Republic of the Philippines
HOUSE OF REPRESENTATIVES ~ JS
5 RECEIVED

Quezon City
© our: 02 SEP 20135
TIME:

SIXTEENTH CONGRESS
First Regular Session

House Bill No. 2662

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING OF
ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL EMERGENCY

EXPLANATORY NOTE

Present economic conditions have not spared nations in the international
community much more Third World economies like the Philippines. To be able to
address this pressing concern, our government should adopt a two-pronged approach
by: (1) maintaining our economic viability and (2) ensuring that the effects to our citizens
are kept at a minimal level

Dependent on certain commodities, such as oil and petroleum products, which
are essential to the functioning of our economy and to the public health, safety and
welfare, a shortage or threatened shortage or increase in the price of such commodities
can significantly injure or threaten our economy or public health, safety or welfare,
thereby endangering the national security

Suppliers of these essential commodities can use abnormal market disruptions,
including unexpected changes in weather conditions, acts of nature, civil disorders, war
or other military actions, catastrophic loss of an energy source or other extraordinary
adverse circumstances, to profiteer in these essential products, even when these
actions may undermine our economy or otherwise threaten public health, safety and
welfare.


Our laws, despite being enforced to the fullest, do not sufficiently control such
profiteering especially in emergency situations. This can injure our economy even if
there is strong evidence of a provable violation of the antitrust or unfair trade practice
laws. We need to discourage such practice and punish those who engage in economic
sabotage much to the detriment of our country.

We also need to assist our citizens so that they can anticipate and address
economic emergencies by keeping low and stable the prices of basic commodities
thereby allowing them to maximize their limited resources.

This bill seeks to give the President limited power to declare a state of economic
emergency and punish those guilty of profiteering from unjustifiably injuring our country
and by taking advantage of our people in the event of abnormal market disruptions as
indicated in Section 2 of this Act

In view of the urgency of this proposed measure, its immediate passage is
earnestly requested.

Vie,
DIOSDADO \L ARROYO GLORIAMACAPAGAL ARROYO

Second District, Camarines Sur Second District, Pampanga


Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City

SIXTEENTH CONGRESS
First Regular Session

2662

House Bill No.

Introduced by Representatives
DIOSDADO MACAPAGAL ARROYO and GLORIA MACAPAGAL ARROYO

AN ACT
TO PROTECT THE NATIONAL SECURITY BY PROHIBITING PROFITEERING OF
ESSENTIAL COMMODITIES DURING PERIODS OF NATIONAL EMERGENCY

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 “National Emergency
Anti-Profiteering Act of 2013.”

SECTION 2. Definition. — For purposes of this Act, the term -

A. National economic emergency - means, as determined by the President, an
abnormal market disruption (whether actual or imminently threatened) resulting
from extraordinary weather conditions, acts of nature, catastrophic failure of a
source of energy, strike, civil disorder, war or other military action, or national
emergency, that:

1. causes an actual or threatened shortage, or an actual or threatened
increase in the price of an essential commodity, and

2. is likely to significantly injure the economy of the Philippines or the
Public health, safety or welfare.

When the President declares a national economic emergency, he/she shall
designate the essential commodities with respect to which that national economic

1


emergency exists. Notice of the President's determination that a national
economic emergency exists and his/her designation of the essential commodities
with respect to which that national economic emergency exists shall be given by
immediate publication of a Presidential proclamation

B. Essential commodity is -

1. crude oil, propane, gasoline, diesel fuel, kerosene, home heating oil,
aviation fuel, or other petroleum distillate, or

2. a commodity that the President determines to be a commodity -
a. of significant importance to the Philippine economy, or

b. vital or necessary to the public health, safety or welfare, a
disruption in the supply, or sudden increase in the price, of which is
likely to significantly injure the economy of the Philippines or public
health, safety or welfare, and thereby threaten the national security.
Notice of such determination shall be given by publication of a
Presidential proclamation

C. Listed essential commodity - means any essential commodity with respect to
which the President has designated that a national economic emergency exists.

D. Profiteer - means to offer for sale, sell, transport, or deliver an essential
commodity at an excessive price, or to place excessive restrictions or conditions
upon the sale, delivery or transportation of an essential commodity.

E, Excessive price - is one that is not justified by the seller's actual costs of
acquiring, producing, selling, transporting, and delivering the actual product sold,
plus a reasonable profit. In calculating the seller's actual costs, no allowance
shall be made for the replacement costs of an essential commodity if the seller is.
reasonably assured of recouping the replacement costs as a part of the price of
subsequent sales of an essential commodity. It shall be prima facie evidence of
an excessive price that the increase in the seller's price for a listed essential
commodity during a national economic emergency exceeds the increase in the
seller's actual costs for actual product sold.

SECTION 3. Prohibited Act. - Following publication of a Presidential
proclamation declaring a national economic emergency and designating the essential
commodities with respect to which that national economic emergency exists, for the
duration of that national economic emergency, no person shall profiteer with respect to
any listed essential commodity

SECTION 4. Penalty. — Any person who profiteers in a listed essential
commodity in violation of Section 3, shall suffer a penalty of to up to 5 years