Aquino administration to carry on fuel marking scheme

MANILA, Philippines - The Aquino administration will continue to implement the fuel-marking scheme implemented by the previous administration in a bid to plug the rampant smuggling of oil imports.

Customs Commissioner Angelito Alvarez said the fuel-marking scheme has been proven effective and would thus be retained. “We are continuing that,” Alvarez said.

He said the government is losing roughly P20 billion a year in the smuggling of oil imports in the country.

Two weeks ago, the BOC filed charges against alleged a company that allegedly was able to import P8.5 billion worth of petroleum products between March 2009 and September this year. Charged before the Department of Justice (DOJ) were the owners behind the Cross Country Oil and Petroleum Corp., a small and undercapitalized company that was able to engage in the importation of oil.

The previous administration went full blast with its fuel-marking program to curb the problem of smuggling.

It issued Department Order 18-2010 which requires mandatory coverage of all fuel imports to help prevent revenue leakages, resulting from the processing of kerosene products entering the country.

 “The coverage of the fuel marking program is expanded to include all kerosene products and dual purpose kerosene shipments into the country even if the corresponding duties and taxes thereon have been paid,” the Finance department order said.

As such, the Finance department said the Program Implementation Office has been directed to ensure that the mandatory marking of kerosene including DPK is implemented by the Bureau of Customs in all ports nationwide.

The department also wants to ensure that “the necessary technical, operational and administrative structures are in place for the smooth implementation thereof, including is proper dissemination to all parties and offices concerned.

Last February, the government went full-blast with its fuel-marking project, which involves the use of a liquid chemical substance for marking imported diesel and kerosene that enter the country duty-free.

Before going full-blast with the project, the government did several pilot tests at the Ports of Subic and Clark last year.