By Genivi Factao

The Bureau of Customs (BOC) yesterday said that it was able to generate P217 million in fees from the container security program from May to December last year.

Customs commissioner Napoleon Morales said this could have been 5 times higher had it not for the port users’ request for fee reduction.

BOC originally imposed a $25 fee for a 20-footer container and $50 per 40-footer container but this was reduced to $5 and $10 for every 20-footer and 40-footer container respectively, as requested by the Port Users Confederation Inc. and the Philippine Chamber of Commerce and Industry.

In June, the BOC agreed to reduce by 80 percent as a concession with the port users with a provision that it could increase its rates once economic conditions allow it.

At present, only importers are slapped with the prescribed fees. The bureau has exempted the exports from payment but still they have to undergo scanning.

Morales said 75 percent of the collection will be used to pay the loans for acquiring the x-ray machines, which will start after 5 years.

The remaining 25 percent of the fee will be used for operations, maintenance and administrative costs.

The BOC has acquired 30 x-ray scanning machines from Nuctech worth about $5 million each. He said if not for the x-ray machines, they will not be able to achieve a 6.8 percent growth in the collection last year compared from the previous year.

Even if the machines were not intended as income generating, the service itself means revenues for the bureau since they were able to check whether there is misdeclaration or under declaration.

Morales said that they are still hoping that the fees will revert back to the original container security fee in "due time."

"But I am okay with it, since we have stopped so many misdeclarations in the ports. For me, that is more valuable than collecting more," Morales said.

Executive Order 592 provides the installation of x-ray devices in all major ports to ensure that all containerized cargoes, particularly those US-bound, are free from materials used for weapons of mass destruction.

The machine has helped the bureau in facilitating the release of 12,622 containers without the need of physical inspection from May to November 2007.