MANILA, Philippines — A motor tanker and several lorry trucks loaded with smuggled fuel worth at least P128 million were seized by operatives of the Bureau of Customs (BoC) at the Subukin Port in San Juan, Batangas.
Customs Commissioner Bienvenido Rubio said on Wednesday that the team led by the Customs Intelligence and Investigation Service-Manila International Container Port (MICP), with the support of Philippine Coast Guard's (PCG) Task Force Aduana, and the Criminal Investigation and Detection Group (CIDG)-Batangas, uncovered 217,000 liters of smuggled diesel during an operation on Jan. 4.
At P60 per liter, the 217,000 liters of fuel found are valued at P13,020,000, while the motor tanker has an estimated value of P60 million and the 11 lorry trucks at P55 million for P5 million each.
Rubio said that the seized petroleum products lack the proper fuel markings, which suggests the lack of payment of taxes and duties.
"Our team effort resulted from the collaboration of our agency and other relevant government departments. The illegal and fraudulent entry of smuggled fuel and the paihi system hurt not only our legitimate fuel distributors but more so our consumers, the Filipino people, because unmarked fuel puts them at risk and hazard," he said.
"This is a critical and significant seizure because we need to make sure, as the agency at the forefront of border patrol, that only tested and safe fuel gets to our markets," Rubio said.
Customs Intelligence and Investigation Services Director Verne Enciso said that the vessel's captain, Adolfo Jabines Tindoy, was found hiding on the ship deck when the team boarded the tanker.
Fuel marking is required under the National Internal Revenue Code, as amended by Republic Act (RA) 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) and Department of Finance (DoF)-BOC-Bureau of Internal Revenue (BIR) Joint Circular.
The system monitors all locally refined finished oil products to ensure correct payment of corresponding excise taxes and value added tax (VAT).
It covers all petroleum products that are refined, manufactured, or imported into the Philippines that are subject to the payment of duties and taxes such as but not limited to gasoline, denatured alcohol used for motive power, kerosene, and diesel fuel oil after the taxes and duties have been paid.
If the petroleum products do not contain the official marker or contain the official marker but are diluted beyond the acceptable percentage, it shall be presumed that it was withdrawn with the intention to evade payment of taxes due.