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The Bureau of Customs Post-Clearance Audit Group took in additional revenues of P534.292 million in the first quarter this year
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Of the total, P498.882 million was generated from 39 prior disclosure program applications and P35.410 million from 59 audit notification letters issued
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BOC expects to collect a total of P12.932 billion additional revenue from the enforcement of 54 demand letters arising from post-clearance audits conducted in 2019, 2020, and 2021
The Bureau of Customs Post-Clearance Audit Group (PCAG) collected P534.292 million of additional revenues in the first quarter this year.
Of the total, P498.882 million came from 39 prior disclosure program (PDP) applications and P35.410 million from 59 audit notification letters (ANL) issued by PCAG, the bureau said in a statement.
BOC said it expects to take in a total of P12.932 billion from the enforcement of 54 demand letters arising from post clearance audits conducted in 2019, 2020, and 2021, which have become final and executory for failure of audited importers to contest the same.
The BOC took over again in 2016 the function of post-clearance audit, formerly called post-entry audit, from the Department of Finance, where the function was transferred in 2014.
In 2018, PCAG began welcoming applications to PDP and, in early 2019, started sending out ANLs with the release of Customs Administrative Order No. 01-2019, which implemented BOC’s post-clearance audit function.
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.
An ANL informs a company that it will be subjected to post-clearance audit and details the audit procedure.
Under the order, within three years from the date of final payment of duties and taxes or from customs clearance, BOC may audit, inspect, verify, and investigate records pertaining to any goods declaration. The declaration includes statements, declarations, documents, and electronically generated or machine-readable data.
Such audit intends to ascertain if the goods valuation is correct and determine whether the importer is liable for duties, taxes, and other charges, including any fine or penalty.
According to BOC’s 2021 annual report, PCAG has already conducted post-clearance audit verification and investigation of Super Green Lane members, pharmaceutical companies, and importers of foodstuff, alcohol, tobacco, mechanically deboned meat, rice, oil, and others.
This effort has led to the collection of more than P1.5 billion worth of deficient customs duties, taxes, and other charges, including fines or penalties paid by importers in 2021 and a total of P5 billion since 2018.
