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Manila Bulletin devider Philippines devider Visayas devider NICA cites raid vs cigarette factory in Cebu

NICA cites raid vs cigarette factory in Cebu

Published Apr 13, 2026 11:59 am
CIGARETTE (Pexels)
CIGARETTE (Pexels)
CEBU CITY – The raid on a cigarette manufacturing facility in Lapu-Lapu City was a big blow to the proliferation of counterfeit tobacco products in the country, the National Intelligence Coordinating Agency (NICA) said.
“The operation disrupted a key node of a transnational illicit tobacco network, preventing the continued export of counterfeit-stamped cigarettes and mitigating the risk of reverse flow into the Philippine market,” NICA said in a statement released to the media.
Over P1.1-billion worth of suspected face cigarettes were seized in the raid in a warehouse in Barangay Basak, Lapu-Lapu by police and NICA personnel on Friday morning, April 10. Four Chinese nationals and their alleged Filipino cohort were arrested.
According to NICA, the suspects were engaged in the production and export of cigarettes to Malaysia using counterfeit Malaysian tax stamps.
“The operation was initiated following a complaint of the Royal Malaysian Customs Department, which confirmed that the tax stamps affixed to seized cigarette packs were falsified, with serial numbers not matching official records,” NICA added.
The activity in Lapu-Lapu was allegedly part of a larger transnational smuggling network engaged in the large-scale distribution of illicit cigarettes in Malaysia.
“The syndicate reportedly utilizes counterfeit tax stamps to evade excise duties, contributing to significant revenue losses and undermining regulatory systems. There are also indications of possible collusion with corrupt regulatory and law enforcement elements, enabling the continuity of operations,” NICA added.
To avoid detection, the group allegedly employed multiple corporate entities and shifted business identities to evade.
NICA described the activity as an “organized and well-funded criminal enterprise” by maintaining a unified logistics and distribution structure.
The individuals behind the illegal activities violated the National Internal Revenue Code, Customs Modernization and Tariff Act, and Revenue Regulations No. 9-2015 and 18-2021.
“In addition, the act of manufacturing and using counterfeit foreign tax stamps may establish criminal liability under the Revised Penal Code of the Philippines, specifically Article 172 (Falsification by Private Individuals and Use of Falsified Documents), for deliberate reproduction and use of falsified government revenue markings in commercial transactions,” NICA said.

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