Customs closes more warehouses

Customs Commissioner Antonio Bernardo ordered the closure of 430 more bonded warehouses last Friday as part of the government’s drive to rationalize the operations of Customs bonded warehouses (CBWs) in the country and plug tax leaks from smuggling.

Three hundred eight CBWs have been ordered closed since Bernardo started his campaign, the biggest by far in the Bureau of Custom’s drive to rationalize operations of CBWs.

The Customs chief said the bureau is shifting to an industry-specific warehousing system.

"This will mean fewer CBWs in operation, and we can monitor the operations of CBWs more closely. We are going back to the basics of bonded warehousing, wherein facilities will be used only for the purpose for which they were established — to store the raw materials exporters need to produce their goods," Bernardo said.

Most of the CBWs in the country have been inactive over the past 12 months. Business groups estimate that only 30 percent of an estimated 1,000 CBWs nationwide are used for their intended purpose.

It is widely believed that CBWs have been used over the years by unscrupulous traders as conduits for smuggling.

Philippine Chamber of Commerce and Industry president Donald Dee said the bureau should trim the number of CBWs to at least 30 percent of the number of existing accredited bonded warehouses.

Bernardo said that existing CBWs are now required to renew their licenses and prove that the facilities are being used for the legitimate importation of raw materials for export activities.