FOURTEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
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Introduced by Senator Antonio “Sonny” F. Trillanes 1v 
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 of the 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 
finds its way to its intended destination - the domestic market where retail prices are almost four 
times that of the world market. 
Even with the efforts made by the Sugar Regulatory Administration and the Sugar Alliance of 
the Philippines, domestic sugar prices remain unstable. 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 “reportep demand for sugar. Sugar smuggling fills this gap. 
Sugar smuggling has continued to be a lucrative underground business because of 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. 
A N ~ O ~ O  
“SONNY” k. TIULLANES IV 
Senator 
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F9cTRTEELqH CQXGPaES OF Trn 
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REPUBLIC OF THE PHILIPPINES 
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Second Regular Session 
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SENATE 
S. NO. 
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AN ACT 
PROVIDING FOR THE DISPOSITION OF CONFISCATED SMUGGLED SUGAR 
Be it enacted by the Senate and Home ofRepresentatives of the Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Disposition ofSmzrggled 
Sugar Act qf2008. ’’ 
SEC. 2. Declapation of Polhy. - It is hereby declared to he a state poky that the 
provision of any law, rule, or regulation to the contrary notwithstanding, in no instance and under 
no condition shall the sale or resale of confiscated smuggled sugar in Bureau of Customs custody 
in the domestic market or their export to any foreign country be allowed. 
SEC. 3. Disposition of Confiscated Smuggled Sugar. - No other method of disposition of 
smuggled sugar in customs custody shall be allowd except dumping them into the sea in the 
presence of witnesses consisting of representatives from the Sugar Regulatory Administration, 
Sugm Tiidustry and nther patties crmcmed. 
SEC. 4. ,Rqe&g Ctmse. - -bJy !m, 
rule or regu!&ion contrary to this xrt is hereby 
amended accordingly or repealed as the case may be. 
SEC. 5. Effectivity. -This act shall take effect fifteen (15) days after its publication in the 
Dflcial Gazette or in at lcast V i ~ o  
(2) ncwspapcr ofgcncral circulation. 
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