BOC seizes P8M worth of smuggled motorcycles, chemicals, plumbing supplies

Bureau of Customs (BOC) building. INQUIRER FILE PHOTO

MANILA, Philippines–Customs officials have seized P8 million worth of brand-new motorcycles, chemicals and plumbing supplies at the Port of Manila.

The shipments were seized by the bureau on grounds of technical smuggling.

The motorcycles, totaling 48 brand-new, completely built-up units of Yamaha YZR R15 150cc, arrived through the Port of Manila in December 2013.

The shipment, consigned to Motozentrum Philippines Inc., was found to have grossly undervalued the cost of the motorcycles per unit in an apparent attempt to cheat on duties and taxes, the BOC said.

In its import documents, the motorcycles were declared as being in “knocked down condition,” or totally disassembled and had been shipped from Thailand.

Moreover, the BOC said, the importer declared the shipment’s value at US$$10,197.88 (P450,644.32). This means that each motorcycle would have only cost US$212.46 (P9,388.61) to purchase and ship to the country.

Following an alert order, a document and physical examination conducted by the bureau’s enforcement group showed that the motorcycles were already in “completely built-up” condition with only the left front wheel to be attached, contrary to what the consignee had declared.

The consignee had also erroneously declared that the shipment came from Thailand when the invoice, packing list and bill of lading from the vessel clearly indicated that the ship came from Calcutta, India.

“A check on the shipment’s declared value showed that the suggested selling price for the motorcycle in India is US$1,812.00 (P80,072.28), a discrepancy of about 85 percent compared to the value declared by the consignee,” the BOC said.

Citing Section 2503 of the Tariff and Customs Code of the Philippines, the BOC said any discrepancy between what was declared and what was found that exceeded 30 pecent was gross undervaluation, which would constitute prima facie fraud.

The owners and licensed customs broker of Motozentrum could face smuggling-related charges for fraudulent importation, the BOC said.

Apart from the motorcycles, bureau officials also seized two 20-footer container vans containing what was declared as “phthalic anhydride,” but was found to actually contain lead bromate pigment.

Lead bromate, used in making certain types of glass, is a poisonous chemical that may explode by heating, striking or rubbing when combined with other substances.

The chemical shipment, which was consigned to Frebel Enterprises and arrived in the country in March 2014, was seized for gross undervaluation and violation of Republic Act 6969 or the Toxic Substances and Hazardous and Nuclear Wastes Act of 1990.

The BOC also seized a 40-footer container van imported by Unipipe Phils Inc. filled with pipes, fittings and valves that had also been grossly undervalued. The shipment arrived at the Port of Manila in January 2014.

According to Willie Tolentino, director of the bureau’s enforcement and security service, many of the importation that were alerted and seized have valuation issues as importers attempt to cheat on paying correct duties and taxes by lowering the value of the items they import.