BOC to implement fuel marking scheme next month

MANILA, Philippines - The Bureau of Customs (BOC) is eyeing to implement a fuel marking scheme as early as next month to plug revenue leakages from oil smuggling.

Customs Commissioner Alberto Lina told reporters his agency is preparing the terms of reference for this project in which a contractor would be hired to mark oil products entering the country.

This means that imported kerosene and diesel products whose taxes have already been paid would carry the markings, making it easier for the bureau to spot smuggled oil products, Lina said.

Oil companies would shoulder the cost of the fuel marking technology, he said, adding the agency estimates these firms would spend an additional $25 million to comply with the new scheme.

The BOC stands to generate $300 million in fresh revenues with this project as it is expected to reduce smuggling in the country, Lina said.

Lina said the bureau plans to test the program first in Visayas and Mindanao before requiring it nationwide.

In 2010, the Department of Finance (DOF) under the previous administration had already ordered the mandatory marking or kerosene products entering the country.

The measure directed the Bureau of Customs to ensure the fuel marking system is in place in all ports nationwide and all concerned parties are informed of the new program.

The order, however, was not carried for long following the change in the administration.