Friday, April 25, 2008 Agencies ‘running after buyers in good faith’ and not customs, LTO officials By Elias O. Baquero Sun.Star Staff Reporter
THE “tentative” release and temporary assessment of imported goods harm importers and buyers because the Bureau of Customs (BOC) keeps on running after them, Albay Rep. Al Francis Bichara said during a congressional hearing Wednesday.
During the hearing, Customs Commissioner Napoleon Morales said BOC can still audit the value of imported goods three years after these are tentatively released.
If the audit shows that a vehicle has tax deficiencies, the owner must settle these first before the Land Transportation Office (LTO) will renew the registration.
Assistant Secretary Alberto Suansing Jr., LTO chief, recently issued a memorandum prohibiting the renewal of registration of Sports Utility Vehicles (SUVs) and luxury vehicles registered from 2004 to 2007.
Suansing and other LTO officials, however, failed to attend Wednesday’s hearing reportedly because of the LTO anniversary.
Rep. Pablo John Garcia (Cebu, 3rd district) questioned Morales what the basis was for Suansing’s order.
Morales said BOC and LTO signed a memorandum of agreement (MOA) requiring vehicle owners to secure BOC clearance before a registration is renewed.
“The purpose is to restitute as far as the government is concerned because of the tax deficiency of some vehicles. They have to clear with customs the vehicles with models 2004 and above,” Morales said.
Garcia criticized the agreement saying the agencies are running after buyers in good faith and not the smugglers and brokers or customs and LTO officials who undervalued the vehicles.
Garcia told Morales that many of the vehicles were sold to people who relied upon the LTO registration as evidence of ownership.
“If a person buys that vehicle and now he cannot register it because there are back taxes or duties to be paid, are we not penalizing the buyers in good faith instead of the smuggler or broker or customs personnel who allowed the issuance of certificate of payments even if there is tax deficiency at the time it was released from customs?” Garcia said.
Morales said that while they are trying to collect the tax deficiency, they are also looking into criminal and administrative liabilities of customs personnel who processed the release.
Garcia requested Morales to allow the last owner of the SUVs to register it even if the BOC is still trying to collect the tax deficiency.
“We have a situation now, commissioner, where a lot of vehicles cannot be registered so they cannot drive it anymore. If they operate these vehicles without registration, it will be worst if they meet accidents,” Garcia said.
But Morales clarified that Suansing’s order covers only brand-new vehicles registered in 2005, 2006 and 2007. He said the order does not cover used SUVs and luxury vehicles.
Morales said he will clarify the matter with Suansing. (EOB)
