Amid an intensified crackdown against the “paihi” modus, or the illegal transfer of fuel, the Bureau of Customs (BOC) seized on Wednesday, October 16, 2024, a fuel tanker and four lorries caught in the act of transferring smuggled fuel at the Port of Batangas.

A derogatory information received by the BOC-Customs Intelligence and Investigation Service (BOC-CIIS) led to a joint operation by the CIIS and Enforcement and Security Service (ESS) that caught a vessel transferring petroleum products into four lorry tankers.

Subsequent SGS fuel marking testing on the subject fuel yielded failed results, which meant that the fuel did not have proper markings indicating payment of duties and taxes, prompting District Collector Noah M. Dimaporo of the BOC-Port of Batangas to issue a Warrant of Seizure and Detention against the subject fuel, vessel, and lorries.

“Our swift response and thorough investigation led to this successful seizure. The illegal transfer of fuel undermines our efforts to ensure proper tax collection and fair competition in the industry,” said Atty. Dimaporo. “We remain vigilant in guarding against such unlawful activities and will continue to act decisively to protect government coffers.”

BOC Commissioner Bienvenido Y. Rubio said the operation was conducted in response to numerous information received about rampant fuel pilferage in the ports.

“Our operation against these individuals and groups is not a one-time thing. We have been monitoring them for months and finally, they are now on our hands. It’s the relentless efforts and the commitment of our officers to their mandate that led to the seizure of unmarked fuel, tanker and the lorries,” he added.

BOC-Customs Intelligence and Investigation Service (CIIS) Director Verne Enciso, whose team led the operation together with the BOC-ESS, said they have had their watchful eye on this paihi modus for some time now.
During the operation, the ESS-CPD, Port of Batangas while on roving inspection at the Domestic Docking Area, found suspicious lorry trucks parked beside a tanker vessel.

“When we received the information about the illegal activities at the Port of Batangas, we immediately verified it through our sources and made plans to inspect the said port. Our coordination with the local port officers and enforcement units led us to MTKR Cassandra, which we caught in the act of transferring fuel products into the lorries on Tuesday night,” he said.

The official added that the team immediately asked the ship’s captain to show the crew list and documents to prove the legality of the berthing and discharge.

However, the captain failed to provide documents except for the crew’s seaman’s books, leading to the seizure of the ship and lorries that are now docked at the breakwater in the vicinity of Batangas port and guarded by BOC personnel.

The ESS-CPD team and other local port officials held the 1 lorry truck with estimated volume of 40,000 liters with Plate No. NUB 1181, 1 Lorry truck with estimated volume of 14,000 liters, two (2) empty lorry trucks, one (1) L300 Van on site immediately. The alleged initial load of M/TKR Cassandra Tanker Vessel was estimated volume of 1.8 million liters.

“We have been cracking down on these organizations and individuals. But I must commend especially our people on the ground for ensuring information remains protected so that these groups are not tipped off and thereby avoid arrest,” he added.

“By utilizing their training and experience, our officers were able to disrupt these activities, hamper any progress made by such modus, and send shivers to unscrupulous individuals that we are resolute in our goal to pulverize them,” Deputy Commissioner Uy stressed.

The owners, ship captain, and crew of the seized vessels, fuel, and lorries will face possible charges for violation of Section 1113 in relation to Section 1401 of Republic Act 10863, or the Customs Modernization and Tariff Act (CMTA), as well as Section 80 of RA 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN) Law.

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