Monday, April 21, 2025

Govt destroys P3.3B worth of smuggled vape products

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The Bureau of Customs (BOC) on Monday destroyed nearly three million pieces of smuggled electronic cigarettes, vape parts and accessories, valued at P3.26 billion.

In a statement, the BOC said President Ferdinand Marcos Jr. led the public condemnation at the BOC office in Manila.

In particular, the BOC destroyed 2,977,925 pieces of seized and forfeited vape products, the result of 10 anti-vape smuggling operations led by the Port of Manila, Manila International Container Port and the bureau’s Intelligence Group in 2024.

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In a separate statement, the Department of Finance (DOF) said the effort is in line with Republic Act No. 11900 or the Vaporized Nicotine and Non-Nicotine Products Regulation Act, which mandates strict adherence to regulations concerning the importation, distribution and taxation of vaporized nicotine, non-nicotine and tobacco products.

“I just wanted to highlight … the efforts that we are doing and the dangers that accompany these smuggled vapes far and beyond the loss and revenue to the government,” Marcos said in his speech during the event.

“More important to us are the health issues that these smuggled vapes raised,” the president added.

“Our fight against smuggling goes beyond just border protection. It is a defense of our economic integrity,” Finance Secretary Ralph Recto said in the statement.

“By shutting down illicit trade, we protect our people’s access to affordable goods and boost our revenue collections that allow the government to provide more public services to Filipinos,” he added.

To ensure the success of seizure operations against illicit trade, the BOC is implementing a multi-pronged approach that includes stronger collaboration between local and international law enforcement agencies, advanced intelligence gathering, regular site visits and stricter port control measures.

“These products not only violate Customs laws but pose serious risks to consumer health. Today’s condemnation is a clear message to smugglers that the government is relentless in its pursuit of lawful trade,” Customs Commissioner Bienvenido Rubio said.

The Customs bureau has been in close coordination with agencies such as the Department of Trade and Industry; Office for the Special Mandate on Vaporized Nicotine and Non-Nicotine Products, their Devices, and Novel Tobacco Products, Regional Intelligence and Liaison Offices and other international customs authorities for a stronger enforcement against the illegal trade.

Previously, the BOC reported 48 anti-smuggling operations in 2024, resulting in the seizure of P6.658 billion worth of illicit goods.

In the first quarter of 2025, the bureau has intercepted P483.117 million worth of illegal vape products, the BOC said.

A report released on Monday by Milieu Insight, a Singapore-based market research firm, showed that the use of e-cigarettes or heated tobacco products (HTPs) in the Philippines is nearing half the regular smoking incidence in the country.

Based on its presentation during the online launch of its report, Milieu said 9.5 percent of adults in the Philippines are using e-cigarettes or HTPs, while 20.7 percent still smoke traditional cigarettes.

The findings of the report reveal the rapid evolution of nicotine consumption in Southeast Asia, as well as the growing illicit trade problem in the region which Milieu said highlights the need for intensified enforcement, cross-border collaboration, public private partnerships and more balanced policy design that can mitigate illicit trade while achieving public health and fiscal objectives.

Chris Humphrey, executive director of the EU-ASEAN Business Council, highlighted in a corresponding statement released after the presentation of the report that the Philippine tax system currently taxes freebase vapes 8.7 times lower than ’nicotine salt’ vapes, but many nicotine salt vapes are misdeclared as freebase, exploiting a gap at the expense of government revenue.

Data from the Bureau of Internal Revenue on vapor products showed the excise tax rates are P54.60 and P63 for the Nicotine Salt and Salt Nicotine per milliliter and Conventional Freebase or Classic Nicotine per 10 milliliter in 2024, respectively.

“The House Bill 11360 in the Philippines Congress is a step in the right direction to close this loophole by establishing a single tax rate for all vape liquids,” Humphrey said.

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