Republie of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

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SIXTEENTH CONGRESS

First Regular Session

House Bill NOR 107

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

EXPLANATORY NOTE

This draft measure proposes the revision and increase of the penalties for the
crime of smuggling. More importantly, it defines the crime of smuggling constituting
economic sabotage, hence punishable by capital punishment.

Under the present law, the highest penalty that can be imposed is a only a fine of
8,000 to P10,000 and imprisonment of 8 to 12 years. This penalty range is imposed on
the ceiling importation amount of P150 Thousand.

It can be gainsaid that this is a very measly penalty. The law does not take into
account the fact that nowadays, the amount of illegally imported items usually totals
millions of pesos, or in amounts far, far greater than the ceiling amount of 150 Thousand
Pesos, Therefore, for smuggling amounting to P151 Thousand, and of P100 Million, the
same measly penalty would be imposed.

Also, it is only when the crime of homicide is committed by reason or on the
occasion of the unlawful importation that the penalty of reclusion perpetua to death shall
be imposed. But, considering that smuggling is an offense that would nowhere near result
to death, this capital punishment can be very seldom, if not never, be imposed.

For a crime that threatens the very stability of our country, an enormous offense
that surely qualifies as economic sabotage, there is an urgent need for legislative
initiative, if only just to make the penalties to this crime commensurate to the gravity of
the offenses.

Under this proposal, the revised penalties for smuggling would be as follows:
AMOUNT SMUGGLED FINE IMPRISONMENT
P 100,000 — 1 Million P 50,000 — 100,000 8— 12 years

P 1 Million — 50 Million Pi 10 — 500,000 12-20 years
More than P50 Million P 500, 000 — P! Million Reclusion Perpetua



Based on the above table of penalties, the ceiling of P150 Thousand would be
increased. New ranges, in terms of the value of smuggled items, are to be inserted. When
the amount of smuggled articles is greater than the amount of 50 Million Pesos, the
penalty makes this kind of smuggling at par with the offense of plunder.

Also, under this measure, in determining the appropriate penalty, the value of the
imported items article/s, shall be accumulated or aggregated from all of the importations.
The cases cannot be split or filed individually to lower the offense and/or the penalty.

In addition, Customs officials and employees who commit smuggling in
conspiracy with private individuals shall be equally liable to the penalty imposed. These
officials would not just include the BOC, but also the usual “task forces” deputized or
assisting it. Thus, the usual scenario that these “task forces” become just another layer of
corrupt or would be corrupted Customs men, would be prevented.

Moreover, these employees or officials would be penalized when they are found,
not just to be in conspiracy with, but when they are, by willful neglect, allowing the
smuggling. Therefore, these Customs officials would no longer be able to hide behind the
cloak of carelessness, negligence, or any inanity, to evade being penalized for the
offense.

Time and again, it has been mentioned that taxes are the lifeblood of a nation. In
our country, this blood is not even allowed to properly enter into its system, making the
sustenance of its life gravely difficult.

In a recent editorial of the Philippine Daily Inquirer, the potential revenues lost on
smuggling was tagged at between P90 billion to P200 billion annually. For the period
2002 and 2007, it was reported that the exports to the country amounted to $284.7 billion.
However, the Bureau of Customs’ records showed only $195.01 billion. The foregone
revenues from the 12-percent value-added tax (VAT) and from an average 5-percent
tariff were estimated at P127.08 billion.

It is true that there are high profile cases of smuggling reported. There was the
reported disappearance of some 2,000 containers carrying taxable goods from the Manila
International Container Port to the Batangas. Before this was the reported series of
technical smuggling allegedly being done by petroleum companies.

But these cases are just reported. Period.

Moreover, it is not only that nothing happened or is happening, out of these cases.
‘The smuggling continues and remains unabated. And, the amounts involved are even
skyrocketing. Very recently, it involved almost Half a Billion Pesos of smuggled rice
abandoned at the Subic Free Port.

To simplify, there may be two main factors for this.

One is not just the coddling, but conspiracy, of Customs employees with big time
smugglers. It is an open secret that even though there are new and hi-tech x-ray machines
in the seaports and airports to screen cargo vans, the Customs bureau remains blind, or
still turns a blind eye. The goods that are screened remain undervalued and the taxes and
duties payable thereon are very much lowered.

Second, is the fact that even if cases are filed, these do not serve as a deterrent.
Cases filed are either easily dismissed, or more often, allowed to wallow for very long
periods of time. Then, after they forgotten by the media and the public, these cases are
clandestinely dismissed.


Indeed, smuggling is a very difficult problem to solve. However, as always,
increasing the penalty to an offense is as effective deterrent to would be offenders than
any other possible preventive measure.

For one, if the possible penalty is capital punishment, then bail would not be
allowed if prima facie evidence is found against the accused. While the criminal
complaint is pending in court, the accused would languish in jail, thus preventing him
from continuing with his modus operandi. And, the Customs official involved would
likewise suffer the same predicament. He or she cannot also continue with whatever
running anomaly he or she has been perpetrating.

‘And finally, the imposition of capital punishment to big time smugglers, would
probably not just serve as a deterrent, but may put an end to this heinous crime,

‘As the term connotes, these smugglers are “big time”. They are not just your run
of the mill tax evaders. They are not just ordinary entrepreneurs but probably
industrialists, multi-millionaires or even billionaires, even known to high society. Their
conviction would be really high profile, such that no person of similar stature would want
to be subjected ever again to such. Then, probably then, big time smuggling would stop.

To reiterate, the financial losses in revenues brought about by rampant smuggling
could have been the much needed lifeblood that our severely ailing economy needs.
Indeed, to quote the same editorial, “it is money that could go a long way in combating
poverty and financing the construction and maintenance of thousands of school
buildings, hospitals, roads and bridges”.

It is in this view that the immediate passage of the bill is earnestly sought.

A - YAP
Representative


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
SIXTEENTH CONGRESS

First Regular Session

House Bill No.

INTRODUCED BY REPRESENTATIVE ARTHUR C. YAP

AN ACT
REVISING AND INCREASING THE PENALTIES FOR
SMUGGLING, DEFINING SMUGGLING CONSTITUTING
ECONOMIC SABOTAGE AND IMPOSING THEREON THE
PENALTY OF RECLUSION PERPETUA, AMENDING FOR THE
PURPOSE REPUBLIC ACT NO. 7659, KNOWN AS THE DEATH
PENALTY LAW, ALSO AMENDING PRESIDENTIAL DECREE
NO. 1464, OTHERWISE KNOWN AS THE REVISED TARIFF AND
CUSTOMS CODE, AS AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled.

SECTION 1. Short Title. - This Act shall be known as the “Increased Penalty
Smuggling and Capital Punishment for Smuggling Constituting Economic Sabotage Act
of 2013”.

SECTION 2. Declaration of Policy. — \t is hereby declared the policy of the State
to curb big time smuggling. Taxes are the lifeblood of a nation. The financial losses in
revenues brought about by rampant smuggling should be minimized, if not altogether
brought to naught. Smuggling is an offense that threatens the very stability of our country
and is tantamount to economic sabotage. It is the policy of the State to make the penalties
to this crime commensurate to the gravity of the offenses.

SECTION 3. Revised and Increased Penalty for Smuggling and Capital
Punishment for Smuggling Constituting Economic Sabotage. — A new Section 12-A is
hereby inserted to Republic Act No. 7659, otherwise known as the Death Penalty Law, to

read as follows:


"SECTION 12-A. Section 3601 of Presidential Decree No. 1464,
as Amended, otherwise known as the Revised Tariff and Customs Code, is

hereby amended to read as follows:

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“PART 3

Penal Provisions

SECTION 3601. Unlawful Importation. —
Any person who shall fraudulently import or bring into the
Philippines, or assist in so doing, any article, contrary to
law, or shall receive, conceal, buy, sell, or in any manner
facilitate the transportation, concealment, or sale of such
article after importation, knowing the same to have been
imported contrary to law, shall be guilty of smuggling and
shall be punished with:

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4. A fine of not less than FIFTY [eight]
thousand pesos (P50,000.00) nor more than ONE
HUNDRED [ten] thousand pesos (P100,000.00) and
imprisonment of not less than eight (8) years and one (1)
day nor more than twelve (12) years, if the appraised value
to be determined in the manner prescribed under this Code,
including duties and taxes, of the article unlawfully
imported IS MORE THAN [exceeds] one hundred fifty
thousand pesos AND DOES NOT EXCEED ONE
MILLION PESOS (P1,000,000);

4A. A FINE OF NOT LESS THAN ONE
HUNDRED THOUSAND PESOS (P100,000.00) NOR
MORE THAN FIVE HUNDRED THOUSAND PESOS
(P500,000.00) AND IMPRISONMENT OF NOT LESS

THAN TWELVE (12) YEARS AND ONE DAY NOR


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MORE THAN TWENTY (20) YEARS, IF THE
APPRAISED VALUE TO BE DETERMINED IN THE
MANNER PRESCRIBED UNDER THIS CODE,
INCLUDING DUTIES AND TAXES, OF THE
ARTICLE UNLAWFULLY IMPORTED IS MORE
THAN ONE MILLION PESOS (P1,000,000.00) AND
DOES NOT EXCEED FIFTY MILLION (P50,000,000)
PESOS;

5. The penalty of prison mayor shall be
imposed when the crime of serious physical injuries shall
have been committed and the penalty of A FINE OF NOT
LESS THAN FIVE HUNDRED THOUSAND PESOS
(P500,000.00) BUT NOT MORE THAN ONE

MILLION PESOS (P1,000,000.00) AND reclusion

perpetua [to—death] shall be imposed WHEN IT
CONSTITUTES ECONOMIC SABOTAGE OR IF
THE APPRAISED VALUE TO BE DETERMINED IN
THE MANNER PRESCRIBED UNDER THIS CODE,
INCLUDING DUTIES AND TAXES, OF THE
ARTICLE UNLAWFULLY IMPORTED EXCEEDS
FIFTY MILLION PESOS (P50,000,000.00) AND when
the crime of homicide shall have been committed by reason
or on the occasion of the unlawful importation.

IN CASES OF MULTIPLE IMPORTATIONS,
THE CASES CANNOT BE FILED INDIVIDUALLY
FOR PURPOSES OF LOWERING THE OFFENSE
AND THE PENALTY. THE APPRAISED VALUE OF
THE IMPORTED ARTICLE, INCLUDING DUTIES

AND TAXES, SHALL BE ACCUMULATED OR


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AGGREGATED FROM ALL OF THE
IMPORTATIONS, ACTS OR TRANSACTIONS AS
ENUMERATED UNDER THE FIRST PARAGRAPH
OF THIS PROVISION.

IN ADDITION TO THE OFFENSES
PUNISHABLE UNDER SECTION 3604 OF THIS
CODE, ANY OFFICIAL, AGENT OR EMPLOYEE
OF THE BUREAU OF CUSTOMS OR OF ANY
OTHER AGENCY OF THE GOVERNMENT
CHARGED, DEPUTIZED OR ASSISTING WITH
THE ENFORCEMENT OF THE PROVISIONS OF
THIS CODE, WHO IS FOUND GUILTY OF
COMMITTING, IN CONSPIRACY WITH,
KNOWINGLY, OR BY WILLFUL NEGLECT, ANY
OF THE ABOVE ENUMERATED OFFENSES,
SHALL BE EQUALLY LIABLE TO THE PENALTY
IMPOSED THEREIN.

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SECTION 4. Separability Clause. - If any provision of this Act, or any parts
thereof, is declared unconstitutional, the same shall not affect the validity and effectivity
of the other portions.

SECTION 5. Repealing Clause. - All laws, executive orders, presidential
decrees, proclamations, rules, regulations, issuances and enactments of parts thereof
inconsistent with this Act are hereby repealed or modified accordingly.

SECTION 6. Effectivity. - This Act shall take effect fifteen (15) days from its
complete publication in the Official Gazette of in a newspaper of general circulation in

the Philippines, whichever comes earlier.

APPROVED.