SUBIC BAY FREEPORT — Agents of the Criminal Investigation and Detection Group (CIDG) dismantled illicit electronics refurbishing and trading scheme inside the Subic Bay Freeport Zone, leading to the arrest five and the confiscation of over P12 million worth of substandard goods.
SUBSTANDARD ELECTRONIC GOODS Personnel of the Criminal Investigation and Detection Group Regional Field Unit 3 and the CIDG Olongapo City Field Unit inspect 2,400 units of refurbished laptop computers and 65 assorted mobile phones with an estimated total value of over P12 million during a raid inside the Subic Bay Freeport Zone on Feb. 5, 2026. PHOTO COURTESY OF CIDG
The operation, led by CIDG Regional Field Unit 3 and the CIDG Olongapo City Field Unit, was executed on Thursday afternoon at the Subic Bay Gateway Park.
Armed with a search warrant for violation of the Consumer Act of the Philippines (Republic Act 7394), the team uncovered a facility allegedly repurposing electronic devices intended solely for export for the local black market.
Authorities arrested four Chinese identified only as “Yuan” (female), “Liu,” “Liang,” and “Xiao” (all male), alongside their Filipino co-worker identified only as “Lori.” All are employees and residents of Olongapo City.
The suspects were caught in possession and control of 2,400 units of refurbished laptop computers and 65 assorted mobile phones, with an estimated total value of P12,195,000.
A report to CIDG director MGen. Robert Morico II revealed that the seized items lacked the mandatory dealer clearance from the National Telecommunications Commission (NTC) and the required certification from the Department of Trade and Industry (DTI), rendering them illegal for trade.
“These devices were assembled and refurbished inside the Freeport Zone, where all operations are strictly for export,” a CIDG statement explained. “Instead of exporting, the suspects deliberately diverted these substandard products to the local market to evade proper taxes and duties.”
The illicit scheme resulted in significant financial losses for the government and created unfair competition that undermines legitimate local businesses, authorities said. The group had no legal authority from the NTC to sell the devices domestically.
CIDG leadership lauded the operating units for the successful seizure of the substandard electronics goods in a decisive operation that underscored the law enforcement priority of Philippine National Police chief Gen. Jose Melencio Nartatez Jr.
“The CIDG commends the dedication of PCOL Grant A Gollod, Regional Chief of RFU3, and PCPT John Wayne K Pawingi of CIDG Olongapo,” the statement read.
“This operation underscores our unyielding stance against all forms of illegal trading and economic sabotage across the country,” the CIDG statement added.
The CIDG reaffirmed its steadfast commitment to enforcing consumer protection laws and its dauntless pursuit of violators, regardless of nationality.
The group urged the public to remain vigilant by checking for the required NTC seal and DTI certification on electronic products and to report any suspicious trading activities to their local CIDG office.
“Report illegal activities in your localities, and the CIDG will do the rest,” the statement concluded.
The suspects are currently under custody and will face charges for violations of RA 7394, in addition to possible tax evasion charges.
date:2026-02-08 16:07:00