SENATE OF THE PHILIPPINES) 
SIXTEENTH CONGRESS 
) 
Third Regular Session 
) 
'15 
SEP -1 P5:2!J 
SENATE 
Senate Bill No. _----'-2 ... 9LJ2 .... 3lL-
(In Substitution of Senate Bill Nos. 2082 and 2765) 
Prepared and submitted jointly by the Committees on Agriculture and Food, Ways 
and Means, and Justice and Human Rights, with Senators Ejercito and Villar 
as authors 
AN ACT 
DECLARING LARGE-SCALE AGRICULTURAL SMUGGLING AS ECONOMIC 
SABOTAGE, 
PRESCRIBING 
PENALTIES THEREFOR AND 
FOR OTHER 
PURPOSES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - This Act shall be known as the "Anti-Agricultural 
2 
Smuggling Act of 2015". 
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SEC. 2. Declaration of Policy. - It is the policy of the State to protect and 
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promote the productivity of the agriculture sector and farmers from unscrupulous 
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traders and importers, who by their illegal importation of agricultural products, 
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especially rice, significantly affect the production, availability of supply and stability of 
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prices, and thereby threatens the food security of the State. 
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The State shall impose higher sanctions for large-scale smuggling of 
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agricultural products, as a self-preservation measure to shield itself from the 
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manipulative scheme of economic saboteurs, and to protect the livelihood of our 
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farmers and to ensure their economic well-being. 
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SEC. 3. Definition of Terms. - As used in this Act, the following terms shall 
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mean: 
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(1) "Agricultural Products subject to economic sabotage" - shall cover rice, 
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sugar, corn, pork, poultry, garlic, onion, carrots, dried fish, and cruciferous 


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vegetables, in its raw state, or which have undergone the simple processes 
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of preparation or preservation for the market; and 
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(2) "Person" - shall mean natural and juridical persons. 
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SEC. 4. Definition of the Crime of Agricultural Smuggling. - Any person 
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who shall import or bring into the Philippines agricultural products without the 
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required import permit from the regulatory agencies, or use of import permits of 
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persons, natural or juridical, other than those persons specifically named in the 
8 
permit, or any person who shall import agricultural products by means of fraud or by 
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illegally obtaining the required import permit shall be guilty of the crime of smuggling, 
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including those acts which are within the purview of technical smuggling. 
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For purposes of this Act, import permits, issued by the regulatory agency, shall 
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be named to a particular person, natural or juridical, and shall be effective only within 
13 
a specific time and place therein stated. 
14 
SEC. 5. Agricultural Smuggling as Act of Economic Sabotage. - The acts 
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of agricultural smuggling, including technical smuggling thereof, are acts inimical to 
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the national interest, economic growth and development. 
17 
Any person, natural or juridical, found guilty of engaging in agricultural 
18 
smuggling, or technical smuggling thereof, of a minimum aggregate amount of One 
19 
Million Pesos (Php1,000,000.00) worth of agricultural products subject to economic 
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sabotage as defined herein, except rice, or has been found guilty of engaging in 
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agricultural smuggling of rice, or technical smuggling thereof, with a minimum 
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aggregate amount of Ten Million Pesos (Php 10,000,000.00), as valued by the 
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Bureau of Customs, utilizing methods of value verification by the Bureau of Customs, 
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shall be guilty of economic sabotage. 
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SEC. 6. Elements of the Crime of Agricultural Smuggling as Economic 
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Sabotage. - In the determination of the crime of agricultural smuggling as economic 
27 
sabotage, the following elements are present: 
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A. By Means of Technical Smuggling: 
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1 
1. That an act of misclassification, undervaluation or misdeclaration has been 
2 
committed upon the filing of Import Entry and Revenue Declaration with the 
3 
Bureau of Customs in order to evade the payment of rightful taxes and 
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duties due to the government; or 
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2. That the smuggled agricultural products subject to economic sabotage 
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were entered into the Customs jurisdiction by means of any of the 
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following: without the required permits, use of fake or fictitious permits, or 
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use of fake shipping documents; or 
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3. Excessive importation of what was allowed in the permit, non-use or 
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inability to produce the required permits; and 
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4. That the amount of smuggled agricultural product subject to economic 
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sabotage is equal or more than Ten Million Pesos for rice and equal or 
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more than One Million Pesos for other agricultural products defined herein, 
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based on the transaction value assessed by the Bureau of Customs. 
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B. By Means of Outright Smuggling: 
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1. That an act of importation of agricultural products subject to economic 
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sabotage 
without 
the 
complete 
government 
required 
importation 
18 
documents has been committed in an area outside the Customs jurisdiction 
19 
such as, but not limited to, private ports, fish ports, fish landing, resorts, 
20 
airports; and 
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2. That the amount of smuggled agricultural product subject to economic 
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sabotage is equal or more than Ten Million Pesos for rice, and equal or 
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more than One Million Pesos for other agricultural products defined herein, 
24 
based on the appraised value assessed by the Bureau of Customs. 
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SEC. 7. Persons Liable as Principals to the Crime of Agricultural 
26 
Smuggling as Economic Sabotage. - The following shall be deemed as principals 
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to the crime of agricultural smuggling as economic sabotage: 
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a. Any person found Violating the provision of Section 5 of this Act; 
3 


1 
b. Any person who prey on cooperatives and by using their permits for 
2 
purposes of smuggling, shall be punished as principals; 
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c. Any person who deliberately use dummy corporations, non-government 
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organizations, or associations for purposes of smuggling shall be punished 
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as principals; 
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d. The officers of dummy corporations, non-government organizations, 
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associations, who knowingly sell, lend, lease, assign, consent and allow 
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the unauthorized use of their import permits for purposes of smuggling 
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shall also be punished as principals; 
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e. The officers of cooperatives who knowingly sell, lend, lease, assign, 
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consent and allow the unauthorized 
use of their import permits for 
12 
purposes of smuggling shall also be punished as principals; and 
13 
f. 
The broker of violating importers shall likewise be liable and shall be 
14 
charge as principal. 
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When the offender is a government official or employee acting in connivance 
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with private individuals or entities or other government officials or employee, he shall 
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be charged as principal without prejudice to administrative, civil and criminal cases 
18 
which may be filed against him. 
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SEC. 8. Other Persons Liable as Principals to the Crime of Agricultural 
20 
Smuggling as Economic Sabotage. - The following shall likewise be deemed as 
21 
principals to the crime of agricultural smuggling as economic sabotage: 
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a. Forwarders, Charterers, Transporters of Smuggled Agricultural Products 
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Subject to Economic Sabotage 
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a. 1. The registered owner and its lessee or charterer, in case of lease, of a 
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chartered boat, motorized commercial vessel of more than three 
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gross tonnage who was caught knowingly transporting the agricultural 
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product subject to economic sabotage regardless of quantity, shall be 
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held liable as principal by direct participation; and 
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1 
a. 2. The registered owner and its lessee, in case of lease, of six or more 
2 
wheeler trucks, vans and other means of transportation, who was 
3 
caught knowingly transporting the agricultural product subject to 
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economic sabotage regardless of quantity, shall be held liable as 
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principal by direct participation. 
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b. Warehouse Owners and Lessees 
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The registered owner and lessee of a warehouse, or any property 
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who knowingly store the smuggled agricultural product subject to economic 
9 
sabotage, with a value equal or more than Ten Million Pesos for rice, and 
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equal or more than One Million Pesos for other agricultural products as 
11 
defined under this Act, 
shall be held liable as principal by direct 
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participation. 
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c. Private port owners, fish ports, fish landing sites, resorts, airports 
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The registered owner, lessee, president or chief executive officer of 
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the private port, fish port, fish landing sites, resorts, airports who knowingly 
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let the agricultural product to be smuggled into the country shall be held 
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liable as principal by indispensable cooperation. 
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Those guilty of the abovementioned acts, but knowledge of the crime is not 
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established, shall be held liable as an accomplice to the crime of agricultural 
20 
smuggling as economic sabotage. 
I 
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SEC. 9. Persons Liable as Accomplices to the Crime of Agricultural 
22 
Smuggling as Economic Sabotage. -
The following shall be deemed as 
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accomplices to the crime of agricultural smuggling as economic sabotage: 
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a. Forwarders, Charterers, Transporters of Smuggled Agricultural Products 
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Subject to Economic Sabotage 
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a. 1. The registered owner with its lessee or charterer, in case of lease, of 
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a chartered motorized vessel of equal or less than three gross 
28 
tonnage who was caught transporting the agricultural product subject 
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to economic sabotage regardless of quantity, shall be held liable as 
5 


1 
an accomplice to the crime of agricultural smuggling as economic 
2 
sabotage; 
3 
a. 2. The registered owner with its lessee, in case of lease, of trucks, vans 
4 
and other means of transportation with less than six wheels, who was 
5 
caught transporting the agricultural product subject to economic 
6 
sabotage regardless of quantity, shall be held liable as accomplice to 
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the crime of agricultural smuggling as economic sabotage. 
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b. Warehouse Owners and Lessees 
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The registered owner and lessee of a warehouse, or any property 
10 
where the smuggled agricultural products, with a value equal or more than 
11 
Ten Million Pesos for rice, and equal or more than One Million Pesos for 
12 
other agricultural products as defined under this Act, are stored shall be 
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held liable as accomplice by direct participation. 
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SEC. 10. Penalties. - Any person, natural or juridical, found guilty as principal 
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under Sections 5, 6, 7 and 8 of this Act shall suffer the following penalties: 
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a. Reclusion perpetua; 
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b. A fine of twice the fair value of the smuggled agricultural product, or fine 
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equal to the aggregate amount of the taxes, duties and other charges 
19 
avoided, whichever is higher; 
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c. Confiscation of the smuggled agricultural product; 
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d. Cancellation and revocation of business license, import permits and other 
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pertinent documents for importation; 
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e. Forfeiture of property used in agricultural smuggling, consistent with 
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Section 2530 of the Tariff and Customs Code and without prejudice to 
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Section 2531 of the same Code; and 
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f. 
Perpetual absolute disqualification to engage in any business of 
27 
importation. 
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Any person, natural or juridical, found guilty as accomplice under Sections 5, 
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6, and 9 of this Act shall suffer the following penalties: 
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1 
a. Reclusion temporal; 
2 
b. A fine equal to the fair value of the smuggled agricultural product subject 
3 
to economic sabotage, or a fine equal to the aggregate amount of the 
4 
taxes, duties and other charges avoided, whichever is higher; 
5 
c. Confiscation of the smuggled agricultural product; 
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d. Cancellation and revocation of business license, import permits and other 
7 
pertinent documents for importation; 
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e. Forfeiture of property used in agricultural smuggling, consistent with 
9 
Section 2530 of the Tariff and Customs Code and without prejudice to 
10 
Section 2531 of the same Code; and 
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f. 
Perpetual absolute disqualification to engage in any business of 
12 
importation. 
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In applying the abovementioned penalties, if the offender is an alien and the 
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prescribed penalty is not reclusion perpetu8, he shall be deported after serving the 
15 
sentence without further proceedings for deportation. If the offender is a government 
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official or employee, the penalty shall be the maximum as hereinabove prescribed 
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and the offender shall suffer an additional penalty of perpetual disqualification from 
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public office, to vote and to participate in any public election. 
19 
When, upon trial for violation of this Section, the defendant is shown to have 
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had possession of the agricultural product in question, possession shall be deemed 
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sufficient evidence to authorize conviction unless the defendant shall explain the 
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possession to the satisfaction of the court: Provided, however, that payment of the 
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tax due after apprehension shall not constitute a valid defense in any prosecution 
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under this Section. 
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When the offender is a juridical person, criminal liability shall attach to its 
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president, chief operating officer or manager. In addition, the business permit or 
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licenses of the business entity shall be revoked or cancelled. 
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SEC. 11. Presumption of Agricultural Smuggling. - Mere possession of 
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rice or any agricultural product under this Act, which has been the subject of 
7 


1 
smuggling, entered into the Philippines other than the Customs controlled ports or 
2 
without the necessary permits shall be prima facie evidence of smuggling. 
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SEC. 12. Implementing Rules and Regulations. - The Bureau of Customs, 
4 
in consultation with concerned agencies, shall promulgate the implementing rules 
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and regulations of this Act within thirty (30) days upon its effectivity. 
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SEC. 13. Prescription of Crimes. - The crime punishable under this Act shall 
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prescribe in twenty (20) years. 
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SEC. 14. Separability Clause. - The provision of this Act are hereby declared 
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to be separable from, and independent of, one another and that should one or more 
10 
of such provisions be declared unconstitutional, the validity of the remaining 
11 
provisions shall not be affected thereby. 
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SEC. 15. Repealing Clause. - All laws, decrees, executive issuances, rules 
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and regulations inconsistent with this Act are hereby repealed and/or modified 
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accordingly. 
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SEC. 16. Effectivity Clause. - This Act shall take effect immediately upon its 
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approval. 
Approved, 
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