BOC to seize petroleum products if oil firms failed to comply with February deadline for fuel marking

January 29, 2020

The Bureau of Customs warned on Wednesday oil firms that their products would be confiscated if they fail to comply with the February deadline for the fuel marking program.

In a press briefing in Malacanang, BOC Assistant Commissioner Vincent Maronilla said all oil petroleum products that have been imported should be marked by February 9.

"We have already warned them that if they don't comply by Feb. 9, 2020, then whatever stocks that have not been marked, we will confiscate," he told reporters.

He said the BOC failed to fully implement the program last year. 

But this year, he said the BOC would fully enforce the marking program in accordance with the Tax Reform for Acceleration and Inclusion or TRAIN Law.

The program aims to curb oil smuggling and misdeclaration of petroleum products in the country and increase revenue collection from taxable imported and locally refined petroleum products.

The program uses an official fuel marker, a unique chemical marker detectable at a molecular level, allowing for authorities to test, identify, and distinguish petroleum products with paid excise taxes in the market from those without.

The BOC is targeting about P10 billion additional revenue for the full implementation of the fuel marking program.

Maronilla said failure to fully implement last year the program was one of the factors for the BOC's unmet revenue target of P661 billion last year. The agency was only able to collect P630.34 billion in 2019.

For this year, the BOC is eyeing P731-billion revenue.

Maronilla expressed hope that with the full implementation of the fuel marking program, the BOC could meet its revenue target for 2020.

"We are expecting that the economic environment for importation will be better now. Of course, we're guarding against some other issue which could affect here. But overall, we are confident that we will be able to meet this year's collection target," he added. Celerina Monte/DMS