PHL companies decry delays in processing tax-exempt imports

Delays in processing documents for tax-exempt imports have worsened from two days on average to around 45 days under the present system, companies doing non-core import-export transactions said Wednesday.

 

One of the companies was diversified conglomerate San Miguel Corp.

 

Such delays turn into the corresponding delays the release of good, according to the companies present during a seminar on shipments returned, abandoned, and bonded warehousing at the Department of Trade and Industry in Makati City.

 

San Miguel had to abandon shipment of pallets and packaging materials that have been languishing in Bureau of Customs warehouses, according to a company representative who asked not to be named as he was not authorized to speak openly to reporters.

 

However, Eleazar C. Cesista, director of the Department of Finance Revenue Operations Group, acknowledged such prolonged delays are happening because the documents are not immediately signed by top Finance Department and Customs officials.

 

Two layers of processing documents for tax-exempt cargoes are in place, according to the Finance Department official. 

 

After the department approves the documents, a team from the Customs Bureau goes through the same documents all over again, he said.

 

Cecista also acknowledged that the department used to process tax-exempt documents in two days at the most, but that it now takes a week to more than 30 days.  

 

"You might as well pay the taxes and import duties to avoid the hassle and the delay," Cesista told the seminar participants.

 

All imported goods are levied–with taxes and duties–finance and customs officials said during the seminar.

 

However, there are exemptions under the Tariff and Customs Code of the Philippines, including raw materials through bonded warehouses. These are usually materials processed by exporters for re-export, export overruns, and goods returned for repair. —VS, GMA News