Showing posts with label Bureau of Customs. Show all posts
Showing posts with label Bureau of Customs. Show all posts

Wednesday, August 26, 2015

Customs Bureaucracy 3, Balikbayan box controversy

The balikbayan box controversy stirred by the Bureau of Customs (BOC) plan to conduct random physical inspection of the boxes seem to have tapered off. The President intervened and ordered the BOC to stop its plan.


It is a bit condescending for BOC head Bert Lina to ask the OFWs to be honest when he knows that many BOC personnel are very dishonest and corrupt. See comments below. Demanding honesty from the public is understandable, but demanding honesty from the bureaucracy is even more important.

This post from Philippines Shocking History last August 22 helped stir the controversy, especially in inviting more frank comments (700+) and spontaneous sharing of personal experiences of commenters  in the hands of BOC officers. And these are mostly small boxes and parcels, not those big Balikbayan boxes.

In the minds of the public, corruption and extortion at the BOC is high, whether the commodities are big or small items. So that whatever reforms for the better that BOC leadership may introduce, people always suspect that it's for the worse.

People want free trade, zero import tariff, minimal non-tariff barriers (NTBs) especially for their personal and household needs. Sending personal items from family members and friends abroad to their folks in the country is not a crime that should be punished by high and often, multiple taxes.
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Repost from Mhelody Olga.
OMG galing ako sa post office main mag claim ng padala from LONDON at eto ang ngyari.. binuksan nung babae ung box at ang laman nia BAG na GUCCI ngaun sabi nia mam ang ganda namn ng bag nio kaso may babayaran po kayong tax.. nagserach xia sa internet para tignan lng ang model ng bag na pinadala sakin.. hindi nia mahanap, ngaun sabi nia mam eto po ang kamukha ng bag nio na nakita ko sa internet eto po ang pinakamura na price so yan na lng po ang e declare ko sabi nia eto po ung price 1,200 Dollars ang amount daw nung bag,, so ngaun may tax daw xia 15,959 pesos mga kapatid.. naloka ako.. DIto pla sa PILIPINAS kung my pinadala ang kamag anak mo , na dapat kukunin mo na lng at wala ka ng babayaran.. Yun pala kailangan mong mgbayad ng TAX,mas MAHAL pa kesa pinagbili ng NAGPADALA SAYO..PARANG BINIBENTA NILA SAYO YUNG PADALA PARA SAYO NA KUKUNIN MO LNG DAPAT, KALOKA.ETO PA NAGTANONG AKO SA KNYA SABI KO KUNG HINDI KO BA MAKUKUHA YAN KASI WALA AKONG PERA IBABALIK NYO PO BA YAN SA TITA KO NA NGPADALA ANG SAGOT SAKIN.. MAM HINDI PO SA GOVERNMENT DAW MAPUPUNTA.. AHAHAHA.. MGA NASA GOBYERNO TAGA MUKHANG PERA.. AHAHAH. E DI MAGPAPASALAMAT YUNG BABAE SAKIN DAHIL GUSTO NIA UNG BAG KO,, AHAHHA.. KAWAWANG BAG.. PINAGHIRAPAN NG TITA KO PARA IBIGAY SAKIN.. IBA LANG MAKIKINABANG...


The various comments that followed were too revealing and frank, copy-pasting some of them here.
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1. Kei Chan Tal: Ayan din sakin...shirt book and cd lng laman may tax pa...eh mas mhal pa ksa dun sa purchase ko shet kaung customs! Bkit di aksyunan ito ng gobyerno?! Tarantae mga to!

2. Annmariel Lunar Sumiog: nangyari n din sqn to eh, s philpost din, may pinadalang laruan at VS lotion from u.s yung friend ko, nagulat aq kc cla n mismo nagbukas, tapos ung feeling n interesado cla s mga laman nun, sabi ko kita neo nmn puro pambata lng laman n padala, nung makita nila ang laman pinalabas aq at pinagbayad ng tax...d q n mtandaan kung magkano..d q n dn pinansin kala ko kc sqn lng ngyari... nkakainis cla..
August 22 at 9:44pm

3. Bnard Chua: Of course lahat ng makita nila lalagyan ng tax para mapilitan ka maglagay. Dati may binili kaming libro mas mahal pa tax sa purchase amount tsk tsk
August 22 at 10:07pm

4. Beatrice Lim i just got taxed last week for the books i had delivered which supposedly according to Florence agreement should not be. andami pang BS binigay sakin about categorization and applying for exemptions. mga mukhang pera!
August 22 at 9:11pm

4. Gamaliel Cruz Salen Ganyan din nangyari samin parang hostage ung package namin kailangan tubusin. Pati ung libreng gamot para sa liver cancer na libreng binigay ng hospital ng Netherlands may tax! Libre na may tax pa! 20k ung tax ng libreng gamot. Mapapawow ka na lang talaga!
August 22 at 8:37pm

5. Apple Lucero same thing happened to me! I Sent $200 Sg Dollar worth of shoes that's 6400 to php then the tax was 2+++
August 22 at 8:22pm

6. Joe Galao bakit ganun. may binili po akong mga items from Ebay. 2 flashlight, 2 rech. batt. at isang survival bracelet amounting to less than 20 dollars. per item siningil ako ng 100 pesos(hindi ko na matandaan para saan) dahil hiwa hiwalay pinadala. so bale 400 yun.(magkasama batteries). then may nakasabay ako na bumili ng bag from lazada. take note, lazada po. local lang yung sa kanya. may binayaran siyang 100 plus 350 para daw sa tax. nakipag kwentuhan pa yung guard at nakuha pa magbiro na kung akala daw namin na makakamura kame sa pag bili sa internet eh hindi daw dahil may tax pa daw na babayran. ang tagal naghihintay ni manong para sa or nung tax nya at nung sukli niya. naka ilang pasok na yung babae sa loob ng "office" ng customs dito sa local post office namin. pero wala padn binibigay kay manong. nagulat kame biglang humirit yung guard kung kailangan pa daw ng O.R. nung tax nya eh for personal use lang naman ata yung bag. nagduda ako nun, guard palang po iyon ha. kung hindi nangulit yung manong na kunin yung resibo nya ay mukhang wala pang ibibigay. oonga pala. nakpag compute po sila ng tax without opening the package at first. pina check lang ulit ni manong. tapos na curious ako dahil may binili akong sapatos form Ebay. that day, gusto kong malaman kung magkano babayaran kong tax para di na ako ma shock kpag dumating. ayaw nilang sabihin kahit pinakita ko na yung paypal invoice ko hintayin na lang daw dumating yung item para makita. kahit computation ayaw nila ibigay. ang dahilan nila baka daw may magbago o may iba pang item. eh ang gusto ko lang naman malaman ay yung para sa sapatos. napilitan tuloy akong mag cancel ng order dahil sa kanila. eh diba constant ang computation ng tax? sino po ba nakakalam mag compute nun? salaamt
August 22 at 8:43pm

7. Jeng Desu Tagal n yang mga style na yan unang labas pla Lang ng PSP pinadala sa anak ko galing Japan nung ngpunta ko sa main ng custom para I claim pinabuksan nila ung ems box tapos pati sobre sa loob pinapabukas nilang pilit sa kin sabi ko sulat LNG yon nagpilitan kmeng bukas ko daw ung sobre nkipagtalo ako kc Nga lapad ung laman nun Kung gusto ko daw bayaran ko ung tax ng 5000 para maiuwi ko n ung PSP ng anak ko at sscreen daw Nila ung sulat at pilit nilang kinukuha sa akin ang sv ko tatawagan ko muna ang tiyuhin kong pulis na malapit lng sa area ayun ung 5000 naging 1,500hayup tlga eh noh!
August 22 at 9:05pm

8. Junel Padigos That's true. I ordered a nursing book online for my cousin and have it sent to Cebu. What happened is it's too late for the notice to arrive, only got delivered when there was a needed penalty installed. Too much corruption. What a sad state for a government that has not learned.
August 22 at 8:51pm

9. Sa Murri totoo yan! nangyari sa akin yan may padalang 1 food supplement kapatid ko para sa nanay namin sinisingil ako ng P5,000! Hindi ko alam san kumuha ng mga numero mga yan para singilin ako ng P5,000. May mga nakasabay pa ako dati mga sample ng bote e basag nung binigay sa tao sabay sinisingil pa nila. ang kapal ng mga mukha!
August 22 at 8:19pm

10. Redacrem Kir Ako nga nag send ng sale na damit for my daughter, yung damit worth $50AUD lang. Ang hinihinging TAX 800PhP sabi ko wag nang kunin. Wag na lang mag padala. Ang mga lintik na abusado..
August 22 at 8:34pm 

Monday, November 18, 2013

Foreign Donations and Customs Bureaucracy

This is from a friend, JB Baylon of the I Am PGH (Person Giving Hope) Foundation. He posted this yesterday in his fb wall, about the Customs bureaucracy even for donations to victims of typhoon Haiyan.

EXTRAORDINARY CONDITIONS REQUIRE EXTRAORDINARY RULES. I just saw an email exchange between Gil Santos and someone based in Guam about an aborted effort to donate used X-ray equipment and other supplies from the US, aborted because Customs officials are allegedly assessing each of the four 40-foot containers $12,500.

This reminds me of a story of a ship laden with used hospital equipment that returned to the US without unloading its cargo for PGH also because Customs officials were imposing some tariff on the donations...

As if the PGH is not in dire need of help like this??

This is not the first time I've heard of things like these. When Enrique Zobel was trying to explore ways of helping fellow para and quadriplegics like himself we discovered that collecting slightly used wheelchairs and hospital beds from abroad would be subject to tax here at home.

I think it is time to review these policies and Yolanda provides us the perfect reason to do so.

I think any donation to a public hospital should be tax free. Any donation to a private hospital should be taxed at half or less than the normal.

Now anyone who tries to use this tax free or tax reduced donation system to smuggle items and/or somehow circumvent our Customs regulations should be dealt with firmly with the "guilty" institutions blacklisted and its officials criminally charged.

The default principle of government. policy should be to make it easier to donate. As it is now it seems the default principle of policy is to strangle the process so as to avoid any forms of smuggling... 
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Four years ago, I wrote about the Books for the Barrios (BftB,www.booksforthebarriors.com) donation of thousands of books, other education materials from the US to rural public schools here in the Philippines.

Those books from America were donated FREE.
Those books will be distributed to public elementary schools in rural areas of the Philippines for FREE.

But when those containers of books from the US reach the Philippine ports, BftB Manila pays for the following:
1. Customs duties around P65,000 -- yes there are taxes for donated and used books!
2. Customs broker around P60,000 -- an agency that deals everything with the Bureau of Customs (BOC).

The BftB Manila staff who narrated me that story last year, said that what's worse, donated medicines and vaccines by volunteer medical missions from abroad, many of them are parked at the Customs area and allowed to deteriorate. Why? Those medical missions and volunteers have money for the airfare of the volunteers and shipment of free drugs and vaccines. But they never expected there are high taxes and Customs brokerage to pay for those donated medicines, so they did not bring money for such. Those vaccines are on refrigerated containers that run on electricity, of course. Since they cannot pay the taxes, and the medicines require continued electricity while the papers and payment are being processed, the BOC personnel disconnect the electricity as electricity charges are being borne by the Bureau. Within hours, those useful, essential, life-saving medicines become useless as they need to be kept at a particular temperature (say 0 or 10 Celsius). When the temperature goes up or down significantly, the medicines become ineffective for their intended patients.


I checked the Bureau of Customs (BOC) website and I saw this bureaucratic process, that donated goods must pass through the DSWD and must be cleared with lots of requirements. See here.



O, bureaucracy. One more reason why the BOC should be abolished, and a unilateral free trade, free movement of foreign donations, should be adopted.

Friday, February 03, 2012

Free Trade 21: Abolish or Shrink the Bureau of Customs

Trade protectionism serves two main groups and vested interests: the protected domestic business groups or sectors, and the government. The former can raise their prices and local consumers will have no choice but buy from them since competing imported products are either not available or available but priced much higher due to government taxes (import, value added/VAT, documentary stamp/DST, etc.), related fees, and possible bribery paid to corrupt customs officials.

Yesterday and today, the local media and the web were treated to this scandal: a lowly clerk, with official monthly salary of P9 to 12,000, at the Bureau of Customs (BOC) was accused of inflicting physical injury, attempted murder, other cases. A month ago, he and his buddy beat up a student who alighted after a minor traffic altercation. When he went back to his car to get his guns, the student drove away and the Customs clerk shot his car several times.

The focus of possibly 99 percent of public discussion about it was on the arrogance of that supposedly lowly government employee, and the systemic corruption at the BOC. These are valid concerns as there was an attempted murder case. I will not pursue that angle as it is heavily discussed in the web, just google the name of the culprit, "Paulino Elevado" and one will get lots of materials about him and the incident. For instance, here are two stories about the previous complaints filed against him:

(1)   http://business.inquirer.net/24561/consumer-goods-trader-files-extortion-case-vs-customs-aide

Consumer goods trader files extortion case vs Customs aide

By: 









5share6963
MANILA, Philippines—An international trader of consumer goods filed before the Office of the Ombudsman charges against an administrative aide at the Bureau of Customs for allegedly asking for as much as P200,000 in bribe to facilitate the release of shipments.
The Department of Finance’s Revenue Integrity Protection Service said in a statement that Flor Tagle, an import and export consultant for Prima Modas Inc., sought help from the DOF’s anti-graft unit to establish the case against Paulino Elevado IV....

(2) http://www.tribuneonline.org/metro/20110223met4.html

DoF execs file graft charges vs 4 BoC officials
By Charlie V. Manalo
02/23/2011

Mid-level officials of the Department of Finance (DoF) have filed graft and administrative charges against four Bureau of Customs (BoC) officials and several others before the Office of the Ombudsman.

Charged were Port of Manila Customs collector Rogel Gatchalian, Gatchalian’s staff lawyer Marlon Agaceta, special assistant Paulino Elevado, spot checker Reffy Gorre and 12 other respondents....

The BOC is the main agency to implement trade protectionism. BOC officials and even junior and low level staff can extort money from importers and brokers. All that these government personnel will do is to delay the processing of papers and release of shipments. Here are some stories of corruption and arbitrary powers exercised by these government personnel, from pinoyexchange.com:

Tuesday, November 09, 2010

Free Trade 15: Customs Bureaucracy

If we have free trade, then we will be free to export and import the things that we produce and consume, free of some unnecessary government bureaucracies like the Bureau of Customs (BOC). The only commodities that will be subject for inspection and possibly prohibition, are bombs, guns, poisonous chemicals, virus-infected plants and animals, fake drugs, etc. All other commodities will be allowed entry, free of taxation, free of arbitrary prohibition, and free of being subjected to extortion.

A friend in facebook, Mike Perez Bautista (he agreed that I'll mention his name and experience here) imported a small item -- a 200g package of wires, microchips, ethernet chip, circuit boards and manual. These are small scientific study materials that are delayed clearance by the BOC.

Perez added that "it's an open-source electronic prototyping platform for mechatronics development application: small production automation, communication, agricultural technology... The very basic tool that made CHINA rich now."

BOC simply prohibits the release of such small package of scientific materials. See the DHL tracking here.

As of today:
Tuesday, November 09, 2010 Location Time
16 Clearance delay MANILA - PHILIPPINES, THE 02:39

Monday, November 08, 2010 Location Time
15 Clearance delay MANILA - PHILIPPINES, THE 04:08

Sunday, November 07, 2010 Location Time
14 Clearance delay MANILA - PHILIPPINES, THE 05:03

Saturday, November 06, 2010 Location Time
13 Clearance delay MANILA - PHILIPPINES, THE 02:56

Friday, November 05, 2010 Location Time
12 Clearance delay MANILA - PHILIPPINES, THE 02:50

Thursday, November 04, 2010 Location Time
11 Clearance delay MANILA - PHILIPPINES, THE 03:58

Wednesday, November 03, 2010 Location Time
10 Clearance delay MANILA - PHILIPPINES, THE 06:15
9 Processed for clearance at MANILA - PHILIPPINES, THE MANILA - PHILIPPINES, THE 06:15
8 Arrived at Sort Facility MANILA - PHILIPPINES, THE MANILA - PHILIPPINES, THE 05:59
7 Departed Facility in HONG KONG - HONG KONG HONG KONG - HONG KONG 02:56
6 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 02:54

Tuesday, November 02, 2010 Location Time
5 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 07:15
4 Arrived at Sort Facility HONG KONG - HONG KONG HONG KONG - HONG KONG 04:42
3 Departed Facility in HONG KONG - HONG KONG HONG KONG - HONG KONG 03:37
2 Processed at HONG KONG - HONG KONG HONG KONG - HONG KONG 03:36

Monday, November 01, 2010 Location Time
1 Shipment picked up HONG KONG - HONG KONG 22:15

In short:

Shipment was picked up in HK Nov. 1, 10pm,
departed HK Nov. 3, 3pm
arrived Manila Nov. 3, 6pm...
BOC clearance delays until today, or 6 days now, and counting...

Perez lamented the insensitivity of our "public servants" and how those bureaucrats would probably wish to see Filipino engineers and scientists to plant camote (sweet potato) instead.

Know how much is the value of those tiny wires and circuit boards? Just $30.

Perez added that "It should be free from customs and other taxes as explained by the florence agreement. Or taxed at same rate as local made products." But BOC says there's a fee of P500, or an effective tax of around 40 percent. And they want him to go to the BOC office himself. Count also the opportunity cost of travelling from the south or north of Metro Manila to the BOC port area, gasoline, hours and effort that could be used in more productive work than dealing with a bureaucracy.

Free trade. We simply need it. Now.

Freedom from bureaucracy. We simply need it too. Soon.
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See also:
Free trade 9: Parallel Importation of Medicines, May 22, 2008
Free Trade 10: More on Unilateral Trade Liberalization, July 15, 2008
Free Trade 11: Global Petition, Keynes, March 19, 2009
Free Trade 12: Trade and World Peace, April 28, 2009
Free Trade 13: Benefits of Dumpiing, June 16, 2009
Free Trade 14: Import Substitution, AFTA, China, January 08, 2010