BOC slaps sliced potato supplier with P380-M smuggling suit

The Bureau of Customs has filed a P380 million suit against a major importer that supplies groceries and giant fast-food chains in the country wit sliced potatoes. Customs Commissioner Angelito Alvarez on Wednesday filed before the Department of Justice (DOJ) a technical smuggling suit against Makati-based Kool 8 Enterprises for “undervaluation of imports by as much as 62 percent." The shipments of 10.2 million kg were declared by the importer to have a dutiable value of only $0.47 per kg– or about P20 a kg. Charged before the Justice Department for gross undervaluation, falsification and use of falsified documents were Ramon Pinero, proprietor and owner of KooL 8 Enterprises, and Ricardo Ebuna, a Parañaque-based Customs broker. Case records showed that in 17 months from October 2009, Kool 8 had imported potatoes from the United States. Its shipments were divided into 112 import entries unloaded at the Manila International Container Port (MICP) terminal, the then value-added tax (VAT) on the shipments were based on the company’s falsely declared total dutiable value of P216.6 million. So, instead of paying P45.6 million, Kool 8 paid only P25.9 million. Alvarez said investigations conducted by the BOC's Run After The Smugglers (RATS) Group revealed that other importers had, however, declared a per kg value of $0.91 (about P40.40) for the same sliced potatoes bought from the same source within the same shipment period. For his part, Customs Deputy Commissoner Gregorio Chavez, concurrently the RATS Group executive director, accused Kool 8 of submitting falsified and spurious invoices to evade paying the proper VAT. Alvarez said that for evading P19.7 million in VAT payments, Kool 8 would now likely lose the equivalent of more than P380 million. The BOC is also set to file as soon as possible an amended charge sheet that would include the names of customs employees who aided and abetted the fraudulent importations of Kool 8. – MRT/VS, GMA News