By Ellson QuismorioÂ
The House Committee on Ways and Means has told the Bureau of Customs (BOC) to suspend the its controversial National Value Verification System (NVVS) based on concerns that it is violating a World Trade Organization (WTO) rule when it comes to import valuation.
(MANILA BULLETIN FILE PHOTO)
"Gusto lang namin magkaroon ng conditions para hindi siya subject to internal abuse. Kasi one man can wreck the whole team (We just want to establish conditions so that it won't be subject to internal abuse. Because one man can wreck the whole team)," Ways and Means panel chairman, Albay 2nd district Rep. Joey Salceda told BOC officials Monday during a public hearing.
Assistant Commissioner Vincent Philip Maronilla and Import Assessment Service (IAS) Director Yasser Abbas headed the BOC contingent to the hearing, which primarily tackled proposed amendments to Republic Act (RA) 10863 or the Customs Modernization and Tariff Act (CMTA)
Abbas, who was the main defender of NVVS, described the system as a "risk management tool to help the Bureau combat previous invoicing."
"Just accept it (suspension). It's a friendly advice from the Committee on Ways and Means. Just focus on the structural elements of your deficit. It's huge, I'm telling you, it's huge," Salceda, an economist, told the Customs executives.
"It's not a judgment on the merits of the NVVS. We just want to study whether we are not violating an international agreement. Very clear naman ang WTO (The WTO is very clear)," stressed the chairman.
Senior vice-chairman, AAMBIS-OWA Party-List Rep. Sharon Garin made the motion to have the implementation of the NVVS suspended after Salceda individually asked the attending congressmen whether or not they were against the system. Most of them were.
Second valuation method slammed
Abbas said the main purpose of NVVS was to combat undervaluation of imports, which has a negative impact on BOC collections.
"NVVS is the application of the second method of valuation. Under the WTO , the transaction value should be respected. But in case the documents presented cannot be accepted using the first method of valuation...," explained Abbas, who was cut short by Nueva Ecija 1st district Rep. Estrellita Suansing.
"It's clear in the WTO agreement that you will use transaction value ," said Suansing, another panel vice-chairman.
"Bakit kailangan pa ng NVVS, another system? That causes importers...nakakatakot sila mag-import kasi ipapatawag sila ng IAS. IAS ikaw yun di ba? (Why is there a need for NVVS, another system? That causes importers...they are afraid to import because the IAS will summon them. You are with IAS, right?)" the lady solon asked Abbas.
"Pwede naman na kumpletuhin na lang nung importer yung documents. Bakit kailangan pang baguhin pa yung system? Kapag hindi kumpleto yung document eh di hindi niyo i-process. Kasi hindi maganda yung imahe Bureau kasi sinasabi kailangan dumaan sayo (The importer can just present completed documents. Why the need for another system? Just don't process it if the documents aren't complete. It's not good for the image of the Bureau because they say importers have to see you first)," she noted.
Even leaders of the BOC Employees Association who attended the hearing slagged NVVS, which they called "flawed."
"Regarding NVVS, there are faults in the drafting of the regulation because no.1, it enunciates policies...in just an unnumbered memorandum. It should be at least in a Customs administrative order approved by the Secretary of Finance. So in form, it is flawed," said the group led by national president Rommel Francisco.
"With respect to the provisions, we think that NVVs is not attuned with Section 700 of the CMTA...Specifically, no.7 of the NVVS regulation states that if the document cannot be presented by the importer then the NVVS value shall be applied. actually replaces the transaction value with an NVVS value, which is unnatural and is really not permitted under the WTO," they added.
Reportedly, some of the BOCEA members were accused of violating the code of conduct after going public on their stand against NVVS last October.
Guerrero skips hearing
Meanwhile, Maronilla told the Committee that BOC Commissioner Leonardo Guerrero wasn't able to attend the hearing because "he wasn't feeling well." "But he commits to attend the next hearing," Maronilla added.
Salceda floated the possibly of Congress crafting its own NVVS, with the needed safeguards in place.
"If you want a clearer NVVS, we will legislate it. Para may reference (So that there's a reference)," he said.
(MANILA BULLETIN FILE PHOTO)
"Gusto lang namin magkaroon ng conditions para hindi siya subject to internal abuse. Kasi one man can wreck the whole team (We just want to establish conditions so that it won't be subject to internal abuse. Because one man can wreck the whole team)," Ways and Means panel chairman, Albay 2nd district Rep. Joey Salceda told BOC officials Monday during a public hearing.
Assistant Commissioner Vincent Philip Maronilla and Import Assessment Service (IAS) Director Yasser Abbas headed the BOC contingent to the hearing, which primarily tackled proposed amendments to Republic Act (RA) 10863 or the Customs Modernization and Tariff Act (CMTA)
Abbas, who was the main defender of NVVS, described the system as a "risk management tool to help the Bureau combat previous invoicing."
"Just accept it (suspension). It's a friendly advice from the Committee on Ways and Means. Just focus on the structural elements of your deficit. It's huge, I'm telling you, it's huge," Salceda, an economist, told the Customs executives.
"It's not a judgment on the merits of the NVVS. We just want to study whether we are not violating an international agreement. Very clear naman ang WTO (The WTO is very clear)," stressed the chairman.
Senior vice-chairman, AAMBIS-OWA Party-List Rep. Sharon Garin made the motion to have the implementation of the NVVS suspended after Salceda individually asked the attending congressmen whether or not they were against the system. Most of them were.
Second valuation method slammed
Abbas said the main purpose of NVVS was to combat undervaluation of imports, which has a negative impact on BOC collections.
"NVVS is the application of the second method of valuation. Under the WTO , the transaction value should be respected. But in case the documents presented cannot be accepted using the first method of valuation...," explained Abbas, who was cut short by Nueva Ecija 1st district Rep. Estrellita Suansing.
"It's clear in the WTO agreement that you will use transaction value ," said Suansing, another panel vice-chairman.
"Bakit kailangan pa ng NVVS, another system? That causes importers...nakakatakot sila mag-import kasi ipapatawag sila ng IAS. IAS ikaw yun di ba? (Why is there a need for NVVS, another system? That causes importers...they are afraid to import because the IAS will summon them. You are with IAS, right?)" the lady solon asked Abbas.
"Pwede naman na kumpletuhin na lang nung importer yung documents. Bakit kailangan pang baguhin pa yung system? Kapag hindi kumpleto yung document eh di hindi niyo i-process. Kasi hindi maganda yung imahe Bureau kasi sinasabi kailangan dumaan sayo (The importer can just present completed documents. Why the need for another system? Just don't process it if the documents aren't complete. It's not good for the image of the Bureau because they say importers have to see you first)," she noted.
Even leaders of the BOC Employees Association who attended the hearing slagged NVVS, which they called "flawed."
"Regarding NVVS, there are faults in the drafting of the regulation because no.1, it enunciates policies...in just an unnumbered memorandum. It should be at least in a Customs administrative order approved by the Secretary of Finance. So in form, it is flawed," said the group led by national president Rommel Francisco.
"With respect to the provisions, we think that NVVs is not attuned with Section 700 of the CMTA...Specifically, no.7 of the NVVS regulation states that if the document cannot be presented by the importer then the NVVS value shall be applied. actually replaces the transaction value with an NVVS value, which is unnatural and is really not permitted under the WTO," they added.
Reportedly, some of the BOCEA members were accused of violating the code of conduct after going public on their stand against NVVS last October.
Guerrero skips hearing
Meanwhile, Maronilla told the Committee that BOC Commissioner Leonardo Guerrero wasn't able to attend the hearing because "he wasn't feeling well." "But he commits to attend the next hearing," Maronilla added.
Salceda floated the possibly of Congress crafting its own NVVS, with the needed safeguards in place.
"If you want a clearer NVVS, we will legislate it. Para may reference (So that there's a reference)," he said.