WEDNESDAY |SEPTEMBER 17, 2008 | PHILIPPINES

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Customs to re-audit 30 garment
firms on PCCI prompting


By GENIVI FACTAO

The Bureau of Customs (BOC) will re-audit at least 30 garments firms, on alleged underdeclaration of imports based on complaint of Philippine Chamber of Commerce and Industry (PCCI).

The re-audit will also help the agency increase tax collections.

The BoC's Post Entry Audit Group (PEAG) just finished the re-audit of oil firms that resulted in additional revenues and the filing of administrative and criminal cases.

PEAG's next round of review will focus on the garment industry's importations on the past 3 years.

Assistant Commissioner Jun Ligon, PEAG chief, said the PCCI lodged the complaint against the garment companies as the firms declared the cost of their importations to be even lower than the cost of yarn, which is the raw material for textiles.

"That was the basis of their complaint, but we should also consider the factors behind the prices, such as the trends. Sometimes the suppliers abroad give lower prices because the styles are no longer fashionable so just to get rid of the product, they almost give them away from the discounted prices they give garment firms," he added.

Ligon said the complaint is "a mix of big and small players based on a list submitted by the PCCI."

Based on initial findings some of the firms have closed down while others could not be found in their declared addresses upon serving of audit notices.

He however, maintained that companies being placed under review should be given the benefit of the doubt, and not immediately judged until offenses are proven.

"It does not mean that if you are placed on audit you are guilty for sure," he said. "Let us wait until the audit ends before making judgment."

Meanwhile, Port of Manila (POM) District Collector Horacio P. Suansing, Jr., ordered the closure the customs bonded warehouse operated by some garment firms.

Ordered closed were the warehouses of Elite Garments International; Maxglory Apparel, Inc.; Supreme Baby Wear Inc; Uni-Ace Garments, Inc.; Diamond Apparel Mfg. Inc.; Carmona Men's Suits, Inc.; Top Arts Shirts Mfg., Inc.; and Knitjoy Manufacturing, Inc.

Also, the CBWs owned by Kapatiran Apparel, Inc.; Pagoda Knitting & Garments Mfg. Inc.; Vine Dresser Inc.; Diamond Apparel Mfg. Inc.; Fashion Mogul Inc.; Palmphil Garments Phil. Corp.; Gelmart Industries and Red Stone Apparel Industry were closed for violating Customs Memorandum Order 39-91, for being inactive for 1 year and due to financial constraint and lack of foreign buyers.

   





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