BOC files smuggling raps vs canned food maker

For supposedly undervaluing its beef imports from India by more than 32 percent, meat processor CDO-Foodsphere Inc. faces a smuggling case filed by the Bureau of Customs (BOC) before the Department of Justice on Thursday. The company in a statement decried the charge as “frivolous and baseless." The BOC charged CDO-Foodsphere with undervaluing its meat shipments from October 2009 to 2011 by declaring a dutiable value of $1.50 or P66 per kilo. Customs investigators noted that the price was only slightly higher than that of half a kilo of galunggong [big-bellied round scad]. CDO is the manufacturer of popular food brands CDO Karne Norte and Samba Corned Beef. In a company statement issued Thursday by lawyer Raymond Fortun, CDO pointed out that the bureau asked the company to submit importation documents last March 18. The firm said it has provided the bureau with the documents it requested.
For the latest Philippine news stories and videos, visit GMANews.TV The BOC noted the contrast between the valuation of CDO imports and that of other meat importers, explaining that other firms declared a dutiable value of $2.58 or P113.52 per kilo for similarly sourced imported products in the same period. Based on the value declared by other importers, CDO shipments should have a total dutiable value of P1.094 billion, according to Customs Deputy Commissioner Gregorio Chavez. The company, however, declared a combined dutiable value of only P675.74 million for all its buffalo meat import entries. The BOC said the company paid a nominal amount of P67.57 million in customs duties when it should have paid P109.41 million. CDO used falsified invoices to support the gross undervaluation, Chavez said. Premature charges “The company is greatly surprised with the filing of the case as well as the press releases of the Bureau of Customs, because the validation of information has not been concluded yet and, as it were, the charges are premature at best," according to the CDO statement. “Foodsphere Inc. has been in the food business for more than 35 years and has never been accused of any unlawful activities. It has always been a good corporate citizen and has abided by all the laws and regulations of the government in all of its transactions and will continue to do so," it added. Charged were Rolando Juan Cruz, CDO assistant vice-president for finance, and Romeo Lerit, a Manila-based Customs broker who supposedly helped the company misdeclared its import value. Also charged were other individuals the bureau deemed responsible for the CDO shipments’ release. The BOC said it will examine other CDO shipments to see if CDO also misdeclared its import value in the past. — With Paterno Esmaquel II/VS, GMA News