Mighty loses bid to lift suspension order

FILE- Mighty cigarette products kept in San Simon warehouse in Pampanga.
CONTRIBUTED PHOTO

The Bureau of Customs on Tuesday denied the urgent motion to lift the suspension of accreditation filed by tobacco firm Mighty Corporation (MC).

“Wherefore, premises considered, the instant Motion of MC is hereby DENIED without prejudice to filing of a Motion for Reconsideration with attached information, undertaking and documents, and well-founded arguments that will warrant the granting of the instant Motion,” read the dispositive portion of the three-page order signed by BOC Commissioner Nicanor Faeldon.

“Despite lobbying efforts and recommendations by several groups and personalities, the Bureau’s Action Team Against Smugglers or BATAS and the Legal Service Division as per review and hearing of the urgent motion to lift accreditation filed by Mighty Corporation, the team resolved to DENY the urgent motion of reconsideration and was duly concurred by Commissioner Faeldon,” said Legal Service Director and BATAS executive director Alvin Ebreo said in a statement.

In its ruling, the BOC agreed with lawyer Danilo Campos Jr., prosecutor for the government who opposed the said Motion.  He argued that while MC offered to pay the rightful duties and taxes for the subject shipments aside from posting of the bond, it failed to present supporting documents in order for the government to be able to identify and examine the said shipments, particularly the Bills of Lading.

Campos underscored that the said documents are vital to the interest of the government. He highlighted the purpose of preventive suspension, which is to prevent and suppress smuggling.

“MC failed to submit or at least enumerate the Bills of Lading that cover the shipments it wishes to process. This Office is even at loss as to where or what port/ports these shipments are now stored or pending. Without said BLs, this bureau will not be able to identify which shipments arrived or were contracted to be shipped prior to the issuance of preventive suspension,” the order said.

The accreditation of MC was preventively suspended last March 14, 2017 while the case is hearing on whether or not the said accreditation of MC be suspended.

In its urgent Motion, MC prays for the temporary lifting of the suspension of its importer’s accreditation as far as only those shipments that had arrived prior to the suspension and those that were in transit.

It argued that the said shipments will deteriorate causing inestimable damages, and will severely affect thousands of employees and their families.

It manifested to pay taxes and duties due on the said shipments and post a bond to cover any damage to the bureau.

It stressed that those shipments already arrived prior to the suspension or were already in transit.

The estimated duties and taxes if allowed processing by BOC is P46,330,939. It also caused them storage and demurrage charges of more than P400,000.

It claimed that no injury will be caused to the government as duties and taxes will be paid and any damages maybe collected on the bond to be posted. It added that the government’s interest may not be prejudiced as BOC has adequate mechanisms to ensure that the release complies with relevant laws.

The BOC clarified that the resolution of the instant case does not cover the main case itself.

“This is only an interlocutory order. This does not apply to shipments that arrived or were contracted for transit after MC’s receipt of Notice of Suspension,” the BOC said.