Customs Commissioner Angelito Alvarez on Wednesday ordered the issuance of warrant of seizure and detention on the seized container van of P30 million worth of misclassified and grossly undervalued petroleum products which arrived at the Port of Manila.

Alvarez gave the cue to PoM district collector and lawyer Rogel Gatchalian whose team apprehended the shipment for not paying the rightful duties and taxes due to the government.

“This shipment was declared under tariff heading 38.11 covering additives instead of declaring it at 27.11 for lubricating oils to make it appear that the petroleum products contains biofuel components which is exempted from payment of excise tax,” Gatchalian said.

Documents showed that P8.8 million was the supposed duties and taxes paid for the shipment of the petroleum products from Taiwan and Singapore but since it was fraudulently misclassified, the government was only paid P1.67 million or a discrepancy of 81.18 percent.

It was likewise reported that the shipment was undervalued by P30.7 million after it was declared at P10.6 million which was supposedly had a value of P41.3 million.

“This is a classic example of perpetuation of fraud in one of its finest form. The perpetrators took advantage of the present computerized process intended for the benefit of the transacting public,” Alvarez said.

He added the government will earn P30 million in revenues upon redemption of the petroleum products. “If not redeemed, they will be subjected to forfeiture proceedings and auction,” he said.