Groups urge government to amend anti-smuggling laws

MANILA, Philippines -  Non-government organizations have urged the government to amend anti-smuggling laws if it is serious in increasing revenues.

In a forum, the Citizens Crime Watch (CCW) and the Balikatan People’s Alliance (Balikatan) said the government has been losing some P31 billion annually because of ineffective anti-smuggling laws.

They cited oil smuggling at ports, which has deprived the government of duties and taxes amounting to about P93 billion in the last three years. 

Lawyer Jose Malvar Villegas Jr., CCW chairman and senior consultant of the congressional Oversight Committee on Comprehensive Tax Reform Program, said the government has lapses in discharging of foreign flag tankers loaded with imported crude and refined petroleum products, leading to rampant oil smuggling in ports.

Balikatan chairman Louie Balibago disclosed that from 2006 to 2009 alone, the government lost P91 billion to oil smuggling.

Villegas called for the amendments of Administrative Order 243 or the Bulk and Break Cargo Clearance Enhancement Program of the Bureau of Customs and the Tariff and Customs Code of the Philippines Section 1401 which defines the condition and examination of imported goods.

He said regular physical examination should be performed directly by personnel from BOC .

He explained that at present, all inspections of imported crude and refined oil discharged in ports are solely conducted by accredited private inspection companies, which are hired by oil firms.

This system, he said, neglects the check and balance practices or transparency to properly collect taxes.

He said Republic Act 8479 or the Deregulation of the Oil Industry must also be reviewed and amended because its current provisions lack “teeth.”

Villegas said RA 8479 has failed in documenting and reporting the correct oil quantity obtained from importers of crude oil and refined petroleum products in the country, leading to constant adjustments of oil prices in the domestic market.