Customs Commissioner Isidro S. Lapeña has set a meeting with his Chinese counterpart this month to discuss the “discrepancies” in Chinese export volumes to the Philippines and the shipment figures reported in the country by importers, according to the Department of Finance (DOF).
During a recent DOF executive committee meeting, Lapeña said he had been invited by the Customs chief of China to meet and discuss ongoing trade relations between the two countries this November.
Lapeña told Finance Secretary Carlos G. Dominguez III that he is bound for China to personally look into the trade discrepancies between both countries and to check the Philippine export records of the Bureau of Customs (BOC) Chinese counterpart agency.
The BOC claims it has uncovered a massive gap between China’s export volumes to the Philippines and the shipment figures officially reported here by importers.
Last year it was reported by the DOF that discrepancies amounting to P1.8 trillion have been found between the volume of imports reported here and actual figures recorded by countries exporting to the Philippines.
The value gap translates into foregone revenues estimated be around P231 billion, representing 2 percent of the GDP of the Philippines, according to Dominguez.
However, the finance chief raised the possibility that the trade gap could just be the result of timing issues, and the inclusion or exclusion of particular commodities in reporting.
According to Lapeña, the wide discrepancy between China’s recorded exports and imports to the Philippines may be attributed to the gross misdeclaration or undervaluation of goods in terms of either volume or weight and the possible use of “consignees for hire,” which leads to goods released to hidden traders and not to the consignees on record.
The latter practice allow the importer to evade the scrutiny of the Bureau of Internal Revenue, Lapeña said.
He added that in both instances, misdeclaration or undervaluation and the use of consignees for hire, benchmarking and the submission of fake documents, allow traders to get away with underhanded schemes.
Dominguez has instructed Lapeña to focus on China’s trade records and arrange a meeting with the Customs chief of that country to discuss and find possible solutions to bridge the massive trade gap.
Lapeña said that during his visit to China, he will also discuss the government’s ongoing efforts to institute reforms in the BOC, on running after smugglers and improving revenue collections.