Heads to roll in drive vs car smugglers

THE Land Transportation Office (LTO) will investigate the surprising increase in registration of motor vehicles in port cities which have been tagged as new car smuggling havens.

LTO chief Alberto Suansing said that his office will leave no stone unturned in the war against smuggling. “If heads are to roll, then so be it, “ he warned amid reports that LTO personnel are in cahoots with car smugglers.

Suansing also said he will instruct LTO personnel to coordinate with the Bureau of Customs-Intelligence and Enforcement Group (BOC-IEG) to find a solution to shut down the new car smuggling hotspots. He added that the new modus operandi of car smugglers -- that of shifting areas of operation -- does not guarantee these criminals are safe.

“Eventually, the long arm of the law will catch up with them and we shall not allow these criminals to make a mockery of the government’s efforts to curb smuggling,” he added.

Suansing was quick to note that the government is actually gaining in the fight against smuggling. He cited the fact that the LTO also has an existing interconnectivity agreement with the Bureau of Customs whereby imported vehicles will not be able to register with the LTO unless the proper duties and taxes have been paid.

With the interconnectivity system in place, certificates of payment from the BOC shall be electronically transmitted to the LTO, eliminating opportunities for fraudulent activities pertaining to the importation of vehicles. The system has undergone thorough testing and implementation and is expected to take effect next month.

The land transport chief stressed that the American Chamber of Commerce of the Philippines (Amcham) has lauded governmen efforts to curb the illegal entry of used cars that resulted in the growth in sales of motor vehicles in the country. Amcham said that in the first four months of 2008, auto sales in the country reached nearly 40,000 units. Total industry sales in 2007 were 117,903 units compared with 99,541 units in 2006, an 18.4 percent growth in sales volume. Suansing also hinted that the LTO might actively participate in the RATS (Run After The Smugglers) program of the government.

“With a more coordinated thrust amongst all the concerned line agencies, the public can be assured that the government will win this fight,” Suansing said.

How stolen vehicles are given new LTO papers

A FULL-BLAST investigation conducted by the Philippine National Police Traffic Management Group with the support of the Land Transportation Office enabled officials to find out how stolen motor vehicles are being sold in the local market complete with LTO registration papers.

“We have identified a number of LTO officials and men who appear to be liable in the anomalous registration schemes concerning stolen motor vehicles in Metro Manila and other parts of Luzon, Visayas and Mindanao,” said Chief Inspector Joseph Q. Orsos, head of the PNP-TMG Legal Service.

Orsos furnished the Journal Group copies of their investigation report on some of the LTO officers and men. The investigation was conducted with the help of LTO chief Alberto Suansing and his Legal and Internal Affairs Task Force.

He cited the case of former Tagbilaran City LTO district head Gavino L. Paden and verifier/encoder A.G. Petarco. In a report to TMG director, Chief Superintendent Perfecto P. Palad, Orsos said the two appear to be liable for anomalous registration when they allowed the transfer of registration of two Mitsubishi Adventures with license plates AHB-423 and AHE-415 which are supposed to have originated in Cordillera Administrative Region-LTO wherein in fact no confirmation was made in any district office of the Cordillera LTO.

Orsos said their verification from the Cordillera LTO showed that the motor vehicle file numbers used as their basis for the transfer of registration were for jitney and motorcycle as pointed out by Cordillera LTO officials.

The Adventure with plate no. AHB-423 was found out to be truly owned by one Concepcion Ramos and with original plate no. TVV-747. he said. The vehicle was stolen on June 19, 2001.

On the other hand, the Adventure with plate no. AHE-415 turned out to be owned by one Lorenzo Sibayan with original plate no. WSX-464. The vehicle was stolen in Sikatuna Village, Q.C., on June 7, 2001.

Orsos said that on the case of former Tarlac City LTO district head Luciano L. Llanillo and verifier/encoder L.S. de Vera, they appear to be liable for anomalous registration when they allowed the original registration of two motor vehicles-a Honda CRV with plate no. CSP-216 and a Mitsubishi Pajero with plate no. CSN-898-wherein the registration papers were issued even before the supposed ‘owners’ acquired the same.

Orsos said it turned out that the Confirmation Certificates were issued ahead of the Sales Invoices in that particular case at the Tarlac City LTO office.

He said that the Honda CRV turned out to be owned by Jean Pierre Tuazon of Mandaluyong City who lost his car with original plate no. FES-559 to heavily-armed car thieves in Pasig City on May 15, 2002. On the other hand, the Pajero was found to be owned by one Manolito Natividad who reported that the SUV with plate no. YOU-888 was stolen by car thieves along Herrera St. in Makati City on April 27, 2002.

The case of LTO Bislig district head in Surigao del Sur, Bedula R. Lipoles also involved the anomalous registration of a Toyota Fortuner, said Orsos. The TMG lawyer said that Lipoles allowed the original registration of the Fortuner with plate no. LMG-164 under the name of one Edmundo Pang Sr., wherein the supporting documents made it appear that the subject vehicle was imported but without any certificate of payment or listing from the Bureau of Customs.

Orsos said they also doubted if the LTO district in Bislig was allowed to originally register an imported motor vehicle as this is allowed only in certain districts of LTO in Regions 3,7 and National Capital Region. The subject vehicle recovered from the possession of professional basketball player Lordy Tugade was found to be the real property of Jose Marcial Villanueva with original plate no. VDZ-615. The SUV was stolen while parked in Araneta Avenue, Q.C. on Dec. 6, 2006.

There was also the case of an Isuzu Crosswind Wagon with plate no. XEA-609 owned by one Edgardo Grafilo that was stolen while parked in front of a hotel in Quezon Avenue, Q.C. on Nov. 28, 2002.

Orsos said that on Sept. 3, 2007, the vehicle already sporting the plate no. JBM-685 was intercepted by TMG agents in Dumaguete City while being driven by one Sylvia Sy Uymatiao. He said that the Crosswind was established to be the very vehicle of Grafilo upon expert or macro-etching examination which revealed that the chassis and enginenumbers are already tampered and that the restored numbers corresponded to Grafilo’s vehicle.

Orsos said they discovered that the wagon was registered at the Cebu City LTO under the name of one John L. Cabanes using the spurious file number of the Danao City LTO. Orsos said the same Cebu City LTO under Ms. Anita Pulga is being investigated for the anomalous registration of motor vehicles with plate numbers UMJ-979, LMA-667 and YOK-182. By: Alfred P. Dalizon - Journal online

No. of registered motor vehicles: 5.5 million (and counting)

No. of registered motor vehicles: 5.5 million (and counting)

DESPITE the economic uncertainties brought about by soaring prices of crude oil, there is no stopping Filipinos from buying motor vehicles.

In a date released a few weeks ago by the National Statistical Coordiation Board, Filipinos bought more cars, motorcycles and other vehicles despite the hard times.

The total volume of registered motor vehicles hit 5.523 million at the end of the year 2007, which is 191,792 units or 3.6 percent more than the 5.332 million sold in 2006.

The data, culled from the number of vehicles registered at the Land Transportation Office, include all types of vehicles such as cars, utility vehicles (including vans and jeepneys), sports utility vehicles, trucks, buses, motorcycles, tricycles, trailers and others.

The growth in the number of registered vehicles slowed from the 5.8 percent increase registered in 2006, after the Supreme Court affirmed its decision prohibiting the importation of used vehicles last year.

A total of 4.553 million (82 percent) are private vehicles while 886,540 units or 16 percent are for hire. The rest are government and diplomatic units.

Data showed that the volume of newly-registered units grew 9.6 percent to 857,171 in 2007 while renewed permits totaled 4,666 million or a 2.6 percent growth. Journal online

Rustans kakasuhan ng PASG

NAKATAKDANG kasu-han ng Presidential Anti-Smuggling Group (PASG) ang Rustan’s sa sandaling makumpleto nila ang im-bestigasyon kaugnay sa pagpapasok nito ng mga ‘undervalued’ na ‘imported products’ kabilang ang mga ‘signature shirts.’

Ayon kay PASG chief Un-dersecretary Antonio Villar Jr., bilyong piso ang nawawala sa kaban ng gobyerno dahil sa technical smuggling na ito ng Rustan Marketing, Rustan Commercian, Store Specialist at Rustan Coffee Corporation.

Sinabi ni Usec. Villar, nag-tataka siya kung bakit pina-yagan ng Bureau of Customs (BoC) na magbayad lamang ng humigit kumulang sa P20 milyon ang Rustans gayung dapat ay daang milyon ang babayaring taxes at penalties.

“The four companies do not declare their shipment specifically, enabling them to dictate what value to declare in their imports,” ani Villar.

Ipinaliwanag naman ni PASG intelligence chief Jaih Francia, sa nakuha nilang mga invoices sa Rustan’s trading firms na hindi nito idinedek-larang ang totoong value ng kanilang mga inaangkat na produkto upang mabawasan ang kanilang bayaring taxes and duties.

“Take the case of Global trading International which is based in U.S. In the invoice you would see that for the item ladies skirt, it cost only $11.4 per dozen which means one skirt cost only less than a dollar. And these are US brands such as Polo and La-coste that Rustan’s carries,” wika pa ni Francia.

Bukod dito, dagdag pa ni Francia, may mga wallet, handbags, make-ups, at skin care products na idineklara ng Rustan’s na undervalued sa totoong halaga nito gayung mga kilalang brands na galing Europe pa ang mga ito.

Nang padalhan ng BoC Post Entry Audit Group ang Rustan’s noong Abril para sa importation nito mula 2004 hanggang 2007 ay biglang nag-avail ito ng Voluntary Disclosure Program.

Ang Rustan’s group ay pinamumunuan ni dating Ambassador Bienvenido Tan-toco na kilalang crony ni yu-maong Pangulong Marcos habang ang anak nitong si Rico Tantoco na pangulo ng Rustan’s ay biyenan naman ng anak ni Rep. Ignacio Arroyo na bayaw naman ni Pangu-long Arroyo. Journal online

Senate urged to probe Cebu smuggling

By Jolene Bulambot - Inquirer Visayas Bureau

CEBU CITY -- AN OFFICIAL OF A GROUP OF customs brokers here on Saturday asked the Senate to investigate the rampant smuggling of cars through the Cebu port.

Ricky Gantuangco, executive vice president of the Visayas chapter of the Professional Customs Brokers Association of the Philippines (PCBAP), said his group knew the identities of brokers and importers who were conniving with customs officials in smuggling used luxury cars, but was helpless.

He said some officials of the PCBAP feared harassment from customs officials if they involved themselves in the investigation.

Some PCBAP members import surplus vehicles.

“To even the playing field, especially since only a few privilege people are enjoying it, we hope a Senate or a congressional inquiry would (also) be conducted,” he said.

Gantuangco said car smuggling in Cebu has been hurting the legitimate business of brokers and importers who are members of the PCBAP.

He said investigators should zero in on brokers whose earnings are too big to be explained by their legitimate importation.

Some customs officials demand P30,000 in bribe from brokers and importers for every container van loaded with smuggled vehicles.

Bribes, known in customs jargon as tara or suborno, have become part of standard operating procedures in the port of Cebu, he said.

“You can ask those brokers who are into that activity, they can tell you exactly how much they are giving to the customs officials,” said Gantuangco. “It’s already alarming.”

The Cebu Auto Dealers Association (Cada) earlier said Cebu has become a prime destination for smuggled luxury car, prompting the Visayas Ombudsman to start an investigation.

Records from the Chamber of Automotive Manufacturers in the Philippines (Campi) said legitimate car dealers sold 1,686 cars and 3,274 other vehicles but the Land Transportation Office registered 3,584 cars and 21,637 other vehicles.

Jose Manuel Cuenco, Cada president, said his group supports Gantuangco’s call for a Senate investigation.

“(Car) smuggling is so prevalent in Cebu that people think that it is normal already… This must be stopped,” he said.

Cada had written Finance Secretary Margarito Teves to put a stop to the smuggling. There was no response yet.

The customs bureau started an investigation, but its officials are already saying that smuggling was impossible because the port of Cebu has a sophisticated X-ray machine that could detect contraband in closed container vans.

These officials said the smuggled cars could have entered through other ports and were brought to Cebu as domestic cargo.

The Department of Transportation and Communications also started an investigation.

Customs gets tough on ship import

TO stop the smuggling of imported ships and vessels, the Bureau of Customs and the Maritime Industry Authority yesterday signed a Memorandum of Agreement banning the registration of imported ships and vessels without clearance from the BoC.

The agreement was signed by Customs Commissioner Napoleon Morales and MARINA administrator Vicente Suazo, Jr.

The agreement bans the registration and renewal of imported ships and vessels unless appropriate clearances have been issued by the BoC showing that correct taxes, duties and fees were paid.

Imported ships and vessels previously registered with MARINA will also be subject to post-entry audit of the BoC to determine if there is any deficiency in duties and taxes. Lee Ann Ducusin

Importers’ documents for sale to smugglers

By William B. Depasupil, Reporter

ACCREDITATION of importers at the Bureau of Customs is for sale, one of the reasons the bureau is having a hard time running after big-time smugglers.

The accreditation for sale racket was confirmed to The Manila Times by a highly reliable Customs source following a series of seizures of smuggled goods worth hundreds of millions of pesos by Customs combined and Presidential Antismuggling Group (PASG) agents. The importers were found to be fictitious.

“Anybody could get a hassle-free accreditation if you come across with them [corrupt personnel],” the source said, adding that “it ranges from P30,000 to P50,000.” He added:

“You will be spared from the usual routine inspection and other documentary requirements, and you get your accreditation within the day.”

The Times has learned that there were some 15,000 accredited importers. In applying for accreditation, one needs to submit all the legal requisites, like business registration papers, and other documents to prove the firm’s legitimacy.

In addition, an actual verification of the office address and a photo of the business location and registered name outside should also be made by authorized Customs personnel.

Commissioner Napoleon Morales vowed to address the perennial problem of spurious accreditation as he ordered an immediate inventory of all accredited importers to determine if they have complied with the requirements.

“I am directing Deputy Commissioner [Reynaldo] Umali to explain if those importers were accredited,” Morales told The Times. “If they are accredited but turned out to be fictitious, they [Umali] will answer for it.”

Morales has earlier transferred the authority to accredit importers and brokers to the Customs legal service from the Customs intelligence and investigation service.

Umali, aside from being a deputy commissioner, is also the head of the accreditation unit and the legal division. Ironically, Umali is also concurrent executive director of the Run After the Smugglers (RATS) program of the bureau.

The Times called up Umali twice yesterday to get his side but nobody answered the phone in his office.

Records show that the RATS unit has filed more than a hundred cases against suspected smugglers before the justice department, but none could be considered a “big fish.”

Recently, Customs and PASG men seized P200-million worth of regulated and highly-taxable goods. Follow-up investigation, however, revealed that the consignees were fictitious.

“We verified the addresses listed but we found out that they were nonexistent,” Undersecretary Antonio Villar, the PASG chief, said

In the oil industry, Smuggling may deter new investments

By MYRNA M. VELASCO - Manila Bulletin

The worsening problem of smuggling enmeshing the oil industry is seen hampering inflow of more investments in the sector.

This was an opinion shared by Pilipinas Shell country chairman Edgar O. Chua as he called on the government to intensify efforts to rein in such illegal activities pervasive in the industry.

In line with this direction, he proposed the creation of a task force that shall focus on solving, and possibly ending, the industry’s smuggling problem; as he noted that such activities do not only deny the government of much-needed taxes but also endangers consumers because of questionable quality of the smuggled oil products.

Chua said he put forward such proposal in a recent meeting with Energy Secretary Raphael P.M. Lotilla; citing that competitive forces will not reign rightly in the industry if rampant cases of smuggling are not resolved.

The Shell executive explained that competitive forces in the industry can be distorted by smuggling "because they can underdeclare their value and volume;" consequently, these considered pseudo-industry players can sell their pump products cheaper; even at P20 per liter; which is almost half the price of gasoline products.

The Department of Energy (DoE) has initiated various efforts in the past to solve oil smuggling; but it had its hands tied because this is a responsibility it shares with other government agencies, like the Department of Interior and Local Government (DILG) and the Bureau of Customs, among others.

"We should recognize that it is happening. The industry and the DoE can’t do it alone. A no non-sense task force should be in place to target these oil smugglers," Chua said.

For several times in the past, the energy department has been constantly challenged to make public the entities or companies involved in oil smuggling; as this could serve as an initial step to restrain the perpetrators.

A study previously undertaken by the Asian Institute of Management (AIM) indicated that the government incurred P1.1 billion of foregone revenues from 1999 to 2001 alone because of smuggling.

Since then, it was noted that smuggling activities have not been diffused; instead, it just worsen over the years.

At that time, the energy department thought of pushing for a penal cause on smuggling (with extreme penalties) that shall be incorporated as part of the amendments in the Oil Deregulation Law.

Previous studies have also listed several hotspots for oil smuggling; including the ports of Subic, Bataan, Manila Bay, Cebu, General Santos and Davao plus free ports and economic zones which are accorded special privileges.

The other channels identified are through the depots in the coastal areas and barges plying the Pasig River; and at the distribution level, through distributors selling to independent traders, small retail outlets or makeshift drum-pump retail stations with huge price discounts. (MMV)