The House Committee on Ways and Means ordered on Tuesday the Bureau of Customs (BOC) to carry out an audit on the transactions made by oil companies Chevron Philippines and Petrograde Philippines, Inc. in connection with their customs bonded warehouse (CBW) operations between 2015 and 2019.
Puwersa ng Bayaning Atleta (PBA) Party-list Rep. Jericho Nograles made a motion to this effect during a virtual hearing of the panel following a presentation by vice-chairperson, Nueva Ecija 1st district Rep. Estrellita Suansing on the alleged discrepancies and violations by the fuel CBWs.
Suansing in her presentation defined CBWs as BOC-licensed facilities that import, receive, and store goods, raw materials, semi-finished materials, components and packing materials meant for manufacturing finished products to export or for the account of authorized users or clients.
She noted early on in her report that there are a lot of types of CBWs and that the fuel companies were used only "as an example."
Her effort was actually part of the panel's broader inquiry on the alleged "unabated smuggling of goods into the country by unscrupulous operators of CBWs to the detriment of local manufacturers and producers and the Philippine economy," as stated by Surigao del Sur 1st district Rep. Prospero Pichay Jr. in House Resolution (HR) No.556. The Committee first took up the matter back in November 2019.
Suansing said that as far as Petrograde is concerned, there are "discrepancies in the excise tax paid in some consumption entries indicated in the Single Administrative Document (SAD) in comparison to the liquidation report and there is no proof of payment attached in the form of SSDT (Statement of Settlement of Duties and Taxes)."
"The (BOC) should take the necessary steps to review and examine the liquidation reports and cause the collection of Excise Tax in the estimated amount of P45,000,000.00," she said, citing documents.
Meanwhile, Suansing found Chevron in violation of Customs Administrative Order (CAO)-1-2009 and CAO-13-2019. The first issuance is the revised rules and regulations for the establishment, operation, supervision, and control of CBWs; while the second has to do with the enforcement of provisions of Republic Act (RA) No.10863 or the Customs Modernization and Tariff Act (CMTA) on CBWs.
"The (BOC) should disallow the use of extension storages as this is not in accordance with the classification stipulated in its administrative orders. Moreover, the (BOC) is obligated to strictly enforce such administrative orders to the letter," her presentation read.
She also computed huge unpaid taxes of the firm, amounting to P5,092,524,213.00 in input taxes from 2015 to 2019 and P6,672,731,933.00 in excise taxes during the same period.
Asked by Nograles if she thinks there was negligence--a term that has legal implications--on the part of the BOC in monitoring the items she mentioned, Suansing said, "What I used is, 'napabayaan itong management and supervision ng CBWs (the management and supervision of these CBWs were neglected).'"
The lady solon said provisions of the Anti-Graft Law could apply to these cases "but we will give them (BOC) a chance by doing their own review and audit (of the fuel CBWs)." She suggested a two-month audit, which she claimed would give sufficient time to the BOC considering that her own report took only a month to put together.
"So the two-month audit is something that will determine whether or not our committee will forward these documents to the Ombudsman for appropriate action especially in determining whether or not there was...gross and inexcusable negligence on the part of the BOC?" asked Nograles, to which the vice-chairperson answered in the affirmative.
BOC Commissioner Rey Leonardo Guerrero, who also took part in the hearing via Zoom along with his subordinates, revealed to the panel that they've already begun to look into the concerned CBWs.
"The audit is already ongoing. One is nearing completion and the other one is midway to its finalization ma'am," Guerrero told AAMBIS-OWA Party-List Rep. Sharon Garin during the interpellation period.
Garin cheekily told the BOC boss later, "Hindi ito trabaho ni (Rep. Suansing), trabaho niyo dapat ito (This was not Rep. Suansing's job, this was supposed to be your job)."
"Yes ma'am and we appreciate the Congresswoman's efforts in helping the Bureau of Customs, ma'am," Guerrero replied.
Suansing stressed in the end that the purpose of looking into the CBWs wasn't merely to close down those violating the law, but more importantly to compel the involved companies to pay their taxes due to the government.