THE Bureau of Customs (BOC) has formally launched the fuel-marking system that will be used nationwide to check if fuel products being distributed in the country have gone through the correct process and have paid the right duties and taxes.
During the bureau’s 117th Founding Anniversary Celebration on Wednesday at the BOC headquarters in Manila, the BOC formally launched the fuel-marking system that will be implemented by the government to stop instances of oil smuggling.
The launch was presided over by Customs Commissioner Rey Leonardo B. Guerrero alongside Department of Finance (DOF) Undersecretary Antonette C. Tionko and Bureau of Internal Revenue Deputy Commissioner Arnel S.D. Guballa.
The customs chief said the bureau is eyeing full implementation of the fuel-marking system by March this year, with random checks to be done in gasoline stations nationwide.
“March [is the] full implementation, and [random checks will be done], and we also have mandatory checks, especially at depots,” Guerrero said.
He said there will also be mandatory inspections on oil depots across the country.
“The provider has assured us as far as the security of the markers are concerned, they guaranteed that these markers cannot be copied or imitated. Even the distribution is strictly monitored,” he added.
The winning bidder for the fuel- marking system project is Sicpa SA and SGS Philippines, which provide a unique chemical marker capable of being embedded at a molecular level in petroleum products—gasoline, diesel and kerosene—thereby enabling authorities to test, identify and distinguish fuels being sold in the market.
The method will facilitate the government’s identification of contraband fuel already being sold by fuel stations.
“We also witnessed the ceremonial launch of fuel-marking program. The BOC is working with the Sicpa-SGS consortium, and we’re confident that with their technical skills and expertise, as well as the overwhelming support from the oil industry for the fuel-marking program, it will succeed,” Tionko said.
P27 billion-P44 billion lost
It was earlier reported that the government loses P27 billion to P44 billion in revenues due to oil smuggling.
“So with the implementation of the fuel-marking program this year, hopes are high that smuggling and misdeclaration of petroleum products will be eradicated, and revenue collections will reach greater heights,” she added.
Last month, the BOC expressed confidence that it can hit its 2019 revenue collection target of P677 billion on the back of reforms that the agency will implement this year.
Guerrero said the DOF has raised the bureau’s collection goal by 15.75 percent, or P677 billion, compared to last year’s goal of P584.881-billion.
He expressed confidence that the bureau can hit its target for this year, as reforms are further being implemented in the BOC, which is reinforced by his 10-point priority program.
It was also reported during the event that the full-year revenue collection of the BOC has amounted to P592.869 billion, breaching its P584.881-billion collection target for the year.