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

SIXTEENTH CONGRESS
First Regular Session

4687

House Bill No.

Introduced by Representative Emmeline Y. Aglipay

EXPLANATORY NOTE

Rice is a staple food in the Philippines, and a key to food self-sufficiency in the country is
the ability for us to produce enough rice locally to meet our demand. The importance of
rice also goes beyond the needs of consumers - in many areas, the rice industry is the
most important source of livelihood for small farmers and landless agricultural workers,
as well as their families.

The rice industry in the Philippines faces a number of threats, but a particularly
pernicious one is that of rice smuggling. Due to the lower cost of rice in other countries,
unscrupulous groups and individuals have resorted to smuggling in imported rice as a
means to fatten their bottom line - but they do this at the unfair expense of the local
industry, not just due to unfair competition, byt because such smuggling can wreak havoc
on market prices. The loss of tax revenue also impacts the nation at a macro-level.

While it is clear that the governmen} myst make its policy, rules, and regulations of legal
rice importation clear, steps must be taken to defer rampant smuggling of rice into the
country. To this end, this bill seeks to classify large-scale rice smuggling as economic
sabotage, and increases the penalty for the same, accordingly, Hand-in-hand with this,
however, is an exhortation for the government to be clear, firm, and transpgrent with jts
rice policies, rules, and regulations.

EMMELINE Y.AGLIPAY
Representative, DIWA Party-list

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07 JUL 2014
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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
irst Regular Session

4687

HOUSE BILL

Introduced by Representative Emmeline Y. Aglipay

AN ACT DECLARING LARGE-SCALE RICE SMUGGLING AS AN ACT OF
ECONOMIC SABOTAGE, PRESCRIBING PENALTIES THEREFOR AND FOR
OTHER PURPOSES

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

SEC. 1. Short Title.— This Act shall be known as the “Anti-Rice Smuggling Act of 2014”

SEC. 2. Declaration of Policy. — It shall be the policy of the State to curb all forms of
economic sabotage that are inimical to the country’s economic growth and development.
Rice is a basic necessity for the majority of Filipinos, and the Rice industry is integral to
the economy of the country. ‘The State therefore, declares that any form of rice
smuggling is prejudicial to national interest and derails economic growth and
development.

SEC. 3. Definition of Terms. — As used in this Act, the term:

(1) “Economic Sabotage” is 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 and shall include, inter alia, price manipulation to the prejudice of the
public especially in the sale of basic necessities and prime commodities.

(2) “Smuggling” also known as direct or outright smuggling, refers to the act of
importing or bringing into or assisting in importing or bringing into the Philippines, any
article, good or product without the corresponding documents, permits or licenses when
these are required by existing laws, orders, rules and regulations, This act also

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encompasses the receipt, conecalment, purchase / sale or the facilitation in any manner of
the transportation, concealment, or sale of such article, after importation, knowing the
same to have been imported contrary to law,

(3) “Technical Smuggling” pertains to misdeclaration, misclassification or
undervaluation of imported goods or products in violation of the Tariff and Customs
Code of the Philippines and other related laws.

SEC. 4, Definition of Rice Smuggling. — Any person who shall engage in the act of
smuggling or technical smuggling of rice without the required import permit from the
National Food Authority (NFA), or such other agency as possesses the proper delegated
authority from the NFA, or any person who shall import rice by means of fraud or by
illegally obtaining the required import permit, shall be guilty of the crime of rice
smuggling. Provided, that it is the National Food Authority that shall prescribe the proper
importation procedure for rice, including whether or not import permits are required.

SEC. 5. Large Scale Rice Smuggling as an Act of Economic Sabotage. ~ Acts of large-
scale rice smuggling, including technical smuggling, are hereby declared acts inimical to
national interest, economic growth and development. Any person, regardless of
nationality or citizenship, found guilty of engaging in rice smuggling or technical
smuggling thereof of a minimum aggregate amount of One Million Pesos (Php
1,000,000.00) worth of rice as valued by the Bureau of Customs, utilizing methods of
value verification such as but not limited to Revision Orders and/or appropriate agencies
and entities identified, accredited or certified by the Bureau of Customs, shall be guilty of
economic sabotage.

SEC. 6. Penalties. ~ Any person, natural or juridical, regardless of nationality or
citizenship, found guilty of engaging in Economic Sabotage as described in Section 5 of
this Act, shall suffer the following penalties:

a. A fine equal to twice the fair value of the smuggled articles;

b. A fine equal to the aggregate amount of the taxes, duties and other charges
avoided;

c. Imprisonment of a minimum of eight (8) years and one (1) day up to
imprisonment; and

d. Confiscation of the smuggled articles.

When the offender is a juridical person, criminal liability shall attach to its
president, chief operating officer or manager. In addition, the business permits and
licenses of the business entity shall be revoked or cancelled.

The broker of violating importers, should said broker be shown to have

knowledge of the economic sabotage, shall likewise be liable and shall be charged as
principal

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When the offender is a government official or employce acting in connivance
with private individuals or entities or other government officials or employees, he shall
be imposed the same penalty as the principal offender. In addition, he shall be
disqualified from holding any public office, whether by election or appointment

2. 7. Implementing Rules and Regulations. ~ The National Pood Authority, in
coordination with the Bureau of Customs, shall promulgate the necessary implementing
rules and regulations within sixty (60) days from the effectivity of this Act; Provided,
that the requirements and procedure for the importation of rice shall be regul
reviewed and consistent with national policy and international agreements, obligations
and restrictions.; Provided further, that the applicable regulations shall be made available
and downloadable in plain text format on the official NFA website from the date of
promulgation,

C. 8. Separability Clause. ~ If, for any reason, any part or provision of this Act
declared invalid, such declaration shall not affect the other provisions of this Act.

SEC. 9. Repealing Clause. ~ All laws, executive orders, issuances, rules and regulations
or parts thereof inconsistent with the provisions of this Act are hereby repealed, amended
or modified accordingly.

SEC. 10. Effectivity. — This Act shall take effect thirty (30) days afier its complete
publication in the Official Gazette or in at least two (2) newspapers of general circulation,
Approved,

Approved

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