600,000 car plates stuck in port

MANILA, Philippines - The Bureau of Customs has threatened the private consignee of the 600,000 vehicle license plates that it will put the shipment up for auction if the company will not pay around P40 million in duties and taxes this week.

This is the warning of Customs Commissioner Alberto Lina to the Dutch-Filipino consortium Knieriem BV Goes and Power Plates Development Concept Inc. (JKG-PPI).

“The importer promised that they would pay us in a while, so we would wait for them for a week. If they fail, we would consider the process of abandonment. The car plates would be put up for auction,” Lina said in a forum yesterday.

He also said that while the importer JKG-PPI would be entitled to join the auction, the company should not wait for the auction process because it would be more costly. “It would be better if they pay up now.”

As of yesterday, JKG-PPI had not yet paid duties and taxes as well as demurrage and storage fees that the 11 shipping containers of imported vehicle license plates have incurred.

The Dutch-Filipino firm bagged the P3.8-billion contract to supply the Land Transportation Office (LTO) with vehicle license plates in 2013.

The 11 shipping containers of car plates arrived at the Manila International Container Port on different dates last year. Lina said the shipment was abandoned and this prompted the BOC to take the cargo.

There has been a backlog in the issuance of vehicle license plates, which has been the problem of motorists.

LTO chief Roberto Cabrera said the cause of delay in the release of the car plates was the notice of disallowance issued by the Commission on Audit (COA).

The COA issues a notice of disallowance upon finding that a procurement of goods or a contract entered into by the government is irregular or illegal.

The COA ordered the LTO to stop the license plate deal with JKG-PPI because of the violation of procedures prescribed under Republic Act 9184, or the Government Procurement Reform Act.  

LTO: It’s their responsibility

Cabrera said the company also “promised” the LTO that it would pay its duties and taxes for the vehicle plates, and that is “their responsibility.”

“I had the chance to talk to them two times. The problem with the plates was brought up. They were saying that it was not their fault because of the delay. But my point is assuming it’s not your fault, it is still your responsibility to take them out,” he added.

Asked if the vehicle plates would be released before President Aquino’s term ends, Cabrera said, “I don’t think so.”

“This is a matter of payment. But as far as the LTO is concerned, we are still looking at the chance of having those plates released soon or before the President’s term ends,” he added.

Leo Romero, a counsel of an LTO supplier, said that the LTO would not be able to release the license plates before Aquino steps down because the contract with JKG-PPI was unconstitutional and the LTO could not easily correct the notice of disallowance issued by COA.

Former LTO chief Alfonso Tan filed an appeal to lift the notice of disallowance but it was denied. Tan later filed an appeal before the COA’s office of the director, but the appeal was also denied.

He then filed a petition for review before the COA chairman and two commissioners, but this was also denied before he resigned last year.

Cabrera, who assumed his post in January, said he filed a motion for reconsideration of the COA decision that denied Tan’s petition for review.