The Market Monitor Minding the Nation's Business
Customs authorities have intercepted a tanker and four trucks involved in the transfer of unmarked fuel at the Port of Batangas.
In a statement on Thursday, Bureau of Customs (BOC) Commissioner Bienvenido Rubio announced that a joint operation by the Customs Intelligence and Investigation Service (CIIS) and the Enforcement and Security Service (ESS) led to the apprehension of the tanker MTKR Cassandra on Tuesday night.
Fuel marking tests conducted on the seized fuel revealed it lacked the necessary markings, indicating non-payment of duties and taxes. This prompted the BOC Port of Batangas to issue a warrant of seizure and detention for the fuel, the vessel, and the trucks involved in the operation.
“Our efforts to combat these illegal activities are ongoing. We have been monitoring this group for months, and now, we have
caught them. The dedication and perseverance of our officers led to the successful seizure of this tanker and the trucks,” Rubio said.
The seized tanker is valued at approximately PHP300 million, with its cargo of 1.8 million liters of fuel—priced at PHP50 per liter—worth an estimated PHP90 million. The four trucks, each valued at PHP3 million, bring the total value of the vehicles to PHP12 million.
CIIS Director Verne Enciso explained that the authorities had been tracking a scheme known as “paihi”—an illicit fuel transfer operation.
“Upon receiving reports of illegal fuel activities at the Port of Batangas, we immediately verified the information and planned an inspection. Coordinating with local port officers and enforcement units, we caught MTKR Cassandra in the act of transferring fuel to the trucks on Tuesday night,” Enciso said.
Enciso added that the team demanded the ship’s captain, whose identity was not disclosed, to present crew documents and legal proof of the berthing and discharge activities. However, the captain could only provide the crew’s seaman’s books, failing to produce any other documentation.
As a result, the vessel and trucks were seized on Wednesday and are currently docked at the Batangas Port, under guard by BOC personnel.
The owners, ship captain, and crew now face possible charges for violations of Sections 117 and 1113, in relation to Section 1401 of Republic Act (RA) 10863, or the Customs Modernization and Tariff Act (CMTA), as well as Section 80 of RA 10963, also known as the Tax Reform for Acceleration and Inclusion (TRAIN) Law.