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The Bureau of Customs Post-Clearance Audit Group is eyeing a 15% to 20% increase in the number of auditees as well as revenue collection this year
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This would translate to up to 500 audit notification letters for 2024
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BOC assistant commissioner and head of PCAG Atty. Vincent Philip Maronilla said they aim to handle more audits as the Customs commissioner wants the PCAG “to have a more proactive role in helping the bureau meet its collection”
The Bureau of Customs (BOC) Post-Clearance Audit Group (PCAG) is eyeing a 15% to 20% increase in the number of auditees as well as revenue collection this year.
This would translate to up to 400-500 audit notification letters for 2024.
BOC assistant commissioner and head of PCAG Atty. Vincent Philip Maronilla, in an interview with PortCalls at the sidelines of BOC’s recent 122nd founding anniversary celebration, said they aim to handle more audits as the Customs commissioner wants the PCAG “to have a more proactive role in helping the bureau meet its collection.”
Ideally, he said, PCAG should audit 5% to 8% of all accredited importers – currently at 16,000—or 800 to 1,280 a year. Maronilla said they are looking to request more manpower to handle more audits.
“We look at the capabilities of the team and how comfortable they are already with the system and once we’ve established that then we try to stretch their own capabilities in handling the number of audits that they have,” Maronilla said.
According to the BOC’s mid-year report for 2023, the PCAG is also reviewing Customs Administrative Order (CAO) No. 01-2019, which implements the BOC’s post-clearance audit function, to include provisions for post clearance audit of customs bonded warehouses, locators, and consolidators to ensure greater compliance and oversight.
Additionally, PCAG is exploring the transfer of operational support for the liquidation and billing divisions/units to streamline processes and enhance efficiency.
Last year PCAG collected P1.959 billion, a 6.43% year-on-year increase over 2022.
Of the total, P1.793 billion or 91.56% was collected from Prior Disclosure Program (PDP) applications, and the remaining P166.286 million from other audit findings.
The PDP collection for 2023 is 12.58% higher year-on-year.
The PDP, formerly called voluntary disclosure program, is based on international best customs practice that allows importers to voluntarily pay for discrepancies in duties and taxes of previous shipments before post-clearance audit.
In terms of which companies will be issued with ANLs, Maronilla said they will continue with the “current trend” of jumping from one industry to another.
“So you can expect that industries that have not yet been audited will be audited this year. You can also expect that other industries that have been audited but continue to have compliance issues will again be audited,” he said.
In addition, PCAG will again look at industries that are “very susceptible to post-clearance audit because mostly the collection that we get from them, it accrues post-importation.”
Maronilla said these include industries that involve transfer pricing. – Roumina Pablo
