Psychologically unprepeard: Philippine Customs

I was prepared to lose $30 to the Philippine customs red tape and corruption. Then I realized the complexities of the problem as time moved on. The emotional toll was something I underestimated. I failed to realize that as I waited for the package, my anticipation reshaped my value of the product. I'm not just losing $30, I'm losing $30 x opportunity cost of doing something else about it. Controlling impulses to take the matter into my own hands and fix it is in self a depressing element. Then there is the resources it would take to collect my package, opportunity cost = [Day's Pay + [emotional turmoil = ((philippine corruption + the countries sad state of affairs) x the is no hope for change)] + Daily Cost of Living + Transportation] x risk of getting into an accident.

Holly shit I they're shaking me down = to the whole cost (Including Fee)...

Alleged Customs Breakdown

Total Cost = VAT (Variable Cost) + Custom Duties (Variable Cost) + Import Processing Fee (Php 250) + Customs Document Stamp (Php 265) +
CIF (Cost, Insurance and Freight).
CIF = DV
DV = (CV + (Postal Cost x 0.04) + Postage)
Insurance = Postal Cost x 0.04
Insurance
CV (Cash Value)
DV (Dutiable Value)
Duties = DV x 0.15x
VAT = 0.12 x Total Landed Value
Total Landed Value = Import Processing Fee +

here is the catch: can they really charge the amount they are asking accoring to the Tarrif and Customs Code: Bureau of Customs Issue. [/size]
Here is an older copy of the Book of Tarrifs and Customs.

Doubts:
  • Why can they tax Vat on my TOTAL Landed Cost instead of my Cash Value?
  • How many people do you know were able to collect insurance for their lost freight- someone is making a HUGE profit for every lost piece of freight. That adds up to probably a million plus a year.
  • Where does it say they can Charge you a flat Fee?
  • Note that there are no Fees regarding the matter that the item is an "gun part" just approval of the OP officer.
  • The legitimacy of an official receipt is null when no


What does the book of Tariffs and Customs law says about fees?
What do you prepare in order that Customs Will not Screw with you?

Background. I needed g3 magazines (because no one carries them here) so I bought from abroad because the opportunity cost of ordering $8.5 JG g3 mags is not worth the time of many suppliers (Quite honestly the profit for the effort is too small). So anyway I order in eHobby Asia which is a Hongkong based company that can cheaply export to the philippines and specializes in selling China Made AEGs at one of the best dollar values online.

Anyway, I ordered 4 G3 Mags at $8.5 each and a Delivery Cost of $19 3-5 days delivery. The package was delivered according to HK postal Service on Jun 17, but it was pending customs. I got the authorizations letter from customs (with no details as to where to claim it). Of course learning from dealing with any goverment service here in the philippines, if you can let someone else do it for you - you should (opportunity cost = [Day's Pay + [emotional turmoil = ((philippine corruption + the countries sad state of affairs) x the is no hope for change)] + Daily Cost of Living + Transportation] x risk of getting into an accident).

Then I'm told by my driver they are asking Php2600! for my $34 package. I asked them for names, position, cost breakdown and any source of proof that I should be paying 150% (153% actually) of what I already payed. They wont give any details (throwing my opportunity Cost right out of the window). I head over there (which is BTW very hard to find) and ask for a breakdown. Despite the Cash Value being written on the document I found the Scratch paper breakdown of my stuff to be $135!!!. Where did that come from?!!

It was an aircon-ed room Filled with old ladies and I asked the head lady to give me a break down of all the costs because I want to tell everyone who would want to know what are these "mystery" costs supposed to be about. So she broke it down for me. When i asked what book these costs came from she told me it was the Tariff and Customs Code. So I only have her word that these Special Fees are Legitimate and not from any given law that is open to the public to look at.

I called the Customs Inspection Officer to ask him if I can pay ahead and get his signature. Because I gave them a hard time the Cashier lady doesn't want to meet my eyes and completely disagreed with the custom Inspector to let me pay a head (obviously she hated it when their bluff is called, my fees were bumped down to Php 1,335). Interestingly you have to schedule with a custom inspector before going to the customs office. Interestingly you won't know who is the Customs Officer until you go to the customs office, And you won't know which customs office until you go to the postal office. So in retrospect it will take 2-3 days for someone to get anything from our beloved customs because; you have to lose a half day to go to the Postal Office, you have to lose another half day to go to the customs office, then you can lose another day if you deal with the customs people with their magical numbers. The customs Officer was a nice guy btw (09276562651).

Resolution: I paid the Php1,335, Lost a Days Pay, Transportation Cost, Gained a nervous stomach from all the frustration and lost a bit of faith in my fellow man
Lessons learned:
  • Money and Potential Commerce lost because of inefficient status quo has an Infinite unquantifiable cost.
  • If you live in the Philippines, you really need to be wealthy enough to afford the hassles to do things legally and I personally cannot see any fault of anyone who chooses not to abide by certain avenues because of this kind of inefficiency.
  • The status quo will remain unless people become more prepared and more aware of their rights and what they can do to prevent being taken advantage off (mayaman man o mahirap).
  • Escalate things: if everyone were to use these same measures to prevent being taken advantage of corruption then it would be harder to be corrupt.
  • The Start of the Philippine Revolution According of the Agoncilio is the Tearing of the Cedula- as it represents the Right Not to be taxation without representation. Which means, everyone has the right to know what they are paying taxes for, what are the other fees, who is taxing them, and to an extent- what these taxes are used for - in a further extent every filipino has a right that all government expenses, regulations, laws and taxes are transparently executed and available to everyone. Which is really not the case.

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