A task force consisting of members from the Bureau of Customs and the Philippine Coast Guard (PCG) conducted a raid on a warehouse and retail store in Batangas City, suspecting the presence of illicit cigarettes.

Following the operation in Bgy. Cuta, Batangas City, the joint team discovered approximately 2.9 million sticks of cigarettes with indications of being counterfeit and illegally manufactured. The estimated value of these seized tobacco products is approximately P16.5 million.

Among the suspected illicit cigarette brands confiscated during the operation were Two Moon, Carnival, New Orleans, Journey, B&P, and President.

According to the enforcement team, the seized cigarettes lacked the required tax stamps and graphic health warnings that are mandatory for legally produced and tax-paid tobacco products.

Authorities have indicated that the owner and operator of the warehouse will be subject to an investigation.

They could also face charges under the Customs Modernization and Tariff Act, specifically for offenses such as Unlawful Importation of Infringing Products, as well as Misdeclaration, Misclassification, and Undervaluation.

These charges carry severe penalties, including imprisonment for up to 40 years and fines amounting to P50 million.

Customs Deputy Commissioner Teddy S. Raval said the bureau is committed to the fight against illicit tobacco trade.

“Operations against agricultural, fuel, and tobacco smuggling are included in the enforcement priorities of the agency under the direction of Commissioner [Bienvenido] Rubio,” Raval said.

Customs has stepped up efforts to combat smuggled goods including illegal tobacco products.

In the first seven months of 2023, the agency has interdicted P1.9 billion worth of smuggled cigarettes including those seized in Indanan, Sulu last March that yielded P1.4 billion of illegally imported cigarettes.

As part of the whole-of-government approach in addressing the growing problem of illegal tobacco, both the Senate and House of Representatives are deliberating amendments to the Anti-Agricultural Smuggling Act of 2016.

This includes the establishment of special courts for the smuggling of agricultural products and making the offense non-bailable. It also includes tobacco, unmanufactured and manufactured, in the list of agricultural products.

The Bureau of Internal Revenue (BIR) has conducted two nationwide raids this year targeting nearly 1,500 retail stores and establishments.

The bureau has filed 69 complaints of tax evasion worth P1.8 billion against illegal tobacco traders.

The BIR estimates that the government loses P50 billion to P100 billion annually in foregone excise tax revenues from illegal tobacco.