THE government could earn at least P200 million by auctioning the 13 smuggled luxury vehicles owned by contractors Sarah C. Discaya and Pacifico ‘Curlee’ F. Discaya, seized by the Bureau of Customs (BOC).
The vehicles, which were issued Warrants of Seizure and Detention (WSDs), are now in the custody of the Bureau of Customs (BOC).
They were transported to the BOC compound in South Harbor, Port Area, early Wednesday morning, after establishing sufficient grounds for seizure due to irregularities in their importation and documentation.
In a media viewing on Wednesday afternoon, Customs Commissioner Ariel F. Nepomuceno explained that if the Discayas fail to prove that the vehicles have valid documents and that proper duties and taxes were paid, the vehicles will be forfeited and will go to the government.
Once forfeited, Nepomuceno said the government could auction, destroy or donate the vehicles.
However, he said that the BOC will not destroy the vehicles since it will just be a waste of what the government could earn. Donating them to government agencies would be inappropriate, he added. We will make sure that if an auction is conducted, it will be transparent and competitive so that the collection of the government from those vehicles will be used for the government’s programs, Nepomuceno said in Filipino.
The 13 seized vehicles have a combined market value of P290 million. The costs would be based on current appraisals and depreciation of the vehicles, which should not exceed 10 percent.
The government could raise a minimum of P200 million to P220 million from selling the smuggled vehicles, Nepomuceno said.
Aside from losing their high-end cars, the Discayas also have tax liabilities due to the illegal entry of the vehicles into the country’s ports.
Nepomuceno said the rule of thumb in taxing luxury vehicles is to multiply the cost by one and a half.
For example, if a luxury car is priced at P30 million, then the Discayas would have to pay another P45 million by ways of taxes and duties, Nepomuceno said. If the vehicles were auctioned, the taxes would not be included, he added.
On how soon the auction will be, he said the BOC will do it as soon as possible. Nepomuceno added that the process will still go through checks and balances and will have to be approved by the Secretary of Finance before proceeding with the auction.
The Discaya family will still be given an opportunity to prove that their documents and payments are correct, he said.
The vehicles under the BOC’s custody are: Toyota Tundra; Toyota Sequoia; Rolls-Royce Cullinan; Mercedes-Benz AMG G63 AMG SUV; Mercedes-Benz G 500; Lincoln Navigator 2021; and, Bentley Bentayga. According to the BOC, these vehicles do not have import entries, lack Certificates of Payment (CPs) or have fraudulent CPs.
The Lincoln Navigator 2024, GMC Yukon Denali, Cadillac Escalade 2021, Maserati Levante Modena, GMC Yukon XL Denali and Cadillac Escalade ESV all have import entries. However, these vehicles guarded by the BOC, also lack or have fraudulent CPs.
The remaining 17 vehicles also in BOC custody are subject to transaction audit by the Post-Clearance Audit Group.
Earlier in September, the BOC conducted a search operation at the premises of the Saint Gerrard Construction General Contractor and Development Corp. in Pasig City, owned by the Discaya family, which led to the discovery of 30 vehicles now under BOC custody.