Republic  of`thc  Philii.pines
H0USE0FREPRESF.NTATIVES
Qllezon  City
NINF,TF.F,NTHCONGRF,SS
First Regul{`r Session
Housl<:  Bii*-I, Nt>.   574 2
rg.
RECEIVED
BATE
\`'*®    TIME;
`,BY
Introduced by Representati`'e Wilbert T. Lee
AN  ACT
T0  RATI0NAljl7,I<t, lil,XISTING  PENAI.  I,AWS AGAINST I+ARGE-SCAI..II
AGRICUI.+TURAL SMUGGLING, AMli:NDING CF,RTAIN  l'ROVISIONS OF
REpuBi,Ic ACT NO. io845, OTHERwlsF, KNOwN As THE ANTI-
AGRICUI,TURAI, SMUGGl.ING A(I 0F 2016, AND FOR OTHER PURPOSFIS
l=Xpl~,ANATORY NOTE
'I`hc  enactmciit  of  Republic  Act  No.10845.  otlierwise  known   as  ..Aiiti-Agriciilt`iral
Smuggling Act of 2016," pavecl way to protect and promote the productivity of the Phi]ippiiie
agriciilt`iral  sector,  I``ilipino  farmers  and  cntcrpriscs  from  uiiscriipuloiis  ti.adcs  aiid  impoi.tL`rs.
Biit` siliee  its passage, agriciilliiral smuggling cc)nsidered as economic  sabotage  is still  rampant
and  `mugglcd  prorusi`l.v  in  thl`  i`ouiitry.
I'hilippine  agricultui.e  induslrii`s  zii.e  still  i`ompcting  ag{~iiiist  the  simiggled  agi.iciiltiiral
products.,  the  latter d()minating the  market.  As  a  resiill.  there  is  a  decline  in  the  I()cal  pr()duced
products.  I,ocal  agriciiltul.al  sectoi.s  are  restrained  t()  c(>ntinue  tlieir  pr()cluction  because  if they
continue  it.  it  is either their prodiiced  inputs ai.e throw'n to \\.'aste or `sold  at cheap  prices.
In  view  ot` this  continuoiis  proliferation  of large-scale  smuggliiig  in  the  coiintry.  this
mi`asii!.e  aims  to  ( I )  ineludc  the  other  unla\\,'f``il  act  of market  aL)uses;  and  (2)  modify  a  stricter
pi`iialt.\  to  tliosi`  public  ijt`ficials oi. cmpl{i}'ccs  \,\ ho  tolei`ati`s,  r)roti`i`ts.  or take  I)art  in  large-scale
agrii`ultural    smiiggling,    and    othi`r    marl`et    zibusi`s.    Iiamel},'    but    not    limited    to.    hoardiiig`
pi.ofitccring,  or cartel  in  the  i`ouiitr}/'.
It miist be emphasized that ()ur agriculture sectors  \\/'ill  liot progress  and  issues relating
to  it  will  not be  soived  irthose  supposed  pi.t)tectors  ancl  implement()rs ()f oui.  iiiterest pr(>tects
aiid/or belong to th()se who are behind agrieiillural  smuggliiig.  Stiict eilforcemeilt  is iieeded  as
g(]\ernmem  of`fic`ials  aiid  empl().vees  are  agents  ot` the  people.   We  eiitrust  theiii  with  piiblic
powi]i``    I'u[]lii`   p()wiT   thtit   shoiil(I   oiil}    he   ii`L`cl   {`or   the   heni[fit   of`  all   and   n(>t   f`()r   their   ()wn
pei.s("'il  g£`in  ()r  (`or  the  (`L`v\ .
Another   featiire   of  this   bill   is   holding   public   of`ficials   accountable   with   hcavicr
punishment. As public officials or employees, we must hold them accountab]c f`or their actions
2  7  2022


and  inaclioiis.  Si`i`tion   I,  Aiticlc  XI  of thi`   1987  C`onstit`itioii,  I)rovides  that  public  of`tlcc  is  a
r)`il)lie  ti.ust.  Public  of`fici`rs  and  i`mi)lo.vces  miist,  at  all  times,  bc  accountable  to  the  people,
serve  them  utmost  I.|`sponsibilit.y,  integrit.y,  loyalty,  aml  el`ficiency;  act  with  patriotisln  and
justicc` and  lead  inodcsL  lives.
The  pi.opo`sed  measiire  seeks  to  impede  £`nd  put  a  stop  {>n  tlie  involvement  t>f public
ol`ficials  or enii)lo}''ees  in  the  lai.ge-scale  zigricultur{il  smuggling.  As  ageilts  ()f the  State,  public
oflic`ials  or  emr)lo}ces  sliould  ()bsiwe  an(I  uphold  piiblic   interest  over  ancl  ab()ve  their  ()wn
ii`ti`iresl`  perl`t)rm  and  discharge  their  duties  \\/'ilh  utmost  declication  and  lny'alty  to  the  c()llntry.
aiid disc()urage wrongd()ings or undue patroiiage.  Hence. this proposed measure \\/'ill not only go
after the  illegal  imp()rters but also t() those  inv()lved aiid pr()tectors of`such i`ct/s.
The expeditious consideration and approval of.this measure  is earnestly sought.


Repul)lie  of the  Philiiipiiics
HOUSF,OFRHPRF.SF,NTATIVF.S
Que7.on City
r`i N E T E E N T H c o N G R F, s s
Fil.st  Rcgul!i[. Session
HousF.ill-j|.,`No.5742
IntJ.oduced  by  Representative  Wilbert T.  I,ee
AN ACT
'r() RATloNAljlzE Exlsi`ING pF,NAL LAws A(`;AINST LARc,E-SCALF,
AGRICULTIJRAI.I S,VIUGGljlNG, AMP,NDIT`TG  CERTAIN PROVISIONS OF
Rr:pi;BLlc.` ACT No.  io845, oTHERwisF. KNowN AS THE AT`'TI-
A(;R](:ul,'r`L,yRAL, L`MUG{;I,]NG  ACT ob` 2oi(], ANI)  F`oR o'r`HHK  puRposr:s
Be   il  enacted  by  the   Senate   and  Hoiise  o./.  Represenlalives   o`|   the   Philippine,,s   in  (`t)ngre.ss
iis.sc!'irthled:
Set`.I.  The  title  of Re[)uhlic  Act  No.   I ()845  is  here[)}'  amended  t()  read  as  f`(>ll()\\s:
AN     ACT     DECLARING     LARGL~SCALE     AGRICULTURAL     SMUGGLING`
IIOARDING,   ANI)    OTHER   MARKET   ABUSES    AS    ECONOMIC    SABOTAGE,
PRESCRIBING PENALTIES THEREF()R AND FOR ()THER PURPOSES
See.  2.  Sec`tion   I   of Repiil)lie  Act  No.   10845   is  herc`b\J  amcndc'd  to  i`i`ad  as  l`()llo\\Js:
See.     I.    Tliis    Act    shall    be    known    fis    the    "Anli-Agricultural    Smiiggling    AND
ECONOMIC SABOTAGE Act of 2016."
See. 3.  Secti{m  2 ()f`Republic  Act No.10845  is  hei.eby  amended to read  as f`oll()ws:
SF.CTIO^T`   2.  /,)c'c'/c;;.f7/t.tj#   rj/'  /'rj/j.i'.\',         1{   is   the   polic}'   ol`  the   St<1te   to   promoti`   thc'
prodiictivil}'  o1`  thl`  agiiciiltiirc  sector.  aiid   to   prt>teel   farmers   l`rom   imscrupiilous  traders  and
importers.    wlio    by    their    illegal    importation    of   agricultural    products`    especially    rice,


sigiiilicantly  affect  tile  pi.odiiction`  availabilit}'  of siippl}i'  and  stabilit}'  of` prices,  aiid  tlic  1`ood
security of tlil`  State.
TIIF,  STATF,  SI.lAl,L  PROMOTE,  TI``lE  AFFORI)ABILITY  OF  FOOD  ANI)
OTIIER   AGRICuljTURAl.j   COMMODITIES   FOR   FILIPINO   CONSUMERS   BY
PREVENTING  LARGE-SCALE  ABUSE  OF  MARKET  POWF.R,  HOARDING, AND
OTHER   PRACTICES   T0   MANIPULATE   PRICES   AND   UNDULY   RESTRAIN
SUPPLY.
The   State   shall   impose   higher   sancti()ns   for   lai.ge-scale   smuggliiig   ot`  agriciiltui.al
rtt.t>diiL`ts.   AND  OTHF,R   ABusF,s  oF  MARKF,T  powF.R,  AND  THosF,  puBLlc
OFFICIAL 0R  EMPLOYEFj  WIIO TAKE  PART AND/OR  PART OF, TOLERATES
OR CONsr:N'l.`S T0 TH Fj  DOING 01` THE SAME as a selt`-prcscr\Jation mcas`ire to shield
itself f`rom the manipulative sclicme ofcconomic saboteurs. and to protect the  liveliliood ofoiir
l`aniii`i.s and  to ensure  their economic  wc`l l-being.
See.  4.  A  new  Section  3A  shall  bc  inserted  after Section  3  of Repiiblic  Act  No.10845,
to read as  follows:
SECTION        3A.        LARGE-SCALE        AGRICULTURAL        HOARDING,
PROFITF,ERING,   AND   CARTEL   AS   ECONOMIC   SABOTAGE.   ~   HOARDING,
PROFITEERING.  OR  CARTEL,  AS  I)EFINED  IN  SECTION  5  ()F  REPUBLIC  ACT
NO.   7581,   INSOFAR  AS   THEY   INVOLVE   SUGAR,   CORN,   PORK,   POULTRY,
GARLIC, ONION, CARROTS,  FISH, AND CRUCIFEROUS VEGETABLES, IN ITS
RAW  STATE,  OR  WHICH  HAVF,  UNDF,RGONF.  THF,  SIMpl,F,  PROCESSF,S  0F
PREPARATION  OR  pRli:sl+:RVATION  FOR  THrl  MARKET,  wlTil  A  MINIMUM
AMouNi` (->r` ()N F,  IVI[ I,I,it)N  I.Es()s ([>i .o(io.otio.()(I)` oR  Rlcl<:. w]TH  A M rNI ,Vlu M
AMOuNT   Oli`   Ti.`"v    MILI,Ior`   pEsos   (plo,oo(I,ooo.oO),   As   VALUEI)   By   THE
BUREAU  OF  CUSTOMS  (BOC)  FOR  IMPORTS  OR  BY  TILE  I)EPARTMENT  OF
AGRICULTURE   FOR  DOMESTICALLY  PR0I)UCEI)  COMMODITIES,  SHALL
CONSTITUTE ECONOMIC SABOTAGE.
See.  5.  Section  4  o(` Repilblic  Act  N().   10845   is  {imi`ndi`d  to  as  read  €`s  f`ollows:
"SF,CTION 4. /J6Jncr//7.6JL`t. --(a) The penalty of life imprisonmelit and a fine of`t\vice the
t`air  val`ic   of  the   smuggled   agricu[tura]   product   OR  THF,  PROI)UCT   SURJHCT  TO


lIOARDING,  PROFITEERING,  OR  CARTEL  and  the  aggrcgatc  aiiiount  of tlii`  ta,Yes,
diitii`s  and  other  cliargcs  avoided  PLUS  INTEREST  AT  THE  PREVAILING  LEGAL
RATE   shall   be   imposed   on   any   pers()n   wh()  i`()mmits  any  ()f  the   acts  enumei.aled   under
Se.`tit>ns  3  AND  3A  t)f this  Ai`t.
(b) rl lie penalty ot` imr)risonment ot` not li`ss than seveiiti`cn ( 17) years but not more tllan
t\`.lent.v   (20)   years,   and   a   flnc   of`  twice   the   fair   value   of`  the   smuggle(I.   HOARDED,
PROFITEEREI),  OR  CARTELED  agricultural  product  and  the  aggregate  amomu  or the
taxes, diitics ami other charges avoideci PLUS INTEREST AT TI.lE PREVAILING LEGAL
RATE  shall  be  impt>secl oil thi` ()mcers t)rdiimm,\'  i`orporatioiis.  nt>n`gt)vemment (>rg{iiiizati()ns.
£`sst>i`iatioiis.  cooperatives.  tn.  `single  pr(>prietoi.ships  \\'ho  knowingly  ``ell`   lend.   lease.  assign`
i`(!nsent  ()r  allow   the   unauthori7ed   use  ()f their  impoit  r]ermits  f()r  purpoLses  ()t`  smiiggling.
HOARI)ING, PROFITHF,RING. OR CARTF.LLING.
(c)  The  pclialt.\''  of imprisoiimciit t)l` iiot  less  than  rourtecn  ( 14) .years  but  not  niorc tlian
seventei`n   (17)   .yi`ars   and   a   lllie   ctiiial   to   tlii`   l`{]ir   valiii`   of  the   smuggli`d.   II0ARI)EI),
PROFITEERED,  OR  CARTELED  agriciiltilral  product  and  the  aggregate  amount  ()f the
taxes, duties aii{l {)ther charges avoided PLUS INTEREST AT THE PREVAILING LEGAL
RATF,  shall  be  imposed  (in the  following:
(I )  The   registcrcd   o\\I'ner  and   its   lessee   oi.  chartercr.   in   casi`   ot`  1casc.  of  a
chartered   boat,   motorized   commi`rcial   vessel   of  niore  than   thrcc   (3)   gross
lormage, who knowingl}J traiisports the agriciiltiiral product siibji`ct to economic
sabotage,  regardless of quantity;
(2)  The  rcgistcred  owner  and  its  lessee,  in  case  of`  lease  of` six  (6)  or  more
whccler   trucks,   vans   and   other   means   of  traiisportation`   who   kno\\i'ingly
tra!isports  tlii`  agi.icultural  I)roduct  siibject  to  ccoilomic  sabotage.  rcgardlcss  of`
(ll,a,,tit) ;
(3)   The   registered   owner  and   lesseLJ   of  a   \fy'arehoiise,   ()I.  {in.y   pr()pert.y.   wht)
kiiowingly   st()res   the   smuggled   agricultui.al   product   subject   t()   econ()mic
sabotage: ()r
(4)  The  rcgisti`i.ed  owncr`   lessee,  presidi`nt  or  chief cxecutivc  of`ficcr  of the
pri\`ate  poil`  fish  port.  1lsh   laiiding  sites.  rcsorts`  and  airports  who  knowingl}'
aHt)\\'s  thi`  agricultural  prodiict  to  bi`  smiigglcd   into  the  c()uiitr.y.  OR  TO  BE
H()ARDED WITHIN TI]EIR FA(:ILITIES.
(d)  'I`hc  pciialty  of imprisonmciit  of not  less  thaii  twelve  (I 2)  years  but  not  inore  than
fourteen   (14)   years   and   a   fine   equal   to   the   f`air   value   of  the   smuggled.   HOARDED,
PROFITF,EREI),  OR  CARTEL,ED  agricultural  product subject to  economic  sabotage  and


the aggi`egate  amount of the taxes,  duties and  other c largos  avoided  PLUS  INTEREST AT
THE,  PREVAIljlNG  IjEGAL  RATII  shall  be  imposed on  the folloVI'ing:
(I)  The   registered  o\``ner  and   its   lessee  or  charterer,   in   case  of  lease.;  of  a
chartered  boat`  nlotorized  coi"Tiercial  vessel  ot`three  (3)  gross tonnage or  less`
who    knowingly    transpoils    the    agric`ultural    product    subject    to    economic
sabotage, regardless of quantity; or
(2)  The  registered  owner  and  its  lessee,  in  case  of lcase`  of less  than  six  (6)
whcclcr   trucks`   vans   and   ollrer   means   of  transportation.   who   knowingly
transports  the  agriciiltural  prodiict  subject to  economic  sabotage.  regardless  of
q,,a,i,it},.
In  all  cases`  the  smuggled  agricultural.  II0ARDED,  PROFITEERED,  OR
CARTELEI)   products  shall   bc  confiscatcd,  and  lhc   property   used   in  agricultiiral
smuggling,  consistent  with  Section 2530 of the Tariff and  Customs Code  and without
prejudice   to   Sectioii   2531    of  the   same   Code,   shall   be   forfeited   in   favor   ot`  the
governmeiit.
When   the   olf`cirder   is   a  juridieai   pcrsoii.   criiTiiiial   liabilit.v   shall   attach   to   its
president,  eliiet` operating  officcr  or  managi`r  who  conseiits  to  or  kiiowingly  tolerates
the commission of the  prohibited Crime.
Any person, natural orjuridical, found guff ty under this Act shall also suffer the
penalty  of  perpetual   absolute  disqualification  to  engage   in   any   busiliess   involving
imf)ortation.
Ill   apply inLe  the  abo\crrrentioi`L`d   pi`iialliest   if  the  otTender  is  all  alien  and  the
prescribed  r)eiialty  is  not  lire  imprisonmeiit.  he/she  shall  be  deporlcd  after  serving  tlie
sentence  without  further proceedings  l`or deportation.
If`    the    offender    is    a    COVF,RNMmH    PUBLIC    OFFICIAL    0R
EMPLOYFRE`  the  penalty  shall  be  the  maximum  as  hcreinabove  prescribed  and  tlre
ot`fendcr  shall  suffer  all  additional  pciralt.y  of pcrpe{ual  ABSOLUTE  disqualification
from  public  office.  to  vote  aml  to  p.irtii`ipale  in  an},'  piiblic  election.
See.  6.  Section   7  of` Republic  Act  No`   10845   is  hci`eb}   amended  to  read  as  follows:
SECTION  7.  Prc.``c'r;.p/z.rj#  q/`C'y/.mc'5'.  -The  crimes  punishable  under this  Act shall  prescrjbc
in twenty (20) years.
S.c.  ].   1mi)lementing   Rules   and   Regulations.   ~  The  F3i+Iean  oT  Customs,  the
i)epar{ment  of Trade  and  Industry.  and  the  Department  of Agriculture.  in  consultation  with
concerned agencies` shall  promulgate the  impli`iirenting rilles and  regulations of this  Act within
thiil}'  ( `.`0)  days  upon  its  i`t`t`cctivit} .
See.  8.  £ap¢rw¢#i.rty'  C/wus`€.  If  any  part  or  provision  ot` tliis   Act  shall   be  declared
uiiconstitutional   or   invalid,   other  provisions   hereof  which   are   not  affected   thereby   shall
continue to be  ill  full  force and effect.


See.  `J.  Rapt.fi/f.;Ig  C,`/a#`tc.  All  laws.  presidential  decrei`s,  cxi`ciitive  orders,  rules  and
rcgiilatioiis.  othi`r  issuanL`es.  and  parts  thcrcor,  wliicli  are  inconsistent  witli  the  provisioiis  of
this  Act`  arc  hcreb.v.  I.ei)ealcd  or mo(lifii`d  accc)rdingly.
St`c.10. EZ/¢c.//.vi.OJ.  This  Act sh{ill  take el`fect  fil`teeii ( 15 ) days  following its pilblicatit>n
ill  three  (3)  Iiewspapers ()rgeiieral  circulali{>n.
App,`Ovcd.