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Monday, January 21, 2008

 

Majority of Customs districts miss targets

By Chino S. Leyco, Reporter

HEADS may roll at the Bureau of Customs after a majority of its collection districts fell short of their revenue targets last year.

Customs data showed that 11 out of 15 collection districts missed their goals last year. Four districts that met their targets were San Fernando, La Union, which enjoyed a P32-million surplus; Legazpi, Albay, which exceeded its P12-billion goal; Cagayan de Oro, which overshot its collections by P228 million; and Davao, which saw a P14.1-million surplus.

Under the Lateral Attrition law, Customs and Bureau of Internal Revenue officials who fall short of their collection targets by at least 7.5 percent would be dismissed from service. Over performers, however, would receive a collective incentive amounting to 15 percent of the excess collection if its surplus is 30 percent or below, and 15 percent of the first 30 percent plus 20 percent if they surpass collections by 30 percent.

Districts that qualified for attrition and their respective collection deficits include the Port of Manila with a shortfall of 7.9 percent; Batangas, 13.6 percent; Iloilo, 47.5 percent; Tacloban, 28.2 percent; Surigao, 60 percent; Zamboanga, 48.8 percent; Subic, 11.2 percent; and Clark, 16.1 percent.

Three districts failed to qualify for attrition – Cebu, Ninoy Aquino International Airport, and the Manila International Container Port.

Customs failed to meet its collection target of P228 billion last year after it managed to generate only P210.6 billion. Commissioner Napoleon Morales blamed the shortfall on the peso’s rapid appreciation against the dollar.

The Department of Finance earlier said the Customs’ collection goal will be affected by the peso’s strength, as the bureau collects in dollars from import taxes and duties, and remits in pesos to the national treasury.

Last year, the peso-dollar exchange rate was pegged at P41 to P42.

Morales said the decline in the value and volume of imports in the past months also contributed to the bureau’s collection deficit.

For December alone, the bureau fell short of its P21.7-billion target revenue by P2.6 billion.

   

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