Philippine Energy Department backs Shell in smuggling defense

Philippine Energy Secretary Jose Rene D. Almendras said that tests revealed that the shipment of Pilipinas Shell Petroleum Corp. were alkylate and not finished products, backing Shell’s defense against accusations of gasoline smuggling. Alkylate is an additive and is exempt from excise taxes in the Philippines. In 2009, former Batangas customs collector Juan N. Tan filed a Php1.6 billion (US$37 billion) complaint against Shell. Tan said Shell misdeclared motor gasoline products as alkylate so that it would be exempted from paying excise taxes. Philippine Customs had earlier hired independent laboratories to examine the shipment and tests revealed that the products were indeed fuel additives and not gasoline. The case was referred to the Department of Energy. Customs officials said that the investigation will continue. The case is only one among a series of smuggling cases filed against Shell. (September 14, 2011)