BEGINNING this month, the Bureau of Customs (BOC) will sell seized goods to the Philippine International Trading Corp (PITC). This follows a memorandum of agreement signed by BOC with PITC and Land Bank of the Philippines (LBP).
Customs commissioner Angelito Alvarez said the goods will be sold to PITC at less than their market value. LBP will provide PITC a credit line.
The volume of goods PITC can acquire from BOC has yet to be determined along with the revenue-sharing scheme on the sale.
“This compulsory acquisition will take place this month and we are confident that a lot of people will be interested in buying these products since they can buy a wide range of quality goods in a substantially marked-down price compared to those being sold mainstream,” Alvarez said.
The BOC has long planned to sell seized goods ranging from luxury vehicles and garments to onions to plug revenue gaps but legal issues always stood in the way. As a result, some goods had been left to rot at BOC premises.
Under Section 2317 of the Tariffs and Customs Code Section, the government has the right of compulsory acquisition to protect state revenues against the undervaluation of goods.
The BOC is hard pressed to increase revenues — targeted at P280 billion this year — to help bridge the country’s gaping budget deficit.
In August, it collected P17.84 billion or 33% less than its target of P26.71 billion.
From January to August, the agency posted a shortfall of P4.54 billion based on its P176.94-billion goal.
