Returning Filipino Caught with Shabu Charged by BOC

A returning Filipino from Hong Kong is now in deep trouble after Bureau of Customs (BOC) officials led by Customs Commissioner Ruffy Biazon formally charged him today (January 24, 2013) at the Department of Justice (DOJ) for violation of Section 3601 and Section 2530 of the Tariffs and Customs Code of the Philippines (TCCP) including the Comprehensive Dangerous Drugs Act of 2002.

Charged was Roendo B. Ariata who was caught by alert airport customs officials with 7.0486 kilograms of Methampethamine Hydrochloride or “shabu” that were concealed in seven (7)  rectangular boxes labeled “Gold Premium Milk” and stuffed in his luggage. The “shabu” haul was worth Php 56 million.

According to Biazon, Ariata arrived at theNinoyAquinoInternationalAirport–Terminal 2 via Philippine Airlines flight no.  PR 307 on January 8, 2013.

 “We have now doubled our efforts in the monitoring of arriving passengers, especially those coming from high risk countries for illegal drugs, after we have seen a shift in the modus of international drug traffickers.” Biazon said. “They are now using the airports for their illegal drug trade through drug mules.” The Commissioner added.

 The BOC, during the third quarter of 2012 alone confiscated over 20 kilos of “shabu” from seven foreign nationals worth over Php 163 million. All have already been charged by the BOC at the DOJ for violation of the TCCP and the Comprehensive Dangerous Drugs Act of 2002.

“I have said it once and I will say it once again. The Bureau of Customs will never allow any international drug trafficking syndicate to make thePhilippinesas a transshipment point for their illegal drugs, much more make thePhilippinesas one of their markets.” Biazon said, adding that. “Customs officials will, at all times, be on the watch for illegal drugs smuggling attempts and we will not hesitate to prosecute all those involved it.”

The January 8 drug seizure is the first illegal drugs haul of the BOC for the year.

For his part, BOC Deputy Commissioner for Revenue Collection and Monitoring Group (RCMG) and Run-After-The-Smugglers (RATS) Head Peter Manzano said, they will closely monitor the progress of the case they have filed today, if only to ensure that illegal drug traffickers are jailed, where they rightfully belong.

-- BOC 25 January 2013

Customs Broker’s Lounge Operationalized

An electronic system of monitoring the status of shipments through the Broker’s Lounge installed at the Port of Manila (POM) and the Manila International Container Port (MICP) became operational last Monday, January 14, 2013.

This is a step further in the computerization program of the Bureau of Customs (BOC) assuring the integrity, security and smoother flow of work in the processing of entry documents.

The electronic monitoring system, to be pilot tested at the POM and MICP and replicated later in other major ports, will display among others the following information:  Entry Number, Status Section Number, Time and Remarks.

Customs Commissioner Ruffy Biazon has instructed the district collectors concerned to provide a kiosk for stakeholders where they could check the status of their entries in case a particular entry number is not displayed in the monitor.

Overcrowding and disorderly conduct of transactions has long been a problem in the country’s major ports where hundreds daily elbow their way to have their shipments promptly attended to, at times resulting to much delay when papers get misplaced or lost.

 For security purposes and to maintain order in the workplace, the brokers and all other stakeholders are now prohibited from entering the premises of the Formal Entry Division to follow up their shipment.

 No less than President Aquino witnessed the inauguration of the Broker’s Lounge when he graced the 110^th Anniversary Celebration of the Bureau of Customs Feb. 6 last year.

In his report to the President, Commissioner Biazon took the occasion to defend the reform measures he has instituted, saying he believes that in order for the bureau to achieve a state where revenue leakages are greatly reduced if not completely plugged, systems and processes need to be streamlined and automated.

“Eradicating red tape, cutting down the number of steps in the processes and reducing the opportunities for human intervention to the barest minimum are our objectives in line with the vision to see a  Bureau of Customs not only as a world class Customs administration that Filipinos can be proud of, but one that the People can trust,” Biazon said.

Speaking extemporaneously during the occasion, President Aquino underscored the importance of having an efficient and morally upright BOC in nation building.  Thus, the need for reforms in the Bureau of Customs.

-- BOC 25 January 2013

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Biazon Tighten Grip on Revenue Collection

General Santos City- Unfazed by rumors that he would soon be replaced, and backed up by a Malacanang statement affirming the President’s continued trust in him, Customs Commissioner Ruffy Biazon today visited the General Santos City (GenSan) Fish Port to check on the Bureau of Customs’ (BOC) industry protection measures. The visit comes in the wake of his organizational re-configuration of the BOC in order to tighten its grip on smuggling and revenue collection.
 

According to Biazon, the tuna industry in GenSan is one of the country’s major economic life line, generating billions of pesos in revenues yearly and thousands of jobs for the locals in this southern Philippines city.

“The GenSan tuna industry is a major economic booster for the Philippine government that needs full support, particularly from the Bureau of Customs.” Biazon said, even as he added that, “The BOC is committed to protect this industry, if only to save the jobs of thousands of Filipinos and to facilitate an investor friendly environment for the industry.”

In 2012, the BOC- Sub-Port of Dadiangas (General Santos City), collected  Php 512. million  in revenues, surpassing its assigned target for the year of Php 496.3 million by Php 16 million. 

According to General Santos City sub-port District Collector Pendatun Alim, the tuna industry contributed a big part to their revenues making it the second top exporter and importer in his port, next only to the pineapple industry.

The BOC customs office at General Santos City is a sub-port of the BOC-Port of Davao District Office under Collector Martiniano Bangcoy. According to Bangcoy, the sub-port of General Santos City is his district’s major revenue generator.

For his part, Century Tuna and GenTuna Plant Controller Emmanuel Mernilo said, the current business 

environment in GenSan’s tuna industry has made it a very viable business sector. Mernilo attributes the success of GenSan’s tuna industry to the renewed trust of industry stakeholders in the way things are done by the government, particularly that of the BOC.

“Sanhi na rin ito ng aming pagbabalik ng tiwala sa pamamalakad ng mga  sangay ng gobyerno na namamalakad sa industriyang ito particular na ang Bureau of Customs” (This is the result of our renewed trust in the way things are done by the government agencies regulating this industry, particularly the Bureau of Customs.) Mernilo said.

While in General Santos City, Biazon also inaugurated the sub-port of Dadiangas’ newly renovated customs building named the Yellow Fin building. The Commissioner’s program of reform for the BOC also includes infrastructure development and structural facelifting of the Bureau’s facilities in order to provide a safe and pleasant working environment for BOC personnel and the stakeholders.

- BOC, 21 January 2013

Biazon Re-Configures BOC to Meet Collection Target

“This is just the initial phase of several other measures we shall undertake to meet our collection target for the year 2013.” Customs Commissioner Ruffy Biazon stressed during the fortnightly “Kapihan sa Aduana” of the Bureau of Customs Press Corps today (January 14, 2013) to explain his reason for reshuffling 16 Customs officials.

According to Biazon, while they posted a positive collection growth in 2012 compared to its 2011 collections, the BOC is, however, tasked with an even bigger collection target for 2013 at PhP 394.billion. “We are now doing a re-configuration of our organizational structure, especially among our frontline officials, to re-position our district collectors where they can be most productive.” Biazon said.

“I will now do a quarterly performance assessment of district collectors and other operating unit heads under the Office of the Commissioner and set a particular apprehension quota for them, in addition to their revenue collection targets, of course.” The Commissioner added.

Affected in Biazon’s initial re-shuffling salvo, among others, were BOC X-Ray Unit Chief lawyer Lourdes Mangaong who was re-assigned as District Collector for Cagayan De Oro. Replacing Mangaoang is Subic Port Collector lawyer Mimel Talusan.

Office of the Commissioner Acting Chief-of Staff lawyer Adelina S. Molina for her part was named new Subic Port Collector. While Port of Cebu District Collector lawyer Ronnie Silvestre and Port of Clark District Collector lawyer Edward De La Cuesta swapped assignments, practically recalling Silvestre to his original item as Port of Clark District Collector.

“I will not hesitate to re-assign or re-shuffle customs officials who may not be performing up to expectations.” Biazon said, adding that, “We shall be closely monitoring the performance of frontline customs officials.”

Biazon also explained that he will also push for the completion of the BOC’s modernization and computerization program this year to facilitate revenue collection and mitigate the problem of smuggling.

The Commissioner, however, stressed that even with the huge collection target set on the BOC this year, he is still hopeful of meeting this target. “We shall be adjusting our collection strategy every now and then to make the BOC responsive to present trends and needs.” Biazon said.”I am forever an optimist” he added.

BOC, 14 January 2013

31 CHARGED BY BOC FOR RICE SMUGGLING

Bureau of Customs (BOC) Commissioner Ruffy Biazon today, led the filing of appropriate charges against 31 officers of four (4) Central Luzon based Multi-Purpose cooperatives at the Department of Justice (DOJ) for their involvement, as consignees, in the attempt to smuggle into the country 78,000 bags of rice from Vietnam worth PhP 93,600,000.00 through the Port of Legazpi City in the Bicol Region.

 According to Biazon, the illegal rice shipment from Vietnam which all arrived at the Bicol port in the same boat on September 2, 2012, did not have the required import permits in violation of Sections 101 and 3601 of the Tariffs and Customs Code of the Philippines (TCCP).  Moreover, the number of bags of rice that were illegally bought into the country by the four (4) cooperatives were all beyond their imported rice quota allocation balances.

“We will never allow any multi-purpose cooperative to exploit their rice importation allocation privileges for illegal activities.  We will carefully review the entries of all rice importations to ensure that these are covered with the required permits and importation quota allocations are not violated.”  Biazon said.  “While we support the cause of cooperatives, we will, however, strictly enforce the country’s customs rules and laws”.  He added.

Charged were Pampanga based Kapatirang Takusa Multi-Purpose Cooperative Directors Orlando Manimbot, Juanito Mangilit, Joseph Guevarra, Alfredo Manimbo, Tommy Navarro, Jaime Bitangcol and Efren Bulaon.  The Kapatiran was the consignee for 21,000 bags of rice worth PhP 25,200,000.00.  Aside from not having the required import permit, the Kapatiran only had a rice quota allocation balance of 19,000 bags of rice at the time of importation.

 The officers of Pampanga based Ugnayan Magbubukid ng San Isidro Cooperative Emily Alabado, Christopher Hernandez, Editha Alabado, Teresita Manlastas, Arly Guevarra, Luciano Alabado and Santiago B. Francisco for their part, were charged for being the consignee, as officers of the cooperative, of another 21,000 bags of the hot rice from Vietnam worth PhP25,200,000.00 when their imported rice allocation quota’s balance at that time was only good for 6,800 bags of rice.

 On the other hand, the officers of Bulacan based Malampampang Concerned Citizens Multi-Purpose Cooperative Cipriano Evangelista, Ernesto Gonzales, Guillermo Marcelo, Edgardo Evangelista, Henry Ochoco, Milagros Pelayo, Nelson Evangelista, Arden Evangelista and Jessie De la Cruz were also charged for being the officers of the consignee cooperative for 18,000 bags of the illegally imported rice from Vietnam worth PhP21,600,000.00, even if the coop only had a rice importation quota allocation balance of only 6,900 bags.

And Samahang Magsasaka Kapampangan at Katagalogan Multi-Purpose Cooperative officers Maximo Hernancez, John Ray Retobado, Ponciano B. Hernandez, Dominador P. Lalu, Felipe A. Mangilit, Michael Manliclic and Danilo Santos were all charged as well for their cooperative’s being consignee to 18,000 bags of smuggled rice from Vietnman worth PhP21,600,000.00.  The cooperative’s rice importation quota allocation balance at the time of importation was only for 14,000 bags of rice.

For his part Customs Deputy Commissioner for RCMG and Run-After-The Smugglers (RATS) Head Peter Manzano said, today’s filing brings to 122 the number of cases filed by the BOC against smugglers since Biazon’s appointment as Customs Chief.  “In line with the Commissioner’s intensified anti-smuggling campaign, we will never waiver in our thrust to sue all those involved in smuggling.” Manzano said.

 - BOC,10 January 2013

WCO DATA MODEL WILL BE USE FOR ASEAN SINGLE WINDOW

In the recent development, the World Customs Organizations (WCO) data Model has been adopted and chosen by the Association of Southeast Asian Nations (ASEAN) to be use for the ASEAN Single Window System. The ASW is set to be implemented by 2015.

In the ASW First Technical Working Group WCO consultation held in Cambodia member stakes has tackled training for the implementation and administration and updates on enhanced trade facilitation on the region.

The WCO data model implements one of the key features of the Revised Kyoto Convention which requires customs administration to request minimal data to ensure compliance of customs laws. The WCO data model is an optimized data exchange that provide cross-border  data requirements for the release and clearance of goods. It promotes implementation of a single window as it shows reporting of information to all government agencies through its unique way of reporting information.

Bureau of Customs Management Information Service and Technical Group (MISTG) as well as the Department of Finance attended said meeting.

Earlier however, Philippine implementation of Phase II of the National Single Window (NSW) which is a requirement of the ASW is experiencing a major backlogged as the P442-million project is still hanging with the Department of Budget and Management for review.

The government has already rolled out and initiated Phase I of NSW. The Phase will roll out government-wide rationalization, standardization and harmonization of all trade data and enhancement of trade portals. It would also link the NSW to ASW.

If the Philippines adopts the ASW within this year which is highly unlikely because of the recent setbacks,wewould still need 36 months to hook up with the ASW.

- Jenny Guim

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PR on Peking Duck

Bureau of Customs  (BOC) Commissioner Ruffy Biazon today led the condemnation, destruction and rendering of 60 tons of misdeclared frozen Peking ducks, pigeons and piglets worth over PhP 40 million at the Ecosafe Agro-Products at the Harbour Center’s First Link Container Yard, which were earlier seized by Customs operatives after the BOC- X-Ray Project’s  (BOC-XIP)  discovery of the misdeclaration during scanning of the two (2) forty footer refrigerated vans from China.

 

According to Biazon, HEXA Trading, the shipment’s consignee, tried to conceal the frozen Peking ducks, pigeons and piglets behind a front layer of boxes filled with frozen mackerel in the two (2) forty footer refrigerated vans, declared its shipment as frozen mackerel and provided a Bureau of Fisheries and Aquatic Resources (BFAR) import permit. However, during  its x-ray scanning on October 16, 2012, or a day after its October 15, 2012 arrival at the Port of Manila, the misdeclared and illegally imported frozen Peking ducks, pigeons and piglets from China were discovered.

 

” We are strictly enforcing the Department of Agriculture’s ban on the importation of frozen poultry and meat products from China to avoid the entry of the dreaded avian or bird flu virus in the Philippines.” Biazon said, adding that ” And the destruction of these illegally imported food products from China today, is part of our measures to secure the safety of the Filipinos.”

 

For her part BOC-XIP head lawyer Lourdes Mangaoang said her x-ray operatives got suspicious of the HEXA Trading shipment when images alien to a frozen food mackerel appeared during scanning, prompting her to issue an Alert Order for the two (2) forty footer refrigerated vans.

 

” The images that appeared in the boxes piled in the inner portion of the refrigerated vans during scanning were not typical of frozen mackerel. So I immediately issued the corresponding Alert Order for the two refrigerated vans to facilitate a 100% physical examniation and the subsequent issuance of the Warrant of Seizure and Detention (WSD).” Mangaonag said.

 

Today’s condemnation and destruction is the largest so far this year.

BOC Foils PhP 7.5 M Agri Products Smuggling Attempt

The Bureau of Customs’ (BOC) unrelenting campaign against smuggling has once again caused the seizures of three (3) forty footer container vans of illegally imported fresh potatoes and carrots worth PhP 7.5 million from China by operatives of the Bureau’s Enforcement Group. In the media presentation of the seized agricultural products at the Manila International Container Port (MICP ) today (December 14, 2012), Customs Commissioner Ruffy Biazon said, two (2) of the three (3) seized containers vans which contained fresh potatoes but were misdeclared as household wares, arrived at the Manila International Container Port (MICP) on November 14, 2012. The containers vans were consigned to two different companies namely, Marbatan Enterprises and Green Meadows Enterprises. While the other refrigerated container van (reefer) of fresh carrots which was consigned to Rorumen Agricultural Products arrived at the MICP on November 15, 2012 and was misdeclared as fresh apples.

“Those responsible for this smuggling attempt wanted to avoid the required Sanitary and Phyto Sanitary (SPS) Import Clearance from the Bureau of Plant Industry by indicating in their declarations fruit products whose importations are currently allowed by the Department of Agriculture.” Biazon said, adding that “But we will never allow to put the health and safety of Filipino consumers at risk by allowing such illegal importations.”

Biazon explained that the BOC will pursue legal measure against the persons responsible for these attempts and for violating Section 2503 in relation to Section 2530(f) and I (3,4 and 5) of the Tariffs and Customs Code of the Philippines (TCCP) as amended by Republic Act 7651 and Presidential Decree No. 1433, BPI Administrative Order No. 1, Series of 1981 and Department of Agriculture Order No. 9, Series of 2010.

Biazon also reiterated his warning to unscrupulous traders and businessmen that their illegal activities will be stopped by BOC operatives saying “You will be caught and you will face the brunt of the law.

BOC operatives are now on a heightened monitoring level on food and agricultural products importations due to its high demand at this time of the year.

CUSTOMS RATS SECURES FIRST CTA CONVICTION

The myth that the Bureau of Customs (BOC) Run After The Smugglers (RATS) could not secure a single conviction from all the cases filed against all its accused before the Court of Tax Appeals (CTA) has been broken, when a trader who misdeclared his vehicle shipment as replacement parts was convicted by the said court on December 12, 2012.

 Customs Commissioner Ruffy Biazon announced recently that the RATS group through the efficient handling/prosecution by the Legal Service Lawyers has successfully secured the conviction of Roel Paquit Sayson, guilty beyond reasonable doubt of the crime of Violation of Section 3601, in relation to Section 2530, paragraphs f, l (3), (4) and (5) of the Tariff and Customs Code of the Philippines.

Last February 7, 2008, Sayson was found with evident intent to defraud the Philippine government of legitimate duties accruing to it from merchandise imported into this country from Korea, on board the vessel S/S Maas Trader, to wit:  1.) declared Used Truck Replacement Parts – Bills of lading Nos.0058000965 and 0058000969 (both found to contain each 6 units of Kia Sportage) and, 2.) declared Used Truck Replacement Parts in Bill of Lading No.0058000970 (found to contain 3 units of Hyundai Galloper).

These were found to have been prohibited importation under Section 3 of Executive Order No. 156 and relevant customs laws, rules and regulations.

Estimated taxes and duties of the above-mentioned items amounted to One Million Seven Hundred Seventy Nine Thousand Seven Hundred Seventy Pesos and Sixty One Centavos (Php1,779,770.61).

The accused was meted a penalty of not less than eight years and one day, to twelve years imprisonment, and to pay a fine in the amount of eight thousand pesos (Php 8,000.00)

According to Biazon this sends a strong signal that the BOC is focused, with unrelenting unwavering campaign against Customs violators and other potential tax cheats and that violators of Customs laws, Rules and Regulations shall be dealt with strictly in accordance with the strong arms of the law.

Confident that this indeed bears a positive indication for smugglers to think twice before similar inadvertent acts are committed, Deputy Commissioner Atty. Peter M. Manzano, RCMG and Concurrent Chief RATS Group, accepted the challenge for a more vigilant pursuit of violators of the Tariff and Customs Laws.

NCIPR LAUDS CUSTOMS FEAT ON PIRATED AND COUNTERFEIT CATCH

For the period from January 1 to November 30, 2012, the Bureau of Customs seized pirated and counterfeit goods amounting to P1,100,000,000.00 which is considered as one of the highest amount of seized bogus items.

This was declared by Atty. Ricardo R. Blancaflor, Director General for the National Committee on Intellectual Property Rights (NCIPR), as he congratulated Customs Commissioner Ruffy Biazon in a letter dated December 13, 2012.

Blancaflor stated in his letter that “the performance of BOC as of November 30, 2012 is 22.05% of the total confiscation of the NCIPR (P4,988,645,292.00). In this regard, we would like to commend the officials and personnel of the Intellectual Property Unit of the Bureau of Customs (IPU-BOC) for this excellent performance.”

The Bureau of Customs according to Blancaflor has one of the highest seizures of pirated and counterfeit goods among the law enforcement agencies under the NCIPR.

“We believe that their performance should merit a distinction from the Bureau,” the NCIPR Director General added.

Customs Commissioner Ruffy Biazon is elated by the performance of the IPU-BOC headed by Atty. Zsae de Guzman, but at the same time cautioning them to double their efforts in their vigilant watch as counterfeiters double their momentum on pirated goods even for a slight observance in a lull in the enforcement operations.

Biazon also stated that this performance was the result of strengthening its border control as well as the operation conducted on warehouses that are known to store high-end counterfeit goods such as Louie Vuitton, Gucci, Prada and the luxury brands.

- BOC, 19 December 2012

PhP 1.6 M Misdeclared Plywood Products Seized by BOC

The Bureau of Customs  (BOC) heightened monitoring of plywood products importations to protect the local plywood industry and consumers has caused the seizure of two (2) forty-footer container vans of misdeclared plywood worth PhP 1.6 million from Shandong, China by alert BOC-Manila International Container Port (MICP) Customs Intelligence and Investigation Service (CIIS) operatives under Deputy Commissioner Danilo Lim.

In the media presentation of the seized plywood products at the MICP today (December 19, 2012), Customs Commissioner Ruffy Biazon explained that the two (2) container loads of plywood products that were consigned to Dragon Clash Enterprises of Sta. Cruz, Manila arrived at the MICP on November 30, 2012 and were misdeclared as particle board to avoid paying its appropriate duties. However, upon physical examination of the shipment by MICP-CIIS operatives under Bienvenido Rubio, it was discovered to be film faced plywood.

“Particle boards fall under a different tariff heading and rating with that of film faced plywood. Obviously, those involved in this smuggling attempt wanted to circumvent the law and avoid paying the right duties by misdeclaring their shipment.” Biazon said, adding that, “This type of “modus” will no longer work in the BOC as we have tightened our watch on all ports of entry for such kind of shipment in response to the local plywood industry’s call to curb plywood smuggling.”

Earlier in October this year, the Philippine Wood Producers Association, in a letter to Biazon, sought the BOC’s help to stop the technical smuggling of plywood products saying that the illegal practice is hurting the local wood industry.

For his part, Customs Deputy Commissioner for Intelligence Group Danilo Lim said, they will pursue appropriate legal action against those involved in this smuggling attempt for violation of Section 2503 in relation to Section 2530 of the Tariffs and Customs Code of the Philippines.

“We will undertake a comprehensive investigation on this smuggling attempt to identify all those involved in it, in preparation for the BOC’s legal action to put them out of operation”.  Lim said.

- BOC 22 December 2012

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