Malabon, Parañaque raids yield P3.72 billion of smuggled vapes

Agents of the Customs Intelligence and Investigation Service of Manila International Container Port inspect a Malabon warehouse, where illegally imported e-cigarettes or vapes from China were recovered, on Thursday, February 29, 2024. Photo from the Bureau of Customs

MANILA, Philippines — Separate raids of warehouses in Malabon and Parañaque City on Thursday led to the confiscation of around P3.72 billion worth of allegedly smuggled e-cigarettes or vapes from China.

The operations were conducted amid the government’s continuous crackdown on tax evasion for such products.

Customs Commissioner Bien Rubio on Friday said the agency issued Letters of Authority against the two warehouses as part of their ongoing and active investigation, confiscating products with an excise levy worth more than P1.8 billion.

“We are not yet done examining these warehouses, but we will be able to determine at the soonest time possible the exact amount of smuggled vapes they contain,” Rubio said in a statement.

READ: Rep. Rufus Rodriguez tells BOC, BIR to file raps vs vape firms

“I hope this seizure serves as a reminder to those who look to circumvent our laws,” he added.

Parañaque raid

Verne Enciso, director of the Customs Intelligence and Investigation Service, said the warehouse located in Olivares Compound, in Barangay San Dionisio, Parañaque City was found with an estimated 1.5 million pieces of the Flava brand e-cigarette in assorted flavors.

The vapes are contained in 15,000 boxes, with each box holding 100 pieces of e-cigarettes.

Customs said the value of the confiscated vapes from this warehouse was approximately P750 million. But if the excise levy of P780 million was added, the total would be P1.53 billion.

Malabon raid

In Malabon City, Enciso said the raid in Superb Catch Inc. in Barangay Catmon yielded more or less 1.98 million pieces of vape contained in 19,800 boxes with each box holding 100 pieces of e-cigarettes.

The customs official said that at P550 each, the seized e-cigarettes have a total market value of P1.089 billion. He explained that one vape would have an excise levy of P520 – thus, for the confiscated lot, the tax collected by the government would have been P1,029,600,000.

Enciso added that the total value of the 1.98 million pieces of vape was P2,118,600,000.

During the same raid, the customs official said their team also discovered a temporary unplug cold storage unit supposedly being used to store a still undetermined quantity of vape products.

A wing van truck was also spotted unloading stocks of vape products during the inspection in the area, he further said.

House probe

A similar raid in 2023 that resulted in the seizure of billions of pesos worth of vapes in Valenzuela prompted the House of Representative to launch an investigation.

READ: House panel subpoenas execs of 2 vape firms for tax evasion

On Oct. 27 last year, the Bureau of Customs’ operation in the city yielded P1.43 billion worth of Flava e-cigarettes. Eventually, the House committee on ways and means summoned three officials of vaping companies accused of tax evasion.

A House panel on Feb. 20 recommended the filing of criminal complaints against the vape companies.