FOURTEENTH CONGRESS OF THE ' 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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S E N A T E  
9 
FEB 23 Pr; 3 7  
INTRODUCED BY THE HONORABLE MAR ROXAS 
EXPLANATORY NOTE 
As stated in the Sugar Regulatory Administration (SRA) Charter, the sugar industry is 
a major component of the socioeconomic and political structure of the country. Sugar 
provides employment in the countryside, generates revenue to municipal and provincial 
governments, and adds to the foreign currency reserve. According to the 2004 Philippine 
Statistical Yearbook, sugar and its by-products contributed Php53 Billion to National Gross 
Domestic Product (GDP) or 1.2% of GDP in 2004. Also, data from the SRA shows that 
Philippine land area dedicated to sugarcane production is at 391,712 hectares. Considering 
that 1.3 workers are needed per hectare of sugarcane farm, aggregate direct employment in 
sugar production is 509,255 sugarcane workers. 
All of these benefits are endangered by the entry of smuggled sugar into the domestic 
market. Smuggled sugar decreases customs tax collection, destabilizes domestic sugar prices, 
and endangers the domestic sugar industry as well as the many sugar planters in the country. 
According to the Bureau of Customs, Php36 Million worth of smuggled sugar was 
seized in 2008 from the Manila and Subic ports, a 400 percent increase from the Php9.32 
Million seized in 2007. In news reports, Sugar Regulatory Administration head Rafael 
Coscolluela pointed out that this figure will significantly increase if smuggled sugar seized in 
ports other than the two are included. Moreover, the existing Bureau of Customs policy that 
smuggled sugar is auctioned and sold to exporters so that it can be shipped out of the country 
has only enabled sugar smugglers, in collusion with unscrupulous traders, to reacquire the 
seized sugar and then sell it in the domestic market. 
Thus, to strengthen the government's drive to put a stop to sugar smuggling, this bill 
grants the Sugar Regulatory Administration the power to make arrests and file charges 
against sugar smugglers. In addition, this bill requires that all seized sugar be placed under 
the custody of the Sugar Regulatory Administration. Furthermore, this bill puts a stop to the 
reselling of smuggled sugar by requiring the dumping of all seized smuggled sugar into the 
sea provided that the dumping site is approved by the Department of Environment and 
Natural Resources and the Bureau of Fisheries and Aquatic Resources to ensure that the 
ecosystem is not unduly disturbed. 
In view of the foregoing, the immediate enactment of this measure is earnestky 
sought. 


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FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
Second Regular Session 
) 
f3 
FEU 23 1'457 
S E N A T E  
INTRODUCED BY THE HONORABLE MAR ROXAS 
AN ACT 
STRENGTHENING THE SUGAR REGULATORY ADMINISTRATION AND 
FOR OTHER PURPOSES. 
Be it enacted by the Senate and the House of Representatives of'the Philippines in Congress 
assem bled: 
SECTION 1. lYt1.e. - This shall be known as the 'Xnri-Sugar Smuggling Act of 2009. 
SECTION 2. Declaration of Policy - The State recognizes the danger that smuggled 
sugar poses to the development of our sugar industry, the welfare of our sugar planters, and 
the stability of our domestic sugar markets. Towards this end, it is hereby declared as a policy 
of the State to establish and maintain a more responsive system to ensure that our markets 
are free from illegally imported sugar. 
SECTION 3. Broadening the Scope of the Sugar Regulatov Administration. - The 
Sugar Regulatory Administration is hereby tasked to ensure that the domestic sugar market is 
free from illegally imported or smuggled sugar. 
SECTION 4. Strengthening the Sugar Regdatoy Aahinistration. - The Sugar 
Regulatory Administration is hereby empowered to prevent and suppress the smuggling of 
sugar through the execution of searches, seizures, and arrests. 
SECTION 5. Cusrody Over Smuggled Sugx. - All confiscated smuggled sugar shall be 
placed under the custody of the Sugar Regulatory Administration within ten (10) days of 
seizure. 
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SECTION 6. Diqmsitim of SmugIed Sugar. - All confiscated smuggled sugar shall be 
immediately dumped into the sea within forty (40) days of seizure; Provided, That the 
dumping site is cleared with the Department of Environment and Natural Resources and the 
Bureau of Fisheries and Aquatic Resources to ensure that the dumping does not bring any 
significant imbalance to the concerned ecosystem; Provided further, That the actual 
dumping is done in the presence of representatives from the Department of Environment 
and Natural Resources, Bureau of Fisheries and Aquatic Resources, Bureau of Customs, sugar 
industry, and other concerned parties. 
SECTION 7. Penal Provision. - Any person convicted of smuggling or abetting the 
smuggling of sugar shall be imprisoned for a period of not less than fifteen (15) years but not 
more than thirty (30) years, and shall pay a fine of at least Phpl,OOO,OOO. 
SECTION 8. Wilirout Prqudice Clause. - ?'he power to execute searches, seizures, 
and arrests granted the Sugar Regulatory Administration by virtue of this act shall be 
without prejudice to existing laws, decrees, orders, rules and regulations granting the Sugar 
Regulatory Administration such other'necessary regulatory power and functions. 
SECTION 9. Separability Clause. - If any part, section or provision of this Act is held 
invalid or unconstitutional, other provisions not affected thereby shall remain in full force 
and effect. 
SECTION 10. Repealing Clause. -All laws, decrees, orders, rules and regulations or 
other issuances inconsistent with the provisions of this Act are hereby repealed, amended or 
modified accordingly. 
SECTION 11. Effectiv?y. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
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