BOC urged to do the purchase of seized smuggled goods

MANILA, Philippines - The Federation of Philippine Industries (FPI) said the Bureau of Customs could do the compulsory acquisition of smuggled goods directly, saying that it would be faster and more efficient.

FPI president Jesus Arranza said the United Coconut Planters Bank is willing to lend the BOC money to finance the acquisition. Arranza served as director of UCPB.

Arranza said this could be the more practical route as going through Philippine International Trading Corp. could entail a longer time. “The BOC can do that directly,” Arranza said in an interview.

According to the BOC’s plan, the government, through the PITC, will buy the seized smuggled goods languishing in warehouses and re-sell this to the private sector.

The move is part of the Aquino administration’s plans to curb smuggling, which according to Alvarez translates to P40 billion in lost revenues for the government every year.

Under the plan, PITC, the state-owned trading arm would tap its credit line from Landbank to acquire the goods seized by the BOC.

The plan came about as a suggestion from the FPI.

FPI suggested that the BOC implements “forced acquisition” to shore up revenues and curb technical smuggling.

Alvarez said importers who undervalued their shipments would have no choice but to mend their ways and start declaring the right value of their imports.

He said the importers themselves may buy the goods but for the right value.

Earlier, FPI urged the BOC to do “forced acquisition.” The group, an umbrella organization of local industry players, said the government could have raked in billions in fresh revenues.