Saturday, November 08, 2008 BOC clears tanker containing sludge
THE Bureau of Customs (BOC) Port of Cebu has cleared the tanker of sludge that belongs to Gallego’s Merchandising, after finding out that this was exempted from excise tax.
In his letter to District Collector Ricardo Belmonte, lawyer Norberto B. Luna Jr., counsel of Gallego’s Merchandising, attached Philippine Ports Authority (PPA) Administrative Order 02-2003 and a memorandum dated Dec. 20, 2006, signed by lawyer Edward Ibera of the BOC Manila legal division and District Collector Adelina Molina.
The memo states that sludge has no commercial value, and is thus not subject to duties and taxes.
“We reiterate our request that the sludge bunker oil extracted from the vessel mv Chana Baum and now contained inside the tanker of my client be granted a permit to exit your port,” Luna said in his letter to Belmonte.
Luna added that Gallego’s Merchandising is a legitimate business whose activities include hauling waste materials, such as sludge bunker oil, from the Cebu International Port.
He cited a certification from the Department of Environment and Natural Resources-Environmental Management Bureau that the material is considered waste.
Assessment
“My client has been hauling this waste material for more than two years sans any hitch or assessment,” Luna said.
Last Nov. 3, after getting permission from the BOC to enter the Cebu International Port and extract the sludge bunker oil from the Chana Baum, his client was assessed to pay excise taxes for the materials, said Luna.
“For us, this imposition is improper and not sanctioned by law. To impose a tax on useless matter is unconscionable, to say the least,” Luna said.
The BOC granted his request to spare the company from excise taxes and to give it a permit to leave the CIP. (EOB)
