FIVE Chinese nationals and a Filipino who allegedly own five machines used for printing fake cigarette labels and packaging in Valenzuela City were nabbed by authorities this week.
The equipment, inside the warehouse of Michel Printing Services, Maysan Road corner A. Cantillon Street, Valenzuela City, is valued at P75 million, an official of the Bureau of Customs (BOC) said.
In a statement issued on Thursday, the BOC said information on these suspects stemmed from the anti-smuggling operation on June 25. The BOC added that it received information that a certain warehouse in Valenzuela City might be involved in the smuggling of fake cigarette labels and packaging.
On the same day, armed with a letter of authority (LOA) from the Office of the Commissioner, the combined forces of the bureau’s Enforcement and Security Service (ESS), Intelligence and Investigation Service (CIIS), BOC’s Action Team Against Smugglers (Batas), Philippine Coast Guard-Special Operation Group, and Customs Examiners went to Valenzuela City to conduct an investigation for possible violation of Customs laws, rules and regulations.
Found inside the warehouse were illegally imported printing machines, cutting machines used for printing unauthorized cigarette pack labels and carton labels bearing the brands Fortune, Mark, Hope, More and Jackpot.
BOC-ESS Director Yogi Filemon L. Ruiz said in a text message to the BusinessMirror that they estimate the counterfeit cigarette packs to run into the billions.
The pack labels and carton labels, otherwise known as “hinge lid blanks,” were confirmed as fake by representatives from the Philip Morris Fortune Tobacco Corp. They also confirmed the goods do not bear the characteristics of the original/genuine Fortune, Mark, More and Jackpot hinge lid blanks.
The five Chinese nationals arrested were identified as Kevin Tan, Alex Chan, James Sy, Tin Fu, and one alias Tonyo, including one Filipino identified as a certain Michael Jamora.
A criminal case was filed against the arrested suspects for violation of the provisions of Republic Act 8293, otherwise known as the Intellectual Property Code of the Philippines and pertinent provisions of RA 10863 or the Customs Modernization and Tariff Act.
Last year, the Department of Finance (DOF) ordered the Bureau of Internal Revenue (BIR) and the BOC to stop the illicit entry of cigarette-making machines in the country, to deter the making of counterfeit tobacco products.
Finance Secretary Carlos G. Dominguez III issued the order after confirming with BIR Commissioner Caesar R. Dulay that the illegal tobacco trade has shifted from smuggling cigarettes to producing counterfeit brands here, using undocumented cigarette-making machines acquired from China.
The finance chief instructed Dulay and Customs Commissioner Rey Leonardo B. Guerrero to coordinate with Chinese officials to inform them about this new illicit scheme and to ask them to stop the export of cigarette-making machines to the Philippines without the proper documentation.
Previous BIR raids showed that counterfeiters can manufacture fake versions of popular brands using smaller, more portable versions of the machines and devices for making cigarettes.