Raid at Pasig showroom yields 87 high-end cars with ‘questionable’ docs

[Kingpin]

 

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MANILA, Philippines — A government team found 87 vehicles with “questionable” documents during a raid last July 4 at the Pasig showroom of RDY Premium Cars, which deals in high-end cars, the Bureau of Customs (BOC) said in a statement issued on Monday.

Among the brands of the vehicles under question were Lexus, Mercedes Benz, Porsche, Jaguar, GMC, McLaren, Ferrari, Lamborghini, Audi, and Land Rover.

Commissioner Bienvenido Rubio authorized the Customs Intelligence and Investigation Service Intelligence Group to conduct the raid on verifying reports that the dealers had been selling hypercars even without proper documentation.

The raiding team, which included some members of the Philippine Coast Guard, found 197 imported and locally-sourced vehicles in the RDY showroom in Barangay Ugong — including the 87 vehicles that did not have documents to prove that taxes and duties have been paid for them.

The inventory was completed on July 6, two days after the raid.

CIIS Director Verne Enciso clarified in Monday’s statement that, contrary to earlier reports, the showroom was not put on lockdown.

“This was because of the unusual location of the car hub wherein the compound is being shared by several other business establishments. If a tight lockdown was put in place, our team would have also compromised the operations of the other businesses there,” Enciso said.

Enciso also denied a claim that the raid was led by a deputy commissioner and a lawyer from another agency. He said the raid was implemented by BOC Deputy Commissioner for Intelligence Juvymax Uy.

“Every operation we conduct is a product of intense brainstorming and weeks of monitoring, analyzing, and investigation. We don’t go out there on a whim. Our team has been working day and night to confirm each piece of information we get from our sources,” Enciso claimed.

Uy meanwhile said that proper procedures were followed during the raid.

He added, under the Customs Modernization and Tariff Act, the respondent would still have 15 days to submit evidence of correct payment of duties and taxes before BOC would seize and forfeit the vehicles.

For now, BOC agents would be stationed at the dealership to monitor the vehicles.

https://newsinfo.inquirer.net/1799831/raid-at-hypercar-dealers-showroom-showed-87-cars-with-questionable-docs-boc

 

 

So that is why they put car dealerships in malls...

Edited July 11, 2023 by Kingpin

[gbmmbg]

3 hours ago, Kingpin said:

The inventory was completed on July 6, two days after the raid.

Soooo how many cars went "missing" before the inventory????

[JJReyes]

Entry of high-end luxury vehicles is subject to huge, excessive import taxes.  Therefore, no taxes are collected because they are entering through non-traditional importation methods.  The solution to increasing tax collection is to make the amount to be collected more reasonable.  The main opposition would be the Bureau of Customs because it would remove the need for under-the-table deals.  The raid is probably the result of someone not giving enough.

[Possum]

33 minutes ago, JJReyes said:

Therefore, no taxes are collected because they are entering through non-traditional importation methods. 

Novel way of saying smuggled thru the ports.

[fillipino_wannabe]

Taxes are ridiculous on expensive cars here. 50 million car is probably about 35 mil total in taxes.

[Possum]

6 minutes ago, fillipino_wannabe said:

Taxes are ridiculous on expensive cars here. 50 million car is probably about 35 mil total in taxes.

It depends on the definition of luxury but the Coast Guard can apparently afford nice cars. Problem is they didn't take it out of "confidential funds" The government approved 4.5 billion in confidential funds this year/ The vice president got 500 million in confidential money for her office and the Department of Education alone.

https://www.philstar.com/headlines/2023/07/10/2280058/coa-questions-coast-guards-purchase-bulletproof-luxury-vehicle

 

 

[Kingpin]

BOC hit the jackpot

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BOC Seizes 51 Motor Vehicles in Pasig City
July 27, 2023

Pasig City, July 27, 2023 – The Bureau of Customs served Warrants of Seizure and Detention against individual owners of 51 units of high-end vehicles stored at a showroom in Pasig City on Wednesday, 26 July 2023.

After the discovery of warehoused/displayed various imported motor during the service of a Letter of Authority last 04 July 2023, registered individual owners thereof were promptly notified and given 15 days to submit corresponding evidence of ownership and payment of correct duties and taxes for the subject motor vehicles.

Registration documents of the subject motor vehicles were timely submitted, however, the owners of the subject 51 units of high-end motor vehicles failed to submit corresponding evidence of payment of correct duties and taxes within the mandated fifteen (15) day period.

Consequently, the BOC ordered the seizure of 51 units of high-end motor vehicles pursuant to Section 224 of the Customs Modernization and Tariff Act (CMTA). Out of these, 28 have already been transferred to the BOC – Port of Manila, while the remaining 23 vehicles are scheduled for transfer.

Pursuant to CAO 10-2020, during the conduct of the seizure and forfeiture proceedings against the subject 51 units of high-end motor vehicles, the identified registered owners thereof will be accorded further opportunity to submit corresponding evidence of payment of correct duties and taxes; proof of exemption from payment of duties and taxes; offer voluntary payment of correct duties and taxes; and/or offer of settlement or redemption, subject, however, to specified conditions under the rules.

BOC Commissioner Bienvenido Y. Rubio emphasized the BOC’s commitment of enforcing the law and ensuring compliance with customs requirements. He stated, “Our primary goal is to protect the interests of the Filipino people, safeguarding the nation’s revenue, and maintaining a fair and transparent trade environment.”

The seizure of the subject 51 units of high-end motor vehicles shall serve as a reminder to all importers and dealerships to strictly adhere to customs laws, rules and regulations, and faithfully fulfill their duties and obligations promptly and responsibly. The BOC remains vigilant and dedicated in preventing any unlawful activities that may undermine the country’s economic and financial stability.

https://customs.gov.ph/boc-seizes-51-motor-vehicles-in-pasig-city/

 

 

[baronapart]

"Every operation we conduct is a product of intense brainstorming" I don't know why this made me chuckle..;-)

[JJReyes]

These luxury sports cars are for show only.  It's a status thing.  The owners want everyone to know about their wealth.  At the most, driving them is less than 1,000 miles per year.  The owners take them out during weekends for display.  Some even use trailers to avoid increasing mileage.  There is no place to take them outside of enclaves like Makati and BGC because of poor road conditions and potential collisions.  Being low riders for aerodynamics, a bump on the road or potholes can cause damage.

It's great if the government can generate luxury tax revenues, but more likely, there will be a non-official settlement.  The way it works is gratuities are given to certain persons and the tax collection is never enforced.  If some politician or social network questions, it is a "pending matter" that is unresolved.

[Lee]

3 hours ago, JJReyes said:

It's great if the government can generate luxury tax revenues, but more likely, there will be a non-official settlement. 

Here is Dutertes version of a non official settlement.

Philippines’ Duterte crushes $5.5m of luxury cars in anti-corruption drive

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Philippines President Rodrigo Duterte has overseen the destruction of $5.5 million worth of luxury vehicles and motorcycles as part of his campaign against corruption.

A government video shows Duterte watching on as a bulldozer crushes 76 smuggled cars and motorbikes, including models by Lamborghini, Mercedes-Benz and Porsche.

The vehicles, which were destroyed Monday, were all part of a haul of 800 illegally imported into the Philippines, a government press statement said.

 

 

Read more. https://edition.cnn.com/2018/08/01/asia/philippines-duterte-corruption-cars-intl/index.html