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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.
Members of the Philippine National Police's Criminal Investigation and Detection Group seize a motor tanker and several trucks with P128 million worth of smuggled fuel on Feb. 4, 2025. PHOTO FROM THE CIDG FACEBOOK PAGE
Customs Commissioner Bienvenido Rubio said on Wednesday that the team, led by the Customs Intelligence and Investigation Service-Manila International Container Port (CIIS-MICP) and supported by the Philippine Coast Guard's Task Force Aduana, and the Criminal Investigation and Detection Group-Batangas, uncovered a total of 217,000 liters of smuggled diesel.
The operation was conducted 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.
According to Rubio, the petroleum products lack the proper fuel markings, which suggests the lack of payment of necessary taxes and duties.
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He added that the seized petroleum products showed that they were smuggled into the country through the so-called paihi (pee) system wherein the contents of a ship carrying smuggled fuel are siphoned off by smaller vessels in the middle of the sea.
"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," said Rubio.
"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," added Rubio.
The operation at the Subukin Port in San Juan, Batangas, yielded motor tanker MT Feliza loaded with an estimated 200,000 liters of unmarked diesel, as well as 11 lorry trucks.
"The tanker and lorry both had failed results in the initial fuel sampling and testing conducted in the area by SGS Fuel Marking Team-Batangas and our CIIS-MICP agents. The fuel marking was at zero percent," said CIIS Director Verne Enciso.
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 10963, or the Tax Reform for Acceleration and Inclusion, and Department of Finance-BOC-Bureau of Internal Revenue Joint Circular.
The system monitors all locally refined finished oil products to ensure correct payment of corresponding excise taxes and value-added tax.
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 which 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.
