Customs fails to meet March collection target

MANILA, Philippines - The Bureau of Customs (BOC) failed to meet their revenue collection target for March, recording a P6.93-billion collection deficit.

BOC figures showed that the bureau collected P21.09 billion last month, way off the target for March set at P28.02 billion.

It was learned that 12 out of 17 collection districts, including the Port of Manila, Ninoy Aquino International Airport (NAIA), and Manila International Container Port failed to meet their targets.

The BOC also missed its collection target last February when it posted a collection of P22.8 billion, which while up 2.8 percent from the collection in February 2012, was short of P1.24 billion from the P24.04-billion target for February 2013.

The BOC had met its January 2013 revenue target, with collections reaching P24.5 billion, a little over the P24.3-billion goal.

Meanwhile, provisions in the proposed Customs Modernization and Tariff Act (CMTA) of 2011 could lead to a worsening of technical smuggling, and consequently lower collection of duties by the government, a long-time customs broker said.

Nilo Casas, president of the Professional Customs Brokers Association of the Philippines Inc., (PCBAPI), warned that provisions in the proposed CTMA of 2011 now being deliberated on in the Senate would allow any representative of a company importing goods into the country to be the “declarant” of a consignment or shipment who can sign the import and export entry declaration, instead of a cargo having to undergo mandatory assessment by a licensed customs broker who will sign the import and export entry declaration.

“This is a very dangerous provision that could really lead to technical smuggling,” Casas said.

“It will result in lower duties and taxes ‘cause these people are not competent and knowledgeable in tariffs and customs matters,” Casas said.

“How can an ordinary person who has not studied the TCCP (Tariff Customs Code of the Philippines) be expected to know the correct duties and taxes that should be imposed on a cargo?” Casas said.

He pointed out that a licensed customs broker is mandated to be a graduate of BS in Customs Administration which involves review the TCCP inside and out, and also some relevant sections of the National Internal Revenue Code. Aside from this, they also have to pass a licensure exams of the Professional Regulation Commission (PRC) before they can practice the profession.

“This is a highly technical field and you can’t let just anyone declare goods and compute the lawful taxes and duties on a shipment of cargo,” Casas pointed out.

Casas cited Section 1305 of the proposed CMTA of 2011 which stated that” a declarant is a person who makes and submits to Customs, goods declaration, or in whose name such declaration is made, any person having the right to dispose of the goods shall be entitled to directly act as declarant. However, when he authorizes an agent to make the declaration in his behalf, he can only do so through an accredited customs broker except in case when the the declarant is a juridical person in which case it may authorize its employee or officer to make the declaration in behalf of the juridical person.”

“The person having the right to dispose shall  be responsible for the accuracy of the information in the goods declaration made directly or through an agent and shall be responsible for the duties, taxes and other charges due on the imported article,” it said.

“The declarant shall sign that goods declaration personally or through an employee or officer in case of juridical person or even when assisted by a licensed customs broker who shall likewise sign said goods declaration,” the proposed CMTA of 2011 provides.