-
Cash reward to be given to persons whose volunteered information leads to additional revenue collection by BOC
-
Rewarding informers and squealers 20% of the actual revenue collected out of their information is intended to get the public’s cooperation in cracking down on smuggling and other violation of the Customs Modernization and Tariff Act
-
Certain provisions of Customs Administrative Order 03-2022 disqualify informers and whistle-blowers from the cash reward
The Bureau of Customs will reward with cash whistleblowers who will lead to actual collection of revenues arising from violations of the Customs Modernization and Tariff Act (CMTA).
An informer/whistleblower will get 20% of the additional revenues or cash sales proceeds of the confiscated smuggled goods under Customs Administrative Order 03-2022, issued on June 23. A 10% tax will, however, apply on the amount of reward money received.
CAO 03-2022 details the purpose and mechanics of the whistleblower reward system. It makes clear that the reward is only for informers or whistleblowers whose squealing leads to the “actual collection of additional revenues, surcharges and fees arising from discovery of violation of the CMTA.”
It added the CAO “only applies to those shipments and apprehensions made and information furnished at the time CMTA took effect.”
The order intends to encourage the public to extend full cooperation in eradicating smuggling and other “violations of customs laws, rules and regulations.”
It also aims to provide guidelines and procedures in granting cash rewards to informers and whistleblowers, as well as to establish an information and communications technology-enabled recording and monitoring system for rewards.
An informer or whistleblower must personally and voluntarily execute a sworn statement before and administering officer about details of the facts or acts constituting fraud or violation of the CMTA committed by an importer or exporter.
The reward shall be paid out from the collection of additional revenues resulting from the information provided by the informer or whistleblower.
A certificate of information will be issued by the Committee on Rewards attesting to the filing of information and its details.
Under the CAO, informers are persons who provide BOC sworn and certified information on fraud and smuggling not yet in possession of the authorities. Whistleblowers are referred to as persons who expose any kind of information or activity deemed illegal or irregular within a public or private organization or group.
They are not entitled to a cash reward if the smuggled or confiscated goods are not sold in a public auction or negotiated sales, but are, instead, donated to charity, declared for official use, re-exported or otherwise disposed of pursuant to Sections 1145-1150 of the CMTA.
The BOC whistleblower is also not entitled to a cash reward if the smuggled or confiscated goods were lost in a fortuitous event, force majeure, or if they can no longer be subjected to seizure or forfeiture.
Provisions that disqualify an informer or whistleblower from a reward are:
- His participation whatsoever in the commission of any illegal transaction or act;
- He or she is performing enforcement or assessment function in a port where goods are lodged and processed;
- The information he or she shares is obtained as a result of his or her function or office such as being part of a bureau-wide monitoring or post-clearance audit activity.
The BOC whistleblower’s identity will be kept confidential at all times, and shall not be disclosed to unauthorized persons without the informer or whistleblower’s consent, according to the order.
CAO 03-2022 implements Section 1512 of the Republic Act No. 10863, or the CMTA, and other related laws, rules and regulations. – Roumina Pablo
