BOC to file charges versus officials of cement firm

The Bureau of Customs (BOC) is finally set to file several criminal and administrative charges against officials of Southern Cross Cement Corp. (SCCC) and its broker for possible smuggling, misdeclaration and under-valuation of its recent cement exports this year.

SCCC, which won a major victory in the Supreme Court against the imposition of safeguard measures against imported cement, was investigated by the BOC for possible smuggling, misdeclaration and under-valuation of its recent cement exports this year.

The BOC investigated alleged undervaluation of SCCC’s import entry declarations resulting in the possible avoidance of the payment of some P6 million in customs taxes and P18 million in value-added taxes (VAT) amounting to P24 million.

The BOC also looked into alleged misdeclaration of SCCC’s imports using the transaction value method and alleged withdrawal of 46,000 tons of cement without the proper authorization from the BOC which was tantamount to smuggling.

As a result of those investigation, lawyer Gallant D. Soriano, of the BOC’s intelligence and enforcement group, has recommended the filing of 11 criminal charges against SCCC’s general manager Isagani O. Fernandez and SCCC’s broker Agnesia A. Javier for violation of the provisions of Sections 3601,3602 and 3609 of the Tariff and Customs Code of the Philippines and one count for every illegal release of importation covered by Import Entry Nos. 13984, 43173 and 2599, for the acts of causing the release and withdrawal of the imported cement from the silo and out of the port without the presentation of the proper documentation, final assessment and falsification of public documents.

Soriano also recommended the filing of administrative complaints against wharfinger Alberto C. Angeles for simple neglect of duty and conduct prejudicial to the best interest of the public service.

Administrative complaints were also recommended by Soriano for Hermogenes C. Caylan, collector of the Harbor Center for gross neglect and conduct prejudicial to the best interest of the public service.

Soriano also recommended the conduct of post entry audit on all importations of SCCC and a reassessment on all importations of SCCC for the past year.

Lastly, Soriano recommended that SCCC’s current case be considered for inclusion in the Run After Tax Evaders (RATS) program of the BOC.

The BOC’s attention was called last April by the Philippine Chamber of Commerce and Industry’s commodity expert for cement Bonifacio De Castro Juson who had noted the unusually low freight rates being used by SCCC which affects the freight valuation of the cement shipment.

SCCC, in defense, claims that the rates it is using are the same since 1998.

Likewise, it denied allegations of smuggling, explaining that its shipment withdrawals were allowed by the BOC on a "tentative release subject to liquidation."

However, according to Angelito R. Mendoza, observer of the Cabinet Oversight Committee Against Smuggling and a member of the Presidential Anti-Smuggling Taskforce, the BOC is to be commended for its effort in preventing smuggling, misdeclaration and undervaluation.

According to Mendoza, misdeclaration and undervaluation would result in cheaper imported cement prices to the detriment of local cement which become more expensive.