BOC to auction off 14 smuggled luxury cars

The Bureau of Customs (BOC) has decided to put on the auction block 14 smuggled luxury vehicles earlier seized from importers who failed to pay the right duties and taxes, its top official said during the weekend.

Instead of smashing the vehicles, Customs Commissioner Napoleon Morales said it would be more practical to sell these and raise much needed revenues for the government.

The agency expects to raise at least P66 million from the sale of the vehicles including a Corvette, Audi and BMW brands, Customs Commissioner Napoleon Morales said during the weekend.

President Arroyo has given the agency the green light to auction off the imported cars by Hidemitsu Trading Corp.

“The President has given as the go signal,” Morales said.

On sale are three 2006 BMW 750i with a sticker price of P6.52 million each; three 2006 Audi A8L worth P5.97 million each; a 2007 Cadillac Escapade worth P5.09 million; a 2007 Cadillac Escalade pick up truck worth P4.78 million; and a Corvette worth P4.07 million.

Other luxury vehicles up for sale include an Acura MDX with a sticker price of P3.39 million; a 2005 Infinity worth P3.07 million; a 2006 Nissan Armada worth P3.03 million; and an Acura MDX worth P2.96 million.

The agency was able to dispose of a 2006 BMW 325i series for P2.301 million.

Morales said proceeds of the sale would provide additional revenues for the agency which is tasked to collect P228 billion this year and P254 billion next year.

Last August, the government decided to smash 18 smuggled luxury vehicles worth about P30 million as part of efforts to curb smuggling.

The Department of Finance (DOF) estimates that the government is losing P60 to P65 billion worth of revenues annually.

The vehicles destroyed last August included three BMW X5 sports utility vehicles, a Lincoln Navigator, a Mitsubishi GTO sports car, an old BMW sedan, a Nissan Astro van, a Toyota Caldina, a Toyota Lucida, five Toyota Erminas, two Toyota Grandeurs, a Nissan Serena, and a Mitsubishi mini Pajero. The vehicles are valued P30 million and are worth P10 million in customs duties and taxes.

Finance Secretary Margarito Teves is in favor of smashing smuggled vehicles to show illegal traders that the government is serious in its fight to curb smuggling but Morales said it would be more practical to sell the vehicles through a public auction.