The Philippine Senate last night approved on second reading Senate Bill 2968 or the Customs Modernization and Tariff Act (CMTA).
The Department of Finance (DOF) said the CMTA, a priority measure in the 16th Congress, will increase transparency and simplify customs procedures, increase the de minimis value, raise the tax exemption ceiling for packages sent by balikbayans and returning residents, and provide harsher penalties for smuggling.
The Bureau of Customs expects President Benigno Aquino III to sign CMTA into law by yearend.
READ: BOC confident Customs modernization act signed into law by yearend
DOF said the CMTA will “mandate the use of information communications technology to enhance operations, enforcement, and reduce face-to-face transactions.” The agency added that the proposed measure will “simplify procedures and help eradicate corruption.”
The bill will increase de minimis value (amount below which no duties and taxes will be collected) to P5,000 (under the Senate version) from the current P10.
Moreover, violations of customs laws will merit higher fines and penalties and will be “considered as economic sabotage.” If the amount of the smuggled goods exceeds P200 million, DOF noted the penalty will be reclusion perpetua and a fine of P50 million.
The draft CMTA was initially introduced in the 15th Congress but did not make the cut. The bill has been approved on third and last reading at the Lower House.
Image courtesy of Stuart Miles at FreeDigitalPhotos.net
