Photo from left to right: Atty. Emee Macabales from Revenue Operations Group, Comm. Rey Leonardo Guerrero from the Bureau of Customs, Glenn Yu, SEAOIL CEO, and Atty. Beverly Milo from Large Tax Service-Excise of the BIR


The government, led by the Department of Finance (DOF), Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) has started the implementation of the Fuel Marking Program as it conducted the first live marking of petroleum products today, Friday, 2 August 2019, at Seaoil Bulk Terminal in Mabini, Batangas. 


The activity was attended by the officials and representatives of DOF, BOC, BIR, Department of Energy, Procurement Service - Department of Budget and Management and SICPA- SGS Philippines. Under Section 148-A of the National Internal Revenue Code (NIRC), as amended by Republic Act No. 10963, otherwise known as the Tax Reform for Acceleration and Inclusion (TRAIN) and DOF-BOC-BIR Joint Circular No. 001.2019, stocktaking shall be conducted on all tax paid gasoline, diesel and kerosene stored in all depots/terminals.


In the next few months, random field testing will be conducted by the BOC, BIR and SICPA-SGS on depots, tank trucks and retail stations in order to determine the presence and dilution level of the fuel marker on fuels which are subjected to marking. And this activity will continue until the market is saturated with marked fuels, according to the Bureau of Customs. “A confirmatory testing will be conducted immediately on fuels found to be unmarked or with marker levels below the prescribed dilution level and corresponding duties and taxes will be collected from oil companies found to have unmarked or diluted fuels,” Customs Commissioner Rey Leonardo Guerrero emphasized. The program aims to plug revenue leakages from oil smuggling by placing a molecular marker on imported, manufactured and refined petroleum products such as gasoline, diesel and kerosene.

“The implementation of the Fuel Marking Program is a milestone for the Bureau of Customs as well as the Bureau of Internal Revenue and the Department of Finance, as we have painstakingly worked together in order to ensure the success of the Program. With the cooperation and support of partner agencies and stakeholders, we are ready to implement the Fuel Marking program and make it work,” the Customs chief added. Last 25 July 2019, the DOF, BOC, BIR and SICPA –SGS in coordination with the PTT Philippines also conducted a simulation of the marking and testing process at the Philippine Coastal Storage and Pipeline Corporation (PCSPC) in Subic.