DOF extends test period for chemical marker on imported oil products

MANILA, Philippines - The Department of Finance has (DOF) has extended anew the pilot testing of a project that mandates the use of a liquid chemical substance for marking imported kerosene and other oil products that enter the country duty-free.

The pilot testing of the fuel-marking project began at the Ports of Subic and Clark in December 2008 and on Jan. 29. It was supposed to end in Feb. 21 but was extended to May 31.

In a May 28 order signed by Finance Secretary Margarito Teves, the department extended the pilot testing up to Dec. 31 to gather more information on the supply chain of smuggled fuel.

For the testing project, oil companies tapped the services of Switzerland-based Societe Generale de Surveillance SA or SGS.

Data from the DOF showed that during the initial pilot-testing period from January to February, SGS has marked imported fuel amounting to 31.8 million liters.

At least 171 tests have been conducted on fuel covertly sampled from gasoline stations.

Finance officials said that during the initial pilot testing, there have already been three positive results that indicated the presence of tax-exempt fuel in gasoline stations not authorized to possess it.

SGS, which the Bureau of Customs (BOC) previously tapped, specializes in pre-shipment inspection. Without SGS, the Customs bureau is responsible for the valuation, classification and clearance functions for imports.