Phoenix Petroleum cleared from P5.1-B smuggling case
MANILA, Philippines - Davao-based Phoenix Petroleum Philippines Inc. has been cleared from a P5.1-billion smuggling case filed by the Bureau of Customs (BoC) last year.
In a disclosure, Phoenix Petroleum said the Department of Justice (DoJ) “dismissed all charges for smuggling and other alleged violations of the Tariff and Customs Code of the Philippines filed by the BoC against respondents Dennis A. Uy, president and CEO of Phoenix Petroleum and customs broker Jorlan Cabanes for lack of merit.”
Phoenix Petroleum said that in a resolution dated Nov. 16, the DOJ found no unlawful importations.
“It stated that the shipments subject of the case regularly passed through the customs house according to the standard proceure where the required documents and custom entries were filed and accepted,” the company said.
In May 2011, the BoC filed smuggling charges against Phoenix Petroleum for alleged fraudulent shipments worth P5.1 billion.
The BoC claimed that Phoenix Petroleum did not pay excise and value-added taxes and failed to submit import documents for the shipments of petroleum products from June 2010 to April 2011.
“The documents submitted by the respondents mostly emanated from the complainant BoC, which clearly showed that the payment of duties, taxes and fees covering the importations in question and its subsequent release were regular and above board,” Phoenix Petroleum said.
The listed firm was awarded as the top 1 importer in Davao City by BoC Port of Davao in 2011 and 2012 and the country’s top 7 importer in 2011 based on duties and taxes paid.
In the nine months to September, the oil firm recorded a five-percent growth in net income to P516 million.
As of end-September, Phoenix Petroleum had 275 retail stations, of which 173 are in Mindanao, 21 in Visayas, and 81 in Luzon.
Early this month, the company said it completed its P2.5-billion capital raising through corporate notes.
Phoenix Petroleum said the fund will be used to expand its retail station network and refinance short-term debts.
Phoenix Petroleum plans to double its service stations to at least 500 in the next five years through a nationwide expansion program.
The new retail stations will allow the company to maintain its position as the top independent oil firm in the country.a
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