BOC turns over seized fuel to military, Coast Guard

0
742
Bureau of Customs staff conducting fuel inspection. Photo from the Bureau of Customs.
  • The Bureau of Customs turns over 47,000 liters of seized fuel to military, Coast Guard
  • A total 47,356.80 liters of fuel confiscated by the BOC will be donated to the Armed Forces of the Philippines (AFP) and the Philippine Coast Guard (PCG)
  • These fuel stocks were removed during the Customs’ enforcement activities under the Fuel Marking Program
  • BOC will turn over a total of 41,356.80 liters of unmarked or illegal fuel stocks to the Coast Guard
  • Customs will donate 6,000 liters of automotive diesel fuel to the military under a mutual assistance agreement

The Bureau of Customs (BOC) turned over 47,356.8 liters of seized fuel to the Armed Forces of the Philippines (AFP) and the Philippine Coast Guard (PCG), as approved by the Department of Finance (DOF).

The PCG will receive 41,356.8 liters of fuel to and the military, 6,000 liters.

These fuel stocks were seized during the BOC’s enforcement activities under the Fuel Marking Program.

Fuel marking, which involves injecting chemical identifiers into tax-paid oil products, is being carried out under the Tax Reform for Acceleration and Inclusion (TRAIN) Law to curb smuggling of petroleum products.

READ: PH fuel marking program implementing rules issued

Unmarked fuel stocks

Diesel fuel totaling about 11,000 liters were seized by the BOC on February 24, 2021 inside the premises of Joycel Bus Lines in Caloocan City after field tests showed that these were unmarked, meaning no duties and taxes were paid for them.

The forfeiture order for the unmarked fuel became final and executory on January 27, 2022, clearing the way for its donation to the PCG.

The BOC also found 23,999 liters of unmarked diesel fuel stored in the facilities of Lemiz Fuel Station, and Star Oil/Min Ley Gasoline Station both located in Meycauayan, Bulacan, and at the Fuel Source Gas Station in Cabanatuan, Nueva Ecija during several field testing operations done in Metro Manila and nearby provinces late last year.

These unmarked fuel stocks were forfeited in favor of the government on January 5, 2022 and will also be given to the Coast Guard.

Also up for donation to the PCG is 6,357.8 liters of fuel the BOC confiscated in September 2021 at a retail gas station in Arayat, Pampanga operated by Luzon Petromobil Integrated Service Stations Inc.

Mutual assistance agreement

In line with the provisions of its mutual assistance agreement with the AFP, the BOC will also donate 6,000 liters of automotive diesel fuel to the military.

Under their agreement, the AFP will provide the manpower needed to assist the BOC in its law enforcement activities while the latter will, upon forfeiture of its seized illegal fuel, donate them to the AFP.

Under Section 7 of the Department of Finance (DOF)-BOC-Bureau of Internal Revenue (BIR) Joint Circular (JC) No. 001.2021, petroleum products that are unmarked, with diluted markers, or have counterfeit fuel markers shall be subject to duties and taxes, inclusive of the appropriate fines and penalties.

This is without prejudice to the confiscation and forfeiture of such products and the filing of the appropriate criminal cases against those liable for violating the law.

Section 1141 of the Customs Modernization and Tariff Act (CMTA) permits goods that are subject to forfeiture proceedings to be donated to another agency, upon the approval of the Secretary of Finance.