MANILA - Finance Secretary Carlos Dominguez has approved the donation of confiscated fuel by the Bureau of Customs to the Philippine Coast Guard, the department said Friday.
The 6,357.8 liters of unmarked diesel fuel was seized last September and was forfeited in favor of the government, the Department of Finance said in a statement.
Both agencies have signed a memorandum of agreement on the turnover of the seized fuel to the Coast Guard for its anti-smuggling operations, the DOF said.
The diesel was confiscated at a retail gas station in Arayat, Pampanga after it was discovered that there was no fuel marker which was supposed to be injected into tax-paid oil products, the statement said.
The Customs district collector in Clark issued a decision on Sept. 22, 2021 and was finalized on Oct. 11, 2021 after Luzon Petromobil Integrated Service Stations, Inc (LPISSI) filed an affidavit abandoning its claim on the seized products, the DOF said.
Under Section 7 of the DOF-BOC-BIR Joint Circular (JC) No. 001.2021, petroleum products that are unmarked, with diluted marker or have counterfeit fuel marker are subject to duties, taxes and appropriate penalties.
Meanwhile, the Sec. 1141 of the Customs Modernization and Tariff Act (CMTA), goods that are under forfeiture proceedings can be donated to another agency upon the approval of the Secretary of Finance.
Fuel marking is authorized under the Tax Reform for Acceleration and Inclusion (TRAIN) law in a bid to curb smuggling.