Campaign against illegal products

The campaign against the proliferation of smuggled and fake cigarettes by several government agencies in coordination with one another is finally bearing fruit.

This only proves that when there is a will, there is a way, even in the public sector.

Just recently, policemen arrested a woman selling fake Mighty cigarettes and other tobacco brands in Imus, Cavite.

In his report to OIC Cavite Police Director Supt. Mafelino Bazar, Imus Police Chief Supt. Red Maranan said the woman was nabbed while selling fake Mighty Menthols 100s and other cigarette brands.

The woman was charged with violating RA 8293 or the Trademark Infringement and Unfair Competition Law.

The vendor’s arrest came after policemen in San Jose City, Nueva Ecija detained a suspect for supplying fake cigarettes to sari-sari stores in the city. The police responded to complaints from some wholesale stores that a vendor of fake Mighty and Marvels cigarettes was circulating around the city.

Just recently, PNP Police Chief Director-General for Operation Danilo Constantino issued an order to intensify the campaign against counterfeit products.

Constantino instructed the CIDG and all police field commanders to strengthen the campaign against counterfeit products, including fake cigarettes, in coordination with other concerned agencies like the Bureau of Customs and Bureau of Internal Revenue.

Constantino said that several apprehensions have already been made involving distributors and suppliers of fake cigarettes found in some shopping malls, markets, and even ambulant vendors.

Recently, close to 32,000 packs of fake cigarettes were seized in a raid headed by the BOC in Sta. Cruz, Manila.

According to Deputy Commissioner Ariel Nepomuceno of the BOC Enforcement Group (EG), the cigarettes consisting of Marlboro Red, Lights and Light Menthol; Philip Morris; Fortune Menthol, Lights, and Blue; Jackpot Menthol and Red; Marlboro Black Menthol; and Mighty Menthol 100s were found in four-story building in Sta. Cruz.

The BOC-EG head said fake cigarettes are being smuggled into the country and sold to the public.

Earlier, the BIR sought the assistance of the Department of Justice, which has jurisdiction over the National Bureau of Investigation, to neutralize the lucrative trade of illegal cigarettes mostly in the provinces. These cigarettes are being sold at prices much lower than genuine products.

Most of the cigarettes carry the brand name Marlboro and since BIR commissioner Kim Henares could not ascertain the source of these cigarettes, she is drafting a regulation requiring Philip Morris Fortune Tobacco Corporation (PMFTC) and other factories to install CCTV cameras at their production lines and warehouses to monitor production and withdrawal. The BIR had earlier installed cameras at the Bulacan factory of Mighty Corp.

BIR Revenue Regulation no. 7-2014, which required the affixing of tax strip stamps, also provides for the apprehension of those caught in possession of illegal products, including those smoking these cigarettes. Mere possession is punishable under the Tax Code, without prejudice to the assessment and collection of the proper excise tax.

Remittances growing

A recent publication by Ken Research has projected the Philippine international remittance market is expected to reach $36 billion by 2019, and that of domestic remittance market, to $8.8 billion.

In its latest report entitled “Philippines Domestic and International Money Transfter Industry Outlook to 2019,” Ken Research said future growth of the remittance market is expected to be led by mobile money transfers and regions such as the US and Saudi Arabia.

In the Philippines, those driving the growth of the remittance sector include major banks such as Banco de Oro, BPI, and the Philippines National Bank, as well as remittance service providers (MTOs) such as Palawan Pawnshop, LBC and Cebuana Lhuilier.

The report further said the remittance market in the Philippines has witnessed growth in the recent years due to the rising number of overseas Filipino workers (OFWs), increase in OFW income, and increase in financial connectivity of people through online sources and brick and mortar remittance centers. The surge in growth has mainly originated from the increase in disposable incomes of OFWs in the US and the Middle East who account for a larger share of remittances, it said.

It pointed out domestic factors such as increase in banked populations, rise in mobile connectivity, and in increase in Internet penetration, along with decline in transaction fees have fueled the growth of domestic remittances across the Philippines.

The report said the money transfer market in the Philippines is comprised of a large number of players which include both banks and MTOs. Banks such as Banco de Oro, Bank of Philippine Island and the Philippine National Bank have held a dominant share in the international remittance market whereas Palawan Pawnshop, LBC and Cebuana Lhuilier have been the major money transfer companies in the local market.

It noted remittances have also been largely used to pay bills which include utilities, education and recharges.

According to the report, the bill payment market in the Philippines has been bolstered in the past five years with the increase in the basic income of the local population and a higher support from international remittances.

It expects the bill payment market of Philippines to grow at a considerable rate of 23.5% for 2015-2019. On the other hand, domestic and international remittances will reach $8.8 billion and $36 billion by the year 2019.

Ken Research noted “the increase in Internet connectivity and mobile penetration will streamline access to remittance services and elevation in the number of OFWs and their income will bolster the remittance market. Intensified competition will likely lead to reduction in transaction costs which will act as a hurdle for remittance service providers.”

For its part, WorldRemit said the report by Ken Research reflects the huge role mobile technology is now playing in remittances to the Philippines.

It noted Filipinos send home over $28 billion every year, the majority of which is still sent and received via high-street agents.

It said mobile-based remittances can be a game changer, that by eliminating the need for cash and paper processes, and the high costs associated with them, mobile money will play an increasingly important role in international money transfer.

The GSMA noted the cost of sending remittances via mobile money is 4%, significantly lower than the global average of 8-9%.

WorldRemit pointed out Filipinos are among the most digitally connected when it comes to staying in touch with friends and family. Mobile Internet penetration in the Philippines is the third highest in South East Asia, behind only Thailand and Malaysia, with mobile Internet adoption reaching 62% of total subscribers in 2014. With just 28% of the population having a bank account, but over half the population owning a mobile phone, mobile will be the first and only means of accessing financial services for many Filipinos.

 It added that although mobile money has taken longer to reach the same levels of adoption as in other regions such as Africa and Latin America, there are signs that is now changing.

WorldRemit senior mobile analyst Alix Murphy said about one in 10 Filipinos have received money via a mobile phone, according to the latest national financial inclusion survey. As of end-2014, there were 26.7 million mobile money accounts, handling around 217 million transactions and P716 billion ($15 billion) during the year. Mobile money plays a central role in the Central Bank of the Philippines (BSP) strategy to increase financial inclusion, for which it has been globally commended by the World Bank and other institutions, it noted.

 WorldRemit is currently serving Filipinos with low-cost instant international money transfers directly from their smartphone to any bank, cash-pick up agency or mobile money account.

For comments, e-mail at [email protected]