‘Imports typically worth more than half reported value’
September 29, 2016 at 10:40
‘Imports typically worth more than half reported value’
Import data is typically unreliable and the value of goods coming to the Philippines so undervalued such that more than half their actual value is captured in the statistics, Customs chief Nicanor F. Faeldon said in frustration on Tuesday.
As a consequence, as much as 57 percent of potential duty was lost and denied the nation’s coffers in 2015 alone, based on data obtained from the United Nations, Faeldon said.
The Bureau of Customs (BOC) chief bared this piece of statistics at the 2016 World Customs Organization (WCO) Picard Conference held at the Manila Hotel on Tuesday, as part of the ongoing effort to combat illicit trade that affects not only the Philippines but other countries, as well.
At the conference, Faeldon urged delegates to look into the problem of illicit trade that all countries are experiencing in hopes of finding solutions that effectively address the situation.
He cited numbers from the UN Comtrade Database, showing that one unidentified country declared exports to the Philippines worth $26 billion in 2015, but that only $11 billion worth was captured in the statistics.
The unaccounted for import differential of 57 percent has never been effectively justified such that the BOC generated revenues of only $1.5 billion, more or less, instead of the full amount.
Also, as a result of the instructive data from the UN, Faeldon issued a commitment that the revenue-collection units at the BOC will be vigilant against import anomalies from this point forward.
“What I am trying to pose here is our commitment for all agencies to be protected” from these illicit activities, he said.
He likewise added that the experience is not unique to the Philippines but rather common all over the world.
According to the customs chief, nations typically report trade of import undervaluation averaging 25 percent of potential, which is why he urged customs administrators around the world to look into the situation and help to resolve it through consultations and study exchanges with their Manila counterparts.
He also urged peer administrations to “take a look on where we can improve on our treaties and policies and put in place mechanisms to prevent this from happening.”
Faeldon particularly complained of “issues of magical changes of transaction values from the origin country before it [reaches] the Philippines.”
Finance Undersecretary Antonette C. Tionko of the Revenue Operations Group also said the conference is an important event enabling customs administrators and leaders to learn form each other and find ways to solve problems and concerns being experienced by the collection bureaus.
“We hope that through these exchanges you, the participants, will have the opportunity to interact with customs administrations to share commercial and academic points from around the world and learn from one another. Now more than ever, customs officials should have more than just technical knowledge. They should also have an understanding of the dynamics of trade and policy, and how it relates to customs work in others to capitalize individual and collective growth,” Tionko said.
Source: www.businessmirror.com.ph
