Examples of smuggling cases

Download Examples of smuggling cases

Post on 28-Mar-2015




2 download

Embed Size (px)


<p>Examples of smuggling cases There are two sister companies who cheated from the government of P38 million worth of income. They were filed charges of technical smuggling by the Bureau of Customs (BOC). The two companies were charged illegal import of rice and illegal cargoes. The case includes four illegal imports of 84 x 20 foot container vans of mung beans from Vietnam that arrived. The shipments were cleared without any payment of taxes on the next day. Charges were filed at the Department of Justice (DOJ). ( Almonte, 2010) The Bureau of Customs under the new commissioner Angelito Alvarez filed their first two smuggling cases. Gold Mine Trading and Quick Flo Trading were charged by the Department of Justice. They smuggled house appliances, agriculture products and office equipments amounting to P300 million. Many other customs brokers were charged of the case. Alvarezs own goal is to make smuggling unprofitable. Another thing that Alvarez want to do is to produce two big-time smuggles every-two weeks. ( Almonte, 2010) The new customs commissioner, Angelito Alvarez, will promote several charges in the bureau. He implemented his own action plan. He wants to prosecute and capture two big-time smugglers per week. Included in his action plan too is the zero tolerance against corruption, to promote policies after private sector and many more. Alvarez assured the people that the quality of governance will be a lot better under his administration. Alvarez asked port stakeholders to pay correct taxes so they can easily achieve their plans. (Almonte, 2010)</p> <p>Effects of Smuggling Smuggling is very rampant in the Philippines. Since our country is mostly surrounded by water. Smuggled goods can easily be brought in some parts are shipping smuggled products as ordinary product and are now flooding the local market the smuggling cost affect the economy specially for the other sector, there are many ways of smuggling that affects the supply of a good services and the local industry the import and exports and the billion of budget of the BOC in a report in the year 2000. Trading partners of the Philippines reported that they had exported 45 billion dollar worth of goods. But the government recorded only 34 billion dollar worth of goods. In line with this, more than 10 billion dollars are lost or have been smuggled. Also, since 2006 a 100,000 worth of vehicles are smuggled. In a free port in Manila oil to be smuggled amounting to 4 billion liters. Smuggling is a form of economic sabotage and affects the country in a different ways. Every year, it is estimated that almost 4 billion dollars were lost to the government. This amount can afford many social and economic services supposedly for the improvement of each Filipino. The manufacturing sector decreases, companies lose profit, and some have gone. It is also affect jobs of many Filipinos. According to an advocacy group, the smuggling has lost job to 300,000 farmers, 60,000 shoe workers, and 7,000 workers in an out parts industry. Health and welfare of consumers is also affected because of the smuggling, the goods are being sold in the market without undergoing inspections for quality screenings. Many people believe that smuggling is beneficial because these goods are cheaper than local products. They dont know that its not good for the economy. I dont contribute to the well-being of the people because of this smuggling affect the economy the poor suffer the most and rich becomes richer. (Palatino, 2008) Smuggling affects the economy in many ways. The Domestic Transportation and Local Industry, the revenues they earned from taxes are not in a good condition. This is not a good indication for the improvement of economy. Because of smuggling, the revenue collected by the government is lost and as it continues it will cause a great impact in the government revenue as well wants to fight against smuggling and are now taking actions. (Admed, 2010) The Federation of the Philippine Industries (FPI) records the governments annual losses at between P12 billion and 175 billion due to smuggling. The statistics report of International Monetary Bureau of Customs shows only 145 billion dollars worth imports at the same time. According to FPI Chairperson Jess Alanza, smuggling had cost the counting in many manufacturing orders, job, and new investment. One example is the shoe industry lost P8 billion to smuggled goods from 1997 to 2002. In Marikina, the shoe makers have lost their jobs. Industries like garments and sugar factories also closed. Only few factories and left are barely surviving the Philippine Industries, a private group signed an agreement to the Bureau of Customs and Department of Justice to the Bureau</p> <p>of Combat the proliferating smuggling in the country. Smuggling cost govt P127 billion in forgone revenues every year. Senate President Juan Ponse Enrile suggested restraining smuggling; the government should have the political will. They have to instill fear and deprive smuggler of their profits. One of the smugglers in the Philippines is oil link. They paid duties and taxes less than the volume indicated in the survey report submitted by Interlek-caleb Brett-KIMSCO of Korea. Apparently, Manuel Tan, general manager of MIT filed an affidavit that oil link did not have its company service to conduct a survey oil link modus operandi is to break one shipment into five parcels covered by different bills of lading but paying for duties and taxes is covered only by four. FPI presented a nine-point anti smuggling agenda to Bureau of Customs. BOC promised to talk to department of finance to discuss the FPIs proposals.</p>