MANILA, Philippines – The Bureau of Customs (BOC) expects to release the result of the audit of imports of luxury car distributors soon.
Customs commissioner Rozzano Rufino Biazon told reporters in a chance interview the BOC is conducting an audit of all luxury car importers to check possible undervaluation of vehicles brought in to the country.
The results of the audit, he added, are expected to be out soon.
“We’re just waiting for the report from the post entry audit group of the BOC,” he said.
In March, he said a post-audit entry of vehicles imported by PGA Cars Inc. was being conducted amid uncertainties over declarations made by the firm.
PGA Cars is the distributor of Porsche and Audi vehicles.
Business ( Article MRec ), pagematch: 1, sectionmatch: 1
Biazon said PGA Cars has already submitted its books of accounts to the agency.
“They had to comply, otherwise we can suspend their import license,” he said.
He noted that books of accounts are needed for the audit as such provide more information compared to documents presented at the port of entry which only show the declared value of the units being brought in.
“Remember, we signed up to the WTO (World Trade Organization) agreement on adopting the transaction value method. The price agreed upon by buyer and seller, that is the transaction value. But the books of accounts show more data, for example, what costs they reported to the Bureau of Internal Revenue,” he said.
Apart from PGA Cars, he said other luxury car importers are likewise undergoing audit.
Based on the results of the audit, car importers found to have imported cars that were undervalued would be asked to pay the difference between the declared value and the actual price.
Biazon said those found to have misdeclared imports would be charged penalties.