Illicit vape products seized in Bulacan raid

Illicit vape products seized in Bulacan raid | Daily Tribune

Authorities have cracked down on an online-enabled illicit vape operation fronting as a legitimate business, seizing 18,811 vape products and counterfeit tax stamps in Guiguinto, Bulacan.

The enforcement operation, conducted by The Bureau of Internal Revenue (BIR), led by Commissioner Romeo Lumagui Jr., in coordination with the National Bureau of Investigation (NBI)-Organized and Transnational Crimes Division, was the product of surveillance of online sales activities on Facebook, which provided bases for the issuance of a mission order and a search warrant.

“We want to send a loud and clear message to those selling illicit vape products: the BIR and NBI will pursue you wherever you hide — online or onsite,” Lumagui said. “The long arms of the law extend into the cyber realm — and we will find you,” he warned. Lumagui also assured that the BIR will exercise its powers to stop illicit trade.

The team raided two establishments: a vape lounge operating as a front for underground vape distribution and a makeshift warehouse located in a residential house. Inside the premises, authorities found 4,789 salt nicotine units and 14,022 conventional vape products, along with fake internal revenue excise stamps and counterfeit disposable vapes.

“To put the scale of the haul into perspective — kung conservative po tayo — assuming one disposable vape lasts an average user one week, this means that 18,811 seized units could supply over 4,700 underage users for a month, assuming each one vapes daily,” he explained

Lumagui further expounded that the vape products seized in the operation could have been distributed to over 5,000 kids. “These aren’t just tax violations — they are a threat to the health of our children. That’s why we’re going after illicit traders, whether they operate in public markets or hide behind Facebook accounts and residential homes.”

Several employees were found manning the online and onsite operations during the raid — including online sales agents — and are set to be charged criminally, alongside the proprietor, for multiple violations of the National Internal Revenue Code (NIRC).

Charges under Article 172 of the Revised Penal Code (Falsification of Commercial Documents) are also being prepared.

The BIR estimates the total deficiency tax assessment at ₱36.51 million, inclusive of surcharges, interest and penalties. The basic excise tax liability from the confiscated products alone is pegged at ₱3.49 million.

The BIR noted that the business was employing an illicit layering scheme, issuing a mix of registered and unregistered receipts to mask illegal sales. However, Lumagui revealed that the BIR’s implementation of new strip stamps has made it easier for BIR agents to identify fake and untaxed products.

The BIR has seen a dramatic increase in vape excise tax collections following the 2024 rollout of its digital stamp verification system. In 2023, only 11.2 million milliliters of vape liquids were taxed, generating ₱223.75 million. After the stamp system’s implementation in June 2024, collections surged to ₱942 million from 130 million milliliters in just one year.

“Illicit vape sellers are hiding their products in residential houses,” lamented Lumagui. “They are hiding their illicit operations in residential communities. If you suspect that your neighbor is engaged in the selling or warehousing of illicit vape products, immediately report the same to the BIR. Illicit vape criminals have no place in our neighborhoods.”