BIR-Davao, Navy, PNP-Maritime seize P507-M illicit cigarettes

BIR Davao, Navy, and PNP seize ₱507M in smuggled cigarettes off Davao Oriental in a major anti-smuggling operation.
BIR Davao, Navy, and PNP seize ₱507M in smuggled cigarettes off Davao Oriental in a major anti-smuggling operation.BIR
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AS PART of the intensified nationwide campaign against illicit trade, BIR Revenue Region No. 19 – Davao Region, spearheaded by OIC-Regional Director Narciso T. Laguerta and OIC-Assistant Regional Director Aileen A. Punzalan, with the personnel from the Regional Investigation Division, conducted the successful apprehension of illicit cigarettes transported via a motorized sea vessel, with an estimated tax liability and administrative charges totaling ₱507 million on May 1, 2026.

The operation stemmed from a joint maritime patrol conducted by the Naval Task Force 71 (NTF71) under Naval Forces Eastern Mindanao (NFEM), in coordination with the Philippine National Police (PNP) Regional Maritime Unit-Davao. 

While conducting routine patrol operations, authorities monitored a suspicious motorized sea vessel off the waters of Governor Generoso, Davao Oriental. The vessel failed to respond to standard maritime challenge procedures, prompting the joint patrol team to initiate a Visit, Board, Search, and Seizure (VBSS) operation.

The operation resulted in the discovery of 1,246 master cases of illicit cigarettes, believed to be originated from Jolo, Sulu. The vessel, identified as M/B Bukal, was manned by seven Filipino crew members. 

The seizure constitutes a violation of the National Internal Revenue Code of 1997, as amended, Republic Act No. 12022, otherwise known as the Anti-Agricultural Economic Sabotage Law, and other applicable laws for violations related to excise taxes, value-added taxes, and graphic health warning compliance.

Following the apprehension, personnel from NFEM, PNP-RMU-Davao, Davao City Police Office (DCPO) Police Station 4 (Sasa), and BIR RR19 Strike Team–Regional Investigation

Division conducted the unloading, inventory-taking, and proper documentation of the seized contraband. 

The illicit cigarettes were subsequently turned over to BIR RR19–Davao for appropriate disposition, while the crew members were placed under police custody for the filing of appropriate charges.

This successful operation underscores the firm commitment of the BIR and its partner agencies to strengthen enforcement efforts against illicit tobacco trade, safeguard government revenues, and ensure that all excisable products in the market are properly taxed. 

It also forms part of the Bureau’s broader campaign to curb smuggling activities and reinforce tax compliance across the country.

Under the leadership of President Ferdinand R. Marcos Jr., the BIR remains steadfast in advancing the vision of a Bagong Pilipinas through efficient, transparent, and responsive public service. 

Sustained enforcement operations form part of the Bureau’s revenue protection strategy under its reform agenda, aligned with broader economic policies aimed at strengthening investor confidence, enhancing the ease of doing business, and sustaining economic growth. PR

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