Smuggled cigarettes flood Manila

The prevalence of illicit Chinese cigarettes in the Philippines is alarming.

The Philippines has asked its peers in the region for help in banning the export of untaxed cigarettes and the illicit sale of cigarette-making machines.

In the wake of the recent seizure of illegal tobacco products in Manila, Finance Secretary Carlos Dominguez III vowed increased vigilance against illicit trade activities.

The Finance chief said he will instruct the Bureau of Customs (BoC) to boost cooperation with its counterparts in China and other countries in the region.

“We are increasing vigilance against non-tax paid cigarettes from all sources. I will order the BoC to alert their counterparts in China and all the ASEAN countries to the practice of exporting untaxed cigarettes to the Philippines,” Dominguez told reporters.

Earlier, a Bureau of Internal Revenue (BIR) strike team raided a warehouse owned by Jayson DHK Trading in Binondo, Manila, and confiscated several Chinese-brand cigarettes amounting to 145 master cases or 1.45 million sticks.

“The prevalence of illicit Chinese cigarettes in the Philippines is alarming,” the BIR said.

BIR Revenue Officer Remedio Advincula Jr., who led the strike team said the rampant supply of smuggled cigarettes is traced to the growing Chinese market in the country.

According to him, seized Chinese cigarette brands like Double Happiness, YunYan, Septwolves, Ligun and Changbaishan do not bear the necessary tax stamps and the required graphic health warnings.

“Filipinos don’t patronize these brands, that’s why I suspect they only cater to Chinese smokers who are here,” Advincula explained.

Latest data from the Department of Tourism bared an influx of 1.20 million Chinese tourists in the first eight months of the year.

Customs Commissioner Rey Leonardo Guerrero said Chinese customs officials acknowledged the Philippines’ concern over the exportation of illicit tobacco-making machines and agreed “to look into the matter.”

“I asked them if they could stop the exportation because this is creating problems,” Guerrero said.