The Bureau of Customs (BOC) has intercepted two fuel tankers, worth a combined P695 million, at the Navotas Fish Port for allegedly engaging in the illegal fuel transfer practice known as "paihi."
In an operation by the BOC's Customs Intelligence and Investigation Services-Manila International Container Port (CIIS-MICP) on Wednesday, Sept. 18, 2024, authorities seized approximately 370,000 liters of unmarked fuel, valued at P20.35 million.
The fuel—deemed highly dutiable petroleum products—was seized due to the lack of proper fuel markings, which indicates that the necessary taxes and duties were not paid, circumventing government regulations.
BOC Commissioner Bienvenido Y. Rubio said the bureau is committed to safeguarding the country's borders and ensuring that only safe and compliant products enter the market.
“They should know by now that nothing will stop us from fulfilling our mandate of protecting our borders and ensuring that only safe and well-tested products reach our markets,” Rubio said.
The two fuel tankers, identified as MT Tritrust and MT Mega Ensoleilee, were apprehended.
The MT Tritrust carried 330,000 liters of unmarked fuel, while the MT Mega Ensoleilee contained 40,000 liters. The tankers themselves are valued at P245 million and P450 million, respectively.
The BOC vowed to intensify its crackdown on oil smuggling, including the "paihi" modus, and is collaborating closely with the Department of Justice to prosecute those involved in these illicit activities.
The fuel marking program is an initiative to combat fuel smuggling and ensure tax compliance by adding a unique marker to petroleum products.
This allows authorities to identify legitimate fuel and conduct testing to verify its origin.
The program already deterred illegal activities and enhanced government revenue.
In the first five years of its implementation, fuel marking added to government coffers a total of P988.8 billion in tax revenues, inching closer to the P1-trillion mark with one more year before the program's contract ends.
The latest data obtained by Manila Bulletin showed that from September 2019 to Sept. 13, 2024, a cumulative 85.9 billion liters (L) of oil had been marked or injected with a chemical marker signifying correct payments of import duties and other taxes.
The annual volume of marked fuel has been on an upward trend—12.1 billion L in the first year of implementation; 17.1 billion L in the second year; 18 billion L in the third year; 18.6 billion L in the fourth year; and 20.1 billion L in the fifth year.
Alongside rising yearly volumes were increasing tax collections from fuel marking—P126.5 billion in year one; P158.4 billion in year two; P223.2 billion in year three; P234.5 billion in year four; and P246.2 billion in year five. (Derco Rosa)