Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 3060 =

Introduced by Representative Rico B. Geron

EXPLANATORY NOTE

This bill seeks to protect Filipino farmers producing rice by amending the Section
2612 of the Tariff and Customs Code of the Philippines (TCCP), as amended, which
governs the disposition of smuggled articles.

For the year 2013 alone, the Bureau of Customs has seized worth P1.2 billion in
April and P28 million in July of misdeclared Vietnamese rice shipments. Under the
TCCP, these smuggled rice shall be disposed of through an auction and if, unsold for
want of bidders, the same may be channeled to government charity institutions like the
Department of Social and Welfare Development (DSWD).

Untimely distribution of smuggled rice greatly affects the rice supply in the
markets. This distorting situation will be prevented if unexpected rice supply can be
regulated by the National Food Authority (NFA), a government agency which has the
authority to determine when and where to distribute rice supply in the market without
compromising the expected harvest time for the Filipino farmers.

With this measure, disposition of smuggled rice will no longer be auctioned but
will be given to the National Food Authority for its disposal.

Approval of this bill is earnestly requested.



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 3060

Introduced by Representative Rico B. Geron

AN ACT
FURTHER PROTECTING THE FILIPINO FARMERS, AMENDING FOR THE
PURPOSE SECTION 2612 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE
KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES OF 1978,
AS AMENDED, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Section 2612 of the Tariff and Customs Code of the Philippines, as
amended, is hereby amended to read as follows:

“Sec. 2612. Disposition of Smuggled Articles. - Smuggled articles, after
liability to seizure or forfeiture shall have been established by proper
administrative or judicial proceedings in conformity with the provisions of
this Code shall be disposed of as provided for in section twenty-six
hundred and ten EXCEPT IN THE CASE OF SMUGGLED RICE WHICH
SHALL BE DISPOSED OF BY THE GOVERNMENT DIRECTLY TO THE
NATIONAL FOOD AUTHORITY (NFA): Provided, That articles whose
importation is prohibited under Section One Hundred Two sub-paragraphs
b, c, d, e and j shall, upon order to the Collector in writing, be burned or
destroyed, in such manner as the case may require as to render them
absolutely worthless, in the presence of a representative each from the
Commission on Audit, [Ministry] DEPARTMENT of Justice, Bureau of
Customs, and if possible, any representative of the private sector.”

SEC. 2 Rules and Regulations. - The Secretary of Finance shall, upon the
recommendation of the Commissioner of Customs and Administrator of the National
Food Authority, promulgate the necessary rules and regulations for the effective
implementation of this Act.

SEC. 3 Repealing Clause. — All laws, decrees, executive orders, rules and
regulations and other issuances or parts thereof which inconsistent with this Act are
hereby repealed or modified accordingly.

SEC. 4, Effectivity. - This Act shall take effect fifteen (15) days after its
publication in any two (2) newspapers of general circulation.

Approved,