Taxation, being the lifeblood of the government, necessitates administrative feasibility and fiscal adequacy. Accordingly, it requires not only the legislation of a progressive tax system, but also the effective and efficient tax collection.

Since smuggling and other similar illegal activities are forms of economic sabotage in taxation, the need to combat and eradicate these led to the issuance of Executive Order No. 624 creating the Presidential Anti-Smuggling Group (PASG) in May 2007.

PASG AT THE CORE OF HUGE TAX COLLECTION

To date, PASG contributed to the government coffers an accumulated total of P13,019,111,197.43 in additional duties and taxes and seized goods for the years 2007 up to 2009.

As expected, its avowed “No sacred cows” policy and effectiveness in pursuing its mandate led to concerted efforts by those affected by its operations to discredit the group’s integrity. Indeed, PASG’s detractors had reason to counteract for it succeeded in causing the collection of billions of pesos in added government revenues.

VILLAR

PASG Head, Usec. Antonio “Bebot” A. Villar, Jr. has been bearing the brunt of his “I don’t care who you are” policy to the extent that some government officials had joined calls for the abolition of PASG after some of officials in the executive branch were linked to smuggling activities. In the end, leaders of both the executive and legislative branches agreed that PASG is an effective agency in the fight against smuggling.

SUCCESSFUL OPERATIONS

Among its string of successful major cases in 2009 included the anti-smuggling operation on jewelry, precious stones and semi-precious stones, with an estimated value of P250 Million Pesos. To this date, it was the biggest bust of diamonds and jewelry smuggling in Asia.

Then there was the seizure of replicating machines in Quezon City valued at P100 Million Pesos and in Angeles City, Pampanga with an estimated value of P200 Million Pesos; the apprehension of two container vans of LCD screens and notebook computers valued at P50 Million Pesos; the confiscation of mutilated 25 centavo coins in Caloocan City, apprehension of one container van of one-peso coins bound for Korea; and, the forfeiture of nine units of Jetski from Networx Jetsports.

The PASG’s multi-billion Subic drug bust gave the government bigger insight into the worsening problem of illegal drugs in the country. It brought to fore the discreet operation of an international drug syndicate that utilized a legitimate business as front for its operation.

PASG’s operations in 2009 also resulted in the break up syndicates of rice hoarders and repackers, smugglers of luxury vehicles, seizure of imported food products suspected to contain toxic chemicals and the padlocking of UNIOIL’s valves in the Port of Mariveles in Bataan for unauthorized withdrawal of oil stocks belonging to its sister company, the OILINK.

These accomplishments were complemented by smaller but equally important operations that translated into billions of additional taxes and dues. The series of PASG’s successful raids brought to the fore the extent by which established smugglers may have been lording it over at the local customs scene for years until PASG came into being in May 2007. This created a different landscape in the name of improving the go-vernment revenue collection.

INTER-AGENCY COOPERATION AND COMMENDATION

Government and non-government agencies have come forward to sign twenty-two Memorandums of Agreement with PASG to spell out support for the government’s anti-smuggling campaign led by PASG. Fifteen of these Memoranda are with non-government agencies, to wit: Federation of Philippine Industries, Chamber of Automotive Manufacturers of the Philippines, Association of Petrochemical Manufacturers of the Philippines, Inc., Agricultural Sector alliance of the Philippines, Association of International Shipping Lines, F.I. Wires Manufacturers Association, Textile Producers Association, Steel Angles, Shapes and Sections Manufacturers of the Philippines, Inc., Philippine Steel rolling Mills Association, Cement Manufacturers Association of the Philippines, Philippine Pulp and Paper Manufacturers Association, Federation of Filipino-Chinese Chamber of Commerce, Inc. Port Users Confederation, Chamber of Customs Brokers Incorporated, and Flat Glass Alliance of the Philippines, Inc.

The seven government agencies include Philippine Coast Guard, Armed Forces of the Philippines, Sugar Regulatory Administration, Department of Trade and Industry, Department of Agriculture, Office of the Solicitor General, and Philippine Charity Sweepstakes of the Philippines Office.

Eight government and non-government organizations /offices, namely Federation of Philippine Industries, Chamber of Automotive Manufacturer of the Philippines, Inc., Office of the Sangguniang Panlalawigan of Pangasinan, Philippine Institute of Petroleum, Urdaneta Garlic Onion Grains and Spices Market Vendors Association Inc., and Department of Environment and Natural Resources have recently acknowledged PASG’s accomplishments through letters of commendation, and board resolutions.

PASG vs. CORRUPT CUSTOMS OFFICIALS

The mandate of the PASG does not cease with the conduct of anti-smuggling operations; rather, it ends with the successful prosecution of the malefactors thereof. To date, the PASG has filed thirteen cases against private individuals, corporations, government employees and government officials.

One hundred twenty-one persons, mostly personnel and officials of the BoC were charged in court for various offenses ranging from smuggling and abetting smuggling.

And contrary to claims of PASG’s detractors, smuggled goods/articles apprehended by the PASG were all covered by Warrant of Seizure and Detention issued by the Bureau of Customs, and the cases are continuously heard before the Legal Division of the Bureau.

JEWELRY SMUGGLING

Alpha Kwok, a British National, uses her residential condominium unit in Ortigas Center as a venue for selling smuggled jewelries, precious stones and semi-precious stones. Neither income tax nor percentage tax had been paid by Alpha Kwok.

The loose diamonds, pieces of jewelries, precious stones and semi-precious stones, seized by the PASG, with an estimated value of P250,000,0000.00 were clandestinely smuggled into the country through the Ninoy Aquino International Airport without paying even a single peso of tariff dues.

SMUGGLED REPLICATING MACHINES

The distribution of pirated DVDs, VCDs, and CDs have been inimical to the local film and entertainment industry. In response to the clamor of our local film and entertainment industry, operations were conducted against these malefactors who utilize smuggled replicating machines in their illegal activity of film piracy.

The operations have resulted in the seizure of smuggled replicating machines, with an estimated value of 100 Million Pesos and 200 Million Pesos in Quezon City and Angeles City, Pampanga, respectively.

SMUGGLED JETSKI UNITS

PASG filed a complaint against Networx Jetsports in Cubao, Quezon City for smuggling jetski units into the country. The owners were found to have presented fictitious receipts and documents to support their claim of local purchase.

The successful prosecution before the Bureau of Customs resulted in the forfeiture of the millions-worth of jetskis.

SMUGGLED LCD SCREENS AND NOTEBOOK COMPUTERS

Container vans of Debonaire Trading declared contents as computer parts and accessories but PASG discovered LCD screens and Notebook computers, with an estimated value of 50 Million Pesos.

SMUGGLING OF MUTILATED 25-CENTAVO COINS, AND ONE-PESO COINS

A trading firm, Ming Tsun Liang, Inc. was found mutilating Philippine coins and smuggling of the same to Korea and Taiwan.

SUBIC DRUG BUST

More than seven hundred kilos of the banned drug metamphetamine hydrochloride or shabu estimated to be worth around P4.2-billion were seized by a combined team of PASG and SBMA operatives from the warehouse of Chinese businessman Anthony “Anton” Ang inside the Freeport. Although Ang managed to evade arrest, the bust is now considered the biggest in the local anti-illegal drugs history.

LUXURY VEHICLES SMUGGLING

PASG’s expose of the unabated luxury vehicle smuggling in the early part of 2007 in two major ports in the country triggered successive follow-up operations in various parts of the country that netted an estimated P1-billion worth of seized imported vehicles.

Some P150-million more were added in 2008 from various operations in Metro Manila, Mandaue City, and Davao City.

RICE SMUGGLING AND HOARDING

PASG operatives seized P150-million worth of illegal rice and charged thirty individuals for hoarding. The successful operations validated PASG’s claim that there was no shortage and that hoarders and manipulators were taking advantage of the reported world rice crisis.

ILLEGAL IMPORTATION OF EXOTIC MEAT

A raid on a cold storage facility in Navotas, Metro Manila in the first week of May led to the seizure of some P150-million worth of hot meat consisting of exotic fowl and aquatic produce, i.e.,

Peking duck, Hong Kong geese, pork shrimp and giant squid  ready for delivery to various local Chinese restaurants. Three other cold storage warehouses in Metro Manila were also raided.

TOXIC CHEMICAL-TAINTED FOOD PRODUCTS

Close to P200-million worth of hot milk and dairy products from China were seized in Binondo, Manila, Quezon City and Bulacan. The raids prompted the Bureau of Food and Drugs (BFAD) and the Department of Health (DOH) to subject all products suspected to contain toxic chemicals to close monitoring and testing.

UKAY – UKAY

One of the successful operations of PASG was the apprehension of four hundred one (401) bales of used clothing commonly known as “ukay-ukay” in No. 5021 Sto. Rosario, Mapulang Lupa, Valenzuela City for non-payment of taxes. Consequently, the owner thereof donated the seized bales of “ukay-ukay” to the Office of the Vice-President through the PASG.

Then another seventy bales of “ukay-ukay”, ranging from used blankets, comforters, shirts, pants and blouses of PASG-Region 1 were also seized. These were later donated to the Office of the President for distribution to victims of super typhoon Ondoy.

OTHER CASES

In the first week of May 2008, PASG filed administrative and criminal charges against three Customs personnel for their possible role in the foiled attempt to allow the release of five container vans of China-made canned luncheon meat valued at P23-million from the Port of Currimao, Ilocos Norte.

A warehouse in an industrial complex in Meycauayan, Bulacan yielded smuggled sugar that was being repacked to make it appear it is locally produced. The estimated value of the catch was pegged at around P15-million.

Smuggled ginger valued at P1.3-million was seized from a market stall in Divisoria in Manila. Earlier, cargoes of smuggled onions were likewise seized also in Manila with an estimated value of P2-million.

Four container vans of spoiled smuggled flour from China were sneaked out of the BoC compound but were intercepted by PASG. Estimated value was P10-million.

PASG discovered the illegal importation of eleven racehorses from Australia. The horses were declared as breeders, not as racehorses to evade paying higher taxes. The importers have been charged in court.

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