AUG.

4, 2013

NR # 3185

Solon seeks granting of amnesty to importers and sureties with unsettled obligations with BOC
To raise additional revenue for the government, a lawmaker proposed the granting of amnesty from civil and criminal prosecution of importers and sureties who voluntarily disclose previously unliquidated or matured bonds to secure payment of customs duties and other charges of fees. Rep. Reynaldo Umali (2nd District, Oriental Mindoro) filed House Bill 9 or the proposed Customs Amnesty Act of 2013 as he stressed the Bureau of Customs should now focus its attention to previously uncollected taxes and duties which can be done through an amnesty. The proposal is our answer to the challenge of this administration to raise additional revenues for better government services without imposing new taxes, said Umali, a former BOC deputy commissioner. At present, he said there is no law encouraging importers to voluntarily disclose their matured or unliquidated surety bonds. He said surety bonds are usually posted by importers to secure payment of customs duties and other charges or fees so that the BOC may release their importations conditionally. The uncollected amount from the matured bonds is huge enough for the BOC to be able to augment its national revenue collection. As of January 1, 2009, the total overdue amount covered by surety bonds is over P7.9 billion, said Umali. He said the duties and taxes covered by his proposed amnesty are those, which accrued during the periods January 1, 1997 to December 31, 2007. The taxes and duties which accrued January 1, 2008 onwards are not covered by this amnesty and are subject to audit in line with Republic Act 9135, he said. Republic Act 9135 is An Act Amending Certain Provisions of Presidential Decree no. 1464, otherwise known as the Tariff and Customs Code of the Philippines, as amended, and For Other Purposes. Umali said when RA 9135 was enacted; the government implemented the Transaction Value as the basis for dutiable value of imported articles subject to ad valorem rate of duty, which shall be the price actually paid or payable for the goods when sold for export to the Philippines. Umali said revenues collected under the proposed amnesty Act shall be used for the

following: 60 percent to supplement the BOC operating budget; and 40 percent shall go to the National Export and Competitiveness Fund. House Bill 9 provides it is the declared State policy to provide funds or property to promote the general welfare and protection of its citizens. The State should therefore develop measures and programs that will ensure the efficient collection of taxes. It provides that amnesty from civil and criminal prosecution shall be granted to those importers and sureties who voluntarily disclosed previous unliquidated or matured bonds to secure payment of customs, duties and other charges of fees, including increments and penalties in relation thereto and complied with the requirements of the proposed Act. Such amnesty shall not be applicable in the following circumstances: criminal cases have already been filed in court or with the Prosecutors Office on or before December 31, 1997 by the BOC or any other government agency; and customs duty and tax involving civil liability which are the subject of a pending criminal action in the Prosecutors Office or court prior to December 31, 1997 filed by the BOC or any other government agency. The Customs Bond/Surety Amnesty Return shall be filed in the prescribed form with the Office of the Port Collector, District Collector, Collection Agent or the authorized Municipal Treasurer designated as collection officer of the BOC where the taxpayer has his legal residence or place of business in the Philippines, or if he has none, then with the BOC Commissioner on or before January 31 of the year after the passage of the proposed Act, the bill provides. The bill provides that any taxes and duties due as disclosed by the taxpayer in his Amnesty Return must be paid at the time of filing it. If the taxes and duties exceed P50,000, the same shall be paid based on the following schedule: a) If the amount exceeds P50,000 but does not exceed P100,000, the amount may be paid in two equal installments, the first to be paid upon the filing of the amnesty return, and the second installment, on or before April 30 of the taxable year; b) If the amount due exceeds P100,000, the amount may be paid in three installments, the first one upon filing of the amnesty return, the second one on or before April 30 of the taxable year, and the third one on or before April 30 of the next taxable year. In meritorious cases where the total amount due exceeds P300,000, the BOC Commissioner or the District Collector, subject to the approval of the Secretary of Finance, may upon proper application, allow the taxpayer to pay the P300,000 based on the immediately preceding schedule and the amount in excess in equal monthly installments; c) If the installment is not made on its due date, the whole unpaid amount will

become due and demandable and shall be subject to interest and penalties imposed under the Tariff and Customs Code. Except for revenue purposes, the bill provides that it shall be unlawful for any BOC officer or employee or any government entity having knowledge of such amnesty returns to disclose to anyone information relative to such declaration. Violators shall pay a fine of not less than P10,000 or face imprisonment of not less than two years, or both. Any public officer or employee found guilty should be summarily dismissed from the service. Importers and sureties who will make misrepresentations in their amnesty returns shall pay a fine of not less than P10,000 or be imprisoned for not less than two years, or both, and shall be prohibited from holding public office for 10 years. Importers and surety companies availing of amnesty shall be issued plenary Customs Clearance after payment of all customs duties, fees and other charges, and shall be allowed to transact with the BOC as regular importers or surety companies without prejudice to the liabilities arising by reason of, or in connection with the transaction not covered by the proposed Act. (30) rbb