BOC to revive fuel marking program

THE BUREAU of Customs (BOC) plans to revive the so-called fuel markings on both oil imports and locally refined petroleum products to arrest smuggling and improve the collection of import duties and taxes.

Customs Commissioner Alberto D. Lina told reporters last week that the BOC intended to issue by next month the terms of reference for the bidding that would be held to select the company that would mark oil products. He said the program might also be implemented through a public-private partnership or PPP deal.

The BOC chief said port stakeholders would also be consulted on such move.

Lina noted that the fuel marking program was first implemented by former Customs Commissioner Napoleon L. Morales. It was, however, discontinued later.

SGS Philippines Inc. was then the accredited service provider for the mandatory marking of imported duty- and tax-exempt diesel oil and kerosene.

But unlike the program during Morales’ time, Lina said the BOc was looking at marking all shipments whose duties had been paid for, alongside locally refined oil.

According to Lina, the initiative would lessen the incidence of smuggling, noting that there remained “many” oil smugglers. He cited the disparity in the volume of oil with paid duties and taxes and actual consumption, which was higher.

However, the cost may be prohibitive, as markings, which would be shouldered by oil firms, are estimated to reach P0.07 per liter.

“We’re still studying this because oil companies may not agree to pay 7 centavos,” Lina said.