P5.8M smuggled fuel confiscated in Bicol

Upgrade to High-Speed Internet for only ₱1499/month!

Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.

Visit Suniway.ph to learn

FUEL smugglers have shifted their operations from Batangas to the Bicol Region, according to the Bureau of Customs (BOC).

Citing operations report, Customs Commissioner Bienvenido Rubio disclosed over the weekend that a series of operations under the Fuel Marking Program (FMP), the BOC Enforcement and Security Service (ESS) has positively identified at least five gasoline stations in Region 5 engage in the illegal sale of unmarked fuel.

A total of 70,037.6 liters of smuggled petroleum products worth at least P5.845 million were seized by the ESS raiding team in coordination with the Societe Generale de Surveillance Philippines.

According to Rubio, said fuel products did not contain the official marker or which contain the official marker but are diluted beyond the acceptable percentage, and is thus presumed that it was withdrawn with the intention to evade payment of taxes.

"A random field testing conducted by the BOC and SGS, confirmed that the initial and confirmatory tests found the marker below the required compliance threshold, indicating that the fuel was withdrawn to evade taxes and duties," added Rubio.

Said gasoline stations were operating in Legazpi City. It was not clear, however, how the gasoline was withdrawn without the knowledge of the Port of Legazpi.

Port of Legazpi collector Guillermo Pedro Francia IV said that oil smuggling is a persistent challenge they face in enforcing fuel regulations.

"However, we are determined to identify and penalize those who are non-complaint due to threats to revenue and undermines lawful competitions," said Francia, who also served before as deputy collector in the Port of Batangas.

Warrants of Seizure and Detention have been issued against the fuel products stored in the subject gasoline stations for violations of Republic Act (RA) 10963 or the National Internal Revenue Code and RA 10963 or the Train Law and Department of Finance (DOF)-BOC-Bureau of Internal Revenue (BIR) Joint Circular.

Over in Batangas, operatives of the Customs Intelligence and Investigation Service (CIIS) have seized P540.5 million of unmarked fuel in three separate operations. But earlier operations in the past five years ran to billions of pesos worth of smuggled fuel.

The Fuel Marking Program is being implemented by the BOC and the BIR to curb fuel smuggling, collect the right duties and taxes for the government and level the playing field in the oil industry.

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 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.