The Bureau of Customs (BoC) could be collecting more taxes if irregularities within the agency is addressed accordingly, noted a report by the Commission on Audit (CoA).

According to CoA, although the BoC’s 2017 collection exceeded its previous year’s collections by P60.893 billion, the agency still fell short by P8.122 of its target of P467.896 billion. The BoC earlier blamed the collection shortfall to several reasons, including uncollected tax from government agencies.

However, state auditors said BoC officials failed to implement pertinent provisions of the customs law that resulted in a loss of P6.147 million last year.

“Had the BoC been able to collect these additional revenues, it could have lessened the shortfall and provided the government with much-needed funds to support its programs and projects,” said CoA.

In its BoC audit, CoA noted various deficiencies that included the lax enforcement of redemption/settlement of its due and demandable bonds that increased from P5.122 billion in 2015 to P5.601 billion 2017.

“A total of P448.057 million for additional taxes, duties and other charges, resulting from post entry of the LBD (Liquidation and Billing Division) remained unpaid/unsettled as of yearend,” CoA said.

At least P11.547 million in duties and taxes were not collected from an importer of an aircraft whose tax exemption privileges have already been cancelled.

CoA could be referring to an 80-seater aircraft owned by Skyjet Airlines which has appealed the BoC’s seizure of the P583-million plane last year.

The aircraft was reportedly imported by Magnum Inc. which used to be a locator at the Subic Bay Freeport and thus enjoyed tax privileges. However, the firm had ceased operations and was delisted from the SBF list of locators in 2014.

The commission also noted a delay in the seizure of a vessel thus resulting in foregone revenues estimated at P50 million in uncollected customs, duties, taxes and fines.

State auditors blamed the District Collector of the Port of Aparri for delaying the forfeiture proceedings.

“At Port Cagayan de Oro, revenue of approximately P36 million could have been collected on two shipments of 40,000 bags of Vietnamese Long Grain White Rice that were seized and declared abandoned, but was later approved for release by the BOC despite the expiration on the submission of import permit,” the audit report stated.

According to CoA, some imported 469 fire trucks had a contract cost of P2.577 billion but was declared only for its invoice value of P306.967 million, resulting in undervaluation of P2.270 billion and corresponding underpayment of P295.140million in taxes, duties and other charges.

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