More than a dozen steel importers have lied to the government about the value of their shipments to avoid paying taxes, the Philippine Iron & Steel Institute (PISI) has claimed.
In a statement issued on Monday, the country’s umbrella organization for steel industry associations said it had asked the Bureau of Customs (BoC) to investigate 15 companies that allegedly made false declarations on the prices of their metal shipments.
PISI provided the bureau with the list of companies that had allegedly made false declaration of their importation.
“Several importers declared their steel shipments at values less than the world market price for scrap metal at $400 per metric ton,” PISI said.
By illegally declaring semi-finished products like steel coils and billets as scrap metal, PISI said companies were able to avoid paying higher duties.
The 15 companies—based in Davao, Cebu, Metro Manila and Subic—collectively imported 6,531 metric tons (MT) of finished steel products at an average declared value of only $317 per MT, the group said.
In March, the price of scrap metal was $400 to $420 per ton, while that of coiled-steel and billet was more than $600 per MT.
PISI said it supported the pronouncement of the BoC that it would investigate alleged cases of steel wire rod undervaluation. The company described the move as “a bold step towards curbing incidences of technical smuggling, which is robbing the government of needed revenues while creating unfair competition in the market between importers and domestic manufacturers.”
The group also asked Customs Commissioner Rozzano Rufino Biazon to subject to the same scrutiny all steel importation, particularly those that fall below the value of scrap metal, as mandated by Customs Memorandum Order 3-2012.