The Bureau of Customs (BOC) begins its crack-down on automobile dealers selling imported vehicles in various auto exchanges and other establishments nationwide following allegations that many of these cars were smuggled into the country. Personnel from the Bureau’s Enforcement Group and Customs Police began inspection operations last August 27 at two auto dealers in Makati.

A total of 39 imported vehicles were checked at the Buendia Car Exchange and the 387 Auto Center, both along Jupiter Street in Bel-Air, Makati for proof of payment of duties and taxes, Certificate of Registration with the Land Transportation Office and other documents. Vehicles inspected include Audi, Lexus, Mercedes Benz and BMW sedans; Hummer and Range Rover SUVs; as well as Porsche and Corvette sport cars.

“While all 39 vehicles our teams inspected in Makati checked-out and yielded no negative findings, we will continue to exercise the visitorial powers of the Bureau to ensure that auto dealers and traders are complying with the law and are not fencing smuggled cars,” said Customs Deputy Commissioner Ariel Nepomuceno.

The inspection of dealers of imported vehicles stems from Department Order (DO) No. 32-2014 issued by the Department of Finance in May 2014 which requires owners and operators of car exchanges, garages, auto trades and other similar establishments to present proof that duties and taxes have been paid on the imported vehicles. The DO also directed BOC to seize the imported vehicle if no proof of payment of duties and taxes can be presented.

Sections 2536 and 2208 of the Tariff and Customs Code of the Philippines empowers the BOC to inspect imported goods outside the ports, to include warehouses and retail establishments with prior authorization from the Commissioner of Customs, and to seize items that are clearly smuggled.