THIRTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
) 
First Regular Session 
1 
S E N A T E  
-. 
. 
.. ._____ 
- 
INTRODUCED 
-. BY HONORAHLI; MAR ROXAS 
. 
EXI’LAKziTORY NOTE 
Smuggling has been a constant debacle to the advanccment of the Philippine economy. 
Every yrar, government loses potential revenues of nor lcss than 100 billion pesos bccause of 
smuggling, crippling the governmcnt’s ability to earn and channcl funds to deliycr basic scrvices 
to the citizemy. Moreover, smuggling distorts market prices and affccts trading of goods at a 
great cost to legitimate businesses in thc country. It threatens not only thc occupation of Filipino 
producers, manufacturcrs and retailers but also Filipino workers who dcpend on local industries 
for livclihood and employmeni. 
Thcrc has long been a iklt need to tighten our laws in ordcr to minimiLe the occurrence of 
both outright and technical smuggling. By amending certain provisions of Presidential Dccrec 
No. 1464, otherwise known as the Tariff and Customs code ol’the Philippines, the proposed bill, 
entitled ”Anti-Smuggling Act of 2005,’’ sceks to address this urgcnt and significant concern. 
‘l‘he Act has thee features to efiectively curb smuggling. First. it enshrines key 
systematic solutions into law to make it easier tu detect smuggling. By requiring advanced 
copies and th: publication of inward foreign manifcsts (section 2 and section 3), the usc ol’ 
llcvision Ordcrs (ROs) as a third screen in detccting undervaluation (section 4): and thc 
participation o i  thc privatc sector in deliberations (111 valuation issues (section 8), thc Act 
promotes greater transparcncy in import transactions. 
‘I’he Act also dirccts all bonded 
warehouses to make available its books of accounts to the industry association concerncd 
(scction 6). 
Second, the Act provides for stiffer penalties against individuals and stndicates 
involved in smuggling activities. For outright smuggling, fines are increased from tlje current 
maximum of ten thousmd pesoslto a maximum of two million pesos, while the current +mimum 
prison term of twelve years are raised to reclusion perpetua (section 11). 
For ‘technical 
smuggling, fines, are increased from the current maximum of ten thousand pesos to tdp million 
pesos and the current maximum prison term from twelve years to reclusion perpetua (section 12.) 
Finally, an Anti-Smug$ling Commission is created, armed with powers of subpoena 
duces tecum, with the inclusiod of concerned government agencies and representatives of the 
By discouraging, if noti fully eradicating smuggling, the implementation 04 this bill 
enables government to generate Wuch needed revenues as Philippine trade increases and supports 
while supporting the growth and viability of domestic industries and continued emplqyment of 
millions of workers in both the ihdustrial and agricultural sectors of the country. 
j 
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i 
private sector, to investigate andlprosecute violations of this Act (section 13). 
In view of the foregoing, lthe early passage of this bill is V e s t l y  sought. 
1 
Senator 
\1 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
5 
PlRR 22 P3 :06 
S. No. 
INTRODUCED BY HONORABLE MAR R O U S  
AN ACT 
AMENDING CERTAIN €?ROVISIONS OF PRESIDENTIAL DECREE NO. 1464, 
OTHERWISE K N O W  AS THE TARIFF AND CUSTOMS CODE OF THE 
PHILIPPINES, AS AMENDED, AND FOR OTHER PURPOSES. 
Be it enacted bv the Senate and the House of Representatives of the Philivvines in Conaress 
assembled: 
Section 1. Short Title. - This Act shall be known and cited as the “Anti-smuggling Act of 
2005.” 
Section 2. Section 1005 bf the Tariff and Customs Code of the Philippines, as amended, 
is hereby further amended to read as follows: 
“Sec. 1005. 
Manifest Required of Vessel From Foreign Port. - 
Every 
vessel from a foreign pbrt must have on board a complete manifest of all her 
cargo. 
All of the cargo ifitended to be landed at a port in the Philippines must be 
described in separate manifests for each port of call therein. Each manifest shall 
include the port of depaftwe and the port of delivery with the marks, numbers, 
quantity and descriptiod of the packages, their value, and the names of the 
consignees thereof. Every vessel from a foreign port must have on board complete 
manifests of passengers land their baggage, in the prescribed form, setting forth 
their destination and all barticulars required by the immigration laws; and every 
such vessel shall have prepared for presentation to the proper customs official 
upon arrival in ports of the Philippines a complete list of all sea stores then on 
board. If the vessel doe$ not carry cargo or passengers the manifest must show 
that no cargo or passenger, as the case may be, is carried From the port of 
departure to the port of dbstination in the Philippines. 
AN ADVANCE COPY OF THE CARGO MANIFEST SHALL BE SENT 
TO THE BUREAU b F  CUSTOMS AND THE PHILIPPINE PORTS 
AUTHORITY AT LEAST FORTY EIGHT (48) HOURS BEFORE ARRIVAL 
INTO PHILIPPINE PORTS, WHO IN TURN SHALL POST IT IN THEIR 
RESPECTIVE BULLE‘IIIN BOARDS AND WEBSITES WITHIN 24 HOURS 
AFTER RECEIPT THEREOF. 
A cargo manifest1 shall in no case be changed or altered after entry of the 
vessel, except by means of an amendment by the master, consignee or agent 
thereof, under oath, and attached to the original manifest: Provided, however, 
That after the invoice and/or entry covering an importation has been received and 
recorded in the office of the appraiser, no amendment of the manifest shall be 
allowed, except when it lis obvious that a clerical error or any other discrepancy 
has been committed in the preparation of the manifest, without any fraudulent 
intent, discovery of which could not have been made until after examination of 
the importation has beed completed. PRIOR TO RELEASE OF THE CARGO, 
THE VERACITY OF ITHE AMENDMENT SHALL BE EXAMINED BY 
THE 
COMMISSIONBR OF 
CUSTOMS 
FOR 
THE PURPOSE 
OF 


INVOKNG PENAL PROVISIONS UNDER SECTIONS 2503 AND 3602 OF 
THIS ACT.” 
Section 3. Section 1007 [of the Tariff and Customs Code of the Philippines, as amended, 
is hereby further amended to read as follows: 
“Sec. 1007. 
Manifests for Auditor and Collector - Papers to be 
Deposited with Consul. i- Immediately after the arrival of a vessel from a foreign 
port, the master shall deliver or mail to the Auditor General, Manila, a copy of the 
cargo manifest properly indorsed by the boarding officer, and within twenty-four 
hours after arrival, he shhll present to the Collector the original copy of the cargo 
manifest and, for inspection, the ship’s register or other document in lieu thereof, 
together with the clearance and other papers granted to the vessel at the port of 
departure for the Philippines. 
WITHIN THREE (3) DAYS FROM RECEIPT OF THE CARGO 
MANIFEST FROM THE MASTER, THE COLLECTOR SHALL POST 
COPIES THEREOF AT L4 BULLETIN BOARD FOR TWO (2) CONSECUTIVE 
WEEKS AND IN THE BOC WEBSITE.” 
Section 4. Section 201 of the Tariff and Customs Code of the Philippines, as amended, is 
hereby further amended to read as follows: 
“Sec. 201. Basis bf Dutiable Value. - 
x x x  
If in the course bf determining the dutiable value of imported goods, it 
becomes necessary to delay the final determination of such dutiable value, the 
importer shall neverthelkss be able to secure the release of the imported goods 
upon the filing of a sufficient guarantee in the form of a surety bond, a deposit, 
cash or some other appropriate instrument in an amount equivalent to the 
imposable duties and tdes on the imported goods in question conditioned upon 
the payment of customslduties and taxes for which the imported goods may be 
liable: Provided, howevek, That goods, the importation of which is prohibited by 
law shall not be released iunder any circumstance whatsoever. 
Nothing in this Section shall be constrned as restricting or calling into 
question the right of the Collector of Customs to satisfy himself as to the truth or 
accuracy of any statedent, document or declaration presented for customs 
valuation purposes. Wheh a declaration has been presented and where the customs 
administration has reason to doubt the truth or accuracy of the particulars or of 
documents produced in lsupport of this declaration, the customs administration 
may ask the importer to provide further explanation, including documents or other 
evidence, that the declaled value represents the total amount actually paid or 
payable for the imported goods, adjusted in accordance with the provisions of 
Subsection (A) hereof. 
1 
REFERENCE 
“FORMATION 
OBTAINED FROM 
REVISION 
ORDERS SHALL BE1 USED TO TEST THE TRUTHFULNESS AND 
ACCURACY OF A IGIVEN VALUE DECLARATION. 
A VALUE 
DECLARATION WHIOH FALLS OUTSIDE OF THE VALUE RANGE OF 
REVISION ORDERS SHALL TRIGGER A VALUATION QUERY ON THE 
APPLICABILITY OF THE METHOD OF VALUATION USED BY THE 
IMPORTER, IN WHICH CASE THE VALUATION ISSUE SHALL BE 
DECIDED 
ON 
THE 
APPROPRIATE METHOD 
OF 
VALUATION 
PRESCRIBED UNDER ’SECTION 201 OF THIS ACT. 
If, after receivingl further information, or in the absence of a response, the 
customs administration &ill has reasonable doubts about the truth or accuracy of 
the declared value, it may, without prejudice to an importer’s right to appeal 
pursuant to Article 11 OK the World Trade Organization Agreement on customs 


valuation, be deemed that the customs value of the imported goods cannot be 
determined under Method One. Before taking a final decision, the Collector of 
Customs shall communicate to the importer, in writing if requested, his grounds 
for doubting the truth 01: accuracy of the particulars or documents produced and 
give the importer a reasonable opportunity to respond. When a final decision is 
made, the customs admidistration shall communicate to the importer in writing its 
decision and the grounds1 therefor.” 
Section 5. A new Section to be known as Section 1910 is hereby inserted in Part I, Title 
V, Book I1 of the Tariff and Customs Code of the Philippines, as amended, which shall read as 
follows: 
“SECTION 1910. ENFORCEMENT. CUSTOMS OFFICERS SHALL 
CONDUCT SPOT CHECKS AND PERIODIC AUDITS TO ENSURE 
APPLICABLE CUSTOMS LAWS AND REGULATIONS ARE FOLLOWED 
BY BONDED FACILITIES. 
THE FOLLOWING ACTS SHALL BE DEEMED AS SMUGGLING 
PUNISHABLE UNDERISECTION 3601 AND 3602 OF THIS CODE: 
(A) BREAKING OF CUSTOMS SEALS OR UNAUTHORIZED REMOVAL 
OF ARTICLES FROM BONDED WAREHOUSES; 
(B) SUBMISSION OF INCORRECT OR FALSE INFORMATION BY THE 
BONDED WAREHOUSE; 
(C) BONDED WAREHOUSING OF THE FOLLOWING SHIPMENTS: 
1. FINISHED ARTICLES, WITHOUT EXCEPTION. 
2. ARTICLES NOT AUTHORIZED FOR IMPORTATION OR IN 
EXCESS OF THE VOLUME AND QUANTITY ALLOWED UNDER THE 
LICENSE OF THE CUSTOM BONDED WAREHOUSE. 
3. PROHIBITED ARTICLES, 
AND 
REGULATED 
ARTICLES 
WITHOUT THE CORRESPONDING CLEARANCE AND/OR IMPORT 
AUTHORITY DULY ISSUED BY A COMPETENT AUTHORITY. 
(D) UNAUTHORIZED1 TRANSFERS FROM THE CUSTOMS ZONE OF 
WAREHOUSING ARTICLES IMPORTED BY THE BONDED WAREHOUSE; 
(E) UNAUTHORIZED 1 WITHDRAWAL FROM BONDED WAREHOUSES 
WITHOUT PAYMENT OF DUTIES AND TAXES. 
(F) FAILURE TO LIQUIDATE IMPORTED ARTICLES UNDER BOND 
WITHIN THIRTY (30) DAYS FROM WITHDRAWAL FROM THE BONDED 
WAREHOUSE. 
(G) FAILURE TO PAM DUTIES AND TAXES ON THE REMAINING (NOT 
EXPORTED) IMPORTED MATERIALS WITHIN THIRTY (30) DAYS FROM 
LAPSE OF THE PERIOD FOR RE-EXPORTATION. 
IMPORTATIONS MADE IN VIOLATION OF THE ABOVE 
PROVISIONS IN THIS1 SECTION SHALL IPSO FACTO BE FORFEITED IN 
FAVOR OF THE GOVERNMENT TO BE DISPOSED OF PURSUANT TO 
THE PROVISIONS OF THIS CODE.” 
Section 6. A new Section to be known as Section 1911 is hereby inserted in Part I, Title 
V, Book I1 of the Tariff and Customs Code of the Philippines, as amended, which shall read as 
follows: 
“SECTION 191 1. VERIFICATION BY THE COMMISSIONER. - A 
CAREFUL ACCOUNT1 SHALL BE KEPT BY THE COLLECTOR OF ALL 
ARTICLES DELIVERED TO ANY BONDED WAREHOUSE, AND A 


,> 
SWORN MONTHLY RETUR , VERIFIED BY THE CUSTOMS OFFICIAL 
IN CHARGE, SHALE BE MADE BY THE BONDED WAREHOUSE 
CONTAINING A DETAILED STATEMENT OF ALL IMPORTED ARTICLES 
STORED THEREIN. 
ALL DOCUMENTS, BOOKS AND RECORDS OF ACCOUNTS 
CONCERNING THE \OPERATION OF ANY BONDED WAREHOUSE 
SHALL, UPON DEMAND, BE MADE AVAILABLE TO THE COLLECTOR 
OR HIS REPRESENTATIVE OR THE INDUSTRY ASSOCIATION OR 
INDUSTRY SECTOR ‘AFFECTED AND SOUGHT TO BE SERVICED BY 
THE BONDED WAREHOUSE, FOR EXAMINATION AND/OR AUDIT.” 
Section 7. Section 2003 lof the Tariff and Customs Code of the Philippines, as amended, 
“Section 2003. Procedure for Withdrawal. - 
Articles received into such 
bonded manufacturing lwarehouse or articles manufactured therein may be 
withdrawn or removed therefrom for direct shipment and for immediate 
exportation in bond to lforeign countries under the supervision of the proper 
official, who shall certify to such shipment and exportation, or lading for 
immediate exportation a$ the case may be, describing the articles by their mark or 
otherwise, the quantity, ithe date of exportation and the name of the vessel or 
aircraft: Provided, That ithe waste and by-products incident to the processes of 
manufacture in said Uonded warehouse may be withdrawn for domestic 
consumption upon paynient of duty equal to the duty which would be assessed 
and collected pursuant tb law as if such waste or by-products were imported from 
a foreign country[: Provkdeded, hrther, That all waste materials may be destroyed 
under government superbision. All labor performed and services rendered under 
these provisions shall belunder the supervision of a proper customs official and at 
the expense of the manufacturer]. 
is hereby further amended to read as follows: 
VIOLATION OF TH!?. FOREGOING PROVISION SHALL BE DEEMED AS 
SMUGGLING PUNISHkBLE UNDER SECTION 3601 AND 3602 OF THIS 
CODE. 
THE ARTICLES SUBJECT OF THE VIOLATION SHALL IPSO 
FACTO BE FORFEITED IN FAVOR OF THE GOVERNMENT. ALL WASTE 
MATERIALS 
MAY 1 BE 
DESTROYED 
UNDER 
GOVERNMENT 
SUPERVISION. ALL LABOR PERFORMED AND SERVICES RENDERED 
SHALL BE UNDER ITHE SUPERVISOIN OF A PROPER CUSTOMS 
OFFICIAL AND AT TflE EXPENSE OF THE MANUFACTURER.” 
Section 8. A new Sectibn to be known as Section 2308-A is hereby inserted in Part I, 
Title VI, Book 11 of the Tariff bind Customs Code of the Philippines, as amended, which shall 
read as follows: 
‘‘SECTION 
2 3 0 8 ~  A 
VALUATION AND 
CLASSIFICATION 
REVIEW COMMITTEE (VCRC) SHALL HEREBY BE ESTABLISHED 
WHICH SHALL DECIDE ON GENUINE VALUATION ISSUES. IT SHALL 
BE HEADED BY THE DISTRICT COLLECTOR OF CUSTOMS. 
TWO REPRESENTATIVES OF THE PRIVATE SECTOR SHALL 
SERVE AS MEMBERS OF THE VCRC. THESE MEMBERS SHALL BE 
SELCTED FROM A LIST OF RECOMENDEES SUBMITTED BY THE 
DEPARTMENT OF TRkDE AND INDUSTRY AND THE DEPARTMENT OF 
AGRICULTURE.” 
Section 9. Section 2503 lof the Tariff and Customs Code of the Philippines, as amended, 
“Sec. 2503. Undervaluation, Misclassification and Misdeclaration in 
Entry. - When the dutiable value of the imported articles shall be so declared and 
is hereby further amended to read as follows: 


4 
entered that the duties, based on the declaration of the importer on the face of the 
entry, would be less bylten percent (10%) than should be legally collected, or 
when the imported articles shall be so described and entered that the duties based 
on the importer’s description on the face of the entry would be less by ten percent 
(10%) than should be le$ally collected based on the tariff classification, or when 
the dutiable weight, medswement or quantity of imported articles is found upon 
examination to exceed by ten percent (10%) or more than the entered weight, 
measurement or quantity, a surcharge shall be collected from the importer in an 
amount of not less than the difference between the full duty and the estimated 
duty based upon the deklaration of the importer, nor more than twice of such 
difference: Provided, Tuat an undervaluation, MISCLASSIFICATION AND/OR 
misdeclaration of more  than thirty percent (30%) between the value, weight, 
measurement, or quantity declared in the entry, and the actual value, weight, 
quantity, or measurement shall constitute a prima facie evidence of fraud 
penalized under Section12530 AND 3602 of this Code: Provided, further, That 
any misdeclared or undeclared imported articleditems found upon examination 
shall ipso facto be forfeited in favor of the Government to be disposed of pursuant 
to the provisions of this Code. 
[When 
the 
undervaluation, 
misdescription, 
misclassification 
or 
misdeclaration in the imbort entry is intentional, the importer shall be subject to 
the penal provision undef Section 3602 of this Code.]” 
Section 10. A new Sectlon to be known as Section 2503-A is hereby inserted in Part 4, 
Title VI, Book I1 of the Tariff rind Customs Code of the Philippines, as amended, which shall 
read as follows: 
“SEC. 2503-A. I!JON-IMPOSITION OF SURCHARGE - EXEMPTION 
FROM THE SURCHAEGE SHALL BE ALLOWED ONLY IN CASES WHEN 
THE DECLARED OR ENTERED CLASSIFICATION IS BASED ON 
A OF THIS CODE: PROVIDED, THAT THE DESCRIPTION OF THE 
ARTICLE IS FOUND CORRECT UPON EXAMINATION AND PROVIDED 
FURTHER, THAT BASGD ON THE RESULT OF THE EXAMINATION, THE 
ARTICLE IS FOUND EGSENTIALLY THE SAME AS THAT DESCRIBED IN 
THE RULING.” 
Sectioti 11. Section 360j of the Tariff and Customs Code of the Philippines, as amended, 
RULINGS BY THE TARIFF COMMISSION PURSUANT TO SECTION 1313- 
is hereby further amended to read as follows: 
“SEC. 3601. Unlawful Importation. - Any person who shall fraudulently 
import or bring into the Philippines, or assist in so doing, any article, contrary to 
law, or shall receive, iconceal, buy, sell, or in any manner facilitate the 
transportation, concealmknt, or sale of such article after importation, knowing the 
same to have been impbrted contrary to law, shall be guilty of smuggling and 
shall be punished with: i 
THOUSAND PESOS nlor more than [two hundred pesos] FIVE HUNDRED 
THOUSAND PESOS add/OR imprisonment of [not less than five days nor more 
than twenty days] PRIgION CORRECCIONAL, if the appraised value, to be 
determined in the manndr prescribed under this Code, including duties and taxes, 
of the article unlawfidly imported does not exceed [twenty-five pesos] ONE 
HUNDRED THOUSAND PESOS; 
A fine ofi not less than [eight hundred pesos] FIVE HUNDRED 
THOUSAND PESOS nbr more than [five thousand pesos] EIGHT HUNDRED 
THOUSAND PESOS add/OR imprisonment of [not less than six months and one 
day nor more than four lyears] PRISION MAYOR, if the appraised value, to be 
determined in the manndr prescribed under this Code, including duties and taxes, 
of the article unlawfully1 imported exceeds [twenty-five pesos] ONE HUNDRED 
1. 
A fine bf not less than [fifty pesos] THREE HUNDRED 
2. 


THOUSAND PESOS but does not exceed [fifty thousand pesos] ONE MILLION 
PESOS; 
I 
3. 
A fine oflnot less than [six thousand pesos] EIGHT HUNDRED 
THOUSAND PESOS n’or more than [eight thousand pesos] ONE MILLION 
PESOS and/OR imprisoiment of [not less than five years and one day nor more 
than eight years] RECLUSION TEMPORAL, if the appraised value, to be 
determined in the mamet prescribed under this Code, including duties and taxes, 
of the article unlawfully kmported [is more than fifty thousand pesos] EXCEEDS 
ONE MILLION PESOS lbut does not exceed [one hundred fifty thousand pesos] 
FIVE MILLION PESOS; 
A fine ofi not less than. [eight thousand pesos] ;ONE MILLION 
PESOS nor more than1 [ten thousand pesos] TWO MILLIQN PESOS and 
imprisonment of [not less than eight years and one day nor more than twelve 
years] RECLUSION PERPETUA, if the appraised value, to be determined in the 
manner prescribed undek this Code, including duties and tax&, of the article 
unlawfully imported excheds [one hundred fifty thousand pesos] 
~ FIVE MILLION 
PESOS. 
The penalty of prison may or shall be imposed when the crime of 
serious physical injuries lshall have been committed and the pedalty of reclusion 
perpetua to death shall Be imposed when the crime of homicidd shall have been 
committed by reason or on the occasion of the unlawful importation.] 
In applying the aiove scale of penalties, if the offender is :an alien, he shall 
be deported after servinglthe sentence without further proceedings for deportation. 
If the offender is a govkrnment official or employee, the pendty [shall be the 
maximum as hereinabovi: prescribed and the offender shall suf4er an additional] 
NEXT HIGHER IN DEGREE SHALL BE IMPOSED, IN ADQITION TO THE 
penalty of perpetual disqualification from public office, to vote and to participate 
in any public election. 
I 
When, upon trial1 for violation of this section, the defenhant is shown to 
have had possession 05 the article in question, possession shall be deemed 
sufficient evidence to authorize conviction unless the defendant a shall explain the 
possession to the satisfaition of the court: Provided, however, That payment of 
the tax due after apprkhension shall not constitute a valid, defense in any 
prosecution under this sektion.” 
Section 12. Section 36021 of the Tariff and Customs Code of the ihilippines, as amended, 
“SEC. 3602. Vahous Fraudulent Practices Against Customs Revenue. - 
Any person who makes lor attempts to make any entry of imported or exported 
article by means of any ifalse or fraudulent invoice, declaration; affidavit, letter, 
paper or by any means of any false statement, written or verbal,  or by any means 
of any false or fraudulenk practice whatsoever, or knowingly effects any entry of 
goods, wares or mercharidise, at less than the true weight or measure thereof or 
upon a false classification as to quality or value, or by the payment of less than 
the amount legally due, br knowingly and willfully files any fdse or fraudulent 
entry or claim for the lpayment of drawback or refund of duties upon the 
exportation of merchandise, or makes or files any affidavit, abstract, record, 
certificate or other docuthent, with a view to securing the payment to himself or 
others of any drawback] allowance, or refund of duties on the exportation of 
merchandise, greater thafi that legally due thereon, or who shall be guilty of any 
willful act or omission Shall, for each offense, be GUILTY OF TECHNICAL. 
SMUGGLING AND be ’punished [in accordance with the penalties prescribed in 
the preceding section] with: 
A FINE C@ NOT LESS THAN THREE HUNDRED THOUSAND 
PESOS NOR MORE THAN FIVE HUNDRED THOUSAND PESOS AND 
4. 
[5. 
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is hereby further amended to read as follows: 
1. 


IMPRISONMENT OF PRISION CORRECCIONAL, IF THE DIFFERENCE 
BETWEEN THE VACUE, WEIGHT, MEASUREMENT, OR QUANTITY 
DECLARED IN THEiENTRY AND THE ACTUAL VALUE, WEIGHT, 
QUANTITY, OR MEASUREMENT OF THE ARTICLE UNLAWFULLY 
IMPORTED DOES NOT EXCEED ONE HUNDRED THOUSAND PESOS; 
2. 
A FINE OF NOT LESS THAN FNE HUNDRED THOUSAND 
PESOS NOR MORE l”AN EIGHT HUNDRED THOUSAND PESOS AND 
IMPRISONMENT OF BRISION MAYOR, IF THE DIFFERENCE BETWEEN 
THE VALUE, WEIGHT, MEASUREMENT, OR QUANTITY DECLARED IN 
THE ENTRY AND THE ACTUAL VALUE, WEIGHT, QUANTITY, OR 
MEASUREMENT Ofl 
THE 
ARTICLE 
UNLAWFULLY IMPORTED 
EXCEEDS ONE HUND&D THOUSAND PESOS BUT DOES NOT EXCEED 
ONE MILLION PESOS; 
A FINE OF NOT LESS THAN EIGHT HUNDRED THOUSAND 
PESOS NOR MORE THAN ONE MILLION PESOS AND IMPRISONMENT 
OF RECLUSION TEMPORAL, IF THE DIFFERENCE BETWEEN THE 
VALUE, WEIGHT, MEASUREMENT, OR QUANTITY DECLARED IN THE 
ENTRY AND THE IACTUAL VALUE, WEIGHT, QUANTITY, OR 
MEASUREMENT 
On 
THE 
ARTICLE 
UNLAWFULLY 
IMPORTED 
EXCEEDS ONE MILLION PESOS BUT DOES NOT EXCEED FIVE 
MILLION PESOS; 
A FINE OF NOT LESS THAN ONE MILLION PESOS NOR 
MORE THAN TWO1 MILLION PESOS AND IMPRISONMENT OF 
RECLUSION PERPETUA, IF THE DIFFERENCE BETWEEN THE VALUE, 
WEIGHT, MEASUREMENT, OR QUANTITY DECLARED IN THE ENTRY 
AND THE ACTUAL VhLUE, WEIGHT, QUANTITY, OR MEASUREMENT 
OF THE ARTICLE mLAWFULLY IMPORTED EXCEEDS FIVE MILLION 
PESOS. 
3. 
4. 
IN APPLYINGITHE ABOVE SCALE OF PENALTIES, IF THE 
OFFENDER IS AN AJJ’IEN, HE SHALL BE DEPORTED AFTER SERVING 
THE 
SENTENCE 
1 WITHOUT 
FURTHER 
PROCEEDINGS 
FOR 
DEPORTATION. IF THE OFFENDER IS A GOVERNMENT OFFICIAL OR 
EMPLOYEE, THE PENALTY NEXT HIGHER IN DEGREE SHALL BE 
IMPOSED 
IN 
ADDITION 
TO 
THE 
PENALTY 
OF 
PERPETUAL 
DISQUALIFICATION IFROM PUBLIC OFFICE, TO VOTE AND TO 
PARTICIPATE IN ANY PUBLIC ELECTION.” 
Section 13. A new Section to be known as Section 713 is hereby inserted in Part 1, Title 
I, Book I1 of the Tariff and Cudtoms Code of the Philippines, as amended, which shall read as 
follows: 
“SEC. 713. ANTI-SMUGGLING COMMISSION. -THERE IS HEREBY 
CREATED AN ANTIJSMUGGLING COMMISSION UNDER THE OFFICE 
OF THE PRESIDENT. ITS PRINCIPAL MISSION IS TO INVESTIGATE AND 
PROSECUTE VIOLATIONS OF THIS ACT, AS AMENDED, COMMITTED 
ON A LARGE SCALE OR BY CRIMINAL SYNDICATES, AND TO ENSURE 
THAT THERE IS A INATIONAL CAMPAIGN AGAINST SMUGGLING 
WHEREIN 
ALL 
IINVOLVED 
LAW 
ENFORCEMENT 
AND 
COUNTERACTION AGENCIES ARE OPERATING AS PART OF AN 
COMMISSION SHALL1 FORMULATE POLICIES, DEVELOP STRATEGIES, 
AND EXECUTE PROGRAMS OF ACTION FOR A CONSOLIDATED 
EFFORT TO PREEMPT, PREVENT AND SUPPRESS SMUGGLING, 
ARREST SMUGGLERS AND THEIR ACCESSORIES AND CAUSE THEIR 
SPEEDY PROSECUTION. TOWARD THIS END, THE COMMISSION 
SHALL HAVE THE POiWERS OF SUBPQENA DUCES TECUM. 
INTEGRATED AND I COORDINATED PRO-ACTIVE EFFORT. THE 


THE COMMISSION SHALL BE COMPOSED OF THE FOLLOWING 
GOVERNMENT AGENCIES: THE DEPARTMENTS OF FINANCE, TRADE 
AND INDUSTRY, AGRICULTURE, JUSTICE, INTERIOR AND LOCAL 
GOVERNMENT, NATIONAL DEFENSE, THE BUREAU OF CUSTOMS, 
THE BUREAU OF INTERNAL REVENUE, AND THE OFFICE OF THE 
OMBUDSMAN. THERE SHALL ALSO BE TWO REPRESENTATIVES OF 
THE PRIVATE SECTOR, ONE STANDING FOR THE INDUSTRIAL 
SECTOR AND THE SECOND FOR THE AGRICULTURAL SECTOR, TO BE 
APPOINTED TO THE COMMISSION BY THE PRESIDENT FOR A TERM 
OF THREE YEARS, I FROM AMONG A LIST OF RECOMMENDEES 
SUBMITTED BY THE IDEPARTMENT OF TRADE AND INDUSTRY, AND 
THE DEPARTMENT OF AGRICULTURE. 
ACTS CONTRARY TO THIS ACT, AS AMENDED, SHALL BE 
DEEMED TO BE COMMITTED ON A LARGE SCALE WHEN THESE ACTS 
INVOLVE THE IMPORTATION OF GOODS OR CONTRABAND WITH A 
DETERMINABLE VA!LUE OF AT LEAST FIVE MILLION PESOS 
(P5,000,000.00); AND 
ACTS CONTRARY TO THIS ACT, AS AMENDED, SHALL BE 
DEEMED TO BE COMMITTED BY A- SYNDICATE WHEN CARRIED OUT 
BY A GROUP OF THREE (3) OR MORE PERSONS CONSPIRTNG AND/OR 
CONFEDERATING WITH ONE ANOTHER IN CARRYING OUT THESE 
UNLAWFUL ACTS.” 
1 
Section 14. Rules and Regulations. - The Secretary of Finance shall, upon the 
recommendation of the Commissioner of Customs, promulgate the necessary rules and 
regulations for the effective ilhplementation of this Act within ninetv (90) daw after its 
effectivity. 
Section 15. Repealing Clause. - All laws, decrees, executive orders, rules and regulations 
and other issuances or parts theteof which are inconsistent with this Act are hereby repealed or 
modified accordingly. 
1 
Section 16. Effectivity. i This Act shall take effect fifteen (15) days after its publication 
in the Oficial Gazette or in any two (2) newspapers of general circulation, whichever date comes 
earlier. 
Approved,