BOC Urges Importers to Voluntarily Pay Duties to Avoid Seizure Process

MANILA, Philippines – The Bureau of Customs (BOC) is calling on owners and claimants of imported goods under Letters of Authority (LOA) to voluntarily settle their duties and taxes instead of going through the Warrant of Seizure and Detention (WSD) process.

Under Section 224 of the Customs Modernization and Tariff Act (CMTA), importers have 15 days from the LOA’s issuance to opt for voluntary payment, which can prevent forfeiture and lengthy legal proceedings.

Why Voluntary Payment Matters

BOC Commissioner Bienvenido Rubio emphasized that settling taxes upfront saves both the government and claimants from costly and time-consuming seizure proceedings.

“If the claimant cannot provide proof of payment by the original importer, they may voluntarily offer to pay the duties and taxes due,” Rubio said.

According to Section 5 of Customs Administrative Order (CAO) 10-2020, goods can be immediately released once:
✅ Correct duties and taxes are paid
✅ Proof of local purchase is provided

This option is available to claimants who can prove they are bona fide purchasers of the imported goods.

Luxury Cars Worth P2.8 Billion Seized

The advisory follows the recent seizure of P2.8 billion worth of luxury vehicles, including Ferrari, Porsche, and McLaren models, from warehouses in Makati, Taguig, Parañaque, and Pasay.

BOC agents from the Customs Intelligence and Investigation Service (CIIS) served LOAs to shop owners and representatives of these vehicles.

To reclaim a seized luxury car, the registered owner must submit proof that:
🚗 The vehicle was purchased locally
🚗 They were not involved in its importation
🚗 They were unaware of any unpaid taxes by the original importer

What Happens If Importers Fail to Pay?

If valid documentation is not provided, the imported goods may be forfeited, and those responsible could face legal charges under the CMTA.

Deputy Commissioner Juvymax Uy said this proactive approach aims to increase tax revenues while protecting innocent parties from losing their assets unfairly.

“This will empower the Bureau to boost revenue collection while preventing seized goods from deteriorating during legal proceedings,” Uy added.

What’s Next?

Importers and claimants now have 15 days to comply. The BOC is expected to intensify enforcement efforts, especially on high-value luxury goods suspected of tax evasion.