Biazon proposes pre-shipment inspection

Former Customs chief Ruffy Biazon. JOAN BONDOC/PHILIPPINE DAILY INQUIRER

MANILA, Philippines—Ruffy Biazon may no longer be part of the Bureau of Customs (BOC), but that did not prevent him from pushing for “import data reconciliation,” which calls for documentation on shipments of imported goods at their ports of origin.

The procedure could drastically reduce, if not totally eliminate opportunities for the misdeclaration and undervaluation of shipments by smugglers at Philippine ports of entry, the former Customs chief asserted on Monday.

According to Biazon, the proposed program is covered by a Customs Administrative Order he submitted to the Department of Finance before he quit his post in December after being implicated in the pork barrel scam.

In a text message to the Inquirer, he said the proposed directive was still “subject to approval by the Department of Finance.” The BOC is a DOF-attached agency.

“Hopefully, the proposal will be considered and pursued by the new leadership at the BOC,” the former Muntinlupa City legislator also said.

He recalled that “the issue on data reconciliation was one of the reasons why [he] pushed for the program, which is similar to the pre-shipment inspection procedures in the 1990s.”

“It provided documentation and information from a shipment’s port of origin,” he pointed out.

Biazon explained “with that, authorities in the Philippines will have additional information to profile the incoming cargo and remove opportunities for misdeclaration and manipulation of data contained in bills of lading and cargo manifests, which are part of the modus operandi employed by smugglers.”

The misdeclared and undervalued imports of big-time Customs players, known among agency insiders as “Big Mama,” “Ma’am Tina” and “Mr. T,” have cost the government billions of pesos in lost revenue, said a newly appointed Customs official.

The same players, who are said to be fronting for several trading firms, have been benefiting from the misdeclaration and undervaluation of their imports but not a single case had been filed against them.

“Why? Because their imports appeared to be in order. Thanks to some corrupt BOC personnel who are in cahoots with them, letting them misdeclare and undervalue their imported goods so they can pay lower duties and taxes,” said the same official.

In a recent interview, Customs Commissioner John “Sunny” Sevilla did not mention Biazon’s proposal on data reconciliation, but said they were “trying to develop alternative sources of data for the valuation of principal imports.”

“But it won’t happen overnight,” the new Customs commissioner acknowledged.

At the same time, he disclosed the valuation of an undisclosed number of imports handled by the bureau was a “little bit low,” resulting in lower revenue collections under the Aquino administration.

Citing some “quick checks” he made of the BOC’s records, the former finance undersecretary for privatization also said the bureau’s import valuation data were “not systematically organized” and that the 17 Customs collection districts nationwide “do not have a uniform valuation reference.”