BOC calls for DOJ probe on BFP's 469 fire trucks from China

The Bureau of Customs (BOC) on Thursday called on the Department of Justice (DOJ) to investigate what it claimed as the anomalous importation of 469 fire trucks from China, after the trucks were found to be grossly undervalued.

The BOC noted the Bureau of Fire Prevention declared a value of P760,000.00 for each of the 1,000-gallon fire trucks numbering 244, and P540,000.00 for each of the 500-gallon fire trucks numbering 225. 

The Customs Bureau said claimed that in a 2015 contract signed in by BFP and the joint venture between Kolonwel Trading and Hubei Jiangnan Special Automobile Co. Ltd. showed an aggregate amount of P2,577,275,000.00.

Based on this contract price, the 1000-gallon capacity would have an estimated unit price of P6,237,762.00, and the 500-gallon capacity fire trucks at P4,690,047.00 each.

With the BFP as consignee, the trucks were delivered at the Port of Manila, Manila International Container Port, and Port of Batangas between June 2015 and March 2016.

In a separate report on "Balitanghali" by Jun Veneracion, the true cost of the trucks were supposedly undervalued to avoid paying significant duties, taxes, and surcharges for the importation.

Customs Commissioner Nicanor Faeldon got wind of the information from a former BOC employee, and has since order an internal investigation.

Faeldon noted he wrote a letter to the BFP in July asking for a copy of the contract in question and other relevant documents.
 
The supposed undervaluation may constitute a prima facie evidence of fraud, penalized through seizure under Section 2530 of the Tariff and Customs Code of the Philippines, as amended, according to the BOC.

A surcharge of two times the difference in customs duty may also be imposed under Section 2503 and Customs Administrative Order 06-2014.

Faeldon has instructed the BOC-Intelligence Group to probe into the supposed involvement of a number of BOC employees.

Around 10 BOC officials were suspended on Thursday as part of the ongoing administrative investigation against them.

If the DOJ investigation proves that the discrepancy between the declared value and the contract price of each fire truck amounts to at least P50 million, a plunder case may be filed against the government officers and employees involved in transaction, according to the Customs Bureau.
 
"We cannot expect all the importers and brokers to make honest declarations in their entries if they know that Customs officials and employees can be swayed to connive in unscrupulous acts," Faeldon said. — With Rie Takumi and Ted Cordero/VDS, GMA News