The Bureau of Customs has heightened its campaign against undervaluation and misclassification of rice importations through continuous checking of compliance of rice importers with Customs laws and regulations.
The transaction-based audit of importers is a continuing effort of the BoC to determine the correctness of the valuation of the goods and determine the liability of the importer for duties, taxes, and other charges, including fine or penalty for rice importations.
According to Post Clearance Audit Group (PCAG), a total of 245 entities falling under Tariff Heading 1006 have imported rice from March 5 to June 20, 2019, of which 60 entities with the greatest number of incidents of deviation and the highest percentage discrepancies in duties paid were selected for transaction-based audits.
Based on the audit results, auditees were found liable for the payment of P 1,417,167,368.10 in Customs duties, penalties, surcharges, and interest due to undervaluation, misclassification, and or understatement of freight and insurance charges.
Moreover, it was found that undervaluation of declared Customs value remains the primary risk in revenue collection from rice imports, accounting for P497,941,773.72 or 36.08 percent of the total deficiency assessment.
In terms of the level of compliance, the audit findings show a low level of compliance among the audited importers, as 47 auditees or 85.45 percent were found to have violated Customs laws and regulations.
On the other hand, eight auditees were found to have properly declared their goods and provided pertinent documentary requirements as stipulated in the CMTA.