SBMA Chairman assures stricter measures against smuggling

Subic Bay Metropolitan Authority (SBMA) Chairman and Administrator Jonathan D. Tan assured the public that smuggling will be thwarted during his term.

The statement came after Tan and Bureau of Customs (BOC) District Collector Atty. Carmelita Talusan conducted an inspection of counterfeit goods worth P240-million in a warehouse in Subic Bay Freeport on Tuesday.

According to Tan, President Ferdinand Marcos Jr. has mandated him to look into the smuggling of goods inside the Freeport, citing that the apprehension of the shipment of counterfeit goods is thru the collaboration between his agency and the BOC Port of Subic.

Chairman Tan said that the SBMA will provide any assistance necessary to the BOC Port of Subic to ensure that smuggled goods would be confiscated before entering other Philippine territories. 

“The cooperation between the SBMA and BOC Port of Subic will definitely yield positive results following the mandate that the President has given me. By working together, our agencies will certainly provide a more secure Subic Bay Freeport Zone that is free from smuggling,” Tan said.

The two officials inspected the shipments of counterfeit goods at a warehouse in the Subic Bay Freeport Zone on Tuesday wherein 1,269 cartons of misdeclared t-shirts were found. Talusan said that the estimated value of the two shipments totaled P240 million.

Atty. Talusan also mentioned that the cargoes arrived on June 14, from its port of origin in Dhaka, Bangladesh. She added that they conducted the examination on June 26 on the shipments consigned to Bonne Volonte Consumer Goods.

The BOC official also cited that the shipment violates Section 155 of Republic Act No. 8293 or the Intellectual Property Code of the Philippines, relative to Section 1113(f) of RA No. 10863 or the Customs Modernization and Tariff Act (CMTA).

Talusan also disclosed that some of the brand owners who provided certificates of counterfeit goods include Emerald Garment Manufacturing Corp. (makers of RRJ, Stylistic and Mr. Lee), and Federis & Associates Law Offices for Uniqlo and Cotton On. (MPD-SBMA)

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Port of Subic posts highest rice import tariff collections

MANILA -- Preliminary data show that the government has so far collected PHP5.9 billion in tariffs from some 1.43 million metric tons (MT) of rice stocks imported by private traders, following the enactment of a law in March that liberalized the importation of the grain, the Department of Finance (DOF) disclosed in a statement on Thursday.

A report to Finance Secretary Carlos Dominguez III by Customs Commissioner Rey Leonardo Guerrero revealed that the Bureau of Customs (BOC) collected the highest amount of rice import tariffs from the Subic Bay port at PHP1.37 billion.

The Port of Manila collected PHP978.51 million in tariffs, followed by the Manila International Container Port with PHP942.76 million, Guerrero said during a recent DOF Executive Committee meeting.

The Port of Cagayan de Oro collected PHP754.13 million in tariffs from rice imports, while the Port of Davao collected PHP703.93 million, the data showed.

Republic Act (RA) 11203 or the Rice Liberalization Act was signed and approved by President Rodrigo Duterte last February 14.

Dominguez has described the rice liberalization law on the shift from quantitative restrictions (QRs) to tariffs on rice imports as a “proud” accomplishment of the Duterte presidency and the DOF, given that it took more than 30 years under various administrations to get the Congress to approve this game-changing reform.

Liberalizing rice imports, he said, will not only make quality rice more affordable and accessible to Filipino families, but will also lower the country’s inflation rate, revolutionize the agriculture sector and help farmers become more productive and competitive in the global economy.

Dominguez said rice tariffication has proved to be challenging because it was “a politically difficult reform to pass."

Liberalizing rice imports has made the staple food more affordable to Filipinos, making retail prices this summer cheaper by PHP10 per kilo.

RA 11203 created the PHP10-billion Rice Competitiveness Enhancement Fund (RCEF) to help palay growers and their farmers' cooperatives transition to a new rice regime.

The RCEF will be used to provide farmers tools and equipment, assistance in the production, promotion, and distribution of certified rice seeds, upgrading of post-harvest storage facilities, credit assistance, irrigation support, and research and development (R&D) support. (PR)

PHOTO:

The Subic Bay International Container Terminal (SBITC) at the Port of Subic

https://www.pna.gov.ph/articles/1074081

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BoC Subic posts record collection

The Port of Subic district collection unit of the Bureau of Customs achieved last month its highest revenue collection performance in its 20-year history after generating P2.347 billion, or 12.8 percent over its target for the period.

The BOC district unit headed by lawyer Ma. Rhea M. Gregorio registered a surplus of P265.429 million, according to the data gathered on the revenue performance of the district. Its target was P2.082 billion.

This is the third consecutive month that the district achieved positive collections record since September when Gregorio assumed the post as district collector.

BOC Subic accomplished the double-digit revenue targets by upgrading trade facilitation and closer dialogs with both Subic Freeport locators and port users.

Subic raised P2.182 billion revenues on import duties and taxes in October, netting P87.733 million, or a surplus of 4.2 percent. (Joel E. Zurbano, Manila Standard)

http://manilastandard.net/business/power-technology/282110/boc-subic-posts-record-collection.html

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Port users raise Subic collections by 46% in Q2

Hefty payments by port users in the Subic Bay Freeport resulted to an increase of 46 percent in customs collections in the second quarter of 2018, compared to total collections in the same period last year.

The Bureau of Customs at the Port of Subic (BOC-Subic) reported that it collected a total of P5.27 billion in April to June this year, compared to P3.6 billion in April-June 2017, or a difference of P1.66 billion.

Meanwhile, the 2018 collection figures also increased considerably from P4.8 billion in January-March 2018 to P5.2 billion in April-June 2018, or a difference of P429 million, for a growth rate of 8.85 percent.

Combined figures from the two quarters also gave BOC-Subic a total tax haul of P10.12 billion, which represents a 28.43 percent increase over the 2017 first semester total of P7.88 billion.

BOC-Subic’s newly appointed district collector Segundo Sigmundfreud Z. Barte Jr. attributed the increased collection following his appointment on April 27 to the “full support and cooperation of this Port to the plans and programs of BOC Commissioner Isidro S. Lapeña, and SBMA Chairman and Administrator Wilma T. Eisma.”

Eisma, meanwhile, cited the SBMA’s “long-standing cooperation with Subic Customs in going after those who seek to profit by illegal means” and recalled that joint operations by the SBMA Law Enforcement Department and the BOC-Port of Subic had resulted in the seizure of highly dutiable items like vehicles, wines and liquors, as well as imported rice.

“I’m glad that BOC personnel in Subic are very cooperative with the SBMA in curbing smuggling, as this illegal activity bleeds our economy dry,” Eisma added.

Barte also said that from January to June this year, BOC-Subic posted a total of P6.91 billion in revenue contributions from Subic’s Top 20 port users alone.

The top ten payers are: PTT Philippines Corp. with P1.43 billion, the highest revenue contributor so far this year; Cebu Air, Inc., P921.9 million; Micro Dragon Petroleum, Inc., P663.9 million; Marubeni Philippines, Corp., P456.9 million; RK3 International Trading, Inc., P446.5 million; High Glory Subic Int’l Logistics, Inc., P372.5 million; Warbucks Industries Corp., P341 million; Insular Oil Corp., P314 million; United Auctioneers, Inc., P310.3 million; and Murami Subic Trading Corp., P259.7 million.

The others are: Petron Corporation, with P216.7 million; Filoil Logistics Corp., P177.7; Masinloc Power Partners Co., Ltd, P162.9 million; Era1 Petroleum corp., P145.7 million; Nestle Philippines, Inc., P135.7 million; Rockoil Central Trading Corp., P130.9 million; Phoenix Petroleum Philippines, Inc., P130.9 million; Pilipinas Shell Petroleum, P114.3 million; PMFTC, Inc., P106.9 million; and Apollo Subic Int’l Trading Corp., P67.9 million.

Barte also said that BOC-Subic will prioritize its drive to meet or even surpass targets for the remaining months of July to December this year. He likewise vowed full support to the SBMA thrust of developing Subic into a global player in logistics. (RFD/MPD-SBMA)

PHOTO:

District Collector Segundo Sigmundfreud Z. Barte Jr. tells about growing customs collection in the Subic Bay Freeport during a media briefing organized by the SBMA on Monday. (MPD-SBMA)

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SBMA, BOC close ranks to beat smuggling

The Subic Bay Metropolitan Authority (SBMA) threw its full support to the government’s anti-smuggling campaign by signing a cooperation agreement with the Bureau of Customs (BOC) to improve the latter’s capability in flushing out illegal activities in the Port of Subic.

SBMA Chairperson and Administrator Wilma T. Eisma signed an accord last Friday with Customs Commissioner Isidro Lapeña for the construction of a new building here to house the Port of Subic’s BOC office, as well as a training facility for the proposed Customs Academy.

The Philippines is reportedly one the few remaining countries in the world that lacked an official school for its Customs personnel.

“We’re a hundred percent in support of this project because we are aware of what this means to the Philippine economy, to law enforcement, as well as to the local industries and image of the Subic Bay Freeport as a center of commerce,” Eisma said.

“Smuggling bleeds the economy dry, and everything we have been building in Subic all these years would come to naught if illegal activities like this were not stopped,” she added.

Eisma pointed out that the SBMA, particularly its Law Enforcement Department, has been working closely with the BOC in combatting smuggling.

Last December, SBMA law enforcers foiled an attempt to bring out of the Subic Freeport some P40-million worth of expensive liquors. The agency’s Seaport Department also blacklisted brokers found to be involved in that smuggling operation, Eisma said.

Eisma and Lapeña, along with Port of Subic District Collector Fidel Villanueva and Philippine International Trading Corp. President and CEO Dave Almarinez, also inspected on Friday three shipments that were seized by the Subic BOC for various violations of customs laws.

The first shipment involved a 10x20 container van of Thailand white rice with an estimated value of P10 million that lacked the required import permit from the National Food Administration.

Lapeña said the supposed consignee, the Philippine International Trading Corp. (PITC), which is the trading arm of the Department of Trade and Industry (DTI), had denied ownership of the said through its President, Dave Almarinez.

The Subic BOC also confiscated 18 units of Vespa scooters from Italy, a part of a 112-unit shipment worth P30 million, which were seized for gross undervaluation and falsification of import documents. Lapeña said the undervaluation resulted in a discrepancy of more than 70 percent of the dutie4s and taxes due thereon.

The third shipment consisted of 8,865 bottles of expensive liquors and spirits that the SBMA turned over to the BOC after seizure in late December.

Lapeña said the liquors were initially admitted into the Subic Bay Freeport for storage and eventual re-exportation, but were boarded in a close van in an attempt to smuggle them out of Subic to avoid payment of duties and taxes.

In the same day, the SBMA and the BOC recognized the top 10 companies in the Subic Bay Freeport that contributed the most revenue to the Port of Subic last year.

“These are two side of the same coin,” Eisma said at the sidelines of the awarding ceremony at the BOC office here. “We seize contraband to deter smuggling, but we also praise those who follow the law and help us grow the Subic economy.”

Among those cited as top revenue contributors in Subic are: Micro Dragon Petroleum Inc., United Auctioneers Inc., Filoil Logistics Corp., PTT Philippines Corp., Petron Corp., and Murami Subic Trading Corp. (HEE/MPD-SBMA)

PHOTOS:

[1] SBMA Chairman and Administrator Wilma T. Eisma and Customs Commissioner Isidro Lapeña sign an agreement for the construction in the Subic Bay Freeport of a building to house the Customs office in the Port of Subic and a training facility for the proposed Customs Academy. (AMD/MPD-SBMA)

[2] SBMA Chairman and Administrator Wilma T. Eisma joins an inspection of smuggled Thailand white rice seized at the port of Subic with (from left): Port of Subic District Collector Fidel Villanueva, Customs Commissioner Isidro Lapeña, and Philippine International Trading Corp. President and CEO Dave Almarinez. (AMD/MPD-SBMA)

[3] SBMA Chairman and Administrator Wilma T. Eisma (standing in second row) joins Customs Commissioner Isidro Lapeña and other officials of the Port of Subic in recognizing the top 10 companies that contributed the most revenue to the Port of Subic in 2017. (AMD/MPD-SBMA)

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SBMA bans 3 brokers in P40-M liquor smuggling try

The Subic Bay Metropolitan Authority (SBMA) has blacklisted three customs brokers for involvement in the attempted smuggling here recently of expensive liquor worth around P40 million.

SBMA Chairman and Administrator Wilma T. Eisma said this was the initial action of the agency in connection with the smuggling attempt that was foiled by the SBMA Law Enforcement Department (SBMA-LED) just before Christmas.

The SBMA Seaport Department has identified the blacklisted brokers as Ellen Baylon, an authorized representative of the brokerage firm Alava Alliance, Inc.; John Louie Pabico, a processor of Phil-Hohan International Corp.; and Cherry Springael, a freelance processor and authorized representative of Alava Alliance.

“These persons have been banned from doing business with the SBMA Seaport, and the companies they represented have been placed on indefinite suspension pending the final results of investigation by the Bureau of Customs (BOC),” Eisma added.

She added that the BOC, which received custody of the smuggled items from the SBMA, will also file appropriate criminal charges against the brokers for violation of the Customs and Tariff Act, as well as Republic Act 7227, or the Bases Conversion and Development Act.

“Let this serve as a warning that Subic authorities won’t tolerate illegal activities in the Freeport, and we will apply the full measure of the law in cases like this,” Eisma added.

The SBMA said earlier that its law enforcement operatives seized a total of 1,321 boxes of liquor from a closed van that was about to leave the Freeport on Dec. 24, and from a 40-footer container van parked at the Subic Seaport Terminal on Dec. 28.

The seized contraband included 54 bottles of Remy Martin Louis XIII, which sells as much as P170,000 per bottle, and eight boxes of Remy Martin Centaure De Diamant, which fetches P60,000 per bottle.

The SBMA police began the operation on Christmas Eve after a tipster informed them that a closed van and a Nissan Patrol SUV would attempt to smuggle contraband from the Freeport.

Subsequently, SBMA-LED operatives posted along the Argonaut Highway leading to Subic’s sea ports monitored the vehicles and tailed them to the 14th Street Gate where they were stopped by sentries.

The Fuso van, bearing File No. 036404 of BCR Trucking, was found to contain 275 boxes of Remy Martin Cognac Champagne, 448 boxes of Martini, 66 boxes of Remy Martin XO, 17 boxes of Remy Martin Champagne, 8 boxes of Remy Martin Louis XIII, 8 boxes of Remy Martin Centaure De Diamant, 7 boxes of Remy Martin Club, and 7 boxes of Remy Martin.

The driver, identified as 41-year old Julio Flores, as well as the helper, 46-year old Marvin Arcega, failed to present necessary documents when accosted by the police, the SBMA-LED said in a report.

Under investigation, Flores reported that he picked up the merchandise from the Subic Seaport Terminal Inc. (SSTI) at the Boton Pier here on instruction of a certain “Ed” who rented his truck for the pickup.

Flores added that a certain “Cherry” assured him that the goods were ready for exit at Subic’s Tipo gate even without any document because two other trucks with similar load were able to exit so.

With this information, SBMA operatives conducted a follow-up operation on Thursday that led them to a white Isuzu Giga cab with the markings “Sinfa Logistics Inc.” that was parked at the SSTI’s Boton Pier facility. The 40-footer container yielded 333 boxes of Remy Martin, 196 boxes of Remy Martin XO, 1 box of Remy Martin Club, 1 box of Martini, 2 boxes of Remy Martin, and 10 boxes of Remy Martin Louis XIII.

Eisma said the SBMA police conducted an inventory of the smuggled items in the presence of representatives from the Bureau of Customs, the SBMA Seaport Department and members of the media before turning over the confiscated items and the vehicles containing them to the Bureau of Customs in the Port of Subic. (HEE/MPD-SBMA)

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BoC opens one-stop-shop facility at Subic

THE Bureau of Customs (BoC) said it opened on June 1 a one-stop-shop (OSS) trade facility at the Tipo, Subic Bay Metropolitan Authority (SBMA) gate, which reduces a one-day processing time of documents to only four hours.

The facility includes personnel from Customs Enforcement, Customs Clearance, and X-ray equipment to cater to clients’ needs, especially port users.

The Tipo toll plaza in Subic Bay Freeport Zone

The OSS facility bureau is seeking to replicate the current one-stop-shop at the New Container Terminal 1 in Port of Subic which was first constructed by the International Container Terminal Services, Inc. with the BoC and SBMA in 2015.

“The OSS promotes ease of doing business where BoC stakeholders can switch between counters in processing BoC requirements,” the bureau said.

Due to this, port users no longer need to travel to various government offices to secure their trade documents.

The BoC estimates that the average one-day processing time of documents will be reduced to four hours.

“With the BoC-OSS, importers and brokers can expect shorter document and cargo processing times, thereby improving the overall processing efficiency at the Port of Subic,” the statement read.

The BoC and the Department of Finance has been making moves to reduce red tape in trade facilitation.

Currently, the Department of Finance (DoF) is pilot testing the system called TradeNet, a computerized internet-based system, which will be able to connect Philippines’ single window of trade-related agencies with neighboring countries, as it rationalizes and harmonizes all of trade data for faster processing.

This is because traders, who are required to secure permits from various government agencies before importing or exporting products, may be able to lodge all the necessary documents at a single window.

The DoF expects the system to be rolled out in September. (Elijah Joseph C. Tubayan, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=boc-opens-one-stop-shop-facility-at-subic&id=148054

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SBMA intensifies cooperation with BOC to curb smuggling outside the Freeport

The Subic Bay Metropolitan Authority (SBMA) is intensifying its cooperation with the Bureau of Customs (BOC) to guard against the smuggling of goods outside the Freeport’s borders.

“The SBMA is very vigilant about cases like this and we are closely working with the BOC to ensure that Subic Bay’s tax-free regime is not being used and abused in attempts to smuggle out goods from the Freeport,” SBMA Administrator Wilma Amy T. Eisma said.

At the same time, Eisma denied reports of rice smuggling in the Freeport, saying the agency will not allow any rice shipment to even enter Subic Bay waters under SBMA jurisdiction without a permit from the National Food Authority (NFA).

She said that before any rice shipment or any cargo comes into the Freeport, these should first undergo strict evaluation by the SBMA.

The SBMA Administrator was responding to information reportedly received by Agriculture Secretary Manny Piñol that Subic Bay Freeport is being used as an entry port to smuggle rice inside the country.

“Tinatanong muna namin kung may permiso yan sa NFA. Kung walang permiso, wag na kayong dumaong,” Eisma said in a radio interview.

Furthermore, she added that apart from it being a regulated product, rice is usually shipped as bulk cargo and it is only when it reaches the pier that the grains are packed in sacks thereat, making it difficult for someone to hide the shipment.

Eisma clarified that the task of guarding against smuggling is not solely on SBMA’s shoulders, but more so, it is the responsibility of the customs bureau.

“Under the law, one can pretty much bring anything into the Freeport for as long as it is not illegal. The important thing is that these goods should not be brought out of the Freeport without paying the proper duties and taxes,” she said.

“Ang pagbabantay po ng pagbabayad ng buwis ay nasa Bureau of Customs, kaya po dalawa na po kaming nagbabantay,” Eisma said. (RBB/MPD-SBMA)

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Port of Subic helps Customs top February collection target

The continued oil shipments coming in the Port of Subic provided some saving grace in the sluggish collections of the Bureau of Customs (BOC) for its actual revenues amounting to P1.41 billion last month.

While the other billionaire ports floundered and failed, the Port of Subic performed beyond expectations, exceeding its February target of P1.35 billion by P60 million, an initial data culled from BOC showed.

“We have regular importations of oil and heavy equipments. The big percentage of our revenues come from the importation of these goods,” Subic port collector Carmelia “Mimel” Talusan, who consistently hit her targets since she assumed in November last year, told Manila Bulletin.

The top tax-paying oil firms in Subic include PTT Philippines Corp., Cebu Air, Inc., Phoenix Petroleum Philippines, Inc., and Total Philippines Corp., among others.

The same collection report indicated the Ninoy Aquino International Airport (NAIA) and the Port of Davao were the other biggest gainers in terms of revenue collection during the period.

NAIA collected P2.350 billion as against its target of P2.032 billion or an excess of P318 million while Davao registered a surplus of P129 million for its P1.134-billion collection, higher than its revenue goal of P1.005 billion.

These three ports, quite notably, are the survivors of revenue shortfalls in February. The others were smaller ports such as San Fernando, Legazpi, Iloilo, and Cagayan de Oro.

They outperformed the ports that are traditionally cash cows of the BOC, which have been severely affected by the Chinese New Year.

Revenue collections in BOC have been comparatively dismal in February due to the Chinese holiday as most businessmen and importers traditionally scale down their importations.

But for Talusan, the Chinese New Year has no effect to the oil importations in Subic Port.

“We are affected by the decrease of importations if it is December. In December, they are doing inventories already and they are checking all of their supplies,” she noted.

Unlike Subic, the sluggish volume in importations was evident in the Manila ports.

The Manila International Container Port and the Port of Manila, which are traditional big revenue earners, contributed a combined deficit of more than P2 billion last month.

The MICP posted the highest deficit, registering a shortfall of P1.360 billion for its P9.313-billion collections, short to meet its revenue target of P10.673 billion. (Raymund F. Antonio, Manila Bulletin)

PHOTO:
Tankers docked at the Pol Pier of the Subic Bay Freeport Zone where the oil tank facility of the Philippine Coastal Storage & Pipeline Corporation is located.

http://business.mb.com.ph/2017/03/14/port-of-subic-helps-customs-top-february-collection-target/

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BoC-Subic holds steel bars from China

Almost 5,000 metric tons of deformed steel bars are entering the Philippines from China, but may not be on a par with the Philippine national standards and “pose a threat to security and safety.”

In an April 21 alert order forwarded to the media on Monday, the Bureau of Customs reported deformed steel bars in bundles were aboard the MV Well Faith was supposed to have docked in Subic port last Thursday.

Steel bars from China (File photo by Reuters)

The 4,929.38 MT of deformed steel were consigned to a certain Mannage Resources Trading Corp.

The alert order noted the shipment was red-flagged in the absence of an appropriate import permit, potentially in violation of Section 2503 of the Tariff and Customs Code of the Philippines which lists imported properties “subject to forfeiture.”

In a letter to the Subic Bay Freeport Zone and the Department of Trade and Industry (DTI) office in Zambales, the Philippine Iron & Steel Institute (PISI) wants the Subic and trade authorities to move against the shipment based on the Customs alert order. "...[W]e request for your assistance in holding the processing of the import entry of Mannage Resources Trading Corp. until the Bureau of Philippine Standards has conducted a complete inventory, thorough examination and testing of physical, chemical and mechanical properties of the product...” Roberto Cola, PISI president, said in the April 21 letter.

“We ask for your assistance on this matter to ensure that these imported reinforcing steel bars are in conformity with the Philippine National Standards and do not pose a threat to the security and safety of our Filipino consumers,” he added. (Kristyn Nika M. Lazo, The Manila Times)

http://www.manilatimes.net/boc-holds-steel-bars-from-china-in-subic/258348/


'THOU SHALT NOT [DUMP] STEEL' | BoC tags China cargo for 'lack of permit' but strong lobby is on

MANILA - A group of stakeholders in the iron and steel sector is asking local Customs officials in Subic to hold processing of a shipment of steel bars from China, which the BoC's Intelligence Group had earlier tagged for "lack of permit."

The Philippine Iron and Steel Institute has written the District Collector of Subic, Atty. Emelito G. Aquino, asking for help in holding the processing of the import entry of Mannage Resources Trading Corp., for 4,928.38 metric tons of what are called "deformed steel bars," and asking authorities to first ensure these comply with Philippine National Standards. It's important to ensure the bars from China -- which in recent days has been accused by several countries of dumping steel products as it deals with a glut -- do not pose a threat to the "security and safety of Filipino consumers," said the Iron and Steel Institute's president, Roberto M. Cola, in the letter to Subic district collector Aquino.

The consignee, Mannage Resources Trading Corp, lists its address at Unit 1203-1204 One Global Place in Bonifacio Global City.

The appeal from Cola's group was lodged amid information that certain "well-connected" Filipino-Chinese businessmen have lobbied the Department of Trade and Industry to give the shipment a clean bill of health in order to facilitate release. InterAksyon sources said local steel manufacturers are subjected to some 200 tests for every 5,000 mt of steel products, and they expect a "level playing field" with respect to the imported steel bars from China.

So-called "deformed steel bars" are not necessarily sub-standard, but are categorized as such because they are not as polished as the others. Still, they need to be subjected to tests to ensure consumer safety. Â The Iron and Steel Institute has asked Subic collector Aquino to hold release of the cargo until the DTI's "Bureau of Philippine Standards has conducted: a complete inventory; a thorough examination; and testing for physical, chemical and mechanical properties" of the steel bars.

It was learned that on April 21, Deputy Customs chief, retired general Jessie Dellosa, had issued an "alert order" for the shipment from Hangzhou for "lack of permit," in violation of Sec. 2503 in relation to Section 2530 of the Tariff and Customs Code of the Philippines.

The 2,461 bundles from the Hangzhou CIEC Group Co. Ltd. were loaded on the Well Faith vessel, with registry number OPL 0005-16, which left the port of Shanghai April 14.

Sources said the steel bars have since been unloaded from the Chinese boat, but are stored in Subic, while the influential Filipino-Chinese businessmen are lobbying DTI to fast-track the clearances from the Bureau of Product Standards. One source said it had been issued already an import commodity clearance. (InterAksyon.com)

http://www.msn.com/en-ph/news/national/thou-shalt-not-dump-steel-boc-tags-china-cargo-for-lack-of-permit-but-strong-lobby-is-on/ar-BBsd9Si#image=1

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Subic collections up

SUBIC BAY FREEPORT—The Bureau of Customs registered revenue collections of P11.2 billion in 2013, up 77 percent from P6.3.billion in 2012, driven by strong duties and tax take.

Port of Subic District collector Arnulfo Marcos said tax collections in the last quarter of 2013 rose 110 percent to P3.30 billion from P1.57 billion year-on-year.

Marcos said the P11.2-billion collections 2013 exceeded the Freeport’s target of P6.15 billion by 83 percent.

He said July registered the highest monthly tax collection with P1.02 billion, or up 220 percent from P321 million on year, followed by December with P1.10 billion, up 149 percent from P442 million on year.

Marcos attributed the increased collections to the reforms institutionalized by his predecessors at the Port of Subic and the recent reconfiguration program and reshuffle of key frontline officials. (Cecille Garcia, Manila Standard)

http://manilastandardtoday.com/2014/01/10/subic-collections-up/

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SBMA tax break guidelines out

THE SUBIC Bay Metropolitan Authority yesterday released the registration guidelines for aviation and logistics companies in the economic zone that are seeking import tax breaks.

According to Resolution No. 13-05-4772 published yesterday, locators in Subic Bay Freeport Zone (SBFZ) “shall be allowed admissions of TEDFA (tax-exempt and duty-free aircraft), engines, parts and accessories on the premise that the units shall be used primarily in support of and in furtherance to the business operations of the locator in the SBFZ.”

“The minimum condition set by SBFZ is that the units are principally based in SBFZ ... and that these TEDFA return [to], stay [in], and use SBFZ as their core base of operations such that at the end of each flying sortie, these TEDFA return [to], stay [in], use and maintain physical presence at the SBIA (Subic Bay International Airport),” read the notice.

If these conditions are not met, locators will have to pay duties and taxes for their aircraft, engines, parts and accessories.

Another condition is that locators should have “sufficient, reasonable hangar space [to] justify the need for admission of aircraft units in relation to their business operation in Subic.”

Otherwise, locators will have to prove that they have put up actual investment of at least P100 million, read the notice.

Locators are also prohibited from transferring ownership of TEDFA within three years of admission.

Those who fail to observe the guidelines will have to pay P250,000 as well as duties and taxes if TEDFA units were sold to an entity not entitled to tax incentives. Another fine of P250,000 will also be charged to those who fail to prove active hub presence in Subic.

The SBFZ, 110 kilometers north of Manila, was established in 1992 as the country’s first freeport zone after the closure of the American naval base there. (Daryll Edisonn D. Saclag, BusinessWorld)

http://www.bworldonline.com/content.php?section=Economy&title=SBMA-tax-break-guidelines-out&id=78263

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Subic Port collection above target

Data received from the Financial Service, Statistics Division of the Bureau of Customs showed that the Port of Subic collected the total amount of P1,091, 625, 587 for the month of April.

This is P561,980, 587 over its assigned target of P529,645.000, or a positive deviation of 106.1 percent.

Customs Commissioner Ruffy Biazon, upon learning of the above target collection, made a surprise visit yesterday to the Port of Subic to personally congratulate District Collector Atty. Adelina SE Molina for achieving an unprecedented collection performance.

The gesture of the Commissioner served as a motivation to the Port to further improve its revenue collection drive and the personnel has vowed to contribute towards the attainment of this vision.

Commissioner Biazon has just attended the 18th Meeting of the ASEAN Coordinating Committee on Customs at Widus Hotel, Clarkfield, Angeles, Pampanga and decided to proceed to the nearby Port of Subic to show his appreciation and support to the team of District Collector Atty. Molina, her Deputy Collectors, Atty. Ernelito G. Aquino for Assessment, Atty. Andrew Fernandez for Operations, Atty. Irineo Onia Jr. for Administration as well as to the entire personnel of the Port for achieving this rare feat.

Biazon stressed the role of the various Association of Southeast Asian (Asean) customs agencies in establishing a One-Asean, One Customs environment among the 10 Asean member economies through the envisioned Asean Economic Integration for 2016 during the formal opening of the 18th Meeting of the Asean Coordinating Committee on Customs (CCC).

In delivering his keynote address to the customs officials of Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, Thailand, Vietnam and the Philippines, Biazon underscored the evolving global economic trends where customs procedures among Asean member economies are being streamlined, trade barriers are being dismantled to give way to faster trade facilitation, even as enforcement of customs laws and rules and capacity building programs are being enhanced.

“Globalization is a reality we have to face and trade facilitation is at the forefront of this Asean economic endeavor” Biazon said, adding that, “Today’s meeting of customs chiefs shall, therefore, help pave the way for the establishment of an integrated customs agencies among the Asean countries,” Biazon said.

The Asean customs officials were also joined by the customs delegation from Japan, China and Korea.

The delegates to the 18th Asean CCCC shall discuss among others, the progress reports of the Customs Procedures and Trade Facilitation Working Group, the Customs Compliance Working Group and the Customs Capacity Building Working Group.

Preparations for the coming 22nd Meeting of Asean Directors-General of Customs shall also be discussed. Biazon currently seats as Chairman of said organization. (Malaya Business Insight)

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2012 BIR & BOC tax remittances hit P7.62 billion in Subic Freeport

Tax collection agencies in this country’s premier free port have turned over to the national treasury a total of P7.62 billion in taxes collected from January to December 2012.

Subic Bay Metropolitan Authority (SBMA) chairman and administrator Roberto Garcia said the amount was derived from taxes collected by the Bureau of Internal Revenue (BIR) and the Bureau of Customs (BOC).

Garcia said the combined collection of BIR and BOC here has consistently increased in the last four years, showing growing profitability among Freeport-registered locators.

SBMA records indicated that the two agencies yielded a combined collection of P5.28 billion in 2008. This increased by 6.18 percent to P5.6 billion in 2009; by 19.25 percent to P6.68 billion in 2010; by 8.14 percent to P7.22 billion in 2011; and by 5.42 percent to P7.62 billion last year.

During the same period in review, the BIR alone collected a total of P1.29 billion from income, value-added, percentage and other taxes, with a 16.22-percent surplus over the 2011 collection record of P1.11 million.

The BIR collections included a portion of the five-percent corporate tax levied on the annual gross income of Subic-registered locator companies. The three percent of the five-percent corporate tax that the BIR collected from January to December 2012 reached P205.33 million.

BIR’s peak monthly performance was recorded in April 2012 when its collection reached P139.43 million. However, the BIR fell short of its goal of P1.3 billion by 1.21 percent.

Meanwhile, the Port of Subic-BOC posted collections worth P6.33 billion in January-December 2012. This record indicated a slight increase of 3.47 percent over the P6.12-billion customs harvest in 2011.

Subic-BOC also posted non-cash collections worth P491.22 million from government-to-government transactions.

Garcia expressed optimism that this year, more businesses will invest in the Subic Bay Freeport, thus paving the way for more business activities, employment opportunities, and tax returns. (RFD/MPD-SBMA)

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Customs sues Subic rice smugglers

The Bureau of Customs on Thursday charged before the Department of Justice six rice smugglers who figured in bringing into Subic contraband rice from Vietnam.

Customs Commissioner Rozzano Rufino “Ruffy” Biazon said that sued for violation of Sections 3601 and 3602, in relation to Sections 2503 and 2530 of the Tariffs and Customs Code of the Philippines were Jan Dexter Marfil, president of Masagana Import Export Inc., the consignee of the Vietnam rice shipment; board members Editha Arzola and Jeaneth Espeleta Vega, directors Gerardo Yaco Vega and William Tunog Quiohilag; and Masagana’s customs broker Mary Joy Sanchez.

Biazon added that the six were charged after the rice smuggling attempt at the Subic Freeport Zone of 20,000 bags rice from Vietnam worth about P30 million.

According to Biazon, the 20,000 bags of rice from Vietnam, which arrived at the Subic port on June 20, 2012, were stacked in forty 40-footer container vans and declared as “gypsum board” to avoid the import permit requirement from the National Food Authority.

“A subsequent alert order was issued by the bureau after the discovery of the misdeclaration upon inspection of the 40 container vans from Vietnam,” he said.

“This was a deliberative attempt to deceive our operatives to avoid the import permit requirement from the National Food Authority for all rice importations and to defraud the government of its appropriate revenues,” he said. (Jovee Marie N. Dela Cruz, Manila Times)

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SBMA, BOC deny ‘turf war’, vow close cooperation vs. rice smuggling

Officials of the Subic Bay Metropolitan Authority (SBMA) and the Bureau of Customs (BOC) yesterday dispelled reports of a “turf war” in connection with the seizure of some P420-million worth of imported rice here, and vowed to work close together to curb attempts to smuggle rice through this free port.

In a joint press conference at the SBMA office here, SBMA Chairman Roberto Garcia and Customs Commissioner Rufino Biazon said the two agencies see eye to eye as far as the implementation of customs and tariff laws are concerned.

“Contrary to what has been reported, there is no truth to allegations that there is a turf war between the Bureau of Customs and the SBMA,” Biazon said.

“We are in close cooperation and coordination,” he added.

Garcia meanwhile said that when it comes to the disposition of the seized shipment, the BOC holds sway because the SBMA simply stands as manager of the free port.

“We have cooperated together in the past — as in the case of the inventory of blue-plate vehicles here — and that is what we are doing now,” Garcia said.

“We also look forward to a more harmonious relationship between Customs and SBMA because there should be more vigilance in face of these attempts to smuggle goods through Subic,” Garcia added.

The two officials issued the clarification on Tuesday following the publication of a news item on Monday, which alleged that the SBMA accused Biazon of having “overstepped his authority in the free port.“

SBMA officials said, however, that nobody in the agency had contested BOC operations in Subic.

“In fact, we have not taken any position regarding the implementation of customs and tariff laws in the free port because we abide by the issuances and orders that emanate from the Customs offices,” Garcia said on Monday.

Biazon said the BOC has issued a warrant of seizure and detention on the illegal rice shipment, which costs around P420 million.

He said the BOC’s move to seize the shipment is now under appeal, but if the detention is warranted, the BOC may sell the illegal shipment at an auction.

He added that there is no proof that the shipment is destined for some cooperatives in the country, as earlier reported in the media.

In Tuesday’s forum, SBMA officials also clarified that the agency had not allowed the shipper to make any declaration after finding out that the rice shipment was not covered by the required documents.

“We did not allow them to make a declaration, and we did not issue them any permit, so they cannot move it out and sell it in the domestic market,” said SBMA seaport operations chief Atty. Redentor Tuazon.

Garcia added that after the 60-day reglamentary period of storage had lapsed, “the matter is already in BOC hands.”

After the press conference, Biazon showed the impounded rice to the media.

He said the BOC is expediting the investigation of the shipment so that the rice may not rot before it is finally disposed of. (HEE/MPD-SBMA)

PHOTO:
SBMA Chairman Roberto Garcia (center) and Customs Commissioner Ruffy Biazon reiterate calls for closer cooperation in the fight against rice smuggling at the Subic Bay Freeport Zone.

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Court stops VAT on imported fuel in Clark, Subic freeports

CLARK FREEPORT – A Regional Trial Court (RTC) in Angeles City has stopped the Bureau of Internal Revenue (BIR) from imposing value-added tax (VAT) on all petroleum and petroleum products that are imported and/or brought directly from abroad via freeport and economic zones, including this premiere freeport.

The court has issued a writ of preliminary injunction, ordering the BIR, its agents, representatives, or assigns, and all persons acting in its place and stead from enforcing directly or indirectly Revenue Regulation No. 2-2012.

RTC Branch 58 Presiding Judge Philbert Iturralde said in his seven-page resolution that the regulation contradicts Republic Act 7227, the law that created Subic and Clark Freeport Zones. Republic Act 9400 later amended RA 7227.

“This Court, in the exercise of its sound judicial discretion, finds the prayer for the issuance of the writ of preliminary injunction to be impressed with merits and hereby grants the same,” the decision said.

Iturralde ordered petitioner, Pampanga 1st District Representative Carmelo Lazatin, to post a P15-million injunction bond to answer for any damage that may be suffered by the BIR in the event that the court should later determine that the lawmaker is not entitled to the relief prayed for. (Mark Anthony N. Manuel, Manila Bulletin)

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Customs tapping LTO to blacklist 200 luxury cars, SUVs from Subic

Customs Commissioner Napoleon Morales said he will ask the Land Transportation Office (LTO) to blacklist the more than 200 high-end cars and sports utility vehicles (SUVs) that were allegedly discovered missing in a warehouse within the Subic Bay Freeport in Olongapo City.

“Customs has the complete list of these luxury cars and SUVs and we will forward it to LTO in order to round up the missing vehicles,” Morales said.

The Bureau of Customs (BoC) tapped the LTO as part of its effort to seize the unaccounted motor vehicles with blue license plates that had gone out from the warehouses of locators doing business with the Subic Bay Metropolitan Authority (SBMA).

They appeared to have imported permits from SBMA and “privately owned” brought in by locators who can operate warehouse in the Freeport for use as storage areas for their imported goods.

It was reported that duties and taxes due from the vehicles are estimated at P600 million considering that the rates of duties and taxes would average at P2 million per imported vehicle.

“There is a need to find these motor vehicles not only to collect duties and taxes but also for the administrative and criminal prosecution of any and all persons involved,” Morales said.

He added that Customs Task Force “Oplan Blue Plates” headed by his senior assistant Alex Arcilla has been activated to run after the vehicles since Subic District Collector Marietta Zamoranos issued a number of warrants of seizure and detention (WSD) against them.

They are believed to be moving around Metro Manila or in nearby provinces using spurious LTO certificates or used Import Permits issued by SBMA for authorities to import them from abroad.

Under Republic Act 7227, the Subic Special Economic Zone shall be operated and managed as a separate customs territory ensuring free flow or movement of goods and capital, as well as provide incentives such as tax and duty-free importations of raw materials, capital and equipment.

But Morales said its a different story once these imported items were released out of SBMA because they will be subjected to customs duties and taxes under the Customs and Tariff Code of the Philippines. (RAYMUND F. ANTONIO, Manila Bulletin)

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2009 Subic Freeport revenue to top 2008 record

Revenue generation in this free port this year will be slightly higher than the P5.27 billion recorded in 2008, as cash collections by both the Bureau of Customs (BoC) and the Bureau of Internal Revenue (BIR) began showing minimal growth in the last quarter.

Subic Bay Metropolitan Authority (SBMA) administrator Armand Arreza said that combined BoC and BIR earnings will “pull Subic through to a positive performance despite a shortfall in foreign direct investment (FDI).”

“As of now, we only need about P394.6 million more to reach the 2008 revenue level. That’s about a month’s worth of collections to make,” Arreza said, adding that BIR figures for October and November have yet to come in.

With combined collections averaging P443.7 million a month in the last 11 months, “the December earnings alone should bring total earnings over and above the 2008 record,” Arreza added.

According to figures compiled by the SBMA, combined BoC and BIR cash collections from January to November 2009 have already reached P4.88 billion. This is broken down into a P3.85-billion revenue delivered by the BoC, and a P1.03 billion collection remitted by the BIR.

Aside from cash collections, the Subic Customs office also recorded some P2.78 billion in non-cash earnings, which are mostly composed of government to government transactions.

However, the BoC is still short by about P71.36 million in its collections this year, in order to attain its 2009 target. The agency has set a P3.92 billion goal for the January-November period, but has thus far collected only P3.85 billion.

Meanwhile, exports generated by businesses in the Subic Bay Freeport this year have reached $800.98 million as of September, a slight increase over the $755 million export production recorded in the same period last year.

Subic’s biggest exporters this year are: Hanjin Heavy Industries & Construction Corp., with $355.56 million in freight-on-board (FOB) deliveries; Wistron Infocomm (Phils) Corp., with $111.4 million; Lets Do Mobile Philippines, $63.52 million; Sanyo Denki Phils., $50.91 million; Hitachi Terminals Mechatronics Phils. Corp., $43.08 milion; Juken Sangyo Phils., $26.03 million; Tong Lung (Phils) Metal Industry, $17.71 million; Lindberg Subic, Inc., $14.88 million; Nicera Philippines, Inc., $12.13 million; and Nidec Subic Philippines Corp., with $9.8 million.

On the other hand, import transactions made in the Subic Bay Freeport from January to November 2009 reached a total of $2.01 billion, SBMA records indicated.

This figure represented a 6.14 percent decrease from the $2.14 billion record set in January-November 2008.

The top importers for this year are: Hanjin Heavy Industries & Construction Corp., with an FOB total of $378.46 million; Sanyo Denki, with $335.17 million; PTT Philippines Trading Corp., $289.94 million; Wistron Infocomm, $182.56 million; Nidec Subic, $135.45 million; Nicera Philippines, $86.79 million; Micro Dragon Petroleum Inc., $72.65 million; Koryo Subic, Inc., $54.3 million; Lets Do Mobile Philippines, $48.54 million; and Ixion Corporation, with imports totaling $45.4 million. (SBMA Corporate Communications)

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Customs execs feud over Subic

Two Customs officials assigned to the Port of Subic are locked in a dispute over control of the issuance of gate passes for those bringing imported goods in or out of the free port.

The dispute erupted after Customs collector Marietta Zamoranos issued a special order removing from deputy collector Errol Albano the function of signing gate passes and issuing permits for temporary transfer of goods from the Subic free port.

Zamoranos designated a Customs personnel, Belma Limbaga, to perform the task that used to be Albano’s.

But Albano refused to heed Zamoranos’ order and sought the opinion of the Customs legal service department which ruled in his favor.

Invoking the legal department’s opinion, Albano issued a memorandum for Customs Commissioner Napoleon Morales to nullify Zamoranos’ order, which the deputy collector said violated Executive Order 127.

On May 22, Morales issued an endorsement letter ordering Zamoranos to strictly comply with the mandate of Executive Order 127 expressly vesting upon Albano, as the deputy collector for operations, the supervision over the release of cargos within the Subic Customs zone.

A week later, Morales reiterated his order for Zamoranos to comply and return to Albano the authority to issue gate passes. Morales also asked Zamoranos to submit her position paper on the issue.

But Zamoranos countered with a memorandum for Morales, stating that she “may not comply with the mandate of EO 127 as directed by the commissioner.”

But she explained that she was not disregarding the order of the commissioner and that she had valid and legal reasons not to comply with Morales’ directive.

The principal issue that was resolved by the legal service is the validity of Subic special order, which “does not automatically mean that the deputy collector of operations is the proper person to exercise the various functions,” Zamoranos said.

Zamoranos cited Administrative Order 296 issued in October 1996 which created the Customs clearance area and vested it with the function to issue gate passes inside the freeport zone.

Zamoranos said she would abide by the legal services department’s opinion as endorsed by Morales “but with respect only to the invalidity of the Subic special order pending submission and eventual resolution of our position paper to defend such orders.”

Zamoranos justified her action on Albano, saying that as a district collector, she is the executive officer of the port and has command responsibility over the effective discharge of the bureau’s mission in his jurisdiction such as collection of rightful duties and taxes, prevention of smuggling, and trade facilitation and promotion of a healthy business climate.

Zamoranos, in her memorandum for Morales, said that she would assume the role of “exclusive signatory” of all gate-passes and permit for temporary transfer of imported goods at the Subic free port.

On July 2, Zamoranos released another memorandum as “supplemental” to her earlier memo for the commissioner stating that AO 296 must prevail over EO 127.

“AO 296 is a latter issuance than EO 127,” Zamoranos said.

She further explained that EO 127 is a general law reorganizing the Finance Department and defining its duties and functions including the Bureau of Customs while AO 296 is a special issuance created specifically to meet the needs and requirements of the various economic and free port zones.

Last Friday, Albano positioned himself inside the gate pass issuance office but brokers opted to secure cargo passes directly from the office of Zamoranos who posted a memorandum directing all importers and exporters to have their gate passes processed in her office. (Cecille Garcia, Manila Standard Today)

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