Customs chief confident of airtight case against Shell

MANILA, Philippines - Customs Commissioner Angelito Alvarez expressed confidence yesterday that they have an airtight case on the P24-billion technical smuggling charge they filed against Pilipinas Shell Petroleum Corp. (PSPC), before the Department of Justice (DOJ).

In an interview over radio station dzRH, Alvarez said that despite Shell’s complaints, he remains pat in his decision in filing the suit against the oil firm. The lawsuit is regarded as the biggest smuggling case ever filed before the DOJ.

He said that he expected PSPC to protest but “I said that if based on the documents present it is clear that we have a solid, airtight evidence (against PSPC). I have no choice but to comply.”

“With my audit background, I would not have entered into such (situation) without thoroughly studying (the facts),” he added.

Alvarez also admitted in the interview that he knew that when he filed the smuggling case against Shell, the bureau would be going up against the most influential law office, the Villaraza Cruz Marcelo & Angangco, also known as “The Firm”. ‘The Firm’ is said to be handling legal and public relations for Shell.

“I know that this would be difficult but to paraphrase a popular saying ‘hell hath no fury like a multinational’s scorn’,” Alvarez added. The commissioner is also optimistic that the filing of the case against PSPC is backed up by top government officials.

“I have also talked to high officials in the Department of Finance (DOF) and I have reason to believe that when I filed the case, I was supported by Bureau of Internal Revenue (BIR) Commissioner Kim Henares and Finance Secretary Cesar Purisima,” Alvarez said.

He has also alerted Malacañang and sent an executive brief. He believes that Malacañang supports them in taking this action. He is also certain that Justice Secretary Leila de Lima would do the right thing.

This is the first time that the Bureau of Customs has filed a case against a multinational company. Based on the documents that they gathered and submitted to the DOJ exactly a week ago the items imported by PSPC were finished products.

Alvarez said that by filing the case, he would be leveling the playing field with the other oil players. 

Last Tuesday, PSPC vice president for corporate communications Roberto Kanapi reportedly said that the company would file a case against “corrupt and incompetent” Customs officials who reportedly misinformed the Aquino administration.

“I understand that Shell’s decision to come out with a paid advertisement is the right thing to do under the circumstances. But I just hope that they would get the document that we submitted to the DOJ and from there, submit their sworn statement affidavit so they could justify their position,” Alvarez said.

Since the filing of the technical smuggling case, he said no one has tried to contact him to reconsider his decision.

Last Oct. 14, Alvarez filed the technical smuggling case against Pilipinas Shell for alleged “intentional” misclassification and misdeclaration of oil importations for five years, from August 2005 until May 2009.

The eight persons named respondents in the technical smuggling suit were PSPC country tax manager Nigel Avila; employees Brian Khriz Acosta, Carolyn Francisco, Ma. Cristina Rago and Janice de los Reyes who reportedly signed the entry documents; and Customs brokers Diosdado Bagon, Jorge Pascual Jr., and Mary Grace Maleon.

He explained that PSPC incurred a P2.3-billion misclassification case and a P380 million misdeclaration case. But the biggest chunk, the P21.7 billion, represents the 800 percent surcharge. Thus, the BOC is demanding a total of P24 billion from the oil firm.

The Tariffs and Customs Code of the Philippines (TCCP) stipulates that the fraudulent act and practices committed by the accused could be penalized by as much as 800 percent.