FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
SENATE 
Senate Bill No. 28 9 9 
'11 
JUL 25 P 6 :52 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
The trade of used and secondhand goods traces back its roots from the era of 
barter trade. A large volume of these kinds of goods are being sold both by 
individual sellers and in the market, including the bazaars, trade fairs and flea 
markets. 
And with the advent of internet shopping, buying and selling 
secondhand goods have become more accessible, much easier and cheaper. 
Some of the most traded secondhand items are cars, cellular phones and 
electronics such as computers and other gadgets. Other valuable items such as 
jewelries and even Signature bags can be found for sale in the various buy and 
sell markets and websites today. Republic Act 7394 otherwise known as the 
"Consumer Act of the Philippines" provides standards, procedures and 
safeguards for the consumers in general. Unfortunately, the existing laws and 
regulations are not focused on secondhand goods trade. 
They do not 
adequately ensure the consumers the quality and source of secondhand goods 
being traded, thus exposing the buyers to defective items or stolen goods, 
among others. 
This bill covers a number of items most traded, including electronics and 
jewelries. Patterned after Secondhand Dealers law of other Asian countries, it 
seeks to regulate the trade of secondhand goods by requiring the secondhand 
goods dealers to secure license from the licensing officer appointed by the 
Secretary of the Department of Trade and Industry. 
It also provides for the 
record-keeping and reporting by the dealers to ensure the reliability of source 
and to prevent the sale and circulation of lost or stolen items. 
The form of regulation proposed by this measure intends to protect both the 
buyers and the sellers or dealers. The fact that the goods being traded are 
secondhand does not mean that this should be given lesser attention; the quality 
of goods bought by the consumers, regardless of their price, should not be 
sacrificed. 
The immediate passage of this bill is earnestly sought. 
Senator 


FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'11 
JUL 25 P 6 :52 
SENATE 
Senate Bill No. 2 8 9 9 
""("1'"1' ,"", (2.r 
no!'... k'., 
"Ii .'.\; II I:t-_-
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
TO PROVIDE FOR THE LICENSING AND CONTROL OF DEALERS IN 
SECONDHAND GOODS AND FOR MATTERS CONNECTED THEREWITH 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Secondhand Goods 
2 
Dealers Act of 2011". 
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5 
SEC. 2. Declaration of State Policy. - It shall be the policy of the State to protect 
6 
the rights and welfare of the consumers and to ensure a healthy commercial 
7 
environment, including the trade of secondhand goods. 
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10 
SEC. 3. Definition of Terms. - As used in this Act: 
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12 
(a) "goods" in the term "secondhand goods" means any of the following 
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goods: 
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15 
i.) 
cameras, videographic and photographic eqUipment including 
16 
lenses; 
17 
ii.) 
computers including desktop computers, 
tablet personal 
18 
computers, laptops, palmtops, personal digital assistants and 
19 
computer accessories; 
20 
iii.) 
hand phones, 
personal digital assistant handphones and 
21 
smartphones; 
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iv.) 
compact disc (CD), digital video/versatile disc (DVD) and blu-ray 
23 
disc players; 
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v.) 
jewelry set with precious stones including, but not limited to, 
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diamonds, jade, rubies, sapphires and emeralds; 
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vi.) 
jewelry made from platinum, gold and white gold without 
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precious stones; 
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vii.) 
pawn tickets; 
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viii.) 
watches; 
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ix.) 
cables and wires made of copper; 
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(b) "license" means a license issued under Section 5 of this Act; 
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(C) "licensing officer' refers to the Licensing Officer and Assistant Licensing 
2 
Officer from the Department of Trade and Industry appointed under 
3 
Section 3 of this Act; 
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(d) "second hand goods dealer' refers to any person who deals in 
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secondhand goods, including a person in the Philippines who deals in 
7 
secondhand goods through the Internet; further, every person in whose 
8 
shop secondhand goods are found apparently exposed for sale, or who is 
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found in possession of secondhand goods of an unusual quantity, shall 
10 
be deemed, until the contrary is proven, to be a person who deals in 
II 
secondhand goods; 
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(e) "Secretary" refers to the Secretary of the Department of Trade and 
14 
Industry; 
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(f) "shop" includes a stall, house, flat, place of business, place of storage of 
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secondhand goods, an administrative office or any other premises from 
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which the business of a secondhand goods dealer is being carried out, 
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whether electronically or otherwise; 
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(g) "stolen property" means property, the possession of which has been 
22 
transferred by theft, extortion or robbery, which has been criminally 
23 
misappropriated or in respect of which criminal breach of trust or cheating 
24 
has been committed, whether the transfer has been made or the 
25 
misappropriation or breach of trust or cheating has been committed within 
26 
or out of the Philippines; but does not include such property which 
27 
subsequently comes into the possession of a person legally entitled to the 
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possession thereof; 
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SEC. 4. Appointment of Licensing Officer and Assistant Licensing Officers. -
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The Secretary of the Department of Trade and Industry (DTI) shall appoint a 
33 
Licensing Officer for the purposes of this Act and may similarly appoint such 
34 
number of Assistant Licensing Officers as may be necessary. 
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SEC. 5. Dealing in Secondhand Goods. - No person shall deal in secondhand 
38 
goods except under and in accordance with the conditions of a license issued 
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under Section 6 of this Act. 
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SEC. 6. Issuance, Renewal and Conditions of License. - An application for a 
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license shall be -
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45 
(a) made to the Licensing Officer in such form or manner as the Licensing 
46 
Officer may require; and, 
47 
(b) accompanied by-
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i.) 
such particulars, information and documents as the Licensing 
49 
Officer may require; and, 
50 
ii.) 
the prescribed fee and any other prescribed charge. 
5! 
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Upon receipt of an application, the Licensing Officer may, in his discretion, issue 
53 
a license to the applicant subject to such conditions as the licenSing Officer may 
54 
deem fit to impose. 
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56 
The Licensing Officer may at any time add to, vary or revoke any condition of a 
57 
license imposed under the preceding paragraph. 
2 


1 
2 
The Licensing Officer shall, before adding to, varying or revoking any condition of 
3 
a license, give the licensee -
4 
5 
(a) notice in writing of his intention to do so; and, 
6 
(b) an opportunity to be heard, within such time as may be specified in the 
7 
notice, as to why the condition should not be added to, varied or revoked. 
8 
9 
Any person who is aggrieved by the decision of the Licensing Officer under this 
10 
Section may, within fourteen (14) days of being notified of the decision of the 
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licensing Officer, appeal in writing to the Secretary of the DTI whose decision 
12 
shall be fina/. 
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A license may be renewed upon its expiry, with the necessary modifications, to 
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an application for the renewal of a license. 
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Any person who, in making an application for a license -
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(a) makes any statement or furnishes any particulars, information or 
20 
document which he knows to be false or does not believe to be true; or, 
21 
(b) by the intentional suppression of any material fact, furnishes any 
22 
information which is misleading 
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shall be guilty of an offense. 
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SEC. 7. Form and Validity of License. - A license shall -
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28 
(a) be in such form as the Licensing Officer shall determine; 
29 
(b) contain the conditions subject to which it is issued; and, 
30 
(c) be valid for such period as may be specified therein. 
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32 
33 
SEC. 8. Transfer of License. - No person shall transfer his license to another 
34 
person except with the consent of the Licensing Officer and upon payment of the 
35 
prescribed fee. 
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37 
Any person who contravenes this provision shall be guilty of an offense. 
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SEC. 9. Revocation or Suspension of License. - The Licensing Officer may 
41 
revoke a license or suspend a license for such period as he deems fit-
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43 
(a) if he is satisfied that the license -
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i) 
ii) 
iii) 
iv) 
v) 
has ceased to carry on the business for which he has been 
licensed or, if the licensee being a company, has gone into 
liquidation or is wound up or otherwise dissolved; 
has improperly obtained his license contrary to the provisions of 
this Act; 
is no longer a fit and proper person to continue to hold a license; 
has been convicted of any offense involving dishonesty or, if the 
licensee is a company, any of its officers holding a managerial 
or an executive position has been convicted of any offense 
involving dishonesty; 
is carrying on or has carried on the business of a secondhand 
goods dealer in such a manner as to render him unfit to 
continue to hold a license; 
3 


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vi) 
has failed to comply with any condition of his license; 
2 
vii) 
is contravening or has contravened any of the provision of this 
3 
Act; or, 
4 
viii) 
has been convicted of any offense under this Act or, if the 
5 
licensee is a company, any of its officers holding a managerial 
6 
or an executive position has been convicted of any offense 
7 
under this Act; or 
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(b) if he considers it in the public interest to do so. 
10 
II 
The Licensing Officer shall, before revoking or suspending any license under this 
12 
Section, give the licensee notice in writing of his intention to do so, specifying a 
13 
date, not less than fourteen (14) days after the date of the notice, upon which the 
14 
revocation or suspension shall take effect and calling upon the licensee to show 
15 
cause to the Licensing Officer why the license should not be revoked or 
16 
suspended. 
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When the Licensing Officer has revoked or suspended a license, he shall 
19 
immediately inform the licensee by notice in writing of the revocation or 
20 
suspension. 
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Any person whose license has been revoked or suspended may, within fourteen 
23 
(14) days of the receipt of the notice or such extended period of time as the 
24 
Secretary of the DTI may allow, appeal in writing against the revocation or 
25 
suspension to the Secretary whose decision shall be final. 
26 
27 
Any revocation or suspension of a license shall not take effect until the expiration 
28 
of a period of fourteen (14) days after the licenSing Officer has informed the 
29 
licensee of the revocation or suspension in accordance with this Section, and if 
30 
within that period, the licensee gives due notice that an appeal has been made to 
31 
the Secretary, the revocation or suspension order shall not take effect unless the 
32 
revocation or suspension order is confirmed by the Secretary or the appeal is for 
33 
any reason dismissed by the Secretary. 
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Where any license has been suspended, the Licensing Officer may, at any time 
36 
and subject to such conditions as he may deem fit to impose, lift the suspension 
37 
if he considers it appropriate to do so. 
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SEC. 10. 
Effect of Revocation or Suspension of License. -
Where any 
41 
revocation or suspension of a license becomes effective, the licensee shall cease 
42 
to carry on the business of a secondhand goods dealer. 
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This Section shall not prejudice the enforcement by any person of any right or 
45 
claim against the licensee or by the licensee of any right or claim against any 
46 
person arising out of or concerning any matter or thing done prior to the 
47 
revocation or suspension of the license. 
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SEC. 11. Keeping Proper Records. - Every secondhand goods dealer shall 
51 
keep in his shop -
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(a) records of the particulars of all goods bought by him, including the dates 
54 
of purchase, the names and addresses of the persons from whom he 
55 
bought the goods and such other particulars as may be prescribed; and, 
56 
4 


1 
(b) records of the particulars of all goods sold by him, including the dates of 
2 
sale, the names and addresses of the persons whom he sold the goods 
3 
to and such other particulars as may be prescribed. 
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Every secondhand goods dealer shall submit to the Licensing Officer the records 
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at such time and in such format and through such medium (whether electronic or 
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otherwise) as the Licensing Officer may require. 
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Every secondhand goods dealer shall retain the records for a period of not less 
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than five (5) years from the end of the financial year in which the transactions or 
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operations to which those records related are completed. 
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Every secondhand goods dealer shall produce the records for examination at any 
14 
time on demand by the Licensing officer, any court, a police officer or any 
15 
concerned and competent authority. 
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Any person who -
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(a) contravenes the provisions of this Section; or, 
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(b) in compliance or purported compliance with the provisions of this Section 
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fabricates, keeps, submits or produces to the Licensing Officer, any court, 
22 
a police officer or any concerned and competent authority, any record 
23 
which he knows is false or misleading, 
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shall be guilty of an offense. 
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SEC. 12. Information of Stolen and Lost Property to be Given to Secondhand 
28 
Goods Dealers. - Where a police officer has received any information as to any 
29 
stolen property or as to any property which has been lost, he may, if he deems it 
30 
necessary or expedient to assist in the recovery of the property, disseminate the 
31 
information to all secondhand goods dealers, with lists and descriptions of the 
32 
stolen or lost property. 
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34 
If any secondhand goods dealer possesses any property fitting such lists and 
35 
descriptions referred to in the preceding paragraph or such property is thereafter 
36 
offered to or shown to any secondhand goods dealer -
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(a) he shall, without necessary delay, make a report to any police 
39 
officer, with the name and address of the person in whose 
40 
possession the property was seen; and, 
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(b) he may detain the person offering or showing him such property 
43 
until the arrival of a police officer. 
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SEC. 13. Power to Enter and Search Secondhand Goods Dealer's Shop, etc. -
47 
Any police officer may enter the shop of any secondhand goods dealer at any 
48 
time and may, without a warrant, search the shop for any property which he has 
49 
reason to suspect to be therein and to be stolen property or property that has 
50 
been lost. 
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Any police officer may at any time enter and search without a warrant any shop 
53 
where he has reason to suspect that any person is dealing in secondhand goods 
54 
without a license issued under this Act. 
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For the purposes of exercising his powers under this Section, a police officer 
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may, with such assistance as he considers necessary, break open any door, 
5 


1 
window, lock, fastener, floor, wall, ceiling, compartment, box, container or any 
2 
other object. 
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Any police officer may seize any secondhand goods found in any shop referred 
5 
to in this Act. 
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SEC. 14. Power to Arrest Persons Loitering Suspiciously About Secondhand 
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Goods Dealer's Shop. - Any police officer, having reason to believe that a 
10 
person in or loitering about the shop of any secondhand goods dealer under 
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suspicious circumstances has with him any stolen property, may arrest that 
12 
person and require him to produce any property which he has with him. 
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Where any property is produced by any person and if the pOlice officer has 
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reason to suspect that property to be stolen property, the police officer may take 
16 
the person and the property, or cause the person and property to be taken, to a 
17 
police station to be dealt with according to law. 
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SEC. 15. Delivery to Owner of Property. - If any person is convicted in any court 
21 
of an offense under the Title Ten, "Crimes Against Property" of the Revised 
22 
Penal Code in respect of any property, and it appears to the court that the 
23 
property has been sold to a secondhand goods dealer, the court may, on proof of 
24 
the ownership of the property and if it thinks fit, order the delivery thereof to the 
25 
owner either on payment to the secondhand goods dealer of the amount of the 
26 
purchase price or any part thereof, or without payment thereof or of any part 
27 
thereof, as to the court according to the conduct of the owner and the other 
28 
circumstances of the case seems just and fitting. 
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The court may also adjourn the proceedings for the attendance of the 
31 
secondhand goods dealer and may summon the secondhand goods dealer to 
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attend at the adjourned hearing. 
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If after hearing the secondhand goods dealer the court is satisfied that the 
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secondhand goods dealer, before purchasing the property -
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(a) ought reasonably to have known or suspected that the property was 
38 
stolen property; and, 
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(b) did not exercise due care and diligence to ascertain that the property was 
41 
not stolen property, 
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the court may order the secondhand goods dealer to pay a financial penalty not 
44 
exceeding One Hundred Thousand Pesos (P100,OOO.OO). 
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SEC. 16. Offenses by Bodies Corporate, etc.-
48 
(1) Where an offense under this Act committed by a body corporate is proven 
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(a) 
to have been committed with the consent or connivance of an 
52 
officer; or, 
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(b) to be attributable to any neglect on his part, 
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the officer as well as the body corporate shall be guilty of the offense and 
56 
shall be liable to be proceeded against and penalized accordingly. 
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1 
(2) Where the affairs of a body corporate are managed by its members, 
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subsection (1) shall apply in relation to the acts and defaults of a member 
3 
in connection with his functions of management as if he were a director of 
4 
the body corporate. 
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(3) Where an offense under this Act committed by a partnership is proven -
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(a) to have been committed with the consent or connivance of a 
9 
partner; or, 
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(b) 
to be attributable to any neglect on his part, 
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12 
the partner as well as the partnership shall be guilty of the offense and 
13 
shall be liable to be proceeded against and punished accordingly. 
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(4) Where an offense under this Act is committed by an unincorporated 
16 
association (other than a partnership) is proven-
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(a) 
to have been committed with the consent or connivance of an 
19 
officer of the unincorporated association or a member of its 
20 
governing body; or. 
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(b) 
to be attributable to any neglect on the part of such an officer or 
22 
member, 
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the officer or member as well as the unincorporated association shall be 
25 
guilty of the offense and shall be liable to be proceeded against and 
26 
punished accordingly. 
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(5) In this Section -
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(a) "body corporate" includes a limited liability partnership; 
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(b) "officer'-
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i) in relation to a body corporate, means any director, 
34 
partner, member of the committee of management, chief 
35 
executive, manager, secretary or other similar officer of 
36 
the body corporate and includes any person purporting to 
37 
act in any such capacity; or, 
38 
ii) in relation to an unincorporated association (other than a 
39 
partnership), means the president, the secretary, or any 
40 
member of the committee of the 
unincorporated 
41 
association, or any person holding a position analogous 
42 
to that of president, secretary or member of a committee 
43 
and includes any person purporting to act in any such 
44 
capacity; 
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46 
(c) 
"partner' includes a person purporting to act as a partner 
47 
48 
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SEC. 17. Liability for Offenses. - Where an offense under this Act is committed 
50 
by any person acting as an agent or employee of another person, or being 
51 
otherwise subject to the supervision or instruction of another person for the 
52 
purposes of any employment in the course of which the offense was committed, 
53 
that other person shall, without prejudice to the liability of the first-mentioned 
54 
person, be liable under this Act in the same manner and to the same extent as if 
55 
he had personally committed the offense if it is proven that the act which 
56 
constituted the offense was committed with his consent or connivance or that it 
57 
was attributable to any neglect on his part. 
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1 
2 
Where any person, being an agent or employee employed by a secondhand 
3 
goods dealer in the course of his bUsiness as such secondhand goods dealer, 
4 
willfully does any act or commits any omission that constitutes an offense under 
5 
this Act, that person shall also be guilty of the offense and shall be liable to the 
6 
fine or punishment prescribed for that offense, as if he were the person carrying 
7 
on such business as a secondhand goods dealer. 
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SEC. 18. Penalties. - Any person who is guilty of an offense under this Act shall 
11 
be liable on conviction to a fine not exceeding One Hundred Thousand Pesos 
12 
(P100,000.00) or to imprisonment not exceeding one (1) year, or both at the 
13 
discretion of the court. 
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l5 
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SEC. 19. Composition of Offenses. - The Licensing Officer may, in his discretion 
17 
compound any offense under this Act which is prescribed as a compoundable 
18 
offense by collecting from a person reasonably suspected of having committed 
19 
the offense a sum not exceeding One Hundred Thousand Pesos (P100,OOO.OO). 
20 
21 
On payment of such sum of money, no further proceedings shall be taken 
22 
against that person in respect of the offense. 
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The Secretary may make rules to prescribe the offenses which may be 
25 
compounded. 
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SEC. 20. Exemption. - The Secretary may, with or without conditions, exempt 
29 
any person or class of persons from any or all of the provisions of this Act. 
30 
31 
If any exemption is granted under this Section with conditions, the exemption 
32 
operates only if the conditions are complied with. 
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34 
35 
SEC. 21. 
Implementing Rules and Regulations. -
The Secretary of the 
36 
Department of Trade and Industry, together with the other concerned agenCies 
37 
and private organizations, shall promulgate the implementing rules and 
38 
regulations of this Act within ninety (90) days from the approval of this Act. 
39 
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Such rules may include the following: 
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(a) prescribed fees and charges payable for the purposes of this Act; 
42 
(b) prescribed forms to be used for the purposes of this Act; and, 
43 
(c) prescribed records to be kept by secondhand goods dealers and the 
44 
particulars to be entered therein. 
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SEC. 22. Repealing Clause. - All laws, acts, presidential decrees, executive 
48 
orders, administrative orders, rules and regulations inconsistent with or contrary 
49 
to the provisions of this Act are deemed amended, modified or repealed 
50 
accordingly. 
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SEC. 23. Separability Clause. - If any part or provision of this Act is declared 
54 
invalid or unconstitutional, the other parts thereof not affected thereby shall 
55 
remain valid. 
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SEC. 24. Effectivity Clause. - This Act shall take effect fifteen (15) days upon 
2 
completion of its publication in at least two (2) national newspapers of general 
3 
circulation. 
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Approved, 
9