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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
Second Regular Session 
OF THE PHILIPPINES 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
Free enterprise has long been considered as the cornerstone of a country’s progress. 
Many developed countries adopt a policy of luizzes fuire where they minimize government 
regulation of the private enterprises and allow them to grow on their own. However, in a 
developing country such as ours, private enterprises still lack the maturity to regulate themselves 
and are still prone to abuses from both inside the country and overseas. 
One such abuse is smuggling. It is a form of unfair trade practice that allows certain 
people to set the price of imported goods below market prices because they are able to avoid 
paying customs duties. If we tolerate such practice, we effectively weaken our economy by 
letting honest businesses die a natural death due to unfair competition from these smugglers. 
This bill seeks to establish a crime of smuggling and technical smuggling and provides 
for certain means to assist the law enforcers to prosecute the offenses. 
This is a Senate counterpart bill to the bill filed in the House of Representatives by Rep. 
Abraham Mitra. 


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FOURTEENTH CONGRESS OF THE REPUBLIC) 
Second Regular Session 
OF THE PHILIPPINES 
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SENATE 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PUNISHING VARIOUS FORMS OF SMUGGLING, PRESCRIBING PENALTIES 
THEREFOR, GRANTING INCENTIVES AND REWARDS FOR ASSISTANCE OF 
WITNESSES AND JNFORMANTS LEADING TO SUCCESSFUL PROSECUTION 
THEREOF 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short TitZe. - This Act shall be known as the “Stop Smuggling Act of 
2009.” 
SECTION 2. Declaration of Policy. - It is the policy of the State to curb the proliferation 
of unfair competition and trade practices that threatens the Philippine economy. The State shall 
ensure that the proper duties and taxes are paid to augment the government’s depleted resources 
which are urgently needed to meet the society’s basic requirements. 
SECTION 3. Definition of Terms. As used in this Act, the term - 
A. “Smuggling“ shall mean the act of importing into the Philippines goods or articles of 
commerce without the complete government required importation documents or the 
act of bringing in goods or articles into the country and disposing of the same in the 
local market without having been cleared by the Bureau of Customs or other 
authorized government agencies, for the purpose of evading payment o f  the 
prescribed taxes, duties, and other government charges; 
B. “Technical Smuggling” shall mean the act of unlawfully importing goods into the 
Philippines through fraudulent, falsified or erroneous declarations and for the purpose 
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of reducing or totally avoid the payment of the prescribed taxes, duties, and other 
government charges, usually perpetrated by way of - 
1. misclassification as to nature, quality or value, 
2. undervaluation in terms of price, quality, or weight; or 
3. outrightly misdeclaring the imported articles; 
C. "Person" shall mean both natural and juridical persons; 
D. "Vital Information" shall mean any materials, information, documents, written or oral 
testimonies, or any other evidence necessary to build up the people's case and/or 
secure the conviction of the criminal perpetrators. 
SECTION 4 Prohibited Acts. It shall be unlawfnl to commit acts of smuggling and 
technical smuggling. 
SECTION 5. Penalty. Any person found guilty of committing any of prohibited acts shall 
suffer a penalty based on the aggregate amount of taxes, duties, and other charges of which the 
government was deprived by reason of said acts, as follows: 
Aggregate Amount of Taxes 
Duties, and other Charges Avoided 
Not more than P 100,000.00 
P 100,000.00 to P 1,000,000.00 
P 1,000,000.00 to P 5,000,000.00 
More than P 5,000,000.00 
Penalty 
Prision Correctional 
Prision Mayor 
Reclusion Temporal 
Reclusion Perpetua to Death 
In case the offender is a government official or employee acting in connivance with 
private individuals or other government officials or employees, the penalty next higher in degree 
shall be imposed, in addition to the accessory penalty of perpetual absolute disqualification from 
holding public office, whether by election or appointment. 
In all cases, a fine equivalent to twice the aggregate amount of the taxes, duties, and other 
charges avoided shall likewise be imposed. 
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In case any of the prohibited acts is committed by a juridical person, the corresponding 
penalty shall be imposed on the Members of the Board, officers or partners, as the case may be, 
who responsible for the commission of the said acts. 
SECTION 6. Concealment, Withholding, or Destruction of Pertinent Document and 
Information. Persons who shall be found 'guilty of concealment, withholding, or destruction of 
documents and information pertinent to the institution of or conviction for a criminal action 
arising from this Act shall suffer a penalty one degree lower than that imposed on the principal 
offender. 
SECTION 7. Rewards and Incentives. Any informants or witnesses who shall testify or 
provide vital information regarding the existence or activity of a person involved in any of the 
prohibited acts shall, upon recommendation of the prosecutor and approval of the Secretary of 
Justice based on an undertaking previously executed by the said informants or witnesses, be 
entitled to a reward equivalent to twenty (20%) percent of the total amounts due and actually 
collected from the offender arising from the unpaid taxes, duties, and other government charges 
involved. In addition, the said informants and witnesses shall be immune from criminal 
prosecution for his participation or involvement in any such criminal activity which is the subject 
of the investigation or prosecution; Provided, however, that immunity from criminal prosecution, 
in case of a witness, shall attach only upon his actually testifying in court in accordance with his 
undertaking as approved by the Secretary of Justice; Provided, further, that the following 
conditions are complied with: 
A. That there is absolute necessity for the testimony of the witness and/or the 
information given by him regarding the existence or a person committing the 
prohibited acts; 
B. That there is no other evidence available for the proper prosecution of the offense, 
other than the information or testimony to be given by the informant or witness; 
C. That such testimony or information can be substantially corroborated in its material 
points; and 
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D. That the informant or witness, if he may be involved, does not appear to be the most 
guilty. 
The fact that the witnesses stand to benefit fiom giving their testimony shall not diminish 
its credibility. 
SECTION 8. Presumption. Any person found in possession of articles or goods which are 
the subject of any of the prohibited acts shall be presumed to be the perpetrator thereof, unless he 
can adequately present documents or evidences showing the regularity of the articles' or goods' 
importation or his lawful acquisition thereof. 
SECTION 9. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
valid and subsisting. 
SECTION 10. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or is inconsistent 
with the provision of this Act is hereby repealed, modified, or amended accordingly. 
SECTION 11. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation. 
Approved, 
lapmO12909 
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