BOC impounds 2 tankers allegedly involved in ‘paihi’

The Bureau of Customs (BOC) has taken custody of two fuel tankers that were allegedly involved in the illegal fuel transfer or “paihi” scheme, at Navotas Fish Port.

In a news release on Thursday, the BOC’s Customs Intelligence and Investigation Services (CIIS) said its Manila International Container Port (MICP) team seized the vessels during an operation on September 18, 2024.

The CIIS-MICP’s operation yielded P20,350,000 worth of unmarked fuel, or highly dutiable petroleum products, without proper fuel markings, “which indicates the nonpayment of necessary taxes and duties.”

“They should know by now that nothing will stop us from fulfilling our mandate of protecting our borders and ensuring that only safe and well-tested products reach our markets. With this operation, our BOC officers showcased their vigilance and relentless efforts in protecting our communities from illegal and potentially harmful products,” said BOC Commissioner Bienvenido Rubio.

“Our dedication to upholding the law remains unwavering,” said the Customs chief.

For his part, BOC-CIIS Director Verne Enciso said information the agency received about the fuel tankers led to the operation that seized 370,000 liters of unmarked fuel from the two vessels.

In particular, MT Tritrust carried 330,000 liters, while MT Mega Ensoleilee had 40,000 liters in its tanker.

“Upon receiving the derogatory information, our CIIS-MICP agents worked together with EG-Fuel Marking Agents and the Philippine Coast Guard (PCG) Task Force Aduana and boarded one of the PCG’s water assets to conduct anti-smuggling operations in the areas of Navotas Fish Port,” said Enciso.

When the team arrived at the area, the BOC-CIIS said its agents witnessed an ongoing illicit shipside fuel transfer or “paihi” in an attempt to evade duty and tax payments. 

“After spotting the vessels and explaining the purpose of the Mission Order to their representatives, the team conducted fuel marking testing, which the two vessels both failed,” said Enciso.

In addition to the P20.35 million worth of unmarked fuel, the CIIS-MICP team also valued the two tankers at P245 million for the MT Tritrust and P450 million for the MT Mega Ensoleilee.

The total value of the fuel and two vessels found by the BOC amounts to P715,350,000.

Intelligence Group Deputy Commissioner Juvymax Uy said that the team secured and guarded the vessels after the failed fuel marking test and requested the intervention of higher command to address the anchorage issues with the Philippine Ports Authority (PPA).

“Fortunately, PPA General Manager Jay Santiago promptly responded to our request, and we were immediately given space to anchor the fuel tankers at Pier 13 while the results of the final fuel marking testing and subsequent investigations were being done,” said Uy.

The BOC-CIIS maintained that it would continue to be relentless in its efforts against oil smuggling in all forms, including the “paihi” scheme. 

The agency said it is closely coordinating with the Department of Justice (DOJ) in its investigations. — Ted Cordero/BM, GMA Integrated News