BOC to appeal in court TRO secured by Shell

MANILA, Philippines - The Bureau of Customs (BOC) said yesterday it would file an appeal in court seeking to junk the fresh restraining order obtained by Pilipinas Shell Petroleum Corp. against the agency for its planned seizure of the company’s oil imports.

Customs Commissioner Napoleon Morales said the agency, through the Office of the Solicitor General would seek to junk the new order as it is determined to hold the shipments of Shell until it pays its alleged import tax arrears amounting to P7.3 billion.

“We will appeal the order. For now, we can’t do anything about it,” Morales said yesterday.

Shell has gained a 20-day temporary restraining order against the BOC’s planned seizure of its fuel imports.

In a three-page decision issued last Wednesday, Batangas City Regional Trial Court Judge Ruben Galvez of Branch 84, awarded Shell the restraining order. Galvez said more time was needed to decide on the legal issues raised in the case.

The new TRO issued by the Batangas court came a day after the Court of Tax Appeals rejected Shell’s petition for a permanent injunction while the tax dispute was being heard.

Morales said the hearing on the TRO is scheduled on Feb. 23. “We will file our response during the hearing,” he said.

The BOC chief said that once the TRO is lifted, the agency would proceed with its plan to seize Shell’s fuel imports.

The issue stem-med from Shell’s refusal to pay for import taxes on catalytic cracked gasoline (CCG) and light catalytic cracked gasoline (LCCG) imported by Shell between 2004 and 2009.

Shell refused to pay as it cited a previous legal opinion issued in 2004 by then BIR Commissioner Jose Mario Bunag which said that the importation of the two products is exempt from excise tax.

BIR Commissioner Joel Tan-Torres has already reversed the Buñag ruling and agreed with the BOC that the products are subject to tax.

Morales said the BOC is exerting all measures, including going after Shell’s tax liabilities so that it can meet its revenue goal for 2010 amounting to P275.6 billion.

In January, the BOC collected P17.602 billion, above its revenue goal for the month of P14.091 billion, latest data from the Treasury showed.