The BOC recently made an inspection of GSII’s import activities in the Port of Cagayan following increasing complaints from local downstream steel industry players that GSII is selling its supposed raw materials imports to the domestic market to show a semblance of commercial operation.
In a report to Customs Commissioner Alberto Lina, Customs Deputy Commissioner Celso Templo reported among others that GSII failed to file the requisite entries for the following shipments: Shipment of 19,077.134 metric tons of hot rolled coils which arrived on April 16 2004 ex M/V "Panamanian",Reg. No. 039-04, covered by two bills of lading; shipment of 9,748.35 MT of hot rolled coils which arrived on 12 February 2005 ex M/V "Al Barakak", Reg. No. 014-05, covered by four (4) bills of lading; shipment of 12,142.61 MT of hot rolled coils which arrived on 14 February 2005 ex M/V "Ducky Splendid" of Ducky Sovereign Shipping S.A., covered by five (5) bills of lading; shipment of 7,447.86 MT of hot rolled coils which arrived on 25 February 2005 ex M/V "CEC Cristobal" Voy. 02 of Clipper Elite Carriers A/S, covered by two (2) bills of lading.
Templo also reported that the Port of Cagayan de Oro, more particularly the Port of Iligan, failed to maintain a logbook which should contain the list and quantity of raw materials that are entered in the warehouse as well as the finished products taken out from said warehouse either for export or local sales. (Templo acknowledged that the BOI has granted GSII authority to sell no more than 30 percent of their finished products in the local market and the rest to the world market.)
According to Templo, the BOC investigation also found out that the GSII has been selling wastages to Iligan Rod and Bar Milling Corp. without the requisite clearance/authority from Customs as mandated in CMO 39-91.
Based on his finding, Templo recommended that a team composed of representatives be sent to the Port of Cagayan de Oro to conduct a complete audit of raw materials entered at the warehouse of GSII, finished products sold in the local market as well as in China, Singapore and Pakistan, and the wastages.
Templo has already instructed GSII to make available all import and export documents, as well as, documents covering the sale of wastages in the local market.