AN operation led by the Bureau of Customs’ (BOC) Customs Intelligence and Investigation Service-Manila International Container Port (CIIS-MICP) last Friday, September 6, 2024, in Binondo, Manila yielded more or less P4.8 billion worth of suspected smuggled vapes, counterfeit branded items, cosmetics, and general merchandise.

BOC Commissioner Bien Rubio, who signed the Letter of Authority (LOA), hailed the CIIS-MICP team for foiling the attempt to smuggle a huge amount of counterfeit items and other merchandise.

“I am sure that this will be one of the biggest operations by the BOC this year in terms of the value of the goods found. In recent months, we’ve been monitoring several warehouses for violation of intellectual property rights. As these groups and individuals become more brazen in their attempts to circumvent our laws, the more that our BOC personnel—from top to bottom—will find and prosecute them,” he said.

BOC-CIIS Director Verne Enciso, whose team alongside personnel from the Enforcement and Security Service-MICP and the Philippine Coast Guard (PCG) conducted the operation, provided more details about the products found in the Binondo warehouse.

“The team found boxes of copyright-infringing goods from luxury brands like Dior to popular characters for kids such as Hello Kitty and Spiderman. Based on initial inventory of these counterfeit items, we peg the market value to be around P4.8 billion. I’ve seen my fair share of big-time operations, but amounts like this still astound me to this day,” he added.

In particular, the BOC-CIIS director shared that different floors of the storage building were found to contain possibly smuggled disposable vapes, vape accessories, and branded garments and bags with brands such as Gucci, Louis Vuitton, Dior, Adidas, Nike, and NBA.

There were also school supplies of popular characters such as Hello Kitty, Spiderman, and Disney characters, as well as aerosols, cosmetics, tools, and other general merchandise.

Pending the final inventory of the goods by the assigned Customs examiner, the BOC team temporarily padlocked and sealed the subjected storage areas.

Intelligence Group Deputy Commissioner Juvymax Uy underscored the BOC’s commitment to border protection and combating the entry of counterfeit items into the market that could cause irreparable damages to the retail industry.

“With each successful operation, I am confident that the agency is not only doing its mandate, but also saving our industry’s reputation. The magnitude of this operation is impactful as this warehouse could very well be the source of many stores that sell fake goods. We are nipping the bud and rooting out the source of this corruption,” he said.

The warehouse owners and operators were given 15 days from the service of the LOA to submit documents to show that the subject imported goods were legitimately imported and that correct duties and taxes were duly paid pursuant to Section 224 of Customs Modernization and Tariff Act (CMTA).

If they fail to present the proper documents, they can face charges for violating Section 117 (regulated importation and exportation) and Section 1400 (misdeclaration in goods declaration) in relation to Section 1113 (property subject to seizure and forfeiture) of the CMTA.

They will also face charges in accordance with Republic Act 8293, otherwise known as the Intellectual Property Code of the Philippines and Republic Act 10963, or the Tax Reform for Acceleration and Inclusion (TRAIN Law).