BOC urges voluntary payment over seizure process

The Bureau of Customs (BOC) on Saturday has called on owners or claimants of imported goods covered by Letters of Authority (LOA) to settle the correct duties and taxes voluntarily instead of undergoing a Warrant of Seizure and Detention (WSD) process.

Under Section 224 of the Customs Modernization and Tariff Act (CMTA), claimants have 15 days from the LOA's implementation to opt for voluntary payment, the BOC stated.

Customs Commissioner Bienvenido Rubio emphasized that this option spares both the government and concerned parties from lengthy seizure proceedings, which could lead to the forfeiture of imported goods.

Citing Section 5 of Customs Administrative Order (CAO) 10-2020, Rubio explained that goods can be immediately released upon proof of payment of the correct duties and taxes, along with documentation of a local purchase.

“If the claimant cannot produce the proof of payment of correct duties and taxes by the original importer despite diligent efforts to produce the same, he may voluntarily offer to pay the duties and taxes due on the imported items,” Rubio said.

“This is available to claimants who can prove that they are bonafide purchasers of the imported goods,” the commissioner added.

The BOC issued the notice following recent seizures of P2.8 billion worth of luxury vehicles, including Ferrari, Porsche, and McLaren models, from warehouses in Makati, Taguig, Parañaque, and Pasay.

×

Need a wellness break? Sign up for The Boost!

Stay up-to-date with the latest health and wellness reads.

Please enter a valid email address

Sign Up

Your email is safe with us

BOC agents from the Customs Intelligence and Investigation Service (CIIS) served LOAs to the shop owners or representatives of the seized vehicles. Those responsible for the warehouses and vehicles have 15 days to submit documents proving all duties and taxes were correctly paid.

“Registered owners of imported vehicles who can prove that they are bonafide purchasers must settle the customs duties and taxes within the 15-day period,” said Rubio.

To reclaim a seized vehicle, the registered owner must provide substantial evidence that:

• The luxury car was purchased locally.
• They were not involved in its importation.
• They were unaware of any tax deficiencies by the original importer.

Failure to provide valid documentation will result in legal charges for violating the CMTA.

Deputy Commissioner for Intelligence Group Juvymax Uy stated that the voluntary payment scheme aims to increase government tax revenues while protecting the interests of innocent parties.

“This proactive approach will empower the Bureau to significantly bolster its revenue collection efforts while effectively safeguarding seized goods from deterioration pending seizure and forfeiture proceedings,” Uy said. — DVM, GMA Integrated News