PNP Dismantles ₱1.1-Billion Illegal Cigarette Hub in Lapu-Lapu City; 4 Foreign Nationals Arrested

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In a major blow to illicit trade, authorities shut down a large-scale counterfeit cigarette factory on Friday, April 10, seizing over ₱1.1 billion worth of contraband and sophisticated manufacturing equipment. The operation, conducted in Barangay Basak, resulted in the arrest of four Chinese nationals and one Filipino cohort.

Acting on a search warrant issued by the Lapu-Lapu City Regional Trial Court Branch 27, a joint force—including the Police Regional Office 7 (PRO-7) and the CIDG—raided a warehouse facility located within an industrial park. Operatives uncovered thousands of boxes of cigarettes bearing falsified BIR tax stamps. The seizure included high-speed cigarette-making and stamping machines, as well as several tons of raw materials used in the illegal production process.

The four Chinese nationals and their Filipino contact were caught in the act of operating the facility. All five are currently in police custody and face charges for falsification and use of falsified documents under Article 172 of the Revised Penal Code. PNP Chief General Jose Melencio Nartatez Jr. emphasized that the operation is part of an intensified campaign to protect legitimate industries and stop the massive loss of government revenue caused by tax evasion.

Authorities are urging the public and business owners to remain vigilant against suspiciously cheap tobacco products. General Nartatez warned that such illegal schemes not only defraud the government but also pose significant health risks to consumers due to unregulated production standards.