Solon probes alleged smuggling and tax evasion involving CBWs

House Committee on Ways and Means chair Rep. Joey Salceda has started an investigation into reports that Customs Bonded Warehouses (CBWs) are being used for smuggling and tax evasion.

Salceda’s committee saw procedural lapses in the accreditation, classification, and operations of CBWs, resulting in loss of revenue from smuggling and unliquidated bonds. They also found that corporations circumvented the law by taking advantage of CBWs and avoiding tax payments.

Salceda requested an audit of corporations involved in domestic trade using CBWs.

 

He also directed the Bureau of Customs (BOC) to create a plan to increase its manpower and improve its current system for the purpose of monitoring trade and export and increasing revenue collection.

 

The lawmaker also asked key committee members to conduct personal inspections of Bureau operations in aid of legislating proposals to amend the Customs Modernization and Tariff Act (CMTA or Republic Act No. 10863).

 

“We need all the revenues we can get under existing laws to fund our COVID-19 efforts. This is a matter of life and death for the country, if we cannot get our lifeblood – taxes – flowing,” Salceda said. “I promised the economic managers that I will help find the money that we need. The committee is working hard to get that promise done.”

Customs law mandates that all articles imported into the Philippines are subject to the payment of customs duties, taxes and other charges. Section 812 of the CMTA however allows the duty-and-tax free storage of articles imported for the purpose of manufacture into re-exported products in a licensed CBW.