MANILA, Philippines — Authorities impounded a motor tanker and seized an estimated P219.5 million worth of smuggled diesel fuel in La Union as part of a crackdown on the illegal “paihi” scheme, the Bureau of Customs (BOC) confirmed.

The operation was carried out by the BOC-Customs Intelligence and Investigation Services at the Manila International Container Port (CIIS-MICP), in coordination with the Philippine Coast Guard (PCG) Task Force Aduana and the National Bureau of Investigation-Organized and Transnational Crime Division (NBI-OTCD) on the night of June 19.

Agents caught motor tanker MT Bernadette in the act of illegally transferring diesel fuel to two lorry trucks at the La Union Port around 9:45 p.m.

According to BOC-CIIS Director Verne Enciso, the vessel was carrying around 200,000 liters of diesel, while the trucks contained 19,000 liters and 40,000 liters, respectively — totaling approximately 259,000 liters of smuggled fuel.

The vessel’s 10 crew members failed to present legal documentation for the fuel transfer. Eleven other individuals — including truck drivers, porters, and alleged accomplices — were also apprehended, bringing the total number of suspects to 21.

NBI agents immediately began processing the suspects for inquest proceedings. Members of the Philippine Army’s Security and Escort Battalion also arrived on-site to augment security during the operation.

BOC Commissioner Bien Rubio emphasized the importance of combating the entry of unmarked fuel into the country, citing its risks to both the economy and consumer safety.

“The disruption of this paihi modus that brings unmarked fuel into our communities is vital for protecting the lives of our citizens,” Rubio said.

Deputy Commissioner for Intelligence Group Juvymax Uy praised the operation, saying it marked a critical step in dismantling organized smuggling networks.

Those involved — including the owners of the seized fuel, tanker, and lorry trucks — face administrative and criminal charges for violating Sections 117, 1113, and 1401 of Republic Act No. 10863 or the Customs Modernization and Tariff Act (CMTA), as well as provisions of the Tax Reform for Acceleration and Inclusion (TRAIN) Law.