BOC urges voluntary payment of taxes, duties for imported goods

By Ferdinand Patinio, Philippine News Agency

‘HOT’ CARS. Customs officers inspect luxury vehicles found at a warehouse in Makati City on Feb. 17, 2025. The Customs Intelligence and Investigation Service discovered PHP370 million worth of high-end vehicles, including a Ferrari 812 Superfast, a Ferrari 488, a McLaren 720S, a Mercedes-Benz G63 AMG, and a Bentley Bentayga. (PNA photo by Yancy Lim)

MANILA – The Bureau of Customs (BOC) called on owners or claimants of luxury vehicles covered with Letters of Authority (LOA) to settle the correct duties and taxes through voluntary payment instead of a Warrant of Seizure and Detention (WSD).

Customs Commissioner Rubio, in a news release Friday, said a voluntary payment will spare the government and the concerned parties the complicated and tedious process of warrant and seizure proceedings, while the imported goods or articles are being held and exposed to government forfeiture.

Section 224 of the Customs Modernization and Tariff Act (CMTA) allows the owners/claimants to exercise this option within 15 days from the implementation of the LOA.

He cited Section 5 of Customs Administrative Order (CAO) 10-2020, which allows the immediate release of the goods by simply presenting proof of payment of correct duties and taxes for the goods/articles subjected to LOA and proof of local purchase by the owners/claimants.

“If the claimant cannot produce the proof of payment of correct duties and taxes by the original importer despite diligent efforts to produce the same, he may voluntarily offer to pay the duties and taxes due on the imported items,” Rubio said.

“This is available to claimants who can prove that they are bonafide purchaser of the imported goods.”

The bureau’s reminder came following a series of operations that led to the seizure of PHP2.8 billion worth of luxury vehicles, including brands such as Ferrari, Porsche, and McLaren, from warehouses in Makati, Taguig, Parañaque, and Pasay this month.

Agents from the Customs Intelligence and Investigation Service (CIIS) went to the luxury car sellers’ address to serve a LOA to the shop owner or representative.

The owners, lessees, lessors, occupants, representatives, or any parties responsible for the warehouses and vehicles have 15 days from the receipt of the LOAs to submit the necessary documents proving that all duties and taxes have been paid correctly.

“Registered owners of imported vehicles who can prove that they are bonafide purchasers must settle the customs duties and taxes within the 15-day period,” Rubio said.

To reclaim a seized vehicle, the registered owner must provide substantial evidence that their luxury car was purchased locally, did not cause nor participate in its importation, and was unaware of any deficiencies of the original importer in paying the required customs duties and taxes.

Failure to provide valid documentation will result in charges for violating the Customs Modernization and Tariff Act.

On the other hand, Deputy Commissioner for Intelligence Group Juvymax Uy said the voluntary payment is aimed at collecting more tax revenues in favor of the government and at the same time protect the interests of innocent parties.

“This proactive approach will empower the Bureau to significantly bolster its revenue collection efforts while effectively safeguarding seized goods from deterioration pending seizure and forfeiture proceedings,” he said.