JULY 31, 2011

NR # 2481B

House resumes inquiry into 1,947 missing containers for transshipment to Batangas
The House Subcommittee on Customs, Tariff and Related Laws will resume tomorrow (Monday) the motu proprio investigation into the missing 1,947 containers destined for the Port of Batangas from Manila from January to May this year, which is a clear case of smuggling according to lawmakers. The subcommittee chaired by Rep. Rodolfo Farias (1st District, Ilocos Norte), was assigned last week by the Committee on Ways and Means chaired by Rep. Hermilando Mandanas (2nd District, Batangas) to resume the inquiry into the issue. During the initial hearing, Customs Commissioner Angelito Alvarez said 1,947 containers out of a total of 2,208 containers all destined for Batangas have been missing, and their estimated duties and taxes that have yet to be accounted for is P88 million. Thats the amount of revenue leakage that we are trying to account for at this time based on the entry declaration in the transshipment permit. The estimated duties and taxes of the 2,208 containers amount to P102.6 million, of which P14.6 million was already collected from the 309 containers accounted for by the Port of Batangas, said Alvarez. Alvarez said the original report was that there were 600 containers missing out of 900 that were transhipped to the Port of Batangas from the Port of Manila (POM) and the Manila International Container Port (MICP). He said they found out later there were more missing containers. He said the missing containers were discovered in the course of a comparative analysis done by a team he created under his office of all transshipment permits issued from the months January to May this year vis--vis the consumption entries to be filed at the port of destination, which in the case of the study was the Port of Batangas. Unfortunately during the review process, we found a lot of transactions without the matching consumption entries filed. Based on the initial report that I got, its true the number of missing containers have increased. The 2,208 total number of containers cover 1,249 transshipment entries, he said. On May 19, Alvarez wrote a memorandum to then Port of Batangas District Collector Juan Tan to submit a report on the transshipment made by the three consignees LCM Trading, Sea Eagle Trading and Moncelian Enterprise. Tan was also asked to provide certified true copies the official receipts evidencing payment of duties and taxes paid, the corresponding boat notes, transshipment permits, proof of arrival and other supporting documents. On May 31, Alvarez said the port operations head of Batangas, including the deputy collector for operations and assessment submitted a memorandum to Collector Tan, who in turn endorsed and sent it to Alvarezs office on June 6. In that particular letter, it was clearly stated that out of the supposed 900 entries that we identified, they were only able to account for 309 containers. They also stated those shipments not covered by our said reports and records but mentioned in the list attached to the memo of the Commissioner have not been received by the Port of Batangas as they have been reportedly released at the POM and MICP under consumption entries, said Alvarez.

Asked by Mandanas if the containers contained highly dutiable items like rice or sugar, Alvarez said the containers contain a variety of items like general merchandise items, furniture, plastic materials and the inclusion of rice or sugar is something the BOC investigating panel would pursue. If its highly dutiable like rice or sugar, then there could be other violations like they should not be imported in the first place. Secondly, if they have the permit, the tariff and customs collection should not only be P88 million. I heard it could amount to a billion pesos, said Mandanas. Tan maintained that of the 900 containers that reportedly entered the POM and MICP, only 309 containers arrived at the POB with their corresponding documentary requirements such as the official receipts of payments of taxes and other documents. The Port of Batangas received only 309 containers, and wharfinger Romarico Tumbaga can corroborate this. Rep. Ma. Milagros Magsaysay (1st District, Zambales) clarified that based on Alvarezs statements, the 900 containers, 600 of which were reportedly missing, were covered under the term of Tan as District Collector of the Port of Batangas. The other missing containers were discovered after he left the POB as he was transferred to the Office of the Commissioner. The others are not attributed to Collector Tan anymore. Magsaysay asked the POM and MICP to provide the boat notes as proof that the Port of Batangas really received the missing containers. She also asked the BOC if it conducted diligence check on the address of Moncelian Enterprise because upon her own checking, she said the concerned barangay certified that the company does not exist in said address. Rep. Elpidio Barzaga (Lone District, Dasmarinas City) said since there has been no complaint from the three consignees, this only shows there has been smuggling impliedly committed. They are not pinpointing responsibility or asking damage from the BOC. Farias said it is obvious that the transshipped goods were insured. Sigurado yan, they wont transship the goods without insuring them. Ang wala yung bond which is to cover the payment of taxes and duties. Meanwhile, Rep. Reynaldo Umali (2nd District, Oriental Mindoro), a former BOC deputy commissioner for legal, said his best estimate is about P1.5 billion to P2 billion down the drain because of this outright smuggling of almost 2,000 containers. So you can be rest assured we will help the administration collect the revenues plug the leakage at tumungo po tayo sa matuwid na daan. (30) rbb