BMW for P74,644: Only at Customs

The Senate ways and means committee has uncovered the smuggling and undervaluation of nearly 8,500 brand-new and used luxury vehicles that were brought into the country last year through the port of Manila.

Sen. Ralph Recto, committee chairman, told reporters yesterday that he could not understand why Customs authorities allowed the vehicles to enter the country when their importation was supposed to be prohibited.

He said the units, many of which were 4x4 Toyota Land Cruisers and Mitsubishi Pajeros, were grossly undervalued.

"Consider these: a 2002 Volkswagen that is worth at least P1.5 million was valued at P27,237, a BMW Z3 Roadster was appraised at P74,644, a brand-new Pajero was valued at P191,103, while a brand-new Land Cruiser had a price tag of P297,260 only," he said.

A local Pajero cost about P1.7 million, while an imported Cruiser (there is no local version) can fetch as much as P3.5 million in the domestic market.

Recto said a Jaguar that costs more than P2 million here was declared at P500,000, while an X-5 BMW sports utility vehicle that sells for more than P4 million was valued at P975,000.

He said the import documents he has scrutinized showed that "many used vehicles carried a value of what it would cost to buy a new cellular phone."

Citing examples, he said one used Pajero was valued at P32,050, while a used Nissan Safari had a price tag of P46,811.

He stressed that at a time when the government is facing a large budget deficit, it is almost criminal for importers to smuggle vehicles and other products and to undervalue them to evade payment of taxes.

It is also criminal for the concerned authorities to turn a blind eye to such illegal activities, he added.

Recto urged the Bureau of Customs to go over the documents covering the shipments and to asses the importers additional taxes.

At the same time, he called on carmarkers to also monitor the Port of Manila and other ports for smuggled vehicles.

He said while local assemblers were busy protesting the auction of used vehicles in Subic, smugglers were bringing in thousands of SUVs through the Port of Manila.