The Bureau of Customs (BOC) has initiated inquest proceedings with the Office of the City Prosecutor of Navotas City against responsible officers and 24 crew members of two vessels, following their seizure for involvement in the illegal transfer of unmarked fuel, commonly referred to as the ‘paihi’ modus operandi in the Navotas anchorage area.

The vessels were intercepted on September 18, 2024, during a coordinated anti-smuggling operation targeting unmarked fuels. Agents from the BOC, alongside the Philippine Coast Guard, found the vessels engaged in illicit fuel transfer activities. Subsequent fuel marking tests revealed that the diesel fuel onboard the subject vessels were unmarked, indicating non-compliance with the National Internal Revenue Code (NIRC) and the Tax Reform for Acceleration and Inclusion (TRAIN Law).

An inventory of the seized fuel indicated that the first vessel contained approximately 320,463 liters, while the other vessel held about 39,884 liters.

The the officers and crew members of the subject vessels face charges for violations of Section 1401 of the Customs Modernization and Tariff Act (CMTA) and Section 148-A of the National Internal Revenue Code (NIRC), as amended by Section 44 of R.A. 10963 (TRAIN Law), and Sec. 265-A of the NIRC as amended by Section 80 of R.A. 10963 (TRAIN Law).

Section 1401 of the Customs Modernization and Tariff Act (CMTA) and the NIRC.

Commissioner Bienvenido Y. Rubio emphasized the importance of this case in the BOC’s ongoing anti-smuggling operations, stating, “This operation serves as a clear message to those engaged in illicit fuel activities. We will pursue legal action against violators and ensure that they are held accountable to protect the country’s revenues and uphold the law.”

The BOC continues to reinforce its anti-smuggling efforts and will pursue all necessary legal measures against offenders.