MANILA, Philippines - The Bureau of Customs (BOC) filed yesterday before the Department of Justice (DOJ) smuggling charges against a major importer of palm oil.
Customs Commissioner Angelito Alvarez said the importer declared a per kilo value of palm oil for as low as P6.60 for the refined, bleached and deodorized (RBD) palm oil.
The shipments came from Malaysia between January 2010 and February this year.
Charged before the DOJ are officers and brokers of Trans-Asia Philippines Manufacturing Industry, a company based in Caloocan City.
In its complaint, the BOC sued for gross undervaluation and various fraudulent practices Jason Uy Sio, import manager of the company and customs brokers Benjamin Valic, Elinda Dumalaog and Joey Laurente.
Records of the case would show that in a span of 14 months, between January 2010 and February this year, Trans-Asia imported a total of 38,694,261 kilograms of RBD palm oil with a declared per kilo value ranging from P6.60 and P22.00.
RBD oil is usually made from copra or dried coconut kernel. It is used for home cooking and commercial food processing. It is also an important raw material in the manufacture of soap, washing powder and other hygiene and personal care products.
Broken in 17 import entries which were unloaded at the Port of Manila, Trans-Asia’s palm oil shipments were assessed a value added tax (VAT) totaling a measly P64,824,462 since the company falsely declared a total dutiable value of only P532,852,511.
However, Alvarez said that Trans-Asia’s total importation value should have been P2.2 billion and that it should have paid a VAT of P265 million.
Customs Deputy Commissioner Gregorio Chavez said the scale of undervaluation committed by Trans-Asia was well in excess of 75 percent had very few precedents in the history of the Bureau of Customs.
Chavez also said that Trans-Asia submitted falsified and spurious invoices to justify the gross undervaluation.