Government to start random tests for fuel marking program

MANILA, Philippines — The government will start random field tests of fuel products nationwide to monitor the market’s compliance with the Fuel Marking Program, the Bureau of Customs (BOC) said yesterday.

Customs assistant commissioner Vincent Philip Maronilla said revenue and customs personnel will immediately start conducting random field tests in oil refineries, terminals, depots, and vessels following the issuance of joint memorandum circular 2021-001.

“The JMC was published last Tuesday, Feb. 2. Six to eight weeks of transitory testing will be conducted, after which full enforcement will follow,” Maronilla told The STAR.

Pursuant to the circular, the government will form a Joint BIR and BOC field testing special task force, which will perform field testing activities and coordinate on matters concerning petroleum products.

“The FIU (field inspection unit) is deputized to perform necessary function to effect search, seizure and arrest related thereto. For this purpose, BOC and BIR shall each provide a list of FIU officers to be included in the deputization order to be issued by each agency pursuant to its existing rules and regulations,” the issuance stated.

The circular laid out the responsibilities of various stakeholders, including the fuel marking service provider (SICPA-SGS Philippines), fuel owners and their representatives, and the FIU.  It also lists the procedure to be followed in the conduct of random field tests.

According to the joint circular, the FIU must secure a mission order authorizing the conduct of field testing in locations identified in the field testing plan.

“Field testing shall be conducted in locations where fuel are transported, sold or stored, regardless if the facility is open to the public or for use of a limited group or person,” it said.

The cost of the product testing shall be shouldered by the fuel owner.

During the test, the service provider shall prepare the samples for testing and present them to the FIU, and the owner or representative before placing them in the mobile fuel analyzer.

A test would indicate a “Fail” result if the marker content in the sample to be lower than 95 percent. In this case, the same sample will be retested to confirm the initial result.

If the re-test still indicates a “Fail” result, the appropriate enforcement action and procedures for confirmatory test shall immediately be conducted.

Samples with results indicating a marker content exceeding 100 percent  shall also be subject to audit and investigation by the FIU.

“Petroleum products found without the official fuel marker or does not contain the required level of official fuel marker, shall be subject to duties and taxes, inclusive of the appropriate fines and penalties, without prejudice to the confiscation and forfeiture of such unmarked or diluted fuel and the filing of the appropriate criminal case,” the circular read.