THE Naval Forces Eastern Mindanao (Nfem) intercepted a motorboat carrying ₱44 million worth of undocumented cigarettes off the coast of Pantukan on January 15, 2026.
Nfem recovered 1,118 boxes of cigarettes believed to have come from Jolo, Sulu, according to a crew member. The crew said the shipment was meant to be transferred to smaller motor bancas for distribution to nearby municipalities.
During a routine maritime patrol at around 7:40 p.m., Nfem personnel spotted the suspicious motorboat and moved to intercept it. Thirteen Filipino crew members were found on board.
“This successful operation underscores Nfem’s continued commitment to safeguarding the country’s maritime domain and enforcing laws against smuggling and other illegal maritime activities,” Nfem said in a Facebook post on January 19.
The crew was escorted to Camp Panacan Station Hospital for medical checkups. The Bureau of Internal Revenue–Davao Region (BIR-Davao) inspected the vessel, unloaded the contraband, and took custody of it in line with standard procedures.
Legal framework
Republic Act No. 10863, or the Customs Modernization and Tariff Act of 2016, punishes those involved in the illegal sale of tobacco products with fines and imprisonment. Executive Order No. 245, which governs the exportation and importation of leaf tobacco and tobacco products, sets additional rules for the industry.
Locally, Davao City Councilor Rachel Zozobrado has raised concerns about counterfeit cigarettes. In an October 7, 2025, speech, she noted that these products are often made without quality control and may contain toxic substances, posing serious health risks. She referred her speech to the City Council’s Committees on Trade and Commerce and Health, which are expected to investigate the scope and impact of counterfeit cigarette distribution.
Illegal tobacco trade
Mindanao accounts for roughly half of the country’s illegal tobacco trade, according to the 2024 Kantar Open Pack Survey. Lanao del Sur leads with a 94.2 percent illicit rate, followed by Maguindanao (73.2 percent), Davao de Oro (69.6 percent), Sarangani (68.2 percent), and Davao del Sur (44.7 percent).
In many areas, eight out of 10 cigarettes sold come from illegal sources. Authorities have identified more than 30 smuggling routes, mostly from Sabah, Malaysia, and Indonesia. Smugglers transport the products by sea or land, distributing them to wholesalers, retailers, and even door-to-door sellers.
Davao City’s illicit cigarette rate stands at 54 percent, with several barangays reportedly selling counterfeit products. RGP