Customs Commissioner Ruffy Biazon welcomed the Department of Finance (DOF) proposal to transfer the Bureau of Customs’ (BOC) accreditation and post entry audit functions to the Bureau of Internal Revenue (BIR).

In a briefing with the Customs media today (August 5, 2013), Biazon said, while he is generally happy with the performance of the BOC’s Post Entry Audit Group (PEAG) when its revenues of over PhP 400 million in 2011 jumped to over PhP 700 million in 2013, he has no objection to the DOF proposal to transfer PEAG’s function to the BIR.

“This will definitely be a big help for the BOC as the BIR does not only have more trained people in audit and taxation, but they also have more stringent audit procedures.” Biazon said, adding that, “However, there are considerations that we need to iron-out with the BIR before the DOF proposal could be a reality, like the valuation and classification issue on importations.”

According to Biazon, the function of PEAG is to elevate the level of compliance by importers to customs rules and procedures. As such, PEAG’s role is not only about collecting the right duties on importations, but also its compliance to world customs rules and procedures in the area of classification and valuation.

“These are customs functions that will have to be addressed first before PEAG could be transferred to the BIR. And this compliance involves proper valuation and classification of importations, in accordance with the Tariffs and Customs Code of the Philippines (TCCP) and World Customs Organizations (WCO) practices.” Biazon said.

Biazon also said, the DOF proposal to transfer the BOC’s accreditation function to the BIR will help unburden the BOC of its task of seeing to it that all importers are legitimate. Prior to Biazon’s assumption as Customs Chief, the BOC’s Interim Customs Accreditation and Registration (ICARE) was one of the problematic units of the bureau. However, with Biazon’s reorganization of ICARE, fictitious companies earlier registered by ICARE were delisted.

“The BIR would be the best agency to determine the legitimacy of companies as they have extensive records and more comprehensive procedures in verifying the real existence of companies.” Biazon said.

According to Biazon, the BOC is now in the midst of several reform programs, in compliance with President Simeon Benigno Aquino III’s order to clean the BOC of misfits, curb smuggling and generate more revenues.

“The DOF proposal is, therefore, a welcome move which we hope to seriously explore and discuss its implementing rules and guidelines.” Biazon said.