BOC impounds two tankers over P20 million ‘paihi’ scheme

MANILA, Philippines — Operatives of the Bureau of Customs (BOC) have impounded two motor tankers believed to be engaged in a “paihi” scheme of smuggling over P20 million worth of unmarked fuel in the waters off Navotas.

BOC Commissioner Bienvenido Rubio said personnel from the Customs Intelligence and Investigation Services-Manila International Container Port conducted an investigation into the alleged involvement of MT Tritrust and MT Mega Ensoleile in fuel smuggling at sea.

Paihi is a scheme wherein larger vessels offload oil to smaller tankers to avoid payment of taxes.

During the operation conducted with the assistance of EG-Fuel Marking Agents and the Philippine Coast Guard (PCG)’s Task Force Aduana, authorities reportedly discovered P20.350 million worth of highly dutiable petroleum products without proper fuel markings, which indicates the non-payment of taxes.

The BOC said it conducted the operation after receiving information about the alleged illegal activities of the tankers.

Up to 370,000 liters of unmarked fuel were recovered from the tankers.

Rubio warned groups involved in fuel smuggling that nothing will stop the BOC from performing its mandate “of protecting our borders and ensuring that only safe oil products reach our markets.”