BOC overhaul lies with customs modernization act passage – DOF

0
913
The Customs Modernization and Tariff Act will, among others, mandate the use of information communications technology to enhance operations, enforcement, and reduce face-to-face transactions.
The Customs Modernization and Tariff Act will, among others, mandate the use of information communications technology to enhance operations, enforcement, and reduce face-to-face transactions.
The Customs Modernization and Tariff Act will, among others, mandate the use of information communications technology to enhance operations, enforcement, and reduce face-to-face transactions.

The passage into law of the proposed Customs Modernization and Tariff Act (CMTA) will make over the Philippine Bureau of Customs (BOC), leading to simpler and more transparent procedures, and improved capacity to facilitate trade, collect revenues, and foil smuggling, according to the Department of Finance (DOF).

In its latest TaxWatch advertisement, DOF said it supports the CMTA as it will increase transparency and simplify procedures, increase the de minimis value, raise the tax exemption ceiling for packages sent by balikbayans and returning residents, and provide harsher penalties for smuggling.

DOF said the CMTA will “mandate the use of information communications technology to enhance operations, enforcement, and reduce face-to-face transactions.” The agency added that the proposed measure will “simplify procedures and help eradicate corruption.”

The bill will increase de minimis value (amount below which no duties and taxes will be collected) to P5,000 (under the Senate version) from the current P10.

Moreover, violations of customs laws will merit higher fines and penalties and will be “considered as economic sabotage.” If the amount of the smuggled goods exceeds P200 million, DOF noted the penalty will be reclusion perpetua and a fine of P50 million.

The draft CMTA was initially introduced in the 15th Congress but did not make the cut; it is now a priority measure in the 16th Congress. The bill has been approved on third and last reading at the Lower House and is awaiting second reading at the Senate.

In a session on November 11, Senate Committee on Ways and Means chairman and bill sponsor Senator Juan Edgardo Angara suggested several amendments to the committee-approved draft. The measure will be taken up again when session resumes on November 23. Senate sessions have been cancelled this week to make way for the Asia-Pacific Economic Cooperation (APEC) summit in Manila.

Government work in the National Capital Region (NCR) has been suspended from Nov 17-20 for the APEC. Nov 18-19 have also been declared special nonworking holidays for the private sector in the NCR.

The bill has gained much support from both private and public sectors who believe it will help overhaul the customs agency and update the outdated Tariff and Customs Code of the Philippines.

Image courtesy of rajcreationzs at FreeDigitalPhotos.net