Customs Deputy Commissioner Reynaldo Umali said they are set to file charges of violation of Tariff and the Customs Code of the Philippines against Andan Enterprises Inc. and Mawab Resources Inc. after the BOC intelligence and investigation service found that the two importers did not pay P37 million in duties and taxes.
Investigation conducted by BOC intelligence officer Eric Albano showed that Andan had wrongfully declared at $286.05 per metric ton the value of its three entries of imported gas oil from the Taiwan-based Formosa Petrochemical Corp. It was learned the average value of imported gas oil amounts to over $500 per metric ton.
In his report, Albano said the value used by Andan was substantially low compared to the values used by other firms like the Oilink International Corp., which imports the same commodity from the same country of origin at $516.97 per metric ton.
"It must be stressed that aside from Oilink, the importation of Total Corp. used a much higher value of US$ 536/MT for the commodity gas oil coming from the same country of origin," he said.
Albano said Andan Enterprises had gotten away with over P11 million in unpaid duties and taxes by undervaluing its shipments. He said a similar case was discovered in the previous gas oil imports of Mawab from Korea.
Customs records showed that Mawab declared the value of its gas oil imports earlier this year at $344 and $286.05 per MT for its five entries that came in two shipments.
"Similarly, their shipments were found to be grossly undervalued in contrast to the previous importation of gas oil from Korea by Petroleum Inc. which used the value $653 per metric ton last year," Albano noted.
He further revealed said Mawab’s undervaluation cost the government some P25 million in unpaid taxes and duties.
Albano has recommended that the Customs district collector demand additional payment of duties and taxes, including penalties and surcharges, from Andan and Mawab, the importers of Gasoil and both operating in Mariveles, Bataan.
Citing the Tariff and Customs Code, and other pertinent laws, Albano said oil importers Andan and Mawab may be held liable for technical smuggling.