AFTER the first auction attracted no bidders, the national government will attempt to auction for the second time five luxury cars seized by the Bureau of Customs (BOC) in May and June last year.
If successful, the government expects to raise at least 29.087 million pesos.
The most expensive luxury car to be auctioned on January 24 is the 2008 Ferrari Scuderia 430 with a floor price of 23.225 million pesos.
Other vehicles up for auction are: the 2001 Porsche Boxster with a floor price of 1.798 million pesos; a 2011 Mercedes E220 (1.492 million pesos); a 2001 Mercedes SLK55 (1.324 million pesos); and a 2001 Mercedes SLK350 worth 1.248 million pesos.
The public auction will be conducted by the recently formed Inter-Agency Auction Committee (IAA) at the Treasury Office Auction Hall in Intramuros, Manila.
In the event of a failed auction, the terms and conditions of the public auction state that the item in the auction lot must be offered again after five calendar days from publication on the official website and/or participating agencies’ social media page and posting in a prominent location at BOC headquarters.
However, Deputy Commissioner of Customs and Spokesman Vincent Philip C. Maronilla clarified that holding another public tender is not the only option the office can take. Maronilla said the BOC may opt for a negotiated sale instead if the IAA committee declares a failed bid.
For a negotiated sale to be considered, Maronilla said there would have to be at least two failed public tenders.
“[Holding another public auction] remains an option because we are not excluded from going to a third or a fourth [public bidding] as long as it remains a viable option rather than a negotiated sale,” Maronilla told BusinessMirror.
In December last year, the IAA committee, consisting of representatives from the BOC, the Treasury Board and the Land Bank of the Philippines, declared the failure of the tender in the first public auction of luxury cars because these have not received any bids.
The government’s disposal of the luxury vehicles seized by the BOC through public auctions came after Finance Secretary Carlos G. Dominguez III ordered the office to do so.
Previously, contraband vehicles were destroyed instead of auctioned off, as the BOC followed President Duterte’s directive.
In 2018, Duterte said he wanted to scrap the public auction of contraband luxury cars because he alleged smugglers were taking advantage of the auction to buy the vehicles at a cheaper price.