P4 million in illicit cigarettes seized

CEBU, Philippines — Another bulk of suspected illicit cigarettes valued at P4.722 million was seized by authorities following simultaneous operations in Cebu City.

The operation, conducted on June 24, 2024, resulted in the confiscation of products carrying an estimated basic excise tax liability of P343.12 million, according to the Bureau of Internal Revenue (BIR).

According to the BIR, authorities flagged 10 container vans loaded with suspected illicit cigarettes during simultaneous raids in Villa Del Rio 1, Barangay Bacayan, and the Carlos A. Gothong Yard in the Pier 7 area of Cebu City.

The operation was jointly conducted by the BIR Revenue Region No. 13-Central Visayas, the National Bureau of Investigation (NBI) Region VII, the Philippine National Police (PNP) Regional Office VII, the PNP Regional Maritime Unit 7, the Bureau of Customs (BOC) Region VII, and the Philippine Coast Guard (PCG) District Central Visayas, in line with the government's intensified campaign against the manufacture, distribution, and sale of illicit cigarette products.

Seven container vans seized in Barangay Bacayan contained an estimated 3.24 million packs, while three vans intercepted at the Carlos A. Gothong Yard carried around 1.482 million packs, bringing the total to 4.722 million packs.

BIR Commissioner Charlito Martin R. Mendoza said the operation reflects the government's commitment to protecting legitimate businesses and ensuring that tax evaders and smugglers are held accountable.

“This successful joint operation underscores the government’s unwavering commitment to protecting legitimate businesses, safeguarding government revenues, and holding accountable those engaged in the illicit cigarette trade,” Mendoza said.

“We will continue working closely with our partner agencies to ensure that tax evaders and smugglers face the full force of the law,” he added.

The BIR said the inventory and validation of the seized cigarette products, along with the final determination of the corresponding tax liabilities, are still ongoing.

Authorities are also pursuing further investigations to identify the individuals and entities behind the alleged illicit cigarette operation, while enforcement activities continue at another location in the Pier 3 area of Cebu City.

Customs Commissioner Ariel Nepomuceno, for his part, said the crackdown on the illegal cigarette trade will continue as authorities work to dismantle smuggling networks after a recent joint law enforcement operation in Cebu also led to the seizure of illicit cigarettes worth an estimated P860 million.

“Hindi tayo titigil sa pagsugpo sa iligal na kalakalan ng sigarilyo na nagpapahina sa lehitimong negosyo at nagkakait ng kita para sa pamahalaan. Through sustained intelligence operations and close coordination with our partner agencies, the Bureau of Customs will continue to pursue those responsible and dismantle the networks that enable illicit trade," Nepomuceno said in a statement.

Initial investigation showed that the shipments were transported through domestic routes using a local shipping line for distribution.

The BOC–Port of Cebu is currently coordinating with officials of the shipping line to trace the origin and movement of the shipments.

The latest seizure follows the BOC's interception earlier this week of 23 containers of illicit cigarettes worth about P1.7 billion at a private wharf in Manila.

Combined with the Cebu operation, authorities seized approximately P2.5 billion worth of illicit cigarette shipments last week, highlighting the importance of inter-agency cooperation in combating smuggling activities.

“This accomplishment demonstrates the value of strong inter-agency coordination. The Port of Cebu remains steadfast in its commitment to strengthen its enforcement efforts through close collaboration with other agencies,” Yap-Lumontad said. (CEBU NEWS)