Court stops Customs from conducting raids on Mighty Corp. warehouses

Customs operatives have been barred by a Manila court from conducting raids or inspections at the warehouses of Mighty Corporation, the homegrown cigarette maker allegedly engaged in smuggling.

Judge Tita Bughao Alisuag of the Manila Regional Trial Court Branch 1 issued last Monday a temporary restraining order in favor of the Bulacan-based cigarette manufacturer, which is good for a period of 20 days or from March 3 to 23, 2017.

The stay order can be extended if the court grants its plea for a writ of preliminary injunction, which will be heard on March 14.

In a statement on Thursday, Customs Commissioner Nicanor Faeldon said they will follow the court's directive.

“Yes, we will abide by the TRO, but we are not discounting the legal remedies available to us to counter the said TRO,” Faeldon said.

Before the company took the issue to the court, the BOC and the Bureau of Internal Revenue (BIR) conducted a series of raids in the company's warehouses in Pampanga and General Santos City which resulted in the seizure of thousands of cases of cigarettes with fake tax stamps worth more than P1 billion.

These operations were carried out upon the issuance of Mission Orders and Letters of Authority from Faeldon. BIR operatives later confirmed that the seized tax stamps were fake after subjecting them to authenticity tests.

In its petition, Mighty Corporation said the raids were not found in the scope of the mission orders.

Faeldon said Customs authorities will remain on guard at the warehouses of Mighty Corporation to ensure that the seized cigarettes will not be tampered with or swapped with legitimate products.

He said that the bureau will be able to build a strong case against the company and its responsible officers, including owner Alexander Wong Chu King.

“We are assuring the public and all legitimate manufacturers and importers of cigarettes or any other products that the BOC will run after illicit traders and smugglers," Faeldon said.

President Rodrigo Duterte wanted Wong Chu King arrested for the continuing crime of economic sabotage due to the firm's alleged usage of fake stamps.

On Thursday  however, Duterte said he is ready to settle the tax case of Mighty Corp. if the cigarette manufacturer would pay double the excise tax the company failed to remit.

Duterte told reporters in Davao del Sur that Mighty Corporation should pay P3 billion for the rehabilitation of hospitals in the country. —KG, GMA News