The Department of the Interior and Local Government has uncovered a large-scale counterfeit cigarette operation in the Negros Island Region, seizing an estimated P784 million worth of fake products and arresting 10 Chinese nationals.

Interior Secretary Jonvic Remulla personally inspected the illegal manufacturing plant on Friday following the raid, which also resulted in the rescue of 15 workers allegedly operating without proper documents.

Remulla credited local government units, the Philippine National Police, and the Criminal Investigation and Detection Group for the operation, which he said targeted a syndicate supplying counterfeit cigarettes across Negros and other parts of the Visayas.

Initial findings show Bacolod City was being used as a storage and consolidation hub, while manufacturing was allegedly done in nearby Bago City.

A police major suspected of protecting the operation is now in custody and under investigation. Authorities said the facility may have had the capacity to produce massive volumes of fake cigarettes for distribution across the region.

Remulla noted that the crackdown is part of the Marcos administration’s intensified campaign against illicit tobacco trade, which deprives the government of billions in excise taxes meant for healthcare and social services.

From December 2025 to April 2026 alone, nearly P4 billion worth of illegal cigarettes have been seized nationwide in operations in Negros, Bulacan, Pampanga, Metro Manila and Cebu.

Officials also warned of links to online sales and illegal online sabong, citing a separate Cebu City facility in a PEZA zone that was found exporting most of its output to Malaysia.

Counterfeit cigarettes, often sold at around P150 per pack compared with P180 for legitimate brands, pose unfair competition and potential health risks due to unregulated production.

Remulla emphasized the need for local intelligence and inter-agency coordination, warning retailers and distributors that selling fake tobacco products carries serious criminal liability. The suspects may face charges under the Anti-Agricultural Smuggling and Sabotage laws, as well as cases involving falsified identities.