Fuel marking goes full blast by February

MANILA, Philippines — The Bureau of Customs (BOC) expects all fuel companies to be compliant with the fuel marking program by Feb. 3, 2020, as it will start conducting random field tests in oil facilities and depots nationwide.

In a statement, BOC said authorities would start testing all petroleum products found in the domestic market – including those in storage tanks, depots and terminal facilities – six months after the launch of the fuel marking program on Aug. 2 to determine if they are complying with the law.

“Thus, by Feb. 3, 2020, all gasoline, diesel and kerosene are expected to be marked completely,” BOC said.

BOC said the agency, together with the Bureau of Internal Revenue (BIR) will also impose penalties, as necessary, to oil companies proven to have unmarked, adulterated or diluted fuel.

Under the fuel marking program, petroleum products for domestic consumption with proof of payment of taxes will be injected by markers.

The BOC last August conducted the first live marking of petroleum products at the Seaoil Bulk Terminal in Mabini, Batangas.

To date, 71.38 million liters of fuel have been marked at the facility, according to BOC.

The bureau said marking activities are also expected to commence by October at the terminals of Pure Petroleum Corp., Phoenix Petroleum Corp., Unioil Petroleum Philippines and the entire network of Chevron Philippines Inc.

“The implementation of the fuel marking program is a milestone for the Bureau of Customs, as well as the Bureau of Internal Revenue and the Department of Finance (DOF), as we have painstakingly worked together ensure the success of the program,” Customs Commissioner Rey Leonardo Guerrero said.

“With the cooperation and support of partner agencies and stakeholders, we are ready to implement the fuel marking program and make it work,” he said.

The fuel marking program is part of Republic Act 10963 or the Tax Reform for Acceleration and Inclusion (TRAIN) law.

To implement the program, the DOF, BOC and BIR last July signed Joint Circular No. 001-2019.

The BOC also issued Customs Memorandum Order (CMO) 43-2019, which provides the guidelines for the implementation of the program in relation to importation of petroleum products subject for marking.

According to the DOF, the program aims to curb the incidence of oil smuggling in the Philippines, which is estimated to cost the government about P40 billion annually. The DOF earlier said the government wants to plug at least half of this or P20 billion through fuel marking.