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Why is CMO 04-2017 so controversial?

  • The directive’s intent has long been in place but was not being fully implemented.

Allan Michael Bautista LBC Sales Marketing Senior Manager for Middle East“Hindi naman bago ang karamihan sa mga requirements but this is more of strictly implementing and observing customs’ policies of  both customers and cargo service providers, like LBC,” said Allan Bautista, LBC senior sales and marketing manager for the Middle East.

He said LBC, for one, has long been observing the practice, implementing the new Customs directive is “just a matter of merging this inventory list  into the new forms that will be provided by the Bureau of Customs (BOC).”

“It’s been our long term campaign and practice in LBC to encourage customers to properly declare the contents and value of the items they send through their balikbayan boxes. Huwag kayo matakot sa pag-declare ng mga laman ng inyong boxes, because in the end, the full declaration also helps the recipients in ensuring that their padala are intact and complete. We advise everyone to abide by the new policies that were set in place as this is a way to protect them and their balikbayan boxes,” Bautista said.

  • The directive is an anti-corruption measure.   

The practice in the past of ignoring itemized list of content has  made the care boxes prone to pilferages by Customs personnel and smuggling activities by unscrupulous OFWs, who under-declare what’s inside.

 Sa tingin ko ang tatamaan dito ay iyong mga kababayan natin na mahilig magpalusot (mag-smuggle) like iyong nagpapadala ng commercial quantity, spare parts ng sasakyan and ukay-ukay for business sa Philippines na ang declaration nila ay personal effects lang to evade custom duty and taxes,” said Augusto “Marz” Marcial, business development officer at Makati Express and sister company, Prime Express.

Marilyn Siervo, general manager at MSM Cargo, agreed. “May tama din yun (anti-corruption factor),” she said, adding that “Kaya nga ako, advice ko sa mga customers, ‘Ma’am kuhanan nyo po ng litrato at lagyan ng inventory list.’  May mga kababayan kasi tayong magugulang, kung makakalusot, lulusot.”

Roomi Sarkari JRS Logistics director

Roomi Sarkari, JRS Logistics director, for his part indicated concurrence that the measure was also meant to address corruption issues. “The only issue is that kababayans need to itemize their belongings as required,” he said.

‘May mga kababayan kasi tayong magugulang, kung makakalusot, lulusot.

“At least that will give them surety of not being singled out by Customs for a review. For those who still continue to defy it, will face the consequences at the hands of authorities,” he added.

pain sa patibong

  • The directive is “pain sa patibong” (a trap for OFW smugglers).  

An operator of a major cargo forwarder in the UAE said CMO 04-2017 is actually a trap for smugglers.

The measure, explained Customs Commissioner Nicanor Faeldon in his Facebook page, allows OFWs to bring home either thru cargo forwarders or airport check-ins,  up to three tax-free balikbayan boxes in a year’s time with overall content totaling Ph150,000 (or Dh10,900 at the exchange rate as of press time) – Ph50,000 each box (or Dh3,650) .

“May mga kababayan tayo dito mahilig mamili ng electronics tulad ng flat wall TV para sa mga kamag-anak. Dito kasi mura. ‘Pag nakita ng Customs yan na marami kang dalang TV, pagkaka-interesan ‘yan. Kaya nga pain ito sa patibong – ta-tax-san ang OFW,” said the operator requesting anonymity.

  • The directive makes OFWs uncomfortable with the requirement on sensitive personal data.

Michelle Guinto CMG Cargo CEO

Michelle Guinto, CMG Cargo CEO, said  the thought that Customs has a huge database containing personal details of OFWs around the world doesn’t sit well with Pinoys in the UAE.

“Yung iba ay uncomfortable providing sensitive information and signature. Paano nga naman kung ma-hack ang database and the hackers gain access to their bank accounts?” Guinto said.

Sarkari for his part, said: “Anything newly implemented has always a side effect. There will be those who would be against the idea, but it’s a good move by Customs to streamline contents in balikbayan boxes.”

On the other hand, Bautista said that while “there may be some hesitation on the customers’ end as the procedure will entail more requirements, (the directive) is also a way of protecting the OFWs’ balikbayan boxes.”

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