BOC rakes in P551M from container security fees

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CONTAINER security fees (CSF) under the Bureau of Customs (BOC)’s x-ray inspection project (XIP) generated P551.678 million since its inception in May 2007
up to end 2008.

Of the total, P140.934 million went to the trust fund and P410.743 million to the general fund.

For 2008 alone, the bureau generated P256.139 million, 75% or P192.123 million of which reverted to the general fund and the rest to the trust fund.

The Manila Interna-tional Container Port collected the most CSF amounting to P139.902 million, followed by the Port of Manila, P84.732 million; Cebu, P16.230 million; Davao, P8.849 million; Cagayan de Oro, P2.025 million; subport of General Santos, P1.942 million; subport of Tagoloan, P1.644 million; and Subic, P808,287.

Seventy-five percent of CSF fees are allocated for loan payments and the rest for operational cost. The fees are deposited as remittance to the Bureau of Treasury.

Each scanning machine is worth $2.2 million obtained using a $35-million concessional loan from the Chinese government, payable in 20 years.

The BOC has 30 x-ray scanners deployed in various ports, 28 of which are mobile.

Since the x-ray inspection project began at the Port of Manila in May 2007, the BOC has foiled smuggling attempts which resulted in additional revenues of P2 billion for the bureau.

Executive Order No. 592 mandated the collection of a $25 CSF per TEU but clamor from stakeholders lowered the amount to $5 per TEU.

“It appears that the CSF fee of $25 per TEU imposed by Executive Order No. 592 will result in a total net cash flow of P26.872 billion by 2027. The current CSF fee of $5 per TEU will result in a total net cash flow of P-14.756 billion by 2027,” a BOC report said.

The data follows BOC assumptions which account for operational and maintenance cost, interests on diminishing balance, and amortization of P186 million each year and a five-year grace period. It also takes into consideration container throughput of 1,266,803 TEU with 5% annual growth and an exchange rate of P46 to US$1.

“We also anticipate price adjustments of the CSF in the future as well as expansion of coverage possibly covering export shipments. When we start collecting CSF from exports, this negative cash flow will be eradicated and will be able to aid the financial requirement of the project,” the BOC report said.