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Bureau of Customs shut down an allegedly illegal cigarette manufacturing operation in Mexico, Pampanga
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Warehouse found operating without permits or customs documentation
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Joint enforcement conducted on January 28, 2026, following an intelligence report
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Cigarette-making machines, raw materials, and locally produced cigarettes were seized
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Possible links seen to earlier seizures of illicit cigarette brands in Batangas
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Investigation expanded to include tax, customs, and immigration violations
The Bureau of Customs (BOC) has shut down an allegedly illegal cigarette manufacturing operation in Mexico, Pampanga, as part of the government’s campaign against smuggling and illicit trade.
The joint enforcement operation was carried out on January 28, 2026 at a warehouse located at Lot 2645, Panipuan, Mexico, Pampanga, following a derogatory report received by the bureau. The facility was found to be engaged in the unauthorized local production of cigarettes, according to initial findings.
Authorities discovered allegedly locally-manufactured cigarettes branded as “Two Moon,” along with cigarette-making machines and manufacturing paraphernalia bearing the brands Mighty, H&P, Playboy, and Carnival, indicating on-site production activities.
The BOC, in a news release, said the warehouse was operating without valid permits or authority to manufacture cigarettes locally.
The bureau noted that the brands found in the Pampanga operation were the same brands seized in a recent enforcement action in Batangas, suggesting a possible link in the distribution and supply chain of illicit cigarettes now under investigation.
Cigarette-making machines and raw materials found inside the warehouse were allegedly smuggled, as these were not covered by import permits or proper customs documentation.
Tax stamps scattered within the compound are subject to verification by the Bureau of Internal Revenue to determine authenticity and compliance with excise tax laws.
Individuals found inside the premises included six male Chinese nationals, 52 male Filipino nationals, and 11 female Filipino nationals believed to be involved in the illegal operation. The BOC said it is coordinating with the Bureau of Immigration to verify the legal status and documentation of the foreign nationals.
Inventory and valuation of the seized cigarettes, raw materials, and equipment are ongoing to determine their total quantity and value as well as the corresponding duties, taxes, penalties, and possible violations of customs, tax, immigration, and other related laws.
The operation was conducted by personnel from the Customs Intelligence and Investigation Service of the Manila International Container Port, the Enforcement and Security Service, MICP Examiners, and the Legal Service, in coordination with the Philippine Coast Guard and the Philippine National Police-Criminal Investigation and Detection Group. Local barangay officials were also notified and assisted during the operation.
Customs commissioner Ariel Nepomuceno underscored the significance of the operation in protecting government revenues and public welfare.
“Illicit cigarette manufacturing undermines legitimate businesses, deprives the government of much-needed revenues, and poses serious risks to public health. In line with the President’s directive, the Bureau of Customs will relentlessly pursue those involved in smuggling and illegal manufacturing through sustained enforcement and close coordination with our partner agencies,” Nepomuceno said.
READ: BOC finds P605M worth of smuggled cigarettes in Bulacan warehouse
