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Thursday, March 22, 2007

 

SBMA suspends luxury-vehicle importation


The Subic Bay Metropolitan Authority has temporarily banned the importation of luxury vehicles at the Freeport Zone, following the confiscation of brand-new luxury cars in Subic, the SBMA top official said.

SBMA Administrator Armand C. Arreza told reporters he has advised the Bureau of Customs on Monday to suspend the admission of luxury vehicles covering late 2005 models onward and those units with a minimum engine displacement of 2.8 liters.

This developed after Hide-mitsu Trading Corp., a Subic-based locator owned by Koreans, reported to the SBMA last February that 16 of the 24 high-end vehicles that were confiscated had been taken out of the free-port area despite the absence of proper clearance and gate pass.

Arreza said most of these vehicles were shipped into the Freeport Zone in October last year, while the other nine vehicles were found inside a warehouse in Angeles City, Pampanga.

Besides the Korean importer, whose operation has been suspended by the Customs in Subic, 23 other companies are now under audit involving 369 luxury vehicles, which all entered the zone late last year.

Arreza said the government will repossess the 369 luxury vehicles if they are found to be undervalued.

Documents showed that taxes and duties were paid in early November last year for 14 of the confiscated vehicles. However, the assessment revealed that only P2 million were paid for the units, or less than seven percent of the expected revenues of P35 million in duties and taxes.

Arreza said high-end vehicles of those types should be charged 100 percent to 150 percent in duties and taxes.

He admitted the possibility of technical smuggling taking place inside the Freeport zone, especially for model vehicles that include Cadillac Escalade Sports, Mercedes Benz, 2006 BMW, 2006 Audi A8L, 2006 Chevrolet Corvette, 2006 Nissan Infinity and Nissan Armada (sports utility vehicle) and 2006 Honda Acura, 2006 BMW 750 Li.

Arreza revealed that a unit of an Audi model was allowed by the BOC to declare a total value of only $1,000, among other vehicles whose declared value were no more than $1,200 a unit.

Last month the Anti-smuggling Task Force led by the group of Gen. Jose Calimlim of BOC in Subic found the 14 top-of-the-line vehicles on display in an auto showroom in Timog, Quezon City. These vehicles were returned to SBMA.

“Consider this a black eye to SBMA. They say that Freeport is nothing but a front used by smugglers,” Arreza said.

In 2006 SBMA’s vehicle imports of used and brand-new units totaled 18,000, but only 20 percent were declared secondhand. Most of these were buses, trucks vans and equipment.

To address the rampant smuggling, Arreza said SBMA and BOC have agreed to implement a new scheme that would easily detect questionable vehicles going out of Subic.

“We have requested BOC that all assessment should be required issued gate pass, including value reference information system clearance.”

Apart from these, SBMA would also tighten its security, issue smart passes and special stickers to residents, set up two x-ray machines, and set up holding and impounding areas.

Meanwhile, a Customs source said a 30-percent rate duty of the high-end vehicle should be paid before each unit is issued clearance.

Furthermore, another 12 percent VAT and additional excise tax should be paid to the Bureau of Internal Revenue, the source said.
-- Katrina April Mennen A. Valdez 

  
 

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