BOC uncovers P1.43B e-cigarettes in Valenzuela warehouse inspection

INTERCEPTED. Stacks of boxes containing suspected smuggled e-cigarettes or vapes worth about PHP1.43 are discovered during a Bureau of Customs (BOC) inspection of a warehouse in Valenzuela City on Friday (Oct. 27, 2023). BOC Deputy Commissioner Juvymax Uy said the warehouse owners and representatives would face possible violations of the Customs Modernization and Tariff Act if they could not present the proper documents and proof of taxes paid. (Photo from BOC via PNA)

MANILA – An inspection of a warehouse in Valenzuela City yielded about PHP1.43 billion worth of e-cigarettes or vapes, the Bureau of Customs (BOC) reported on Saturday.

According to the BOC, Friday’s initial inspection of the warehouse located at 18 Bagong Filipino Industrial Compound, M. Gregorio Street, Canumay West, Valenzuela City showed more or less 14,000 boxes containing an estimated 1.4 million pieces of 10-ml. disposable vapes bearing the mark FLAVA.

BOC Commissioner Bien Rubio said the PHP1.

43 billion is the total aggregate value of the goods with an estimated value of PHP700 million at PHP500 apiece, and the PHP728 million worth of excise tax based on the PHP52 excise tax per 1 ml. of e-cigarette or vape.

“Remember that we have an excise tax currently being imposed on tobacco products.

That’s why the value of this operation ballooned to more than PHP1 billion. These kinds of activities do not only adversely impact our local tobacco industry, but it also takes away from the government a sizeable chunk of money that we can use for our infrastructure programs, social services,” he said in a statement.

The Customs Intelligence and Investigation Service (CIIS) operation was given the green light by the BOC chief through a Letter of Authority (LOA) issued on Oct. 26, based on the information they received on Oct. 24.

“We received information that a warehouse in Valenzuela City is being utilized as storage of voluminous illegally imported e-cigarettes or vape products without proper payment of correct duties and taxes,” he said.

After verifying the information and identifying the warehouses, the CIIS requested the issuance of the LOA, which would demand the warehouse owner or representative to show proof of payment of duties and taxes and other importation documents, as needed, that would cover the goods found inside the warehouse.

Upon arrival at the warehouse, the LOA was received by Merrill Opena, operations outsourced head of the warehouse.

BOC Deputy Commissioner Juvymax Uy said the warehouse owners and representatives would be given time to present the proper documents and proof of taxes paid.

Without these documents, they would face possible violations of the Customs Modernization and Tariff Act, he said.

“We’re all probably aware and have seen viral videos, of vapes suddenly exploding. Beyond the illegality of these smuggling activities, what concerns us more is the danger posed by these products to unwitting customers,” Uy said.

“We’re not just here to stop the illegal entry of these kinds of products because of the taxes we’re losing, but one of our primary missions is to intercept products that could pose a serious health risk to consumers.”

The iinspection team was composed of the CIIS, Enforcement and Security Service – Port of Manila, and the BOC’s Legal Service, in coordination with the Northern Police District.