Solon pushes Customs collections from bonded warehouses

Negros Oriental Rep. Herminio Teves wants the Bureau of Customs (BOC) to expedite its collection of some P175-million worth of payments from delinquent operators of bonded warehouses and their insurers.

"At this time when government is in deep financial trouble, the bureau should spare no effort in compelling all private entities with unsettled liabilities to promptly pay up," Teves, House ways and means committee chairman, said.

"We were told that many bonded warehouse operators and/or their insurers still have unpaid liabilities that have accumulated over the years," Teves said.

Government allows the tax-free importation of some raw materials on the condition that these be processed into finished products that are eventually re-exported.

The raw materials are kept in bonded warehouses and operators agree to guarantee their re-exportation by securing and pledging bonds from insurers.

Warehouse operators and/or their insurers incur liabilities when the raw materials are not used for re-export, in which case the appropriate duties – which are covered by insurance bonds – become due and payable.

The BOC earlier acknowledged that as of end January, at least 10 delinquent bonded warehouse operators still owe government some P175-million.

"This bonded warehouse mess at Customs has been there for years. It has now become imperative for the bureau to lick the problem once and for all," Teves said.

He also stressed the need for the bureau to further tighten controls on bonded warehouse operators to prevent more abuses in the future.