BOC foils attempt to release grossly undervalued rotary drilling rig

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Seized rolling rig at the Port of Cebu following the discovery that its accompanying load port survey report was falsified. Photo from Bureau of Customs.
  • Bureau of Customs stops attempt to release a grossly undervalued rotary drilling rig from China
  • The cost of the brand-new rig cost was declared at US$25,600 with total payable duties and taxes of only P159,390
  • The shipment is actually worth $247,000 with duties and taxes of P1.473 million
  • A warrant of seizure and detention against the entire shipment was issued after finding probable cause for violation of the law

The Bureau of Customs (BOC) Port of Cebu has foiled an attempt to release a grossly undervalued rotary drilling rig from China after the agency discovered that the load port survey report (LSPR) of the bulk shipment was falsified.

The brand-new 2020 model KR165C rotary drilling rig, seized on March 4, would have caused a loss for government of around P1.473 million in customs duties and taxes, BOC said in a statement.

According to the goods declaration, the shipment, consigned to Jlinks Marketing, was worth US$25,600 and was supported with an LPSR submitted by the representatives of the consignee.

Based on this declared value, the total payable duties and taxes was computed at only P159,390.

An LPSR is required prior to the discharge of bulk and breakbulk shipments under Administrative Order No. 243-A, which created the system for the bulk and break bulk cargo clearance enhancement program of BOC.

Further verification by the assigned examiner and appraiser showed that the LPSR submitted by the consignee’s representatives had been falsified. The shipment was actually worth $247,000, with duties and taxes supposed to reach P1.473 million. BOC noted that the discrepancy in value resulted in a staggering difference of over 89% in customs duties and taxes.

BOC-Cebu acting district collector Atty. Charlito Martin Mendoza immediately issued a warrant of seizure and detention against the entire shipment after finding probable cause for violation of Section 1113 (Property Subject to Seizure and Forfeiture) in relation to Section 1400 (Misdeclaration, Misclassification, Undervaluation, in Goods Declaration) of the Customs Modernization and Tariff Act.

BOC warns importers and their representatives against similar deceitful schemes “as the port’s examiners and appraisers are thorough in the examination of the genuineness and veracity of importation documents.”

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