BOC-Cebu has P6M deficit in 2nd quarter

CEBU, Philippines - The Bureau of Customs-Cebu fell short of its target collection for the second quarter of 2011, based on the collection report from the agency’s assessment division.

BOC-Cebu Assessment Division acting chief Vicente Yutangco said the deficit can be attributed to the decrease in the volume of importation and the high target set by the government for the year.

For the second quarter, BOC-Cebu was able to collect P4,377,096,907.41 against its target collection of P5.032 million, lending a deficit of P654,903,092.59.

“Hindi naman kasi tumaas yong volume of importation, tapos mataas pa yong target collection,” Yutangco said.

Meanwhile, BOC-Cebu Deputy Collector for Operations Ahmed Erpe explained that the volume of importation is down by 30 percent while the projected exchanged rate of P45 to $1 is not happening because the current exchange rate is only P41 to $1.

“Kapag maliit ang exchange rate, maliit din ang computation sa value of importation. Kung maliit ang value, it would mean maliit lang ang babayarang Customs taxes and duties,” Erpe said. 

Another factor in the collection shortfall, Erpe said, is the ASEAN Free Trade Agreement, which has exempted several products from China, including tiles, from tariff. He said the BOC-Cebu has foregone at least P250 million in revenue from January to July this year. 

BOC-Cebu has targeted to collect P9.3 billion this year.

Cebu Customs District Collector Ronnie Silvestre, who earlier asked to reduce the target collection to P8 billion, also attributed the collection deficit for the first half of the year to the low volume of importation.

The target collection for BOC is set by the country’s committee of economic managers composed of the Department of Finance, Department of Budget and Management, National Economic and Development Authority and the Office of the President. — (FREEMAN)