Customs officer denies conspiracy in oil smuggling case

Philippine Customs Commissioner Napoleon Morales said there was neither an “omission” nor a “conspiracy” with oil firm Jetti Supply Distribution Inc. (JSDI), which allegedly failed to pay Php288 million (US$5.82 million) in taxes from importing oil from 2006 to 2008. The Presidential Anti-Smuggling Group (PASG) filed before the Office of the Ombudsman a case against Morales for allegedly allowing JSDI to smuggle oil into the country and defrauding the government of import taxes. The other respondents in the case were Mindanao Container Terminal Port collector Rudy Amistad and JSDI officials Ramon Tanchangco, Joel Aguilar, Joselito Magalona and Darwin Suico. Morales said as early as last year, the Post Entry Audit Group (PEAG) of the Bureau of Customs (BOC) conducted an audit of JSDI importations for 2006 to 2008, and the BOC’s legal service started an investigation in March to determine how much the government lost in revenue. BOC policy allows companies to self-assess taxes on their imports for the first three years of operation. After that, the BOC’s PEAG will check whether correct payments were made and slap penalties on firms that undervalue their taxes. (June 23, 2009)