NINETEENTH CONGRESS OF THE 
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REPUBLIC OF THE PHILIPPINES 
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First Regular Session 
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SENATE 
S. No.
A v|r^> -h
of U)f fei'neinru
23 JAN 17 P4 59
RECEIVED BY;
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCUO
AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO. 10845, 
OTHERWISE KNOWN AS THE ANTI-AGRICULTURAL SMUGGLING ACT OF 
2016, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Republic Act No. 10845 otherwise known as the Anti-Agricultural Smuggling Act 
of 2016 was passed into law with the primary objective of protecting the Filipino 
farmers and their famiiies with the rise of agricuiturai smuggiing in the country.
However, since the law's passage in 2016, even if there have been severai 
reports of seizure of smuggied products, there have been no prosecution of individuai, 
groups or corporations under the law. It may appear that some have mastered how 
to circumvent the law in order not to be punished.
Needless to say, the law's potential to finally end illegal activities that sabotage 
the country's economy and the iiveiihood of farmers have not been fuliy utiiized over 
the years. The present condition of our farmers and the rising price of agricultural 
products because of its scarcity reflect the failure of national government agencies to 
fully implement the law.
In the recent Economist's 2021 Giobai Food Security Index (GFSI), the 
Phiiippines ranked 64th out of 113 countries in terms of four dimensions of food


security - food availability, food accessibility, food utilization and stability.1 The 
difficulty of the country to cope with other countries in terms of food security is 
apparent in the rising prices of basic commodities and the scarcity and shortage of 
such.
Recently, the country has been experiencing the highest price of onion in 
history - an all-time high of P700 per kilogram. This was made worse by reports of 
smuggling and price manipulations by unscrupulous people.
From the records of the Bureau of Customs, a total value of PI.2 billion 
smuggled agricultural products have been confiscated in 2022. In connection with this 
is the millions worth of revenues that the government is losing as a result of smuggling 
which is revealed to be P250 million per year.2
Even President Bongbong Marcos recognized the widespread smuggling with 
his recent call for significant reforms in the bureaucracy in order to thwart and curtail 
the proliferation of the same.
As the principal author of the Anti-Agricultural Smuggling law, I envisioned that 
this will be a big boost to the agricultural sector. In light of this, it is high time to 
introduce amendments to the law, in order to address and hopefully end not only 
smuggling, but also the issues of hoarding, profiteering and cartel of agricultural 
products. Our ultimate goal is safeguarding our farmers, consumers and the 
agricultural sector, and attaining the goal of food security for the country.
In view of this, the proposed legislation will consider as economic sabotage the 
hoarding, profiteering and cartel of sugar, corn, pork, poultry, garlic, onion, carrots, 
fish and cruciferous vegetables in the amount of one million pesos (P1,000,000.00) or 
rice in the amount often million pesos (P10,000,000).
1 https://www.pids.gov.ph/publication/discussion-papers/is-food-supply-accessible-affordable-and-stable-the-state-of-food-security-in- 
the-philippines
2 https://business.inquirer.net/378574/business-group-cails-for-united-front-vs-smuggling-thats-crippling-local-industriesbusiness-group- 
calls-for-united-front-against-smuggling-that-is-crippling-local-industries


Furthermore , in order to strengthen the enforcement and implementation of 
the law, an Inter-Agency Council on Economic Intelligence will be created. This will be 
co-chaired by the Department of Agriculture, Department of Trade and Industry, and 
the Bureau of Customs, and will include Department Of Justice (DOJ), National Bureau 
Of Investigation (NBI), Department Of Interior And Local Government (DILG), 
Philippine National Police (PNP), Philippine Competition Commission (PCC), National 
Security Council (NSC), And National Intelligence Coordinating Agency (NICA).
It is fervently hoped for the immediate consideration and passage of this 
highly sought.
IS
JOSEPH VICTOR G. EJERCITO


NINETEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
of ihf seffct!>!•}!
23 JAN 17 P4S9
SENATE
RECEIVED B'.'.
INTRODUCED BY SENATOR JOSEPH VICTOR G. EJERCITO
AN ACT
AMENDING CERTAIN PROVISIONS 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 the House of Representatives of the Philippines, in 
Congress assembled:
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SECTION 1. The title of Republic Act No. 10845 is hereby amended to read as:
AN ACT DECLARING LARGE-SCALE AGRICULTURAL SMUGGLING, 
HOARDING, PROFITEERING, CARTEL, AND OTHER ACTS OF 
MARKET ABUSES AS ECONOMIC SABOTAGE, PRESCRIBING PENALTIES 
THEREFORE AND FOR OTHER PURPOSES
Sec. 2. Section 1 of Republic Act no. 10845 is hereby amended to read as:
This Act shall be known as the "Anti-Agricultural [Smuggling] ECONOMIC
SABOTAGE Act of 2023.
Sec. 3. Section 2 of Republic Act No. 10845 is hereby amended to read as:
Section 2. Declaration of Policy. - It is the policy of the State to promote 
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 
agricultural products, especially rice, significantly affects the production, 
availability of supply and stability of process and food security of the State.
FURTHERMORE, IT IS ALSO THE POLICY OF THE STATE TO 
PROMOTE THE AFFORDABILITY OF FOOD AND OTHER 
AGRICULTURAL COMMODITIES FOR FILIPINO CONSUMERS BY 
PREVENTING LARGE-SCALE ABUSE OF MARKET POWER, 
HOARDING AND OTHER PRACTICES TO MANIPULATE PRICES 
AND UNDULY RESTRAIN SUPPLY.
The State shall impose higher sanctions for large-scale smuggling of 
agricultural products AND OTHER ABUSES OF MARKET POWER as
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 AND THAT OF CONSUMERS.
Sec. 4. A new Section 3A shall be inserted after Section 3 of Republic Act. No. 
10845 to read as:
SEC. 3-A. LARGE-SCALE AGRICULTURAL HOARDING, 
PROFITEERING, AND CARTEL AS ECONOMIC SABOTAGE. - 
HOARDING, PROFITEERING, OR CARTEL, AS DEFINED IN 
SECTION 5 OF REPUBLIC ACT NO. 7518, INSOFAR AS THEY 
INVOLVE 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 
(P10,000,000.00), AS VALUED BY THE DEPARTMENT OF


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AGRICULTURE FOR DOMESTICALLY PRODUCED COMMODITIES, 
SHALL CONSTITUTE ECONOMIC SABOTAGE.
Sec. 4. A new Section 5 shall be inserted after Section 3 of Republic Act. No. 
10845 to read as:
SEC. 5. THERE IS HEREBY CREATED AN INTER-AGENCY COUNCIL 
ON ECONOMIC INTELLIGENCE, HEREINAFTER REFERRED TO AS 
COUNCIL, WHICH IS MANDATED TO ENFORCE THE PROVISIONS 
OF THIS ACT AND TO PRINCIPALLY COMBAT SMUGGLING, 
HOARDING, PROFITEERING, AND CARTEL: PROVIDED, THAT,
THE TASK FORCE SHALL BE CO-CHAIRED BY THE DEPARTMENT 
OF AGRICULTURE (DA), DEPARTMENT OF TRADE AND INDUSTRY 
(DTI) AND THE BUREAU OF CUSTOMS (BOC), AND SHALL 
INCLUDE AS MEMBERS THE DEPARTMENT OF JUSTICE (DOJ), 
NATIONAL BUREAU OF INVESTIGATION (NBI), DEPARTMENT OF 
INTERIOR AND LOCAL GOVERNMENT (DILG), PHILIPPINE 
NATIONAL POLICE (PNP), PHILIPPINE COMPETITION 
COMMISSION (PCC), NATIONAL SECURITY COUNCIL (NSC), AND 
NATIONAL INTELLIGENCE COORDINATING AGENCY (NICA).
Sec. 5. Section 4 of Republic Act. 10845 is hereby amended to read as:
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 TO 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 3-A 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 vaiue of


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the smuggled, 
PROFITEERED, 
HOARDED, 
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 proprietorships who knowingly sell, lend, lease, assign, consent 
or allow the unauthorized use of their import permits for purposes of 
smuggling, PROFITEERING, HOARDING, OR CARTELLING.
(c) The penalty of imprisonment of not less than fourteen (14) years but 
not more than seventeen (17) years, and a fine of twice the fair value of 
the smuggled, 
PROFITEERED, 
HOARDED, 
OR 
CARTELLED
agricultural product and the aggregate amount of the taxes, duties and 
other charges avoided shall be imposed on the following:
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(3) The registered owner and lessee of a warehouse, or any property, 
who knowingly stores the smuggled, PROFITEERED, HOARDED, OR 
CARTELLED 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, 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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Sec 6. Section 7 of Republic Act No. 10845 is hereby amended to read as:
Section. 7. Prescription of Crimes. - The crimes punishable under this Act shall 
prescribe in twenty (20) years.


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Sec 7. Implementing Rules and Regulations. - The DA, DTI AND BOC, in
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consultation with concerned agencies, shall promulgate the implementing rules and
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regulations of this Act within thirty (30) days upon its effectivity.
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Sec 8. 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. 9. 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. 10. 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) newspapers of general
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circulation.
12 Approved,