BOC tightens rules on wheat imports

The Bureau of Customs (BOC) is now requiring the identification of importers or consignees to avoid the misclassification or misdeclaration of wheat importations by unaccredited flour millers.

Customs Commissioner Antonio Bernardo has subsequently issued the list of 13 legitimate local flour millers and their respective ports of discharge for their importations.

The shipments of wheat by the legitimate flour millers may then qualify for tentative release upon payment of the taxes and duties as per declaration and the posting of cash bond to cover any tariff differential.

However, Bernardo said that any tentative release of shipment shall be subject to clearance by his office or his duly authorized representative, and all other documents pertaining to it for proper monitoring.

Bernardo has issued the requirement on wheat importations to discourage those non-legitimate flour millers from engaging in unfair competition by misdeclaring their shipments to avoid payment of correct taxes and duties.

A shipment of wheat is levied a 30-percent tax by the BOC to avoid payment of the 30-percent tax on wheat importation, non-legitimate flour millers declare their shipment as general mechandise, which carries only a five -percent tax.

The non-legitimate wheat importers eventually sell them to some flour millers at sharply lower prices who in turn, sell their end-products at a lower price undermining the other flour millers.