COA flags BOC over unauthorized release of questionable cargoes; overstaying containers
MANILA, Philippines — The Commission on Audit (COA) has flagged the Bureau of Customs (BOC) over its unauthorized release of questionable cargoes while also allowing thousands of containers to overstay in various ports of the country.
In its 2018 annual audit report, the COA said BOC records showed that 97 out of the 375 questionable cargoes were released without paying the additional post-assessments that total to P5.101 million, which is contrary to Section 3.1.4 of Customs Memorandum Order (CMO) No. 53-2010.
The COA further noted that at the Manila International Container Port (MICP), 104 entries of imported motor vehicles worth P104.621 million were processed and released to importers even without the Certificate of Authority to Import and Release Certificate from the Department of Trade and Industry, in violation of Sections 3 and 4, Article 2 of Executive Order No. 877-A.
At the Port of Manila, meanwhile, some 105 containers worth an estimated value of P69.68 million and subjected to alert orders, were “illegally released” without proper authorization, according to the COA. This, the audit agency added, was in violation of CMO No. 35-2015 and Section 1111 of the Customs Modernization and Tariff Act (CMTA) or Republic Act No. 10863.
“The practice of authorizing the release of the cargoes contrary to established rules and regulations defeats the purpose for which the control was placed and breach of protocols would place operational controls at risk, thus not maximizing the revenues to be collected,” COA stressed.
The COA has asked the BOC to require all concerned BOC officials to strictly adhere to the established rules and procedures before the release of cargoes and to punish erring personnel. The BOC management has agreed, according to the COA.
Overstaying containers
As of December 31, 2018, a total of 6,985 overstaying containers remained undisposed in various BOC ports for a period ranging from 30 days to more than 25 years, the COA reported, stressing that this was in violation to Section 1141, Chapter 10, Title XI of the CMTA.
The COA further bared that most of the undisposed perishable goods were imported in 2018, the biggest of which are importations of rice and refined sugar which are subject of forfeiture proceedings due to lack of necessary permits from concerned government agencies. These goods, COA said, could now be “unsafe for human consumption,” and “may not be feasible for auction and depriving the government of revenues.”
Some 880 containers were also undeclared, uninspected and could not be offered for auction as its contents may pose risk or hazard to the Port, according to the COA.
Another 22 containers in the MICP that contain various vehicles and several luxury vehicles were also exposed to deterioration, while some 17 containers containing goods for donations to various government agencies and non-government organizations and the Philippine Red Cross for calamity stricken communities also remain undisposed.
“The inability of the Ports to conduct the necessary disposal proceedings in accordance with the CMTA and delays in the legal review of overstaying containers resulted to loss of government revenues representing proceeds of disposal or collection of assessed duties and taxes due from these cargoes,” COA said.
The audit agency has asked the BOC to strictly monitor its disposal proceedings, conduct an immediate inspection of all overstaying containers, prioritize the disposition of perishable goods, and speed up the release of the items for donations. The BOC has agreed to follow these, the COA said. (Editor: Mike U. Frialde)
