REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
‘Quezon City

SEVENTEENTH CONGRESS
Third Regular Session
8051

House Bill No.

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

EXPLANATORY NOTE

Section 3513 of Presidential Decree No. 1464, otherwise known as the Tariff and Customs
Code of the Philippines grants a reward system for customs officials, men, and informers who can
provide information instrumental for the discovery and seizure of smuggled goods.

‘The rewards reaped, however, is limited to assessment and intelligence frontline personnel
performing enforcement functions in the Bureau of Customs, while BOC lawyers who administer
the laborious and protracted litigation and prosecution of customs-related cases are left unrewarded
for their efforts, which are no less than vital in the performance of the BOCs mandate.

This proposed bill, therefore secks to include BOC lawyers to such entitlements. This will
‘encourage BOC lawyers to properly prosecute and speedily recover unpaid taxes and duties with an
end view of meeting our tax collection targets. Incentivizing the successful prosecution of customs-
related cases is seen as a viable solution to the perennial problem of dismissal cases for failure to
prosecute and other legal technicalities. More importantly, this will insulate our lawyers from the
clutches of bribery and corruption, encouraging them instead to go the extra mile in prosecuting
smugglers, with an end view of reducing to a bare minimum if not absolutely curb smuggling and
other illegal trade practices.

It is the ardent belief of this representation that officials who give their honest effort to
promote the welfare of the Filipino people and protect our national interest must be handsomely
rewarded for the important role they play in nation-building.

In view of the foregoing, immediate approval of this measure is earnestly sought.



REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
‘Third Regular Session

Introduced by MAGDALO Party-List Representative
HON. GARY C. ALEJANO

AN ACT
AMENDING SECTION 3513 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE
KNOWN AS THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES AND FOR
OTHER PURPOSES

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

assembled,

SECTION I. Section 3513, Book Il, Title VII, Part Il, of P.D. 1464, otherwise known as the

‘Tariff and Customs Code of the Philippines, is hereby amended to read as follows:

Sec. 3513. Reward to Persons Instrumental in the Discovery and Seizure of or
Recovery of Revenue on Smuggled Goods and Successful Prosecution of Offenders. The
provisions of general and special laws to the contrary notwithstanding, a cash reward
equivalent to twenty per centum (20%) of the [fair market value of] REVENUE
RECOVERED FROM the [smuggled and] SEIZED OR confiscated goods shall be given
to the officers and men and informers who are instrumental in the discovery and seizure of
such goods [in accordance with the rules and regulations to be issued by the Secretary of
Finance.]; PROVIDED THAT IN CASE OF SUCCESSFUL PROSECUTION OF
SMUGGLERS OR SEIZURE AND FORFEITURE CASES, THE AMOUNT
EQUIVALENT TO TEN PER CENTUM (10%) THEREOF SHALL BE GIVEN TO
THE BUREAU OF CUSTOMS LAWYERS WHO ACTIVELY PROSECUTED THE
CASE THAT RESULTED IN THE RECOVERY OF REVENUE, SURCHARGES,
AND FEES, OR IMPOSITION OF FINE OR PENALTY OR OFFER OF
COMPROMISE BY THE OFFENDER, OR CONVICTION OF THE OFFENDER;
PROVIDED, FURTHER, THAT IN CASE OF CONVICTION, WHERE THE
PENALTY IS INCAPABLE OF PECUNIARY ESTIMATION, THE AMOUNT OF
REWARD SHALL BE EQUIVALENT TO TWENTY PER CENTUM (20%) OF THE
CIVIL LIABILITY INCLUDING FINES, PENALTIES, AND SURCHARGES
IMPOSED BY THE COURT; PROVIDED, FINALLY, THAT WHERE NO CIVIL


LIABILITY IS AWARDED BY THE COURT, THE SUM OF P250,000.00 OR
P500,000.00 SHALL BE GRANTED WHERE THE CASE IS RESOLVED WITH
FINALITY IN THE TRIAL COURT OR THE APPELLATE COURTS,
RESPECTIVELY.

The provisions of this section, not those of Republic Act numbered twenty-three
hundred and thirty-eight, shall govern the giving of reward cases covered by the former.

SEC. 2. Implementing Rules and Regulations.—Within sixty (60) days from the approval
of this Act, the Bureau of Customs shall promulgate such rules and regulations as may be necessary
to carry out the provisions of this Act, subject to the approval of the Secretary of Finance.

SEC. 3. Repealing Clause.—Alll laws, decrees, orders, rules and regulations, and all other
issuances, or parts thereof, which are inconsistent with this Act are hereby repealed or modified

accordingly.

SEC. 4. Separability Clause.—If any provision of this Act is declared unconstitutional or
invalid, other parts or provisions hereof not affected shall continue in full force and effect.

SEC. 5. Effectivity.—This Act shall take effect after fifteen (15) days following its
publication in at least two (2) newspapers of general circulation.

Approved,