Lapeña claims syndicates benefit from BOC’s car auctions

Customs Commissioner Isidro Lapeña said Tuesday that syndicates mostly benefit from auctions of smuggled luxury vehicles.

The auctions are orchestrated by the syndicates. The members talk to each other, with the highest bidder probably just a quarter of the real price, the commissioner noted.

“That’s how the syndicates do it. Pag nasa kanila na ‘yan ibebenta nila sa iba at a higher price,” Lapeña told reporters during a media presentation of the 22 luxury vehicles in Manila on Tuesday. The cars are still under litigation process at the Bureau of Customs.

During auctions, bidders of luxury vehicles make arrangements among themselves on the price and who will make the highest bidder.
 
“If it will be auctioned, the highest bidder will have it ... What is happening kasi sa auction natin ay sila-sila rin ang nanalo diyan,” Lapeña said.

He noted that bidders during the auctions turn out to be the vehicle importers.

He said BOC is following President Rodrigo Duterte’s directive to destroy smuggled vehicles, instead of having a public auction.

On February 6, Duterte led the condemnation of 20 smuggled luxury vehicles at the Port Area in Manila. Ten other smuggled vehicles were simultaneously destroyed at the Ports of Davao and Cebu.

Lapeña said the decision to destroy seized vehicles will, in the long-term, discourage importers from undervaluing their shipments.

Undervaluation is a form of technical smuggling practiced by some importers who conceal the real value of shipments to get a lower valuation of taxes and duties.

“Previously, we have other modes of disposal such as auction and donation. But now it will be just destroyed. So they will think twice na magparating dito ng items na undervalued,” he said.

“Ang long-term effect nito is much, much more in favor of the government,” he said.

The 22 luxury vehicles, including the supercars McLaren and Lamborghini, are still under litigation and the BOC has 60 days to decide if it will be destroyed similar to the fate of other smuggled cars last week.

The vehicles were valued at P133,684,850.

The importers have 15 days after receiving a notice of forfeiture to file an appeal, “otherwise, the BOC will proceed with the destruction of the seized vehicles,” Lapeña said. —VDS, GMA News