Mighty Corp., a Filipino tobacco manufacturer, said Friday it filed criminal charges against several persons engaged in illicit trade after Customs authorities seized more than P50 million worth of contraband cigarettes stored in six different warehouses in Davao City.
Bureau of Customs officials confiscated 1.262 million contraband cigarette packs with a street value of P50,480,000, making the shipment one of the biggest hauls by local authorities since the implementation of the sin tax law in 2013.
Mighty said the warehouses allegedly belonged to two companies namely, HBTT Marketing and JCL.
HBTT warehouses allegedly yielded P12 million worth of fake cigarette products in a raid last year.
Both owners of the warehouses remain at large.
The bulk of the contraband shipments, including 1,229 cases of Two Moon cigarettes brands, 304 Mighty brands, 261 More, 109 jackpot, 73 Philip Morris, 161 Mark, 121 Marvels, 58 Marlboro, is believed to have been smuggled from China.
Authorities acted on a directive by Customs commissioner Nicanor Faeldon after receiving reports of smuggling activities in Davao City and nearby provinces, and pursuant to the provisions of Section 214 (b) of Republic Act 10863, also known as the Customs Modernization and Tariff Act.
Both suspects and warehouses are also liable for violating Section 2530 of the Customs and Tariff Code for non-payment of duties and taxes, as well as Section 155 (trademark infringement) with IS No. XI-02-INV-16-K-3311, in relation to Section 170 of Republic Act 8293, otherwise known as the Intellectual Property Code of the Philippines.
All the applicable laws, fines and jail terms will be meted out on the suspects, Customs and Revenue authorities said.
A Customs official earlier said fake cigarettes were flooding the market due to the enticing profit margins they offered to retailers.
He warned, however, that every body involved in smuggling, manufacturing, distribution and sale of any counterfeit product would not be spared once caught.