Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILLNo._6259

Introduced by HONORABLE ROMERO “MIRO” S. QUIMBO

EXPLANATORY NOTE

From 2013 to 2014, the government incurred a total of P64 Billion foregone
revenue due to the widespread smuggling of agricultural products, according to a
report by the Samahang Industriya ng Agrikultura (SINAG).! This amount
represents a P32 Billion loss per year, which could have been used for the
construction of approximately twenty one thousand (21,000) classrooms, or two
thousand six hundred (2,600) health centers. In fact, the amount of loss reported
for these two years is more than enough to cover the budget of the Department of
Agriculture for 2016, and with an excess sufficient to help rehabilitate our
agricultural sector.

From 1985 to 2009, poverty statistics show that most of those who are
classified poor belong to those included in the agricultural sector.? For the past two
decades, the average share of agricultural employment to the total labor force is
one-third or 36.6 percent (36.6%). And yet, they receive the lowest average daily
basic wage and salary compared to non-agriculture industries.‘ This is appalling,
considering that the agriculture industry is a significant driver of our country
towards food security. This condition is aggravated by the occurrence of
agricultural smuggling, in that it takes away what little income that workers in the
agricultural sector may have, as they have to compete with the prices that the
agricultural smugglers offer to the market, thereby hampering this sector's growth
and sustainability.

With the adverse effects of agricultural smuggling to the government budget,
food security, poverty alleviation, as well as its connection to all other national
concerns, there is thus the need to strengthen laws to deter its commission.
Recently, we initiated mechanisms to improve the Bureau of Customs through the
passage of the Customs Modernization and Tariff Act (CMTA) at the lower house.
Through this bill, we hope to complement the CMTA through the provision of stiffer

' Remo, Michelle V. “Agri groups decry unabated smuggling,” Philippine Inquirer website, January 31,2014.

-<http://business. inquirer. net/ 16237 1/ph-govt-has-lost
accessed October 26, 2015 >

* Albert, Jose Ramon G. “How Important is Agriculture in the Economy.” Phil istic it
website, no date.<hitp./nscb 2ov.ph/bevondthenumbers/2013/04122013 irea asriasp, accessed October 26,
2015>

* Ibid.

“Tid.


penalties for agricultural smuggling, in order to ensure the protection of this
specific industry.

This measure imposes higher sanctions for large-scale smuggling of
agricultural products, in the objective of protecting the agricultural sector, food
security and price stability, ensure the income and well-being of our farmers, and
regain government revenues lost, to be used for improving the delivery of social
services for the country. It is a counterpart of Senate Bill No. 2923 filed by Senator
Joseph Victor G. Ejercito. In my shared vision and commitment with Senator
Ejercito to address the growing cases of smuggling of agricultural products, the
passage of this bill is earnestly sought.

RO} “MIRO” S. QUIMBO
Representative

s&ond District, Marikina City


Republic of the Philippines

HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

HOUSE BILL No.__ 6259

Introduced by HONORABLE ROMERO “MIRO” S. QUIMBO

AN ACT DECLARING LARGE-SCALE AGRICULTURAL SMUGGLING AS
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:

SECTION 1. Short Title. - This Act shall be known as the “Anti-Agricultural
Smuggling Act of 2015.”

SECTION 2. Declaration of Policy. - It is the policy of the State to promote the
productivity of the agriculture sector and to protect farmers from unscrupulous
traders and importers, who by their illegal importation of agricultural products,
especially rice, significantly affect the production, availability of supply and
stability of prices, and the food security of the State.

The State shall impose higher sanctions for large-scale smuggling of
agricultural products, as a self-preservation measure to shield itself from the
manipulative scheme of economic saboteurs, and to protect the livelihood of our
farmers and to ensure their economic well-being.

SECTION 3. Large-Scale Agricultural Smuggling as Economic Sabotage. ~ ‘The crime
of large-scale agricultural smuggling as economic sabotage, involving sugar, corn,
pork, poultry, garlic, onion, carrots, fish, and cruciferous vegetables, in its raw
state, or which have undergone the simple processes of preparation or preservation
for the market, with a minimum amount of One million pesos (P1,000,000.00), or
rice with a minimum amount of Ten million pesos (P10,000,000.00), as valued by
the Bureau of Customs (BOC), is committed through any of the following acts:

(a) Importing or bringing into the Philippines without the required import
permit from the regulatory agencies;

(b) Using import permits of persons, natural or juridical, other than those
specifically named in the permit;


(c) Using fake, fictitious or fraudulent import permits or shipping
documents;

(d) Selling, lending, leasing, assigning, consenting or allowing the use of
import permits of corporations, nongovernment organizations, associations,
cooperatives, or single proprietorships by other persons;

(e) Misclassification, undervaluation or misdeclaration upon the filing of
import entry and revenue declaration with the BOC in order to evade the payment
of rightful taxes and duties due to the government;

(9 Organizing or using dummy corporations, nongovernment organizations,
associations, cooperatives, or single proprietorships for the purpose of acquiring
import permits;

(g) Transporting or storing the agricultural product subject to economic
sabotage regardless of quantity; or

(h) Acting as broker of the violating importer.

SECTION 4. Penalties. - (a) The penalty of life imprisonment and a fine of twice
the fair value of the smuggled agricultural product 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 Section 3 of this Act.

(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
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 proprietorships
who knowingly sell, lend, lease, assign, consent or allow the unauthorized use of
their import permits for purposes of smuggling.

(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
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 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;

(8) The registered owner and lessee of a warehouse, or any
Property, who knowingly stores the smuggled agricultural product
subject to economic sabotage; or


(4) The registered owner, lessee, president or chief executive
officer of the private port, fish port, fish landing sites, resorts,
airports who knowingly allows the agricultural product to be
smuggled into the country.

(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 impose 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
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-wheel 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 the
property used in agricultural smuggling, consistent with Section 2530 of the Tariff
and Customs Code and without prejudice to Section 2531 of the same Code, shall
be forfeited in favor of the government.

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.

In applying the abovementioned penalties, if the offender is an alien and the
prescribed penalty is not life imprisonment, he/she shall be deported after serving
the sentence without further proceedings for deportation.

If the offender is a government official or employee, the penalty shall be the
maximum as hereinabove prescribed and the offender shall suffer an additional
penalty of perpetual disqualification from public office, to vote and to participate in
any public election.

SECTION 5. Presumption of Agricultural Smuggling. - Mere possession of rice or
any agricultural product under this Act, which has been the subject of smuggling,
entered into the Philippines other than the Bureau of Customs controlled ports or
without the necessary permits shall be prima facie evidence of smuggling.

SECTION 6. Implementing Rules and Regulations. - The BOC, in consultation with
concerned agencies, shall promulgate the implementing rules and regulations of
this Act within thirty (30) days upon its effectivity.


SECTION 7. Prescription of Crimes. - The crime punishable under this Act shall
prescribe in twenty (20) years.

SECTION 8. Separability Clause. - If any portion of this Act is declared
unconstitutional or invalid, the portions or provisions which are not affected shall
continue to be in full force and effect.

SECTION 9. Repealing Clause. - All laws, decrees, executive issuances, rules and
regulations inconsistent with this Act are hereby repealed and/or modified
accordingly.

SECTION 10. Effectivity Clause. - This Act shall take effect after fifteen (15) days

following its publication in the Official Gazette or in two (2) newspapers of general
circulation.

Approved,