Seized illicit cigarettes destroyed by shredding

CEBU, Philippines — A locally manufactured batch of cigarettes seized by the Bureau of Internal Revenue (BIR) from 2024 to 2026, with a tax liability of P240.64 million, was destroyed by shredding yesterday, August 13, 2026.

The destruction was led by Department of Finance (DOF) Secretary Frederick Go in coordination with the BIR No. 13 – Central Visayas. The cigarettes were shredded to ensure that the confiscated products would not find their way back into the market.

Go said the seizures were the result of a series of enforcement operations conducted in different locations in Cebu against illegal cigarette manufacturing, storage and distribution activities.

“When you confiscate, when you arrest, you confiscate, you have to destroy it to ensure that it doesn’t find its way back into the system,” Go said in a press conference at the port area in Cebu City yesterday.

BIR-13 Regional Director Douglas A. Rufino said the seized cigarettes were locally manufactured in Cebu.

The machines used for manufacturing were confiscated from Daanbantayan and a warehouse in Mandaue City. They will also be dismantled and cut into pieces to ensure that they can no longer be used.

The BIR said the enforcement operations conducted by its Regional Strike Team from October 2024 to June 2025 resulted in the seizure of illicit cigarettes, counterfeit BIR stamps, manufacturing machines, cigarette raw materials, packaging materials, chemicals and other production supplies.

The operations resulted in aggregate tax liabilities, including administrative penalties, amounting to P240,641,547.71 arising from the unlawful manufacture, possession, storage and distribution of illicit cigarettes.

Rufino said authorities are looking into the possibility that a syndicate may be behind the illegal cigarette manufacturing operations, although no evidence has yet been established.

Seven individuals were arrested in connection with the operations. Rufino said they were employees of another person or entity but have so far refused to identify their employer.

All of them were, however, released on bail, but the cases against them continue.

Aside from the finished cigarette products, authorities also seized cigarette packing machines and other equipment allegedly used to speed up production.

Rufino said the machines enabled the operators to produce large quantities of cigarettes in a single day, making the operation similar to the production process of legitimate cigarette manufacturers.

Go said the government decided to conduct the destruction activity in Cebu to emphasize the importance of permanently disposing of confiscated illicit products.

He added that the campaign against illicit tobacco is aimed at protecting government revenues and public health.

Go noted that foregone tax revenues could have been used to fund government programs and services, while illicit tobacco products may pose health risks to consumers.

Earlier, Go said they also intercepted 11 containers of smuggled, unregistered, undeclared and unauthorized cigarettes at the Bureau of Customs (BOC).

He said these seized shipments are subject to procedures under the Anti-Agricultural Economic Sabotage (AAES) Act and must undergo the required legal process.

Further, the remaining bulk of P1.7 billion worth of illicit tobacco seized in June and July this year remains in BOC custody and is undergoing the procedures prescribed under the AAES framework, Go said.

Meanwhile, BOC-Cebu District Collector Atty. Czae de Guzman said the bureau will continue strengthening its monitoring of ports and other entry points as part of the government’s intensified campaign against illicit trade.

Asked whether the raw materials used in the locally manufactured illicit cigarettes seized in Cebu had passed through the BOC or were also smuggled, de Guzman said it was too early to give a definite answer.

“I cannot answer yes or no,” she said, noting that the cigarettes were reportedly manufactured locally using local tobacco, although the possibility of smuggling could not be ruled out.

De Guzman said the BOC will continue strengthening border controls and safeguarding the country’s ports against illicit shipments. — /IHM (FREEMAN)