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FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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,JUl. -6 !\11 :':J8 
SENATE 
S.NO. 288 
Introduced by Senator Antonio "Sonny" F. TriIIanes IV 
EXPLANATORY NOTE 
Under existing laws, smuggled sugar which are confiscated by the Bureau of Customs are 
immediately classified by the Sugar Regulatory Administration as "D" or World Market Sugar, 
so that it can be shipped out ofthe country. The Bureau of Customs then, conduct public auction 
among sugar traders and exporters who will purportedly ship the sugar out of the country. 
Since the confiscated sugar is classified as "D" Sugar, it is also bid out at "D" or world sugar 
prices which are just one-third of domestic sugar prices. Often, it is the sugar smugglers 
themselves, in connivance with unscrupulous sugar traders and exporters, who buy the 
confiscated smuggled sugar from the Bureau of Customs auction. The smuggled sugar eventually 
fmds its way to its intended destination - the domestic market where retail prices are almost four 
times that ofthe world market. 
Even with the efforts made by the Sugar Regulatory Administration and the Sugar Alliance of 
the Philippines, domestic sugar prices remain nnstable. Domestic sugar demand has stagnated for 
the past decade despite the almost double increase in population. There is a large gap between 
the actual demand versus the "reported" demand for sugar. Sugar smuggling fills this gap. 
Sugar smuggling has continued to be a lucrative underground business because 0 f existing laws 
which provide a loophole for smugglers to still get their hands even on confiscated smuggled 
sugar. Sugar smuggling not only deprives the government of revenues but it also adversely 
affects domestic sugar prices, to the detriment of Philippine sugar producers. Worse, sugar 
smuggling endangers the livelihood of five million Filipinos who are dependent on the sugar 
industry for their living. There is therefore a reason for a law that will ultimately prevent sugar 
smuggling in the country by dumping confiscated smuggled sugar into the sea. 
In view of the foregoing, the immediate approval of this bill is earnestly sought. 
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· . 
FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.NO. 288 
Introduced by Senator Antonio "Sonny" F.·:rrili~nes iv 
AN ACT 
,I, 
PROVIDING FOR THE DISPOSITION OF CONFISCATED SMUGGLED SUGAR 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Disposition of Smuggled 
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SugarActof2010." 
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SEC.' 2. Declaration of Policy. - It is hereby declared to be a state policy that the 
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provision of any law, rule, or regulation to the contrary notwithstanding, in no instance and under 
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no condition shall the sale or resale of confiscated smuggled sugar in Bureau of Customs custody 
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in the domestic market or their export to any foreign country be allowed. 
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SEC. 3. Disposition of Confiscated Smuggled Sugar. - No other method of disposition of 
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smuggled sugar in customs custody shall be allowed except dumping them into the sea in the 
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presence of witnesses consisting of representatives from the Sugar Regulatory Administration, 
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Sugar Industry and other parties concerned. 
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SEC. 4. Repealing Clause. - Any law, rule or regulation contrary to this act is hereby 
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amended accordingly or repealed as the case may be. 
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SEC. 5. Effectivity. - This act shall take effect fifteen (15) days after its publication in the 
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qlficial Gazette or in at least two (2) newspaper of general circulation. 
Approved, 
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