Smuggled sugar worth P15M seized

SWEET STASH A Bureau of Customs worker at the Manila International Container Port unloads sacks of sugar from Thailand, which had been misdeclared as refractory mortar. DEXTER GATOC Ten container vans were found to contain sugar instead of “refractory mortar,” as declared by a trading company, during an inspection by the Bureau of Customs (BoC) on Thursday.

According to Customs Commissioner Isidro Lapeña, during the inspection of 28 alerted shipment containers at the Manila International Container Port (MICP), contrary to a report submitted to his office, they found 10 container vans to have violations of the Customs Modernization and Tariff Act (CMTA).

Among the alerted shipments of some 12 consignees, as of press time, only Don Trading’s was found to contain misdeclared items. The customs authorities are still re-examining inventory in the remaining shipments.

The BoC put on hold P15-million worth of shipment belonging to Don Trading after Lapeña received information that some containers had misdeclared sugar. Declaring the goods as refractory mortar, Don Trading attempted to smuggle in 5,000 sacks of sugar into the country.

MICP authorities said refractory mortar, similar to cement, is used for building brick or stone fireplaces or other installations subjected to intense heat. It weighs and looks like sugar.

MICP records show the shipment came from Thailand and arrived on 13 July. Records show the signing broker was Ameloden Buruan Riga of Quiapo, Manila and the company, Don Trading, was owned by a certain Dennis Orlanda Narra of Unit 411 4F La Maja Building, 459 Legaspi St., Intramuros, Manila.

A warrant of seizure and detention will be issued by the MICP Office of the District Collector after the conduct of 100-percent examination by Customs authorities for violation of Section 1400 (Misdeclaration, Misclassification, Undervaluation in Goods Declaration) in relation to Section 1113 (Property Subject to Seizure and Forfeiture) of the CMTA.

Owner and Customs broker will also face criminal raps in violation of Republic Act 10845 or the Anti-Agricultural Smuggling Act of 2016.

Section 3 of Republic Act 10845 considers the smuggling of sugar in excess of P1 million as economic sabotage.

Lapeña said he believes this importer is part of a cartel which holds smuggled sugar and only releases the commodity when market prices are high. He added that one of the reasons prices of basic commodities are high is because prices are manipulated.

Commissioner Lapeña said heads will roll after he ordered a full-blown investigation of some BoC personnel who are allegedly in collusion with the importer and customs broker.

The Customs chief exposed a new modus operandi in one of the biggest ports in the country, the MICP, during the conduct of re-examination of alerted shipments.

“I (gave) the alert order to these container vans. However, the customs personnel in charge of the examination submitted a report different from what was found during our re-examination today. They also submitted a recommendation to lift the order justifying that everything was in order despite the irregularity,” Lapeña explained.

The bureau chief also ordered the administrative relief of the Customs examiner, appraiser, the person who signed in behalf of the district collector and other BoC personnel involved in the modus, pending investigation.

More than the discovery of smuggled sugar, Lapeña emphasized that the discovery of the modus is a very good development in the reforms of the agency.

He added that they have to keep everything checked and, if needed, counterchecked, just to prevent the entry of smuggled goods into the country. If we did not conduct re-examination, the smuggled sugar could have entered the market, taking advantage of the high prices of commodities, Lapeña said.

Eyeing the possibility of other misdeclaration of shipments, the BoC also responded with immediate inspection after receiving a heads-up that five containers from China had arrived at the Port of Manila (PoM) on Wednesday.

The shipment was selected “Red” under the E2M Selectivity System and was subjected to mandatory non-intrusive x-ray examination pursuant to the memorandum dated September 26, 2017.

“PoM District Collector Erastus Sandino Austria issued an alert order against the shipment because the x-ray image showed items which appeared to be different from what was declared in the import entry. Thus, the shipment was tagged as ‘Suspect,’” the Commissioner said.

Upon investigation of the five containers, Customs authorities found two magnetic lifters in one of the containers similar to what was found at the MICT.

Records show that the shipment was consigned to Wan Chiong Steel Corp. of Quezon Road, San Isidro, San Simon Pampanga and was shipped by Xiamen TopSun Trade Co. Ltd.

It arrived on 8 August at the Manila South Harbor and was covered by Import Entry number P02A C-100344-18. The goods were declared in the import entry as “industrial overhead cranes,” but customs authorities found other items as well.

Customs authorities are still determining the value of the intercepted equipment.

“I have ordered all ports to exercise extra vigilance over all coasts and seas to prevent the entry of smuggled and contraband goods from entering the Philippine borders. These smugglers are getting bolder and using more sophisticated methods, and we must exert extra effort to stop them,” Lapena said.

Last week, the Bureau chief ordered the immediate examination of some 4,000 abandoned and overstaying cargoes at the PoM and MICP to check for contraband and smuggled goods. With reports from Raymart T. Lolo