Customs forfeits $11-million SkyJet plane

MANILA, Philippines (UPDATED) – The Bureau of Customs forfeited in favor of the government Monday, July 16, an 80-seater aircraft operated by SkyJet Airlines after it found its “importation was attended by fraud.”

The Customs–Port of Ninoy Aquino International Airport (NAIA) estimated the forfeited SkyJet to be worth P583.58 million or $10.916 million.

Customs Commissioner Isidro Lapeña ordered the forfeiture after its owners, Magnum Air, Incoporated, failed to pay the customs duties and taxes from the time of its importation. Magnum Air operates SkyJet Airlines.

According to its official website, SkyJet Airlines “utilizes a fleet of 80-seater BAE-146 manufactured in the United Kingdom by British Aerospace.” 

“The aircraft is forfeited in favor of the government after finding that its importation was attended with fraud and for being used in commercial flights since its importation without payment of customs duties and taxes,”  Lapeña said.

Lapeña and NAIA District Collector Carmelita Talusan inspected the forfeited aircraft Monday parked in a hangar of General Aviation Area of NAIA.

According to a statement by the BoC, Magnum Air former registered with the Subic Bay Metropolitan Authority but was delisted and has ceased operations in 2014.

Talusan marked the aircraft as a red flag on March 29, 2017 when she was still District Collector of Port of Subic.

She asked for a Letter of Authority to demand proof of payment of duties and taxes as no record of any import entry or warehousing entry was filed by the owners.

Based on its findings, Customs said Magnum Air Sections 224 (Power to Inspect and Visit), 400 (Goods to be Imported through Customs Office), 401 (Importation Subject to Goods Declaration), and 405 (Liability of Importer for Duties and Taxes) in relation to Section 1113 (Property Subject to Seizure and Forfeiture) of the Customs Modernization and Tariff Act.

Customs said, aside from penalties and charges, Magnum Air has liabilities of about P90,514.936 for the aircraft.

 The Port of NAIA said Magnum Air, Inc., filed an appeal against the forfeiture order and has a pending hearing at the BOC legal service.

The Port of NAIA will proceed with the public auction of the aircraft upon the final Order of Forfeiture, the customs statement said.

SkyJet statement

SkyJet said in a statement on Wednesday, July 18, that long before the aircraft was forfeited, its current management had already expressed its “willingness” to cooperate with the BOC “notwithstanding the lack of knowledge and participation by the new owners on the misdeeds of the previous management.”

It noted that SkyJet “has consistently cooperated and participated in all the legal proceedings conducted by the BOC” on the seizure case which has been ongoing for more than a year.

“As early as December 2016, as a result of internal compliance audits conducted by the new management on the company’s operations, the company  communicated with the BOC Port of Subic its willingness to voluntarily disclose and settle any tax and duty obligation due with regard to the subject aircraft.  This was prior to the issuance of a Warrant of Seizure and Detention (WSD) on May 2017,” it said.

“While the subject aircraft was legally admitted upon first importation as shown by documents submitted to the BOC seizure proceedings, the present management has long submitted its willingness to settle any tax and duty obligation that may be legally due on the subject aircraft,” the company added.

SkyJet also said that as early as February 2016, SkyJet’s current owners filed a case of syndicated estafa against the previous management “for illegal acts and other irregularities, a copy of the complaint has been submitted to BOC in the seizure proceedings.”

“The company’s new management has conducted its internal compliance audit and due diligence and has undergone management and corporate restructuring since 2016. It is committed to correcting the previous management’s erroneous practices and has proceeded to strictly comply with all applicable regulatory laws and regulations,” it said.

SkyJet also said it will abide with “any lawful decision” arising from the seizure proceeding.

“We at Magnum Air, Inc’s New Management, are very much concerned in this issue and we would like to assure the public and the authorities that we shall be investigating on our end and work with the government authorities to ensure all obligations have been duly settled and the responsible be held accountable,” it said.

“We apologize for any uncertainty that this issue has brought upon the riding public, but rest assured that our operations are fully compliant and duly licensed with the MIAA and CAAP,” it added. – Rappler.com