NINETEENTH CONGRESS OF THE
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REPUBLIC OF THE PHILIPPINES
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First Regular Session
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23 mar-6 P5 52
SENATE
S3. No 1969
RECeiVtu BV;
Introduced by Senator Cynthia A. ViHar
AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 10845, 
OTHERWISE KNOWN AS THE ANTI-AGRICULTURAL SMUGGLING ACT OF
2016, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
As early as 2013, during the 16th Congress, I already filed a Resolution to 
conduct an inquiry, in aid of legislation, on the monopolization of onion and garlic. 
The Senate Committee on Agriculture discovered the cartel on agricultural products.
Thereafter, I filed Senate Bill No. 2923 or the Anti-Agricultural Smuggling Act 
of 2016 which later on became a law and is now the subject of this Bill.
Republic Act No. 10845, otherwise known as the Anti-Agricultural Smuggling 
Act of 2016, was enacted for the purpose of protecting local agricultural industry and 
farmers from agricultural smuggling.
The existence of smuggled products saturates the market thereby resulting in 
price manipulation. This scenario unjustly distorts the price of agricultural products in 
the market, making it almost impossible for locally produced goods to compete.
This scheme was again put into public light during the last quarter of 2022, 
when the price of onion reached up to 700 pesos per kilo making it the most expensive 
onion in the world.
It was tackled during the committee hearing by the Senate Committee on 
Agriculture and Food on the soaring price of onion, the scheme on how the cartels 
use importation to lower the price of agricultural commodities thereby allowing traders 
to buy local produce at a lower price. The supply will be hoarded and stock in the cold 
storage, meantime suspending their import activities so that the price would go up.


According to the records of the Bureau of Customs, in the last quarter of 2022, 
a total of 28 confiscations involving smuggled onions were made. A total of 1,321 bags 
and 881.79 MT were confiscated.
Meanwhile, in the Committee Hearing on livestock industry, it was found out 
that we are importing more than our country's demand instead of just supporting 
through importation the deficiency in the local production.
According to the records of the Bureau of Animal Industry, for 2022, the highest 
meat importation accounts for pork with 710,362 MT, followed by chicken with 
411,069 MT and beef with 186,152 MT.
Based on PSA data, the demand on pork has been in a downward trend since 
2019, from 15.67 kg/year per capita, to 14.17 kg/year per capita for 2021, but it again 
increased to 15 kg/year per capita in 2022. Multiplying these data to the total 
population of the Philippines, it is clear that there is a surplus of supply of Pork brought 
by the imported pork products.
With all the issues on smuggling, hoarding, profiteering and cartel of 
agricultural products, it is baffling that no one is prosecuted.
It is high time to amend the Anti-Agricultural Smuggling law. The issue is not 
only about smuggling but also hoarding, profiteering and cartel. Thus, hoarding, 
profiteering and cartel shall also be considered as economic sabotage under this 
amendatory law.
To ensure that the economic sabotage cases under this law will be treated with 
most preferential attention, Anti-Agricultural Smuggling Task Force will be created 
under the Office of the President.
For the foregoing reasons, the passage of this bill is earnestly recommended.
SEN. Cynthia a. villar


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NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
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SENATE
S.B. No. 1962
Hi,.# (®fflfP of tl)t .%fCC:Xt,nj
23 mar-6 P5 52
RI'CEIVEOBV
Introduced by Senator Cynthia A. Villar
AN ACT AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NO. 10845, 
OTHERWISE KNOWN AS THE ANTI-AGRICULTURAL SMUGGLING ACT OF
2016, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
Section. 1. Republic Act No. 10845 is hereby amended to read as follows:
AN ACT DECLARING LARGE-SCALE AGRICULTURAL SMUGGLING,
HOARDING, PROFITEERING AND CARTEL AS ECONOMIC 
SABOTAGE, PRESCRIBING PENALTIES THEREFOR AND FOR OTHER 
PURPOSES
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Sec. 2. Section 1 of Republic Act No. 108445 is hereby amended to read as
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follows:
This Act shall be known as the "Anti-Agricultural [Smuggling] ECONOMIC 
SABOTAGE Act of 2016.
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Sec. 3. Section 2 of Republic Act No. 108445 is hereby amended to read as
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follows:
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Section 3. Declaration of Policy. - It is the policy of the State to promote
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that productivity of the agriculture sector and to protect farmers from
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unscrupulous traders and importers, who by their illegal importation of
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agricultural products, [especially] INCLUDING rice, significantly affects
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the production, availability of supply and stability of process and food
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security of the State.
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LIKEWISE, IT IS ALSO THE POLICY OF THE STATE TO ENSURE
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REASONABLE AND AFFORDABLE PRICES TO BASIC AND PRIME
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COMMODITIES FOR CONSUMERS.
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The State shall impose higher sanctions for large-scale smuggling,
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HOARDING, PROFITEERING, AND CARTEL of agricultural products,
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as a self-preservation measure to shield itself from the manipulative
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scheme of economic saboteurs, and to protect the livelihood of our farmers
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and to ensure economic well-being.
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Sec. 4. Section 3 of Republic Act No. 10845 is hereby amended to read as
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follows:
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Section 3. Large-Scale Agricultural Smuggling as Economic Sabotage, -
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The crime of large-scale agricultural smuggling as economic sabotage,
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involving RICE, sugar, corn, BEEF, pork, pouitry, garlic,, onion, carrots,
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fish, and cruciferous vegetables, in its raw state, or which have undergone
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the simple processes of preparation or preservation for the market, with a
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minimum amount of one million pesos (P1,000,000.00), [or rice, with a
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minimum amount of ten million pesos ( P 10,000,000.00)] as valued by
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the Bureau of Customs (BOC), is committed through any of the following
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acts:
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(a) Importing or bringing into the Philippines without the required import
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permit from the regulatory agencies;
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(b) Using import permits of persons, natural or juridical, other than those
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specifically named in the permit;


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(c) Using fake, fictitious or fraudulent import permits or shipping
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documents;
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(d) Selling, lending, leasing, assigning, consenting or allowing the use of
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import permits of corporation, nongovernment organizations, associations,
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cooperatives, or single proprietorships by other persons;
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(e) Misclassification, undervaluation or misdeclaration upon the filing of
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import entry and revenue declaration with the BOC is order to evade the
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payment of rightful taxes and duties due to the government;
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(f) Organizing or using dummy corporations, nongovernment
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organizations, associations, cooperatives, or single proprietorships for the
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purpose of acquiring import permits;
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(g) Transporting or storing the agricultural product subject to economic
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sabotage regardless of quantity; or
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(h) Acting as broker of the violating importer;
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Sec. 5. A new Section 3A shall be inserted after Section 3 of Republic Act No.
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10845 to read as:
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SEC. 3-A. LARGE SCALE AGRICULTURAL HOARDING,
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PROFITEERING, AND CARTEL AS ECONOMIC SABOTAGE. - THE
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CRIME OF LARGE-SCALE AGRICULTURAL HOARDING,
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PROFITEERING, OR CARTEL AS ECONOMIC SABOTAGE INSOFAR
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AS THEY INVOLVE RICE, SUGAR, CORN, BEEF, PORK, POULTRY,
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GARLIC, ONION, CARROTS, FISH AND CRUCIFEROUS
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VEGETABLES, IN ITS RAW STATE, OR WHICH HAVE UNDERGONE
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THE SIMPLE PROCESSES OF PREPARATION OR PRESERVATION
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FOR THE MARKET, WITH A MINIMUM AMOUNT OF ONE MILLION
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PESOS (P 1,000,000.00) AS VALUED BY THE BUREAU OF
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CUSTOMS (BOC), IS COMMITTED THROUGH ANY OF THE
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FOLLOWING ACTS:


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(A) HOARDING- PURCHASING OF LARGE QUANTITIES OF THE 
AGRICULTURAL PRODUCTS MENTIONED ABOVE BY AN 
INDIVIDUAL OR ORGANIZATIONS AND HOLDING BACK OF 
THESE STOCKS, CREATING UNNATURAL SHORTAGES AND/OR IN 
ANTICIPATION OF AND TO BENEFIT FROM FUTURE PRICE 
INCREASES, MONOPOLIZATION OF SUPPLY, OR CORNERING THE 
MARKET, TO THE DETRIMENT OF CONSUMERS, AND THE 
GENERAL PUBLIC, WHICH CREATES INFLATION AND ECONOMIC 
INSTABILITY. THERE SHALL BE PRIMA FACIE EVIDENCE OF 
HOARDING WHEN A PERSON HAS STOCKS OF AGRICULTURAL 
PRODUCTS FIFTY PERCENT (50%) HIGHER THAN HIS USUAL 
INVENTORY AND UNREASONABLY LIMITS, REFUSES OR FAILS 
TO SELL THE SAME TO THE GENERAL PUBLIC AT THE TIME OF 
DISCOVERY OF THE EXCESS. THE DETERMINATION OF A 
PERSON'S USUAL INVENTORY SHALL BE RECKONED FROM THE 
THIRD MONTH IMMEDIATELY PRECEDING BEFORE THE 
DISCOVERY OF THE STOCKS IN CASE THE PERSON HAS BEEN 
ENGAGED IN THE BUSINESS FOR AT LEAST THREE (3) MONTHS; 
OTHERWISE, IT SHALL BE RECKONED FROM THE TIME HE 
STARTED HIS BUSINESS;
(B) PROFITEERING- ANY ACT OF MAKING AN UNREASONABLE 
OR EXCESSIVE PROFITS BY TAKING ADVANTAGE OF A 
SHORTAGE OR HIGH DEMAND OF AGRICULTURAL PRODUCTS 
MENTIONED ABOVE, SELLING AT A PRICE THAT IS 
SIGNIFICANTLY HIGHER THAN THE COST OF PRODUCTION, 
WITH THE AIM OF MAKING A LARGE PROFIT AND AT THE PRICE 
GROSSLY IN EXCESS OF ITS TRUE WORTH. IT ALSO INCLUDES 
PRICE FIXING WHERE GROUPS OR ORGANIZATION AGREE TO A 
GIVEN PRICE TO MAINTAIN THEIR HOLD ON THE MARKET THAT 
PEOPLE HAVE NO CHOICE BUT TO BUY IT AT THAT PRICE;


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(C) CARTEL- ANY AGREEMENT BETWEEN TWO (2) OR MORE 
PERSONS TO CONTROL PRODUCTION, SUPPLY, SALE, AND PRICE 
OF AGRICULTURAL PRODUCTS MENTIONED ABOVE AS TO 
OBTAINED MONOPOLY, LESSENING COMPETITION AND TO 
ARTIFICIALLY AND UNREASONABLY INCREASE OR MANIPULATE 
PRICE. THERE SHALL BE PRIMA FACIE EVIDENCE OF ENGAGING 
IN A CARTEL WHENEVER TWO (2) OR MORE PERSONS OR 
BUSINESS ENTERPRISES COMPETING FOR THE SAME MARKET 
ENGAGED IN THE PRODUCTION, MANUFACTURE, PROCESSING, 
STORAGE, SUPPLY, DISTRIBUTION, MARKETING, SALE OR 
DISPOSITION, AND DEALING IN THE SAME AGRICULTURAL 
PRODUCTS, PERFORM UNIFORM OR COMPLEMENTARY ACTS 
AMONG THEMSELVES WHICH TEND TO BRING ABOUT 
ARTIFICIAL AND UNREASONABLE INCREASE IN THE PRICE OF 
ANY AGRICULTURAL PRODUCTS OR WHEN THEY 
SIMULTANEOUSLY AND UNREASONABLY INCREASE PRICES ON 
THEIR COMPETING PRODUCTS THEREBY LESSENING 
COMPETITION AMONG THEMSELVES.
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Sec. 6. Section 4 of Republic Act No. 10845 is hereby amended to read as
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follows:
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Section 4. Penalties - (a) The penalty of life imprisonment and a fine of 
twice the fair value of smuggled agricultural product, OR THE PRODUCT 
SUBJECT OF HOARDING, PROFITEERING, OR CARTEL and the 
aggregate amount of the taxes, duties and other charges avoided shall be 
Imposed on any person who commits any of the acts enumerated under 
Sections 3 AND 3A of this Act.
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COMMISSION OF ANY ACTS ENUMERATED UNDER SECTIONS 3 
AND 3A OF THIS ACT SHALL BE PRIMA FACIE EVIDENCE OF 
STRONG GUILT AND SHALL BE NON-BAILABLE.


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(b) The penalty of imprisonment of not less than seventeen (17) years but 
not more than twenty (20) years, and a fine of twice the fair value of the 
smuggled, HOARDED, PROFITEERED, OR CARTELLED agricultural 
product and the aggregate amount of the taxes, duties and other charges 
avoided shall be imposed on the officers of dummy corporations, 
nongovernment organizations, associations, cooperatives, or single 
proprietorship who knowingly sell, lend, lease, assign, consent or allow the 
unauthorized use of their import permits for purposes of smuggling, , 
HOARDING, PROFITEERING OR CARTEL.
(c) The penalty of imprisonment of not less than fourteen (14) years but 
not more than seventeen (17) years, and a fine equal to the fair value of 
the smuggled, HOARDED, PROFITEERED, OR CARTELLED agricultural 
product and the aggregate amount of the taxes, duties and other charges 
avoided shall be imposed on the following:
(1) The registered owner and its lessee or charterer, in case of lease, 
of a chartered boat, motorized commercial vessel of more than three 
(3) gross tonnage, who knowingly transports the agricultural product 
subject to economic sabotage, regardless of quantity;
(2) The registered owner and its lessee, in case of lease of six (6) or 
more wheeler trucks, vans and other means of transportation, who 
knowingly transports the agricultural product subject to economic 
sabotage, regardless of quantity;
(3) The registered owner and lessee of a warehouse, or any property, 
who knowingly store the smuggled, HOARDED, PROFITEERED OR 
CARTELLED agricultural product subject to economic sabotage; or
(4) The registered owner and lessee, president or chief executive 
officer of the private port, fish port, fish landing sites, resorts, and 
airports who knowingly allows the agricultural product to be smuggled 
into the country, OR TO BE HOARDED WITHIN THEIR 
FACILITIES.


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(d) The penalty of imprisonment of not less than twelve (12) years but not 
more than fourteen (14) years and a fine equal to the fair value of the 
smuggled agricultural product subject to economic sabotage and the 
aggregate amount of the taxes, duties and other charges avoided shall be 
imposed on the following:
(1) The registered owner and its lessee or charterer, in case of lease; 
of a chartered boat, motorized commercial vessel of three (3) gross 
tonnage or less, who knowingly transports the agricultural product 
subject to economic sabotage, regardless of quantity; or
(2) The registered owner and its lessee, in case of lease, of less than 
six (6) wheeler trucks, vans and other means of transportation, who 
knowingly transports the agricultural product subject to economic 
sabotage, regardless of quantity.
In all cases, the smuggled agricultural products shall be confiscated AND
DESTROYED WITHIN SEVEN (7) DAYS and the property used in 
agricultural smuggling, HOARDING, PROFITEERING OR CARTEL shall 
be forfeited in favor of the government.
THE PROVISIONS OF SECTIONS 423 TO 436 UNDER CHAPTER 3 
OF REPUBLIC ACT NO. 10863 OTHERWISE KNOWN AS CUSTOMS 
MODERNIZATION AND TARIFF ACT SHALL NOT APPLY ON 
IMPORTED AGRICULTURAL PRODUCTS MENTIONED UNDER 
SECTION 3 OF THIS ACT.
When the offender is a juridical person, criminal liability shall attach to its 
president, chief operating officer or manager who consents to or knowingly 
tolerates the commission of the prohibited crime.
Any person, natural or juridical, found guilty under this Act shall also suffer 
the penalty of perpetual absolute disqualification to engage in any 
business involving importation.


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In applying the abovementioned penalties, if the offender is an alien and
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the prescribed penalty is not iife imprisonment, he/she shall be deported
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after serving the sentence without further proceedings for deportation.
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If the offender is a government official or employee, the penalty shall be
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the maximum as hereinabove prescribed and the offender shall suffer an
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additional penalty of perpetual disqualification from public office, to vote
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and to participate in any pubiic election.
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Sec. 7. A new Section 6 shall be inserted after Section 5 of the Republic Act
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No. 10845 to read as follows:
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SEC. 6 - ANTI-AGRICULTURAL ECONOMIC SABOTAGE TASK
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FORCE - THERE IS HEREBY ESTABLISHED AN ANTI-
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AGRICULTURAL ECONOMIC SABOTAGE TASK FORCE 
TO BE
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HEADED BY THE OFFICE OF THE PRESIDENT AND 
TO BE
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COMPOSED OF THE FOLLOWING:
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(A) OFFICE OF THE PRESIDENT OR HIS APPOINTEE;
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(B) REPRESENTATIVE FROM DEPARTMENT OF JUSTICE;
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(C) REPRESENTATIVE FROM NATIONAL BUREAU OF
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INVESTIGATION;
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(D) REPRESENTATIVE FROM THE PHILIPPINE NATIONAL POLICE;
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(E) REPRESENTATIVE FROM BUREAU OF CUSTOMS;
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(F) REPRESENTATIVE FROM DEPARTMENT OF AGRICULTURE
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INSPECTORATE AND ENFORCEMENT;
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(G) REPRESENTATIVE FROM THE DEPARTMENT OF TRADE AND
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INDUSTRY;
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(H) REPRESENTATIVE FROM PHILIPPINE COAST GUARD;
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(I) REPRESENTATIVE FROM PHILIPPINE PORTS AUTHORITY;


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(3) REPRESENTATIVES FROM THE PRIVATE AGRICULTURAL 
SECTOR WITH NATIONWIDE MEMBERSHIP EACH FROM 
LIVESTOCK, CROPS AND FISHERIES SECTOR
THE PROVISIONS OF SECTION 201(G), SECTION 202 (C) AND (3) 
UNDER TITLE II CHAPTER 1 OF REPUBLIC ACT NO. 10863 
OTHERWISE KNOWN AS CUSTOMS MODERNIZATION AND 
TARIFF ACT SHALL NOT BE APPLICABLE TO IMPORTED 
AGRICULTURAL PRODUCTS COVERED BY THIS ACT
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Sec. 8. A new Section 7 shall be inserted after Section 6 of the Republic Act
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SEC. 7. POWERS AND FUNCTIONS OF THE TASK FORCE- THE TASK 
FORCE SHALL HAVE THE FOLLOWING POWERS AND FUNCTIONS:
(A) TO EFFECT SEARCHES, SEIZURES, AND ARREST, AND TO 
EXCLUSIVELY FILE ADMINISTRATIVE AND CRIMINAL CASES 
BEFORE THE PROSECUTOR
(B) TO INSPECT WAREHOUSES WHERE SEIZED COMMODITIES 
ARE STORED TO ENSURE THAT SUCH COMMODITIES ARE NOT 
BEING FERRETED OUT OR REMOVED WITHOUT PROPER 
DOCUMENTATION; AND
(C) TO SECURE COPIES OF DOCUMENTS PERTAINING TO THE 
NATURE AND PARTICULARS OF THE COMMODITY OR GOODS 
SUB3ECT OF IMPORTATION, I.E. QUANTITY OR VOLUME, 
TECHNICAL OR QUALITATIVE SPECIFICATIONS, PORT OF 
DESTINATION/ ESTIMATED DATE OF ARRIVAL IN THE 
PHILIPPINES, CARGO MANIFEST, REFERENCE VALUES FROM THE 
BUREAU OF CUSTOMS, TRANSACTION VALUES OF IMPORTERS, 
AMONG OTHERS, FROM GOVERNMENT AGENCIES CONCERNED, 
INCLUDING BUT NOT LIMITED TO THE BUREAU OF CUSTOMS, 
DEPARTMENT OF AGRICULTURE, AND ALSO FROM NON­
GOVERNMENT SOURCES LIKE PRE-SHIPMENT COMPANIES AT


THE PORT OF ORIGIN, AND COMMERCIAL BANKS IN 
ACCORDANCE WITH THE EXISTING LAWS, RULES, AND 
REGULATIONS.
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Sec. 9. A new Section 8 is hereby inserted in Republic Act No. 10845 to read as
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follows:
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SEC. 8. SPECIAL TEAM OF PROSECUTORS- TO ASSIST THE TASK 
FORCE IN THE EXPEDITIOUS PROSECUTION OF CRIMINAL AND 
OTHER CASES COVERED UNDER THIS ACT, A SPECIAL TEAM OF 
PROSECUTORS FROM THE DEPARTMENT OF JUSTICE SHALL BE 
ASSIGNED AND SHALL HAVE THE FOLLOWING POWERS AND 
DUTIES:
(A) TO EVALUATE EVIDENCE GATHERED BY THE TASK FORCE AND 
TO DETERMINE WHETHER OR NOT VIOLATION OF RA 10845, 
OTHER RELATED LAWS AND REGULATIONS HAS BEEN 
COMMITTED;
(B) TO APPLY FOR THE ISSUANCE OF WARRANT OF SEIZURE AND 
DETENTION IN APPROPRIATE CASES;
(C) TO INITIATE AND CONDUCT PRELIMINARY INVESTIGATIONS 
AND TIMELY FILE AND PROSECUTE THE APPROPRIATE 
ADMINISTRATIVE AND CRIMINAL CHARGES AGAINST THE 
PERSON, GROUP, OR ENTITY RESPONSIBLE FOR SMUGGLING, 
HOARDING, PROFITEERING, AND CARTEL; AND
(D) TO APPLY FOR THE ISSUANCE OF SEARCH WARRANT OR 
WARRANT OF ARREST BEFORE THE COURTS IN APPROPRIATE 
ADMINISTRATIVE OR CRIMINAL CASES.
THE PROVISIONS OF SECTION 1135 TO SECTION 1138 UNDER 
CHAPTER 9 OF REPUBLIC ACT NO. 10863 OTHERWISE KNOWN AS 
CUSTOMS MODERNIZATION AND TARIFF SHALL NOT BE
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APPLICABLE TO IMPORTED AGRICULTURAL PRODUCTS COVERED 
BY THIS ACT.
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Sec. 10. A new Section 9 is hereby inserted in Republic Act No. 10845 to read
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as follows;
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SEC 9. NATIONAL SINGLE WINDOW PROGRAM- THE NATIONAL
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SINGLE WINDOW (NSW) PROGRAM OF BUREAU OF CUSTOMS
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(BOC) SHALL BE FULLY IMPLEMENTED FROM THE EFFECTIVITY OF
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THIS ACT IN ACCORDANCE WITH THE EXECUTIVE ORDER NO. 482,
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SERIES OF 2005.
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Sec. 11. Reporting Requirements- The Task Force shall submit a quarterly
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report to the Congressional Oversight Committee on Agriculture and Fisheries
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Modernization (COCAFAM) on the progress and accomplishments made in the
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implementation of this Act.
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Sec. 12. Section 7 of Republic Act No. 10845 is hereby amended to read as
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follows:
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Section 7. Prescription of Crimes. - The crimes punishable under this Act shall
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prescribe in twenty (20) years.
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Sec. 13. Separability Clause. - If any portion of this Act is declared
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unconstitutional or invalid, the portions or provisions which are not affected shall
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continue to be in full force and effect.
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Sec. 14. Repealing Clause. - All laws, decrees, executive issuances, rules and
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regulations inconsistent with this Act are hereby repealed and/or modified accordingly.
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Sec. 15. Effectivity Clause. - This Act shall take effect after fifteen (15) days
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following its publication in the Official Gazette or in two (2) newspaper of general
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circulation.
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Approved.
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