Friday, Morales said he has immediately issued a warrant of seizure and detention, which led to the recovery of some 90 percent of the illegally imported steel bars in follow-up operations over the weekend.

Morales said the bureau would also investigate on possible collusion between the importer, broker, and some Customs officers in the smuggling attempt. He also revealed a plan to file charges against the shipment’s owner and consignee.

Morales stressed that he is determined to forfeit the ownership of the P70 million worth of steel bars in favor of the government.

He said the importer would not be allowed to regain the shipment by simply paying the correct taxes and fines.

"There was an element of fraud so if the owners want redemption of the shipment, they would have to buy it back from the government," he said.

The Customs chief also reiterated his warning against smugglers. "This is what I always say, our anti-smuggling operation is very crucial because it is part of our campaign to meet this year’s collection target," he said.