The Department of Interior and Local Government (DILG), Philippine National Police (PNP), and the Bureau of Customs (BOC) presented to the media an illegal cigarette factory at Barangay Panipuan in the town of Mexico, Pampanga on 5 February 2026.

DILG Secretary Jonvic Remulla, PNP Chief PGen. Jose Melencio Nartatez Jr., and BOC Commissioner Ariel Nepomuceno led the presentation on the illegal cigarette factory that was concealed inside a warehouse.

Remulla said that the factory started operations in January of this year, with three machines that can produce up to P150-million worth of cigarettes on a daily basis.

The PNP and the BOC raided the warehouse on 28 January, which resulted in the arrest of six Chinese and 63 Filipinos and the recovery of P400 million worth of smuggled cigarettes.

The operation targeted the warehouse operating without valid permits that was producing unauthorized cigarette brands. Large volumes of cigarettes branded as “Two Moon,” as well as cigarette-making machines and materials for brands like Mighty, H&P, Playboy, and Carnival were found.

Authorities discovered scattered tax stamps being checked for authenticity by the Bureau of Internal Revenue (BIR) and found that the machinery lacked proper import permits, suggesting they were smuggled.

The brands found at the site are reportedly identical to those seized in a separate P1.1 billion operation in Batangas in December 2025, suggesting a wider illicit distribution network.