P20M worth of fake iPhone units intercepted at Manila port

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Photo from Bureau of Customs.
Some of the counterfeit phones seized by Bureau of Customs officials at the Manila port. Photo from BOC Twitter account.

A shipment with P20 million worth of counterfeit iPhones and dry goods was recently uncovered at the Manila International Container Port by agents of the Bureau of Customs (BOC).

The cargo was consigned to Autum Way Enterprises with address at Regina Building, Escolta Street, Binondo, Manila, said Customs Commissioner Nicanor Faeldon. A certain Mario R. Botona, Jr., of West Fairview, Quezon City, was the signing licensed customs broker.

The shipment was initially placed on alert after the Intellectual Property Rights Division (IPRD) received reports of possible violation of Republic Act No. 8293, or the Intellectual Property Code of the Philippines. The shipment was placed under surveillance for a week until it arrived at the port last January 12 from China.

Faeldon said the shipment was put on hold through an alert order requested by Intelligence Group deputy commissioner Teddy Sandy Raval.

Upon examination, the IPRD Team found about 400 iPhone units hidden in sacks and co-mingled with the declared goods.

Customs Intelligence and Investigation Service director and BOC spokesperson Neil Anthony Estrella, quoting an intelligence report, said the shipment was declared to contain wall clocks, furniture, shoe racks, and shoes and shoe materials.

“The flagrant attempts of crooked importers to smuggle high-value communication items through misdeclaration will definitely be checked by BOC, and both the importer and broker will end up facing sanctions without prejudice from possible criminal charges that we will file in courts,” Estrella said.

Section 1401 (e) of Republic Act No. 10863, or the Customs Modernization and Tariff Act of 2016, states that the penalty for misdeclaration is imprisonment of not less than six years and one day but not more than 12 years, or a fine of not less than P1.5 million but not more than P15 million, or both, if the appraised value of the goods unlawfully imported exceeds P5 million but is not more than P50 million.

“It is [obvious] that there is a possible violation of Section 1400 in relation to Section 1113 of Republic Act 10863, and BOC has to seize it for further investigation and filling of appropriate charges,” Estrella said.