Bureau of Customs mulls smuggling raps vs cruise firm

MANILA, Philippines - Manila Mayor Alfredo Lim yesterday warned business owners in the city against falling prey to extortionists posing as City Hall inspectors.

Bureau of Customs (BOC) Commissioner Napoleon Morales said yesterday he is contemplating filing smuggling charges against an inter-island cruise firm for allegedly operating a luxury ship without paying P19 million in duties and taxes when it was brought into the country.

“We might file smuggling charges against the shipping line. There is a criminal aspect in this case because they should have paid the correct taxes and duties since they used the article (ship),” he said.

Personnel of the BOC- Enforcement and Security Service (ESS), assisted by members of the Philippine Coast Guard (PCG), went to Pier 6 of the North Harbor at about 7 p.m. last Friday and served the warrant of seizure with forfeiture to claim the M/V Coco Explorer 2 in favor of the government.

BOC-ESS deputy director Chief Superintendent Jose Yuchongco said they served the warrant to comply with a Department of Finance (DOF) directive. There were 24 BOC and PCG officials who accompanied him.

The 7107 Island Cruise firm, however, said it does not intend to give up without a fight and will consider all legal remedies.

“It is still business as usual for us,” said Augusto Zamora, executive assistant of the shipping line’s owner.

He said despite the dilemma they are currently facing, they have not cancelled their bookings. They intend to push through with a reservation made by the Pamantasan ng Lungsod ng Maynila (PLM) to Corregidor for its faculty development workshop on June 3 and 4.

Zamora said that their lawyers are already considering several legal remedies, one of which is that they might file a restraining order before a court tomorrow.

“This was very strange and we were very surprised because the import of the vessel has been perfected already… Why was the forfeiture done Friday evening when there is no court and there is no way for us to seek any legal remedy?” he said.

Zamora said he is also wondering why Finance Undersecretary Estela Sales, who sits at the Maritime Industry Authority (Marina) board and is a member of the Philippine Economic Zone Authority, ordered the forfeiture of their ship.

He added that she also disregarded the tax exemption granted them by the BOC’s office at the Subic Bay Metropolitan Authority (SBMA). The BOC is under the DOF.  

Yuchongco said they caught the captain and crew of the vessel off guard because it was in the middle of a tour and they had passengers and guests on board. “I think there was even a party going on board. We allowed them to finish their event. There was even a live band on board. It was like a floating hotel,” Yuchongco said.

He described the cruise ship to have four decks and had 137 rooms. It was also equipped with a swimming pool. It had about 100 crewmembers and about 100 passengers.

According to initial investigation by the BOC, the vessel entered the country reportedly for repairs, but was later converted into a luxury ship and plying domestic waters without paying the duties and taxes. It was registered with the Marina without allegedly paying duties and taxes, the BOC said.

Morales said they might allow the vessel to sail and make a final voyage to Subic provided that there would be Customs police officers on board. “They would be under guard, then it could dock in Subic where there is a facility for yachts,” he said.

Yuchongco said they would allow the passengers and crew to disembark. “They would not be arrested. We are only after the ship.”

BOC officials said the ship could either be auctioned off or be allowed to operate again if the duties and taxes have been paid.