Cebu Police Seize Over P100 Million in Smuggled Cigarettes in Coordinated Raids
In a significant crackdown on illicit trade, the Cebu City Police Office (CCPO) executed separate operations on Thursday, February 19, 2026, resulting in the seizure of smuggled cigarettes valued at more than P100 million. The operations led to the arrest of two suspects and exposed a concerning trend of untaxed products flowing into Cebu City from Zamboanga City, according to authorities.
Warehouse and Store Raids Uncover Massive Contraband
The police action commenced at 1 p.m. with a raid on a warehouse located within the public market in Barangay Inayawan. Officers recovered hundreds of cartons containing various cigarette brands. Subsequently, in coordination with the Bureau of Internal Revenue (BIR) Region 13, authorities confiscated additional hundreds of cartons from a store at the Carbon Public Market. As of press time, inventory at the Carbon operation was still ongoing, indicating the scale of the seizure.
Intelligence-Driven Operations and Legal Directives
CCPO chief Col. George Ylanan revealed that the operations were based on intelligence reports suggesting that certain stores and wholesalers were distributing counterfeit and untaxed cigarettes. A test buy conducted by officers confirmed these reports, prompting the raids. The actions were carried out under the directives of Philippine National Police chief Gen. Jose Melencio Nartatez Jr. and Police Regional Office 7 Director Brig. Gen. Redrico Maranan, highlighting the high-level coordination involved.
Tax Evasion and Smuggling Tactics Exposed
BIR representatives scanned the seized products to verify payment of excise taxes, immediately confiscating those with no record of payment. Col. Ylanan noted that most cartons were still wrapped in plastic, suggesting recent arrival in Cebu City. He explained, "These passed through courier services. If you look at the packaging, they were misdeclared. Some were declared as tea, others as wall décor, so they did not arrive here in bulk." This tactic allowed the smuggled goods to evade detection during transport.
Financial Impact and Government Warnings
Bernardino Paul Somera Jr., chief revenue officer of the Regional Investigation Division of BIR Revenue Region 13 in Cebu City, stated that the cigarettes originated from Zamboanga City, with most violations involving nonpayment of excise taxes. The BIR estimated that excise taxes due on the seized cigarettes could reach P100 million, excluding their total market value. Somera warned that government losses from smuggled cigarettes amounted to P300 million in 2025, and this figure could increase following the latest seizures. He emphasized, "Many smuggled cigarettes are entering Cebu. We are trying to tighten our grip on their modus and also show the public and retailers that they should not support any contraband."
Legal Proceedings and Ongoing Investigation
Authorities announced that charges for violations of Republic Act 8424, or the National Internal Revenue Code, and Republic Act 10643 will be filed against the arrested suspects, who remain under investigation. This move underscores the government's commitment to combating smuggling and tax evasion through stringent legal measures.
