COA: Customs bureau yet to list over 1,900 items in its custody for auction, disposal

Over 1,900 cargoes and goods seized by the Bureau of Customs (BOC) or abandoned by supposed recipients, including P1.2 billion worth of confiscated vehicles, have not been entered into the records of the BOC’s Auction and Cargo Disposal Management Division, the Commission on Audit (COA) said.

In its annual audit report on the agency, state auditors said that the BOC’s Auction and Cargo Disposal Management Division only recorded 2,843 seized cargoes and goods, way lower than the recorded 4,803 by the various BOC ports’ Auction and Cargo Disposal Division.

“Included in the noted discrepancies are 52 confiscated vehicles under the Port of Manila with an estimated value of P1.292 billion, which were not properly reflected in the consolidated report of ACDMD and records in Accounting Division,” the COA said.

The commission said that its inquiry with the ACDMD revealed that several memoranda and reminders had already been issued to all ports, directing the submission of monthly reports, including those without seized or abandoned cargoes, to ensure timely monitoring, reconciliation, and record updating, although such instructions were not fully complied with.

“Despite these directives, full compliance has not yet been achieved, which management attributed primarily to the large volume of confiscated assets being handled and maintained by the ports concerned,” COA said.

“The incomplete and/or non-submission of reports on seized/abandoned and forfeited goods/cargoes by the Ports' ACDD to the ACDMD-Port Operations Service, Assessment and Operations Coordinating Group, and Accounting, as well as the non-appraisal thereof, resulted in the exclusion from recording of 1,954 cases/entries, thereby exposing such assets to risks of loss, pilferage, or unauthorized disposal,” COA added.

Likewise, COA said that 874 cases/entries of abandoned/seized and forfeited goods/articles from various ports were reported without corresponding fair values due to the non-appraisal by the port's Auction and Cargo Disposal Division.

“While the ACDMD consolidates the submitted reports, the appraisal should be provided by the ports. Relative thereto, a memorandum dated July 7, 2025, was issued to all ports for strict compliance with the submission of reports, including the fair market value of all confiscated property,” COA said.

“Due to a lack of manpower to conduct the appraisals examination and the sheer volume of confiscated assets, the ports prioritize conducting appraisals and the auction of the containers, leaving the rest unappraised and undisposed of, thereby exposing such assets to risks of loss, pilferage, or unauthorized disposal,” COA added.

In response, the BOC agreed to implement the following COA recommendations:

• ensure that all the seized/abandoned and forfeited goods are included in the monthly report;
• conduct an appraisal to determine the updated fair value of the seized/abandoned and forfeited goods/articles currently in their possession that have no declared value; and
• submit the monthly report of confiscated assets to the ACDMD for consolidation and monitoring and subsequently, to the Accounting Division, for proper recognition and recording of seized/abandoned and forfeited goods/articles.

— BM, GMA News

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