BoC impounds ‘paihi-involved’ vessels

At least P200 million worth of unmarked fuels were seized by the Bureau of Customs (BoC) after it was discovered that two vessels were allegedly involved in the illegal fuel transfer or “paihi” modus operandi at the Navotas Fish Port.

Based on the report Customs Intelligence and Investigation Services-Manila International Container Port (CIIS-MICP), the operation on 18 September 2024, 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.

BoC-CIIS director Verne Enciso underlined how the derogatory information they received about the fuel tankers led to the operation that seized 370,000 liters of unmarked fuel from the two vessels.

In particular, MT (motor tanker) 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 Task Force Aduana and boarded one of the PCG’s water assets to conduct anti-smuggling operations in the areas of Navotas Fish Port,” Enciso said.

When the team arrived at the area, the BoC agents witnessed an ongoing illicit shipside fuel transfer 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 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.

Meantime, 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,” Uy said.

The BoC maintained that it would continue to be relentless in its efforts against oil smuggling in all forms, including the “paihi” modus. It is closely coordinating with the Department of Justice in its investigations regarding the illegal activity.