Export permit rule reimposed for miners

MANILA, Philippines - Miners will now have to secure export permits and show proof of excise tax payments before they can send shipments abroad, the Environment department Monday said. Mineral ore export permits (MOEPs), previously removed to streamline steps in exporting, will again be made a requirement to "strictly monitor the payment of taxes," Environment Secretary Jose L. Atienza said in a telephone interview. The Environment department, in a statement, said shipments of mineral products, including gold bullion and mine tailings, would be confiscated if shippers or transporters fail to show the MOEP and proof of tax payments. "What we feel is that what is being declared is not accurate to what they (the mining companies) are gathering from the field," Mr. Atienza said, adding that the present, the government relies on shipping declarations by exporters. Administrative Order (AO) 2008-20, to be published in major dailies this month, seeks to eradicate "undervaluation, misdeclaration and red tape in the exportation of mineral ores and improve the collection of excise tax on minerals." "The figures (taxes) will shoot up more than what the government collects now," Mr. Atienza said. Total exports of minerals and mineral products increased to $2.548 billion in 2007 from $2.058 billion in 2006, $820 million in 2005 and $797 million in 2004, data from the Mines and Geosciences Bureau show. Exports totaled $2.548 billion in the first quarter of the year. Mr. Atienza said he had cleared the AO with the President three weeks ago. His department would coordinate with the Customs bureau for the monitoring of shipments. Shippers are required to apply for a permit 60 days before the shipping date. During those 60 days, an inter-agency team will validate the shipment’s grade, volume, and value. Its report will be the basis for the computation of the 2% excise tax and the MOEP issuance. Exporters will have to submit the following in applying for MOEPs: ore transport permit, marketing contract/sales agreement with the purchaser, copy of the permit/contract issued to the permit holder/contractor, and/or the accreditation of traders, retailers, processors, whichever is applicable. - BusinessWorld