Importers and recipients of donations should from now on use the regular import facility of the Bureau of Customs (BOC) at the Ninoy Aquino International Airport and Mactan-Cebu International Airport since the one-stop shop (OSS) facilities at these hubs have been abolished.
Alexander Pama, National Disaster Risk Reduction and Management Council (NDRRMC) undersecretary, said they received a letter from the Department of Social Welfare and Development (DSWD) recommending the stoppage of the OSS facility operations “to prevent any possible abuse that may occur should we still continue with the said program.”
Pama informed Finance Undersecretary Carlo Carag in a letter of DSWD’s recommendation contained in a communication from Social Welfare Secretary and vice chairman for Disaster Response Corazon Soliman.
Carag, in response to Pama’s letter, issued an endorsement to BOC requesting for a report and actions on the matter. Customs Commissioner Alberto Lina, in turn, issued Customs Memorandum Circular No. 111-2015 on July 28 informing customs officials of the new development.
Pama clarified that NDRRMC has yet to receive any reports regarding abuse of the OSS facilities. “The stoppage was recommended as a preventive action to avert any mishandling that may transpire should it still be in effect,” Pama pointed out.
The OSS facility was activated in 2013 to process foreign donations intended for communities affected by Supertyphoon Yolanda (Haiyan) and was enforced at BOC offices in Manila and in Mactan, Cebu.
Pama noted that under Customs Memorandum Order No. 0-2013, the facility will only be implemented during emergency disaster situations.
Pama said DSWD, as the lead agency assigned to distribute donated relief goods and equipment, has recommended shutting down the OSS operations.
“This will now allow the BOC to generate additional revenues from the value added tax (VAT) collected from the importers,” Pama said.
“In line with this, importers and recipients of donations should now utilize the regular import facility under Section 105 (I) of the Tariff and Customs Code of the Philippines (TCCP), as amended,” Pama noted.
He added that under Presidential Memorandum Order No. 36 (PMO 36), a special import facility which provides for duty- and tax-free entry of donations intended for calamity-affected areas may also be utilized should another situation warrant its use.
As a general rule, importations into the Philippines—including goods donated from abroad—are subject to customs duties and taxes unless otherwise exempt under a specific legal basis.
