The Bureau of Internal Revenue (BIR) and Bureau of Customs (BOC) are stepping up their campaign against illicit tobacco in Cebu as authorities destroyed seized cigarettes and cigarette-making equipment tied to P240.64 million in tax liabilities on Thursday, Aug. 13.
Finance Secretary Frederick D. Go led the destruction of the confiscated items following enforcement operations by the BIR Revenue Region No. 13 from October 2024 to June 2025 and continuing anti-smuggling efforts by the BOC.
The BOC has been intercepting illicit tobacco entering through ports, while the BIR’s Regional Strike Team has focused on illegal cigarette manufacturing, storage and distribution activities in Cebu.
During Go’s Cebu visit, authorities also inspected 11 containers holding unregistered, unlicensed and undeclared cigarettes seized in connection with BOC anti-smuggling operations.
BOC Deputy Commissioner Agaton Teodoro said recent customs operations also resulted in the interception of illicit tobacco, agricultural products and vape products in Cebu, Manila and Mindanao.
He said the bureau coordinates with the National Bureau of Investigation and the BIR in pursuing the cases.
BOC Port of Cebu District Collector Atty. Zsae Carrie C. De Guzman said authorities have yet to determine whether raw tobacco materials entered through the Port of Cebu, although the bureau is still investigating the possibility.
De Guzman said the BOC has tightened its monitoring at ports following recent seizures and plans to further strengthen border-control measures.
The BIR operations, meanwhile, led to the seizure of illicit cigarette products, counterfeit internal revenue stamps, manufacturing machinery, cigarette raw materials, packaging materials, chemicals and other supplies used in illegal production.
BIR Revenue Region No. 13 Director Douglas Rufino said authorities identified a production site in Daanbantayan and a warehouse in Mandaue City.
The BIR assessed the tax liabilities from the unlawful manufacture, possession, storage and distribution of the seized cigarettes at P240,641,547.71, including administrative penalties.
Authorities arrested seven individuals and filed charges for excise tax violations, including unlawful possession of raw materials and failure to affix tax stamps. Rufino said the suspects are currently out on bail.
Among the confiscated equipment were cigarette-packing machines capable of large-scale production, allowing operators to manufacture cigarettes at volumes comparable to legitimate manufacturers.
Authorities shredded the seized cigarettes and other materials and dismantled the machinery to prevent them from being reused.
Go said the government loses potential revenue when traders misdeclare or fail to declare products subject to excise taxes, including tobacco, liquor and fuel.
“We have foregone revenue that could be used to help the programs of the government and help the people of our country,” Go said.
Rufino said illicit cigarettes manufactured locally can be sold at significantly lower prices because illegal operators avoid paying taxes, giving them an unfair advantage over legitimate businesses.
Go also warned that consumers could face health risks from illicit tobacco products because unauthorized products do not undergo the same regulatory controls as legitimate cigarettes.
The BIR and BOC have continued coordinating their enforcement efforts. Go said the two agencies seized a combined P1.7 billion worth of illicit tobacco products in June and July 2026.
Much of the seized tobacco remained under BOC custody and was undergoing the appropriate legal process, Go said.
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