Thursday, July 31, 2014

About the shut down of Mighty Corp warehouse

The Filipino-owned manufacturer Mighty Corp has been dragged in several controversies for the past few months. The Bureau of Customs shut down a warehouse operated by the company in Malolos, Bulacan. As it was lauded by the business sectors and advocacy groups, the regular operation of the company didn’t affected about it.

They suspended the license of Mighty's customs bonded warehouse. But according to
Customs Commissioner John Phillip Sevilla said that the move of the government agency is to prevent revenue leakages while further investigation of the company’s alleged illegal activities.

“The initial report of a DOF task force reveals that Mighty Corp. committed serious violations of tariff and customs laws, rules and regulations, resulting in huge revenue losses for the government,” Sevilla added.

Meanwhile, Mighty’s executive vice president Oscar P. Barrientos said that the suspension order did not cover its operation for the domestic market.

“Nothing has changed, and until such time that we receive the final report of the task force, it will be business as usual,” he said. “We will continue to cooperate with authorities pending the full and final results of the inquiry being undertaken by Task Force Mighty Corp. We will address these allegations at the appropriate time as soon as we receive the final report on the findings. We have been transparent with the customs bureau, and we will continue to be transparent,” Barrientos added.

Mighty was accused of engaging in technical smuggling and downshifting consumption. They said that they barred the company from re-channeling duty-free cigarettes-for-export for domestic distribution and consumption. There are allegations that MC imported acetate tow. The said raw material used for filters, at $0.30 to $0.32 per kilo. They claimed most of their tobacco leaf and acetate tow imports are intended for export.

Is there's a proof that the Mighty Corp did illegal transaction under the law? The rival company didn't publicly announced its merger in 2010. 


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