Bureau of Customs seizes diesel fuel sold outside Clark

MANILA, Philippines - The partnership between the government and the fuel industry to weed-out smuggled fuel away from the legal market, bore fruit, with the forfeiture in favor of government of 954.5 liters of imported diesel fuel, diverted outside the Port of Clark. 

The diesel fuel was imported tax and duty-free on condition that it was sold only within the Freeport Zone, in this case, the Port of Clark. Authorities seized the shipment for non-payment of duties, taxes and other charges.

Origin of the fuel was traced because it had previously been invisibly marked at the time of entry into the Philippines by Societe Generale de Surveillance (SGS), the service provider appointed by the Department of Finance under the Department’s Fuel Marking Program. (Department Order 23-07.) The invisible marker is manufactured by Authentix of UK. Tax and duty free diesel fuel, for use only within the Freeport Zone, is marked with an invisible marker by SGS.

During a subsequent sampling exercise by Bureau of Customs (BOC) operatives, marked diesel fuel was found in possession of Gas Mass Station without payment of duties and taxes when it had no authority to possess such fuel.

The fuel was seized and the case was heard by the District Collector, Clark Port.

After a series of hearings, BOC hearing officer, district collector Edward P. dela Cuesta, issued the forfeiture order after Gas Mass Station in San Simon Pampanga failed to show evidence that it had paid the corresponding taxes and duties on the seized diesel fuel.

The illegal diversion of diesel fuel from the Freeport zone is one of the modus operandi that has been used in the past by the fuel smugglers.

Marking the fuel with an invisible marker has already proved to be an effective way of apprehending such illegal diversions and several seizures have already been made.

The Department of Finance (DOF) implemented the Fuel Marking Program with SGS to curb rampant fuel smuggling in the Freeport Zone with good results. 

The DOF recently announced its intention to expand the coverage of the fuel marking program.