BOC collects P247 million from clearance audit

MANILA, Philippines — The Bureau of Customs (BOC) collected an additional P247.37 million from January to February through post-clearance audits and prior disclosure program (PDP).

These additional revenues were collected from six outstanding final demand letters sent out by the agency’s Post-Clearance Audit Group (PCAG) to importers for payment of deficiencies in duties and taxes.

Meanwhile, 48 applications for Prior Disclosure Program (PDP) were accepted, mostly from shipments of mechanically deboned meat and rice imports.

The PDP allows importers to voluntarily pay for tax deficiencies for shipments before post-clearance audit.

The government is retaining a five percent tariff on mechanically deboned meat until 2022 to stabilize supply and prices of processed meat amid the pandemic.

Collection from rice imports, meanwhile, grew in January as a result of improvements in the valuation system that ensures the proper classification, quantity and weight of rice stocks brought into the country under the Rice Tariffication Law.

The PCAG is optimistic that additional revenues will still be collected from post-clearance activities for the remaining months of 2021 as there are still 11 outstanding final demand letters amounting to P6.9 billion that remain unpaid.

These will be referred to the BOC Legal Service for the filing of the necessary collection suit.

“The Bureau of Customs remains committed to carrying out its mandate of protecting government revenue by suppressing all illegal and irregular activities of unscrupulous importers through the Bureau’s strengthened post-clearance audit efforts,” the agency said in a statement.

Customs conducts such audits to ensure the proper valuation and taxation of imports.

During the period, PCAG also completed final audit reports that resulted in the issuances of new demand letters for a total of P41 million which will become final and demandable 15 days from receipt by the importer.

Meanwhile 28 audit notification letters – which informs a company that it will undergo post-clearance audit – were sent to importers of coffee and petroleum.