BOC ASSURES BUYERS ‘IN GOOD FAITH’ OF IMPOUNDED VEHICLES

THE Bureau of Customs (BOC) under Commissioner Bienvenido Rubio, assured the ‘buyers in good faith’ of luxury vehicles it recently impounded of fair treatment under the agency’s “voluntary payment scheme.”

The office of Deputy Commissioner for Intelligence (DCI) Juvymax Uy, implemented the series of “visitations” in several warehouses in the cities of Pasay, Parañaque, Makati and Taguig last week based on the ‘LOAs’ (Letter of Authority) approved by Commissioner Bienvenido Rubio that resulted to the impoundment of the vehicles.

They include, among others, brands such as ‘Ferrari,’ ‘Porsche,’ ‘McLaren’ and Mercedez Benz.

In a statement, Uy noted that “the voluntary payment scheme is a proactive approach which empowers the bureau to significantly bolster its revenue collection efforts while effectively recognizing the equitable rights of unsuspecting innocent purchaser of imported goods.”

The series of operations launch by the BOC from February 13, resulted to the discovery of the vehicles in several warehouses with an estimated aggregate value totaling over P2.6 billion (see related article).

The BOC further noted that pursuant to Section 224 of the Customs Modernization and Tariff Act (CMTA), the owners of the vehicles are given 15 days from the implementation of the LOAs to present evidence of payment of correct duties and taxes to avoid their being seized in favor of the government.

To effect release, Section 5 of Customs Administrative Order (CAO) 10-2020 requires the presentation of proof of payment of correct duties and taxes by the importer of the goods/articles subjected to LOA, in addition to proof of local purchase by the claimant.

The voluntary payment of correct duties and taxes is a customs administrative remedy available to owners of imported motor vehicles registered with the Land Transportation Office who can prove that they are bona fide purchaser of the imported goods in good faith.

Registered owners of imported vehicles who can prove that they are bona fide purchasers in good faith and no fraud can be attributed against them may settle the correct customs duties and taxes due thereon.