BOC audit of importers nets P247.4 million in taxes

THE Bureau of Customs’ (BOC) post-clearance audit verification and investigation of importers from January to February this year has so far resulted in the collection of P247.37 million in duties and taxes.

In a statement on Tuesday, the BOC said six outstanding final demand letters were collected and 48 applications were filed from January to February this year.

Of the 48 total PDP applications filed, 31 were from Mechanically Deboned Meat  importers under audit, tallying a total amount of P67.6 million; 13 PDP applications were from rice importers under audit, amounting to P6.74 million.

Under Customs Administrative Order No. 01-2019, PDP refers to the program authorizing the Customs Commissioner to accept, as a potential mitigating factor, prior disclosure by importers of errors and omissions in goods declaration that result in deficiency in duties and taxes on past importations. This may also include disclosures on royalties and other proceeds of any subsequent, resale, disposal or use of the imported goods that accrues directly or indirectly to the seller.

On the previously issued audit notification letters (ANLs), PCAG also said six PDP applications were approved while seven final audit reports were completed.  These resulted in the issuance of six new demand letters amounting to P41.17 million and one clean report finding. The demand letters shall become final and demandable upon the lapse of 15 days from receipt thereof by the importer.

From January to February this year, 28 ANLs were issued, of which 17 are importers in the coffee industry, 10 are in the oil and petroleum industry, and 1 consignee issued with ANL due to compliance issues based on the profiling conducted.

Moving forward, BOC-PCAG expressed optimism that additional revenues will still be collected from post-clearance activities for the rest of the year.

At present, there are still 11 outstanding final demand letters amounting to P6.9 billion which remain unpaid and will be referred to the BOC Legal Service for the filing of the necessary collection suit.

For this year, the BOC targets to collect a total of P616.7 billion, significantly higher by 21.84 percent than the downgraded 2020 target set for BOC at P506.15 billion.

Last year, the bureau’s total revenue collection reached P539.7 billion, above its revised revenue collection target by 6.6 percent or P33.5 billion.