BOC to hit revenue target by correctly valuating shipments

Collecting the correct amount of taxes and duties on shipments and doing away with so-called "benchmarking" will make it possible for the Bureau of Customs (BOC) to hit its revenue goal this year, Customs Commissioner Isidro Lapeña said Thursday.

"I believe that with the right valuation we should be able to hit our target eventually," Lapeña told reporters in a press conference in Manila.

The second-largest revenue collection agency has collected P261 billion so far this year, and needs to raise at least P206 billion more in the last four months of the year to meet its full-year goal of P467.9 billion.

Lapeña wants Customs collectors whose collections are below target to issue an explanation, especially those who are still practicing benchmarking.

Benchmarking is supposedly the practice by assessors who impose a discretionary value on each container van shipped into the country instead of the correct valuation under the Tariff and Customs Code of the Philippines.

"Ngayon tumaas na 'yung kanilang benchmarking—naging P120,000 ... But if you have a container van with a value of P1 million, the value-added tax alone of 12 percent should be around P120,000. So, 'yung VAT plus 'yung tariff, it should be more than that ... And it is not the legal way of doing things," Lapeña said.

"That's why I always state it should be correct valuation, the government should be receiving what is due to the government in terms of tariff," he said.

The Customs chief noted the "tara" system—or grease money—comes into play once a container van has been benchmarked, so that the shipment goes through Customs with ease.

"Meron pa rin tayong benchmarking—and we are monitoring 'yung computer data natin on a daily basis—and the benchmarking is still there. But my tendance of correct valuation remains," Lapeña said.

In the next few days, the BOC will do away with benchmarking strictly observe correct valuation of shipments.

"Mga konting araw pa, we will have this implemented strictly by our collectors, assessors, examiners," Lapeña said. — VDS, GMA News