16.7-M fake cigarettes seized in Davao City raids
DAVAO CITY – Operatives of the Criminal Investigation and Detection Group-Davao Field Unit (CIDG-DFU) and the Sta. Ana Police Station here raided Wednesday two warehouses and seized at least 152 boxes of alleged counterfeit cigarettes with an estimated street value of about 16.7 million.
Chief Inspector Milgrace Driz, CIDG-DFU chief and head of the raiding team, said her team raided the two warehouses owned by Chinese national Leo Lee Sy at around
7 a.m. on the strength of 42 search warrants following the complaint filed by Philip Morris and Fortune Tobacco Corporation (PMFTC), Inc. Police said Sy runs a motorcycle parts shop on Francisco Bangoy Street.
Of the total number of boxes seized, 30 are Fortune brand, 24 Champion cigarettes, 23 More, 36 Marlboro, and 39 Mark brands.
She said the government lost almost 13 million, excluding value-added tax and excise tax, because of these fake products.
Driz said Sy may face charges for economic sabotage since he is not paying taxes to the government and violation of Intellectual Property Rights.
After the confiscation, authorities immediately arrested Sy, while the confiscated cigarettes were placed under the custody of the Sta. Ana Police for safekeeping.
A product specialist of the tobacco company told Manila Bulletin that each master case contained 50 rims, with each rim containing 10 packs of cigarettes. Each master case has an estimated street value of 110,000 to 112,000 each, the specialist added.
Except for the Champion brand, the rest were packed in master cases marked as water dispensers and toys.
Driz suspects that Sy is an undocumented alien because he failed to show pertinent documents during the implementation of the search warrant.
She said that the Chinese national offered no resistance during the implementation of the search warrant. But he initially refused to open one of the stock rooms, where most of the suspected master cases of counterfeit cigarettes were seized.
Driz said the CIDG could not yet
determine the origin of the alleged contraband.
She sought the help of the public for any information on the sale of the counterfeit products.
Meanwhile, Didet Danguilan, communications officer of cigarette company Philip Morris-Fortune Tobacco Corp, said Wednesday's raid in Davao City was the third major raid on illicit cigarette factories they have monitored this year.
“So far the Bureau of Customs swooped down on illegal cigarette manufacturers in San Simon, Pampanga, in January and Tacloban City early this month seizing 1500 million worth of cigarette-making machines, fake cigarettes, and tax stamps,” Danguilan said.
Danguilan also cited the report of the Intellectual Property Office of the Philippines (IPOPHL) that illicit cigarettes valued at 120.2 billion were confiscated in 2018. (With a report from Joseph Jubelag)