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Tag: Philippines

  • Philippines Requires Safety Certification for Nicotine Pouches

    Philippines Requires Safety Certification for Nicotine Pouches

    The Philippines Department of Trade and Industry (DTI) has imposed mandatory product certification requirements for nicotine pouches under Department Administrative Order (DAO) No. 26-07, signed Sept. 2. The order requires nicotine pouches to obtain certification under the Philippine Standard (PS) licensing scheme before they can be manufactured, imported, packaged, sold, or distributed. Products must meet World Health Organization reference procedures for nicotine content, pH level, and water activity.

    Manufacturers must conduct in-plant testing or use a DTI-recognized or accredited foreign laboratory. Packaging must declare nicotine content and allergens, provide use and disposal instructions, display the PS certification mark, and carry a full-color health warning covering contraindications, medication interactions, precautions, adverse reactions, and overdose treatment. The DTI established a 12-month transition period for companies to register existing products. Afterward, only nicotine pouches with a valid PS license may be manufactured, imported, distributed, or sold in the Philippines.

  • JTI Says Regulatory Gaps Fueling Illicit Trade in Philippines

    JTI Says Regulatory Gaps Fueling Illicit Trade in Philippines

    Japan Tobacco International (JTI) said regulatory and enforcement gaps are contributing to the movement of illicit tobacco across the Philippines’ borders, with criminal networks using maritime routes between Malaysia, Indonesia, and Mindanao. JTI Anti-Illicit Trade Operations Regional Director Valentin Dinca said illicit tobacco originating in China, the United Arab Emirates, Vietnam, Indonesia, and Cambodia moves through regional transit hubs including Malaysia, Singapore, and Thailand. In the Philippines, he identified Tawi-Tawi, Sarangani, and Zamboanga as key points for shipments arriving by sea before being redistributed domestically.

    JTI Philippines Director for Corporate Affairs and Communications Shaiful Mahpar called on ASEAN governments to align export-control requirements, increase intelligence sharing, and strengthen cross-border enforcement. JTI said a June operation with Philippine authorities led to the seizure of 23 containers of illicit cigarettes valued at about 1.7 billion pesos ($27.5 million). Mahpar said export shipments should comply with the destination market’s requirements, including tax stamps and graphic health warnings, to reduce opportunities for illicit trade.

  • JTI Invests $33.6M to Upgrade Factory in Philippines

    JTI Invests $33.6M to Upgrade Factory in Philippines

    JT International Asia Manufacturing Corporation (JTI-AMC) said it invested more than PHP2.1 billion ($33.6 million) to upgrade its manufacturing facility in LIMA Estate, Batangas, including PHP1.9 billion ($30.4 million) for a new Dry Ice Expanded Tobacco (DIET) plant and more than PHP177 million ($2.8 million) to expand its controlled atmosphere (CA) treatment facility. The CA facility became operational in July, doubling the site’s treatment capacity.

    The Batangas factory is the first JTI manufacturing site in Southeast Asia to use DIET technology. JTI-AMC Factory Lead Philippines Amir Vajdi said the investments reflect the company’s confidence in the Philippines and will support the facility’s manufacturing capabilities and technical expertise.

  • PMI Expands Global Services Hub in Philippines

    PMI Expands Global Services Hub in Philippines

    Philip Morris International’s global business services hub in Makati, Philippines, added more than 80 positions as it moved into higher-value services at its 8 Rockwell location. PMI Business Solutions Philippines began operations in 2021 with a focus on finance and information technology services for 20 markets. The hub now employs more than 500 professionals providing 600 services across finance, human resources, IT, commercial services, data analytics, supply chain, project management, and fleet services for 160 markets.

    PMIBS President Harry Tan said the company plans to use artificial intelligence to support more complex services and is focusing on talent development, operational expansion, and AI transformation. Philip Morris Fortune Tobacco Corporation President Zhenya Ivanov reaffirmed PMI’s commitment to the Philippines and PMIBS’ role in the company’s broader transformation and growth. The Makati facility is PMI’s second global business services center and its first in Asia.

  • Filipino Lawmakers Weigh Unified Vape Tax  

    Filipino Lawmakers Weigh Unified Vape Tax  

    Philippine lawmakers are considering a single excise tax for vape products, as health advocates push for a rate of at least P80 ($1.28) to discourage youth access and curb nicotine addiction. The House committee on ways and means is studying a unified rate for salt-nicotine and freebase products, citing existing tax disparities and their potential impact on consumer behavior and illicit trade. 

    The Department of Finance and Department of Health have proposed a unified P72.93 ($1.17) tax by 2027 covering cigarettes, heated tobacco, and vape products. Health groups argue this is too low, while a proposal by Cagayan de Oro Rep. Rufus Rodriguez would set the vape rate at P15 ($0.24) per milliliter, with the aim of balancing revenue collection against the risk of driving consumers toward illegal products. 

  • Philippines Says 93% of Vape Brands Unregistered

    Philippines Says 93% of Vape Brands Unregistered

    The Philippines’ Department of Trade and Industry (DTI) said 292 of 313 vape brands (93%) identified in the market are not registered with the agency. DTI Assistant Secretary Marcus Valdez II disclosed the figures during an Aug. 25 House Ways and Means Committee hearing on tobacco and vapor excise taxes.

    Lawmakers and government agencies are considering a single excise tax rate for nicotine salt and freebase vapor products, arguing the current two-tier system contributes to tax leakage and illicit trade. “They will not register because the tax is too high,” committee chairman Miro Quimbo said. The Bureau of Internal Revenue reported 6,196 tobacco and vape enforcement operations in 2026, generating an estimated P1.7 billion ($27 million) in excise taxes.

    The Bureau of Customs reported 253 tobacco seizures worth P10 billion ($160 million) and 18 vapor-product seizures worth P1.6 billion ($25.6 million) this year, compared with P1.87 billion and P649 million ($29.9 million and $10.4 million), respectively, in 2025. Lawmakers cautioned that excessive taxes could drive more consumers toward illicit products, with Rep. Roberto Nazal saying authorities should avoid “overtax[ing] to the point that we will promote further smuggling.”

  • Value of Seized Tobacco in Philippines Quadruples

    Value of Seized Tobacco in Philippines Quadruples

    The Philippines’ Bureau of Customs (BOC) said it seized nearly P11.68 billion ($186.9 million) worth of illegal cigarettes and vape products from January through July 2026, up 464% from the P2.52 billion ($40 million) seized during all of 2025, according to Enforcement and Security Services data presented to the House Ways and Means Committee. Cigarette and tobacco seizures accounted for most of the total, with major confiscations at the ports of Surigao, Manila, Zamboanga, and Cebu, while vape seizures were valued at about P1.65 billion ($26.4 million), primarily at the Manila International Container Port. BOC said confiscated products are destroyed and do not enter the market.

  • LT Group Hits Record Income on Banking, Tobacco Gains

    LT Group Hits Record Income on Banking, Tobacco Gains

    LT Group Inc. — one of the Philippines’ largest business groups, controlled by the Lucio Tan family — reported a 14% increase in attributable net income to a record P17 billion ($272 million) in the first half of 2026, driven by higher earnings from its banking and tobacco businesses. Philippine National Bank contributed P8.2 billion ($131 million), or 48% of group earnings, while Fortune Tobacco Corp. contributed P6.1 billion ($98.1 million), or 36%.

    Fortune Tobacco’s net income rose 13% to P6.2 billion ($98.6 million), supported by higher equity earnings from its 49.6%-owned associate PMFTC Inc. PMFTC benefited from cigarette price increases implemented in March and a 2% increase in offtake volume to 11 billion sticks, matching overall industry growth. LT Group also said government enforcement and seizures had reduced illicit tobacco activity, with stricter port controls and action against machinery used to produce illicit tobacco expected to support further progress.

  • Philippines NTA Opens Tobacco Growing to Landless Farmers

    Philippines NTA Opens Tobacco Growing to Landless Farmers

    The Philippines’ National Tobacco Administration (NTA) said landless farmers in Cagayan can enter tobacco production by renting suitable farmland, with partner buying companies potentially providing ₱25,000–₱30,000 ($400 to $480) per hectare in rental assistance along with production inputs and services.

    Qualified growers can also participate in the NTA’s Tobacco Contract Growing Scheme, under which farmers repay 60% of production assistance while the remaining 40% is provided as a subsidy. The NTA urged prospective growers to undergo soil testing and site assessments before planting, particularly to ensure adequate water supply and drainage.

  • Philippines Customs Battling Seized-Cigarette Theft

    Philippines Customs Battling Seized-Cigarette Theft

    The Philippines’ Bureau of Customs adopted a one-strike policy for personnel caught stealing or improperly handling confiscated cigarettes, following reports of attempts to divert seized tobacco products. Commissioner Ariel Nepomuceno said employees found violating the policy will be immediately removed from service and face administrative, civil, and criminal proceedings.

    Under the directive, seized cigarettes cannot be transferred, relocated, or disposed of without the commissioner’s written approval. Nepomuceno also ordered the BOC’s Internal Administration Group to recommend stronger safeguards for confiscated tobacco products at ports, emphasizing that the goods are critical evidence in the agency’s efforts to combat illicit trade and protect government revenue.