Government seizes P220 million smuggled fuel in La Union

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June 23, 2025 | 12:00am

MANILA, Philippines — The Bureau of Customs (BOC) has confiscated P220 million worth of smuggled fuel in La Union port.

In a statement, the BOC said MT Bernadette was found transferring diesel fuel to two trucks at the port in what is known as the “paihi” modus.

Initial inventory showed that the motor tanker was loaded with 200,000 liters of diesel fuel while the two trucks have a combined 59,000 liters.

According to the BOC, the 10 crew members of MT Bernadette were unable to show documents for the legality of their activity.

Eleven others identified as drivers, porters, lookouts and accomplices in the modus were likewise caught.

All individuals involved will face administrative and criminal charges for violation of the Customs Modernization and Tariff Act and the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

BOC commissioner Bienvenido Rubio said there is a need to intensify operations against the illegal entry of unmarked fuel in the country given its economic impact and the hazard it poses to consumers.

The fuel marking program involves injecting chemical identifiers into tax-paid oil products and is being carried out under the TRAIN Law to curb smuggling of petroleum products.

BOC uses a chemical identifier to determine whether a fuel bundle complied with the corresponding taxes.

If a fuel contains less than 95 percent of the marker, its owner will be directed to pay the duties first and then settle the penalties.

Petroleum products that are unmarked, with diluted markers or have counterfeit fuel markers shall be subject to duties and taxes, inclusive of the appropriate fines and penalties.