In line with the relentless campaign of the National Bureau of Investigation against all illegal activities, operatives of NBI-Task Force Against illegal Drugs seized repacked imported Chinese cigarettes with an estimated value of P1.35 billion in Subic Bay Gateway Park (SBGP) in Subic Bay Freeport Zone (SBGP) in Olongapo, City, Zambales.
The operation also resulted in the arrest of two Malaysian nationals.
NBI Officer-in-Charge Director Eric Distor identified the arrested suspects as Tan Ah Seng and Tan Yan Teng, President and Vice President, respectively, of Bumi Jaya International Corp. situated in Olongapo City.
Suspects Tan Ah Seng and Tan Yan Teng were presented for inquest proceedings on August 23, 2021 before the Office of the City Prosecutor, Olongapo City for violation of Section 1423 of RA 10863.
Incorporators of Bumi Jaya International Corp. namely: Gina Tsai, Tan Lian Hong, Adelia C. Tan, and Chi Jung Hsiao, aka Chi Yin Hsiao, all at large, were also charged with violation of Section 1423 of RA 10863 even though they are not present during the implementation of search warrants.
Distor said the case stemmed from information relayed to NBI-TFAID about a warehouse of Bumi Jaya owned by Tan Ah Seng and his group who are allegedly involved in the illegal repacking of imported cigarettes from China and diverting it to the domestic market.
Under strict instructions from Distor, NBI-TFAID operatives instructed the informant to discreetly take a video of the repacking activity inside the company premises and to get some samples of cigarette tax stamps that workers are putting on each cigarette pack.
Investigation revealed that the company was incorporated on January 9, 2002. On November 18, 2015, Vincent Sauvalere, Head of Tobacco and Counterfeit Goods Unit of European Anti-Fraud Office requested the Bureau of Customs (BOC) to conduct an investigation on the company in relation to smuggling of tobacco products into the European Union. Bumi Jaya became a licensed transshipper engaged in transshipping tobacco products to different countries on January 4, 2017.
Under BOC Customs Administrative Order (COA) No. 12-2019, the handling and movement of transshipment of goods from the carrier to and within the customs facilities and warehouses inside the port of entry shall be under continuous supervision and subject to the rules and regulation issued by the BOC to include safeguard measures to ensure that the transshipment goods shall not be diverted to the domestic market.
On August 17, 2021, informant submitted to NBI-TFAID the video footages and photos showing the repacking and placing of tax stamps on each pack of Chinese cigarettes inside BUMI JAYA warehouse, and further attests that the finished repacked cigarettes were transferred and stored to the second warehouse of BUMI JAYA also in SBFZ. The said acts by BUMI JAYA are in violation of Section 1423 (Removing or Repacking Goods in Warehouse) of RA 10863 (Customs Modernization and Tariff Act).
With these, Search Warrants were issued by RTC Branch 97, Olongapo City, directing the TFAID to immediately search the premises of Bumi Jaya.
On August 20, 2021, TFAID operatives implemented the Search Warrants which resulted in the seizure of repacked Chinese cigarettes, equipment used in repacking, repacking materials, and several BIR tax stamps. NBI-TFAID also seized 45,000 master boxes of assorted Chinese cigarettes with an estimated value of P1,350,000,000. Workers of BUMI JAYA were also caught in flagrante repacking Chunghwa cigarettes.
The two suspects were then placed under arrest and were informed of their rights.
Pursuing its investigation, NBI-TFAID will request the BIR to certify whether or not the seized tax stamps are counterfeit, in preparation for filing additional charges against the incorporators/officers of Bumi Jaya for violation of the National Internal Revenue Code.
