JTI questions resolution on counterfeit cigarette factory

MANILA, Philippines — The government’s campaign against cigarette counterfeiting and smuggling encountered a major setback due to a resolution filed by Malolos City prosecutors which caused the release of 73 workers found manufacturing fake cigarettes, Japan Tobacco International (JTI) Philippines Inc. said over the weekend.

 In a statement, JTI Philippines questioned the resolution filed by the Malolos City Prosecution team during an inquest proceeding involving the counterfeit cigarette factory raided by the Criminal Investigation and Detection Group (PNP-CIDG) and Business Permit and Licensing Office (BPLO) of Guiginto, Bulacan last Feb. 8.

To recall, government authorities during the raid uncovered fake cigarettes bearing the Mighty brand, now owned by JTI, as well as other products manufactured by Philip Morris Fortune Tobacco Corp. Inc. (PMFTC).

Representatives of JTI and PMFTC have issued the required documents to certify that products found at the site are counterfeit, and that the facility raided is not an authorized factory of either company.

However, JTI said the prosecution team, led by assistant provincial state prosecutor Avelino Basco and provincial prosecutor Renato Samonte, filed a resolution directing further investigation on the case, citing “no sufficient evidence” to determine if there was probable cause for criminal offense and conspiracy.

Consequently, the resolution caused the immediate release of 73 individuals arrested during the raid.

According to JTI, the prosecutors ruled there is no sufficient evidence to establish that the products are counterfeit “solely by virtue of the certification issued by the product owner.”

The prosecutors said confirmation from the relevant government agencies should be required to establish the counterfeit nature of the products.

However, JTI challenged the resolution, saying its certification should be sufficient to determine whether the products are indeed fake or not.

“If the trademark owner, JTI, itself attests that the seized items are fake, it should be sufficient for probable cause. What do other government agencies know about whether a product is fake or original?” JTI said.

In addition, JTI said representatives of the Bureau of Internal Revenue and Bureau of Customs were present during the proceedings, with the BIR giving a preliminary assessment of P500 million worth of fake tax stamps affixed to the seized cigarettes.