Republic of the Philippines
Bouse of Representatives
Quezon City

Fifteenth Congress
First Regular Session
2684

House Bill No.

Introduced by the Honorable ROMEO M. ACOP

EXPLANATORY NOTE

‘The smuggling of agricultural goods has become a pressing national concern. Not
only does the national government lose revenue in the form of tariffs and fees, but the
backbone of our agriculture sector, the farmers, are further drawn into the mire of poverty
because their products are being supplanted in the market by cheaper but smuggled
products.

Smuggling is such a lucrative practice that the influx of smuggled agricultural
products remain unabated, not to mention the fact that most smugglers get away with
impunity, without being prosecuted to the fullest extent of the law.

The national government has been harshly criticized for its lack of political will in
implementing harsher penalties and stringent measures to curb this practice. The situation
in effect condones smuggling and must now be rectified.

In line with the pertinent provisions in the 1987 Constitution and recognizing the
contribution of the agricultural sector in national development, this bill seeks to protect
Filipino enterprise from unfair and illegal competition and trade practices, Furthermore, the
State shall promote the preferential use of Filipino labor, domestic materials and locally
produced goods and adopt measures to make them competitive.

The losses in revenue cannot be tolerated anymore. Smuggling of agricultural

produce must be considered as a form of economic sabotage because of its effects on the
economy. Thus, the passage of this measure is earnestly enjoined.


Republic of the Philippines
Bouse of Representatives
Queson City

Fifteenth Congress

First Regular Session

House Bill No. 2684

Introduced by the Honorable ROMEO M. ACOP

AN ACT
DECLARING SMUGGLING OF AGRICULTURAL GOODS AS
ECONOMIC SABOTAGE AND PROVIDING PENALTIES THEREOF

SECTION 1. Declaration of State Policy — It is hereby the policy of the state to
control smuggling of agricultural goods that impinge upon the genuine attainment of
economic growth and development.

SECTION. 2. Definition of Terms

a) Economic Sabotage — Economic sabotage means any act or activity which
undermines, weakens or renders into disrepute the economic system or
viability of the country or tends to bring about such effects to include but not
necessarily limited to, the following offenses: trafficking, all forms of
smuggling, counterfeiting, black marketing or mass movement of local or
foreign currency in violation of existing laws and regulations, price
manipulation to the prejudice of the public especially in the sale of prime
commodities in violation of price control laws, the tax code, bank laws and
land reform act.

b) Agricultural Goods — Agricultural Goods shall refer to agricultural produce such
as rice, corn, sugar, and other food, vegetable or fruit crops, livestock
specifically meat products and sources like pork, beef and chicken as well as
the means to produce or raise such agricultural produce such as but not
limited to fertilizers, farm implements and equipment and feeds.


) Actual Smuggling ~ Actual Smuggling is an act by any individual or group to
bring in goods from foreign sources, or assist in so doing, without passing
through the Bureau of Customs

d) Technical Smuggling - Technical smuggling is an act by any individual or
group who fraudulently import or bring into the Philippines or assist in so
doing, any articles by mean of undervaluation of goods, imported at prices
below market norms and dumped and the deliberate misdescription or
misclassification of goods so as to pay duties at a lower rate.

Section 3. Penalties — Any individual or group found guilty of actual or technical
smuggling shall suffer the penalty of life imprisonment and a fine ranging from the
amount equivalent to the import duties due to triple the said amount which in no
case should be less than five hundred thousand pesos (P 500,000.00), depending on
the quantity of smuggled goods. Any government employee or official found guilty of
being accomplices to this practice shall be penalized life imprisonment including the
forfeiture of all benefits due him as a government employee.

Section 4, Repealing Clause — Any other provision of law, executive order, rule or
regulation or circular inconsistent with the provisions of this act is hereby modified or
repealed accordingly.

Section 5. Effectivity - This Act shall take effect upon its approval.

Approved.