Story and Photos by HENRY EMPEÑO

SUBIC BAY FREEPORT — The Bureau of Internal Revenue (BIR) on Friday canceled the license of two cigarette manufacturers in this free port following findings that they engaged in unregistered activities, including illegal sales of cigarettes and printing of packs of unregistered foreign brands of cigarettes without prior permit.

BIR Commissioner Romeo Lumagui Jr., who inspected the factories of erring firms here on Friday, identified them as OneSubic Premier Manufacturing Corporation (OPMC) and Hongcim International Corporation (HIC), both located at the Subic Bay Gateway Park, Phase II.

BIR records showed the OPMC was given a permit to operate as manufacturer of cigarettes in October 2021 and a was licensed to operate a non-tobacco material warehouse in May 2023. However, it was found out to have violated BIR regulations during a tax compliance and verification drive (TCVD) conducted by revenue officers on July 13.

The TCVD team reportedly discovered that there was neither manufacturing machines nor finished cigarette products manufactured by OPMC in its warehouse.

Instead, the investigating team found various printing machinery, paper, inks, paints and other materials used in printing cigarette packs and boxes at the OPMC warehouse.

The BIR said OPMC printed boxes for six brands of cigarettes: RGD, Baisha, Liqun, Saat, Furongwang, and Nanjing, all of which were brands not registered with the BIR’s Large Taxpayer’s Service.

OPCM personnel reportedly admitted to the BIR that the firm did not make cigarettes and instead only produced cigarette boxes in packs and in reams, and that these were not only sold locally in the Clark Freeport, but also exported abroad.

Moreover, upon inspection of used manual sales invoice, it was discovered that OPMC also sold packs of finished cigarettes from Hongcim to Vietnam and Cambodia, along with empty printed cigarette boxes.

Hongcim was alleged to be OPMC’s sister company. The two firms occupied separate but neighboring manufacturing facilities at the E-3 Warehouse of the Subic Bay Gateway Park, Phase Il.

Lumagui said that due to said unregistered activities, the BIR’s TCVD team padlocked the OPMC warehouse.

He added that Revenue District Office-19 at the Subic Bay Freeport Zone will make a progress report to the BIR regional office with recommendation that the case be forwarded to the Large Taxpayer Excise Tax Division which has exclusive jurisdiction on OPMC’s series of violations.

Meanwhile, the Subic Bay Metropolitan Authority (SBMA) expressed its support for BIR’s initiative to enforce tax laws.

In a social media post the following day, SBMA Chairman and Administrator Jonathan D. Tan said, “We laud the efforts of the Bureau of Internal Revenue in taking action against companies in the Freeport that have been remiss in their tax obligations.”

“While the closure of certain companies is an unfortunate incident, the SBMA commits to be one with them in ensuring that pertinent tax laws are followed and investors are fully aware of their responsibilities as our partners in nation-building,” Tan added. 