MANILA, Philippines — Fuel smuggling at the Subic Bay Freeport Zone has been confirmed by the Bureau of Customs after a gasoline station owner was found in possession of marked biodiesel fuel that are supposed to be exclusive for Freeport zones.

The BoC’s Run-After-The-Smugglers (RATS) team has filed charges of violation of the Tariff and Customs Code versus Araceli Banaag, owner of BNW Gas station located along the National Highway in Del Pilar, Castillejos, Zambales, for illegal possession of 14,000 liters of biodiesel fuel.

It was suspected that the biodiesel products were illegally brought out of the SBFZ without payment of the appropriate taxes and duties.

The BoC RATS group said the Presidential Anti-Smuggling Group’s Task Force Fuel had received a tip that BNW was in possession of fuel products that can only be used in Freeport zones.

Customs Commissioner Angelito Alvarez explained that businesses located in Freeport zones have the incentive of using tax-exempt kerosene and diesel oils.

To ensure that this incentive is not abused, a substance called fuel Marker PH03 is added to the fuel products. The fuel marker will determine if a certain batch of fuel is tax and duty free or not, to deter smugglers.

In filing charges against BNW Gas station, it was found during a laboratory test by SGS Philippines Inc. that its biodiesel products contained the special marker.