Mar 02, 2016 4:40 PM GMT+0800 Over 600,000 new car plates abandoned in Manila port Published March 1, 2016 9:11pm While thousands of vehicle owners are waiting for their car plates to be delivered, over 600,000 new car plates have been lying unused at the International Container Port in Manila for seven to nine months because of nonpayment of fees. Abandoned license plates at the International Container Port Photo by Chino Gaston Abandoned license plates at the International Container Port Photo by Chino Gaston Abandoned license plates at the International Container Port Photo by Chino Gaston Abandoned license plates at the International Container Port Photo by Chino Gaston A report by Chino Gaston on “24 Oras” on Tuesday said the Bureau of Customs (BOC) is set to auction off the aluminum plates next week if the contractor of the Land Transportation Office (LTO), PPI-JKG Philippines Inc., fails to pay the over P40 million in import duties and taxes. The BOC has given another week for the Dutch-Filipino consortium to pay its dues, the report said. The new car plates have been manufactured in the Netherlands, where J. Knieriem b.v (JKG), the partner of Filipino contractor Power Plates Development Concepts Inc., operates a factory. According to the BOC, the contractor has been remiss with its obligation, forcing it to mark the shipment as abandoned. “Sinabi nila na mababayaran kami after a while. Eh 'di, mag-antay ng isang linggo,” Customs Commissioner Alberto Lina said. In July 2015, the Commission on Audit (COA) stopped LTO from paying the remaining P3.4 billion to PPI-JKG, questioning the legality of the bidding and the contract of the plate standardization project, which aims to change the design of the old car plates in the country. The LTO has already paid P477 million to the contractor before the COA issued the notice of disallowance. The case is still with the COA board. LTO said that despite the setback in payments, PPI-JKG is trying its best to pay the import duties for the release of the new car plates. “Honestly, you cannot blame the supplier. Why would you expose yourself further? Meaning, financially, if there is no light at the end othe tunnel. But on the other hand, if you are a supplier, you should have enough buffer funds,”
Why is a government agency forcing duty to be paid on a government contract? Is this normal for governments to do?
477,000,000 divided by 600k = 795 per plate. I would tell the Philippines to bugger off. Too bad the Filipino partner probably got 60% of that for just standing there, possibly doing a little "lobbying".
But doesn't the receiver usually pay the duty on delivery? If I was contracted to manufacture and ship the plates for them I would fulfill the order, as has been done. It sounds to me the Philippine government is trying to get all their money back by illegally taxing the contractor. I'd tell them to p*ss off as well and never do business with them again.....and I'd tell all my manufacturing friends to avoid them at all costs as well.
I would guess that would depend on if the supplier shipped the consignment to themselves or to the LTO or other government entity. There are enough bass akwards things in the Philippines that I couldn't say for certain either way whether it was SOP. Thank goodness they have not found a bullet in it yet.
But you know there is seldom an effort made to build business relationship here. I have yet have anyone here modify a business deal if they have tried, successfully or unsuccessfully, to get to me in a business deal. Only the business players in the international scene uderstand the concepts of building a business customer base and growing a business. Why would the government care if they do business with you again? There will just screw the next guy that comes alone as you walk out the door they will say sorry, and spend the cash you left them. There will always be another sucker that will accept the deal, and another Filipino involved in making the deal.
At least now I know what happened to my F@ckIng license plates. B@stards probably stole the money we all paid in fees for the new plates so there was nothing left to pay the manufacturer for them. Typical day in the PI.
And mine. Not like I care if its got a plate on it, until I want to sell it and the buyer wants a reduction because . . No Plate
I have been waiting for both my plates and stickers for over4 months now, at least have a reciept for the rego renewal