Customs seizes 20 container vans loaded with refined sugar

MANILA, Philippines - The Bureau of Customs (BOC) has seized 20 container vans loaded with refined sugar from Thailand after its consignee failed to pay the assessed duties and taxes of P2.7 million within the period allowed by law, the agency’s top official said yesterday.

The unclaimed sugar has a dutiable value of P16 million and had been forfeited in favor of the government, Customs Commissioner Angelito Alvarez said.

He said this would be sold in a public auction early next year.

The sugar shipment arrived at the Port of Manila consigned to Unitrade Industrial Manufacturing Corp. which failed to claim the cargo before the lapse of the 15-day grace period for it to do so.

In explaining the seizure of goods, Alvarez cited Section 1801 of the Tariff and Customs Code of the Philippines.

The code provides that the failure of the consignee to claim the subject shipment by paying the duties and taxes thereon within 15 days from the filing of the covering import entry is sufficient ground for the government to declare it “abandoned in favor of the government to be disposed in the manner provided for by law.”

This will allow the government to dispose of the goods via public auction.

Alvarez said it remains unclear why Unitrade was not able to have its sugar shipment clear Customs before the issuance by Port of Manila District Collector Rogel Gatchalian of a decree of abandonment.

He said it was possible something went wrong with the company’s tax subsidy arrangement with the National Food Authority.

Alvarez said the expeditious disposal of abandoned, seized and forfeited cargoes is one of the non-traditional sources of revenue that the agency has been maximizing under the Aquino administration. The BOC chief said the agency had started looking into the feasibility of conducting inventory, appraisal and auction sales using the appropriate information technology.

The BOC is the government’s second largest revenue agency. This year, it tasked to collect P280 billion but Alvarez said that with the imposition of zero duties on oil and motor vehicles under the Japan-Philippines Economic Partnership Agreement (JPEPA), the BOC would likely miss its full-year target.