The Commission on Audit (COA) has rebuked the Bureau of Customs (BOC) for the delays ranging from three days to 265 months in the disposal of abandoned or forfeited goods worth P567.265 million.
Because of the delays, the goods have become "foregone government revenues" given their perishable nature, COA said in its 2022 annual report.
The report stated that the BOC should have conducted better disposition of the abandoned and forfeited goods and should have crafted specific timelines to prevent further deterioration and decline of value.
"The absence of timelines on disposition and the inability of the Ports to conduct the necessary disposal proceedings resulted in the loss of government revenues representing proceeds of disposal or collection of assessed duties and taxes due from these cargoes, possible loss through theft and deterioration, additional storage fees, foregone government revenues and further contributes to port congestion due to overstaying containers and cargoes," the COA said.
It cited Section 1141 of Republic Act No. 10863, the Customs Modernization and Tariff Act, which provides guidelines on how to dispose of the seized goods and articles.
It said the guidelines provide that "the goods subject to disposition may be donated to another government agency or declared for official use of the Bureau, after approval of the Secretary of Finance, or sold at a public auction within 30 days after a 10-day notice posted at a public place at the port where the goods are located and published electronically or in a newspaper of general circulation."