BOC plugs leaks in cargo declarations

Manila, Philippines - Bureau of Customs (BOC) Commissioner Angelito Alvarez has ordered the adoption of worldwide freight rate reference for containerized cargoes to address the BOC’s problem with tax cheats.

Alvarez said the BOC was losing more than P1.3 billion a year from freight undervaluation due to the absence of a reliable reference rate that BOC assessment personnel could use to check underdeclarations in freight charges.

Until recently, photocopies of the bill of lading submitted by the importer or broker were accepted by BOC personnel as valid supporting documents in import entry declarations.

Alvarez said a complete list of conference freight reference covering 280 ports from 70 countries has empowered BOC assessment personnel to detect wrong entries in transport cost declarations.

The list was provided by the Philippine Shippers’ Bureau, an agency under the Department of Trade and Industry.

Alvarez found that some importers declared a lower transport cost, which forms part of a base upon which tariff rates are applied.

“Any attempt to understate the correct amounts of the various components like the cost of transporting the imported goods will impact into the dutiable base and eventually affect the agency’s tax take,” he said.