To reinforce its heightened campaign to promote compliance with customs laws and ensure the collection of lawful revenue due to the government as aligned with President Ferdinand R. Marcos Jr.’s vision of upholding a fair and competitive market while safeguarding the country’s fiscal resources, the Bureau of Customs (BOC) has encouraged buyers-in-good faith of imported luxury motor vehicles (including brands such as Ferrari, Porsche, and McLaren, among others) which are the subjects of Letters of Authority (LOA) recently served in Pasay, Parañaque, Makati, and Taguig, to settle the correct duties and taxes due thereon through voluntary payment scheme.

Pursuant to Section 224 of the Customs Modernization and Tariff Act (CMTA), the owners must respond within 15 days from the implementation of the LOA and present evidence of payment of correct duties and taxes to avoid the issuance of a WSD on their imported goods or articles.

Among others, to effect release, Section 5 of Customs Administrative Order (CAO) 10-2020 requires the presentation of proof of payment of correct duties and taxes by the importer of the goods/articles subjected to LOA, in addition to proof of local purchase by the claimant.

Nevertheless, “if the claimant and/or registered owners cannot produce the proof of payment of correct duties and taxes by the original importer despite diligent efforts to produce the same, in the absence of attributable fraud, “buyers-in-good faith” of imported motor vehicles registered with the Land Transportation Office may opt to offer to pay the duties and taxes due on the imported items” to effect the release thereof”.

The voluntary payment of correct duties and taxes is a customs administrative remedy available to owners of imported motor vehicles registered with the Land Transportation Office who can prove that they are bona fide purchaser of the imported goods in good faith.

Registered owners of imported vehicles who can prove that they are bona fide purchasers in good faith and no fraud can be attributed against them may settle the correct customs duties and taxes due thereon.

Deputy Commissioner for Intelligence Group Juvymax Uy said that: “the voluntary payment scheme is a proactive approach which empowers the bureau to significantly bolster its revenue collection efforts while effectively recognizing the equitable rights of unsuspecting innocent purchaser for value of imported goods.”

In furtherance of the intensified revenue collection efforts of the Bureau of Customs

amidst Php1.06 Trillion Target for 2025, Bienvenido Y. Rubio encourages “Buyers-in-Good-Faith” of imported goods to avail the customs administrative remedy of “Voluntary Payment of Correct Duties and Taxes”, having in mind that collected additional revenues can be used to fund various government projects for the betterment of the Filipino people.