BOC slaps smuggling case against importer using fake papers

MANILA, Philippines—The Bureau of Customs (BoC) today filed a smuggling case against an importer for using fake preferential tariff certificates to evade payment of proper customs duties.

Customs Commissioner Angelito Alvarez  identified the respondent as Juliana Oriel Octavio, proprietress of the Escolta-based Adventure Trading. Octavio allegedly evaded payment of a 10 percent duty on the nearly 600 packages of fabrics she imported from Thailand last November.

A certain Geraldine Purog was also included as co-respondent in the case.

Records showed that  a shipment of  fabrics with a declared dutiable value of P548,550 and consigned to Adventure Trading, arrived at the Port of Manila last November. The importer was reportedly able to secure its release without payment of duties because the shipment was declared to be zero-rated, based on the submitted ASEAN-Common Effective Preferential Tariff (ASEAN-CEPT) form.

The CEPT was started in 1992 as a schedule for phasing tariffs, and as a goal to increase the ASEAN’s competitive advantage as a production base geared for the world market. ASEAN members apply a tariff rate of 0 to 5 percent under the CEPT.

Alvarez said upon verification by the BoC’s post entry audit group, they discovered that the ASEAN-CEPT form was invalid.

“The deliberate submission by Adventure Trading of spurious ASEAN-CEPT form constitutes a clear violation of the Tariff and Customs Code of the Philippines,” Customs Deputy Commissioner Gregorio Chavez said.

“The use of fake transaction forms by smuggling syndicates deprive the government of much-needed revenues since the China-ASEAN Framework Agreement on Trade in Goods has eliminated tariffs on 90 percent of the products being produced and sold in the expanded free trade area,” Alvarez said.

Chavez said Adventure should be made to pay the government P4.6-million in duties and taxes.