The Philippine Bureau of Customs (BOC) has amended the rates of auction bonds for public bidding pursuant to the new Customs Modernization and Tariff Act (CMTA).
Customs Administrative Order (CAO) No. 04-2016 signed on October 26 revises Section 7 of CAO 10-2007, which provides the conditions for those that register and participate in public biddings. The revision was pursuant to Section 1141 of Republic Act (RA) No. 10863, otherwise known as CMTA.
Under the amendment, posting of a duly receipted bond in cash or manager’s check should follow the new schedule: a floor price of not over P10,000 will have no bond; floor price exceeding P10,000 but not over P1 million will a bond equivalent to 20% of the floor price; exceeding P1 million but not over P2.5 million, 15%; exceeding P2.5 million but not over P5 million, 10%; and over P5 million, 5%.
Previously under CAO 10-2007, the bond is fixed at 20% of the floor price for each sale of lot except for those worth less than P10,000, as they do not require bonds.
The bond placed by the losing bidder will be refunded after the auction closes. The chief of BOC’s Auction and Cargo Disposal Division (ACDD) is responsible for ensuring that only those who comply with the requirements can participate in the public auction.
CAO 04-2016 will be subject to periodic review and be amended or revised, if necessary, every three years. It takes effect 15 days after publication in the Official Gazette or a newspaper with general circulation.
Shipments that have been abandoned or seized by the customs agency are disposed of through public auction or negotiated sale.
Public auction on Nov 22
Meanwhile, BOC expects to collect P15.361 million in revenue from its public auction sale through sealed bidding on November 22 at the Manila International Container Port (MICP).
MICP’s ACDD will bid out 17 lots of various goods which include two forty-foot units of white sugar and Richboss synthetic black shoes with a floor price of P2.040 million; three twenty-foot units of refined sugar from Thailand, pegged at P1.794 million; and five twenty-footers of wheat flour, pegged at P1.324 million.
Other merchandise include one forty-footer of various bags, wallets and shoes, priced at P2.991 million; 24 twenty-footers of angle bars, at P1.218 million; four forty-foot containers of steel angle bars, at P178,786; and two twenty-footers of hot dipped galvanized steel coil in sheet, at P1.386 million.
Included are used terrain vehicles; used 2005 Harley Davidson Softail motorcycles; school supplies and calculators; household goods and personal effects; foamboard; vacuum excavators; parts of paper-making machines; used farming machines and parts; glassware; and refrigerant gas R22.
Image courtesy of Styart Miles at FreeDigitalPhotos.net