EXCLUSIVE TO PINOY EXPOSÉ
PRESIDENT Ferdinand Marcos Junior has reportedly instructed the Department of Interior and Local Government (DILG) and the Bureau of Customs to unmask, roundup, and ensure the prosecution of those behind a syndicate involved in the organized smuggling of cigarettes and other tobacco products.
The President gave the instruction after the Philippine National Police (PNP) at the end of 2025 stumbled on what appears to be the proverbial ‘tip of the iceberg’ when it found several ‘abandoned’ cargo trailers and a container van in Batangas City while tracking down a carnapped vehicle.
On inspection, the PNP reported it found more than P1.1 billion worth of smuggled cigarettes inside the container.
A follow-up operation by the PNP headed by Acting Chief PNP PLTGEN. Jose Melencio Nartatez together with the Enforcement Group (EG) of the Bureau of Customs (BOC) headed by Deputy Commissioner Nolasco Bathan at a logistics yard in Malabon on New Year’s Day, resulted to the discovery of several more container vans where more than P1.2 billion worth of smuggled cigarettes were also found (Pinoy Exposé, January 4, 2026).
Aside from the President’s directive, the official said both Secretary Remulla and Commissioner Nepomuceno consider the matter urgent as they worry that not only cigarettes, but also other contrabands such as illegal drugs or firearms and explosives may have been part of the shipments.
“It is bad enough that tobacco smuggling is continuing but what Secretary Remulla and Commissioner Nepomuceno also worry most is the possibility that these smugglers may have also brought in illegal drugs or explosives.”
An official familiar with the development told Pinoy Exposé, that in compliance with the President’s directive, DILG Secretary Jonvic Remulla met with Customs Commissioner Ariel Nepomuceno at a hotel in Makati City on Tuesday, January 6, to share information, formulate a plan of action and coordinate their efforts.
Commissioner Nepomuceno, in a brief talk with Pinoy Exposé, confirmed meeting with the DILG chief on the stated day.
‘No sacred cow’
“The President hails from Ilocos, the country’s tobacco growing region and he is therefore very sensitive to the damage cigarette and tobacco smuggling would cause to our tobacco farmers. His instruction is that there would be no ‘sacred cow’ in the investigation.
“Tamaan na kung sino ang tatamaan at madamay na kung sino ang madadamay,” the source said, quoting the President.
Following the PNP’s discovery, the source added the initially gathered information indicate that between 70 to 80 container vans of suspected smuggled cigarettes valued at more than ₱7 billion, may have been lying hidden in some container yards or remote areas as what happened in Batangas City.
A Customs official, privy to the investigation, added that their ongoing ‘backtracking’ indicates these containers were surreptitiously brought in using the country’s porous ‘Southern backdoor’ in Mindanao as early as 2024.
“They were not brought in thru our customs ports and then misdeclared so they can be brought out under legal cover.
“What appeared to have happened here is that these smugglers are secretly bringing in contrabands thru our Southern backdoor.
“But instead of bringing them to a warehouse, these smugglers are now choosing small private container yards or remote areas where the smuggled cigarettes are then unloaded for distribution,” the source explained.
The source further averred cigarette smugglers are now resorting to this tactic due to the tight border inspection and timely intelligence gathering of the BOC under Commissioner Nepomuceno.
Involvement of Mindanao officials?
Aside from the President’s directive, the official said both Secretary Remulla and Commissioner Nepomuceno consider the matter urgent as they worry that not only cigarettes, but also other contrabands such as illegal drugs or firearms and explosives may have been part of the shipments.
“It is bad enough that tobacco smuggling is continuing but what Secretary Remulla and Commissioner Nepomuceno also worry most is the possibility that these smugglers may have also brought in illegal drugs or explosives.”
Given the crucial role of the country’s Southern backdoors in these operations, especially in the so-called ‘BASULTA’ (Basilan, Sulu, Tawi-tawi) areas, the sources said the investigation has also focused on the possible involvement of Mindanao local officials, especially those tagged in previous intelligence reports of being involved in smuggling.
“Yes, some of them (local officials) are being investigated. It is now just a matter of gathering evidence so appropriate charges can be brought against them,” the sources said.
Under RA 10845, large-scale smuggling of agricultural and tobacco products is now considered as a heinous crime tantamount to economic sabotage with no bail recommended.
The law was further strengthened by RA 12022 (‘An Act Defining the Crimes of Agricultural Economic Sabotage’) that was signed into law by President Marcos Junior in September 2024.
The law declares that any smuggled agricultural or tobacco products valued more than ₱10 million shall be classified as economic sabotage.
Aside from giving special emphasis on tobacco products, RA 12022 also mandates the prosecution of the owners of “private port, fish port, fish landing site, resort, and/or airport to perpetrate economic sabotage.”