After a string of imported car seizures, the Bureau of Customs (BOC) is urging owners or claimants to settle the correct duties and taxes through voluntary payment, offering an alternative to a warrant of seizure and detention (WSD).

Worth a total of ₱2.8 billion, the high-end luxury cars confiscated during three consecutive BOC-led raids could still be reclaimed if owners or claimants provide proof of import duties and other taxes paid for the seized vehicles.

Section 224 of the Customs Modernization and Tariff Act (CMTA) allows vehicle owners or claimants to exercise such an option within 15 days after the issuance of letters of authority (LOAs).

An LOA is issued based on derogatory information gathered or received by the BOC indicating that imported goods, which may be smuggled, regulated, prohibited, or restricted, are being openly offered for sale or stored in specific locations such as stores, stalls, exhibition areas, warehouses, or enclosures, provided these places are not primarily used as residential dwellings.

Customs Commissioner Bienvenido Rubio said voluntary payment “will spare the government and the concerned parties the complicated and tedious process of warrant and seizure proceedings while the imported goods or articles are being held and exposed to government forfeiture.”

Once owners or claimants provide proof of correct duty and tax payments, along with documents showing local purchase, the BOC could immediately release the goods.

“If the claimant cannot produce the proof of payment of correct duties and taxes by the original importer despite diligent efforts to produce the same, he may voluntarily offer to pay the duties and taxes due on the imported items,” Rubio explained.

“This is available to claimants who can prove that they are bonafide purchasers of the imported goods,” the BOC chief added.

To recall, luxury vehicles seized from Feb. 13 to 19 included high-end car brands such as Ferrari, Porsche, and McLaren, from warehouses in the cities of Makati, Taguig, Parañaque, and Pasay.

Customs Intelligence and Investigation Service (CIIS) agents served an LOA to the luxury car sellers, giving those involved 15 days to submit proof of correct duty and tax payments.

If they can prove they are legitimate buyers, Rubio said registered owners of imported cars must pay the required customs duties and taxes within the 15-day period.

“To reclaim a seized vehicle, the registered owner must provide substantial evidence that their luxury car was purchased locally, did not cause nor participate in its importation, and was unaware of any deficiencies of the original importer in paying the required customs duties and taxes,” the BOC said.

The country's second-biggest tax-collection agency added that should the involved individuals fail to present valid documentation, they will be charged for violating the CMTA.

Meanwhile, Juvymax Uy, BOC Deputy Commissioner for Intelligence Group, noted that voluntary payment serves two purposes: increasing tax collections and protecting innocent parties.

“This proactive approach will empower the Bureau to significantly bolster its revenue collection efforts while effectively safeguarding seized goods from deterioration pending seizure and forfeiture proceedings,” Uy said.