BOC relying on smuggling case wins to plug revenue shortfall

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THE Bureau of Customs (BOC) is banking on windfall from smuggling cases to offset revenues lost due to the imposition of the zero tariff on oil imports.

"I don't see any opportunity that we can hit our (revenue) target for November," Customs commissioner Angelito Alvarez said.

"I already explained to (Finance) Secretary (Cesar) Purisima the huge effect of the zero oil tariff particularly in the years to come," he said.

Alvarez noted that since assuming office, the BOC has embarked on many anti-smuggling reforms, the effects of which will only be felt next year "particularly the smuggling cases we filed before the DOJ (Department of Justice)."

These reforms include automation of import and export processes; scrapping of the yellow lane; and revival of the reward system for smuggling whistleblowers.

Preliminary figures show the BOC likely missing its November target of P26.93 billion.

Its actual January to October collection amounted to P209.22 billion, P21.43 billion off its goal for the period.

For 2011, the target collection is P320 billion, P40 billion more than the 2010 goal. Of the total, cash collection is expected to amount to P306 billion, up P65 billion from this year's P241.68 billion. The target for tax expenditure fund (TEF) – paper payment of state agencies to the BOC – has been reduced to P14 billion for 2011 from this year's P39 billion.