FIGHT AGAINST FUEL SMUGGLING: The virtual signing of the Memorandum of Agreement (MOA) with the Bureau of Customs (BOC) and the Bureau of Internal Revenue (BIR) by the Department of Energy (DOE) formalizes the continued partnership among these institutions to fight the illegal oil smuggling.

Through this MOA, there will be an opportunity to work together in arriving at reconciled reports as reliable bases for the computation of correct taxes and duties.

TAGUIG CITY - The Department of Energy (DOE) yesterday (27 May) entered into a Memorandum of Agreement (MOA) with the Bureau of Customs (BOC) and Bureau of Internal Revenue (BIR) that would facilitate information exchange and reconciliation, as part of sustained inter-agency efforts to fight illegal fuel smuggling and uphold proper tax assessments. 

“Since I began my journey at the Department of Energy, I have been actively seeking ways to strike a fair balance between upholding consumer welfare and protecting the mandate of our government. By taking away much-needed government revenues, fuel smuggling weakens our country’s fiscal position which ultimately affects the government’s ability to provide benefits for our people,” Energy Secretary Alfonso G. Cusi emphasized in the virtual ceremonial signing held via Microsoft Teams. 

According to the Energy chief, implementing an effective anti-fuel smuggling program requires stronger collaboration among the relevant frontline agencies. “Together, we must arrive at an aligned and comprehensive solution to this pervasive problem, which, I believe, begins with reconciling and consolidating the data and reports of the DOE, the BOC, and the BIR,” he added. 

Under the MOA, an Information Exchange and Reconciliation Committee would be created with the following functions: 

1. Create a standard reporting and reconciliation format to allow effective and efficient reconciliation of information provided by all parties;

2. Monitor and report any discrepancies or variance on the information provided by any of the parties for reconciliation and further investigation;

3. Upon findings of discrepancies, endorse the said findings for enforcement of applicable rules and regulation of the responsible party having jurisdiction of the matter or endorse the matter for a joint enforcement;

4. Observe the protection of the confidentiality of the documents and information; and

5. Perform other functions as may be determined by the Parties consistent to the discharge of the intent and purposes of this MOA.

The Agreement likewise identifies the following report categories as critical in helping the Reconciliation Committee fulfill its tasks:

1. Monthly reconciliation reports on the importation and exportation of crude oil, finished petroleum products and bioethanol per oil company, in a format to be agreed by the parties, on or before the end of the succeeding month;

2. Monthly reconciliation reports on denatured imported bioethanol per oil company, in a format to be agreed by the parties, on or before the end of the succeeding month;

3. Monthly reconciliation reports on inventory of crude oil, finished petroleum products and biofuel per oil company, in a format to be agreed by the parties, on or before the end of the succeeding month; 

4. Monthly reconciliation reports on the list of registered downstream oil industry participants, such as but not limited to, refiners, importers and terminal operators, on or before the end the succeeding month; and

5. Monthly reconciliation of other relevant information that the DOE, BOC, and BIR may require for the monitoring of importations and exportations of crude oil and finished petroleum products.

Also present during the virtual event were Undersecretary Donato D. Marcos and Assistant Secretary Leonido J. Pulido III of the DOE, Asiistant Secretary Dakila Elteen M. Napao of the DOF, Commissioner Rey Leonardo B. Guerrero, Deputy Commissioner Teddy S. Raval and Assistant Commissioner Vincent Philip C. Maronilla of the BOC, and Commissioner Caesar R. Dulay, Deputy Commissioner Arnel SD. Guballa, Assistant Commissioner Manuel V. Mapoy and Atty. Beverly S. Milo of the BIR.

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