FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
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) 
SENAIE 
S.B. No. ~449 
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INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
The 1987 Philippine Constitution under Section 2 of Article II Declaration of 
Principles and State Policies provides that the Philippines renounces war as an 
instrument of national policy, adopts the .generally accepted principles of international 
law as part of the law of the land and adheres to the policy of peace, equality, justice, 
freedom, cooperation, and amity with all nations . 
• 
Moreover, the Constitution under Section 8 of State Policies of Article II 
Declaration of Principles and State Policies explicitly provides that the country, 
consistent with its national interest, adopts and pursues a policy of freedom from 
nuclear weapons in its territory. 
The Philippines is likewise committed to the maintenance and enhancement of 
national security, promotion of foreign policy interests particularly the fulfillment of 
international commitments and agreements. As a member of the United Nations, the 
Philippines therefore recognizes and binds itself to the principles of international law. As 
such, having been Vice-chairman of the UN 1540 Committee which passed the UN 
Security Council Resolution 1540 last April 28,2004 calling on all UN member-states to 
adhere to the Weapons of Mass Destruction Conventions, the Philippines thereby 
commits itself to prevent the proliferation of nuclear, radiological, biological, chemical, 
and other weapons of mass destruction for the promotion of global peace and security. 
The proliferation of weapons of mass destruction as well as the non-regulation of 
munitions, strategic or dual-use items/goods and 
related technologies largely 
contributes to the carrying out of acts of terrorism. The transfer, diversion, import, 
export, re-export, transit and transship of such items/goods, technology or even 
services dealing with nuclear, radiological, biological and chemical weapons, mostly in 
parts, which when assembled together could serve as a weapon of mass destruction 
that would cause great threat to lives and properties, if not immense devastation. Thus, 
the trade of such items/goods, which are being used both for military and non-military or 
restricted purposes, should be strictly monitored and controlled. 
Significantly, it could be noted that the recently enacted Republic Act No. 9372 
otherwise known as the Human Security Act of 2007 or the Anti-Terrorism Law of the 


Philippines, which I have principally authored and sponsored, does not particularly 
cover the aspect of non-proliferation of weapons of mass destruction and the non-
regulation of munitions, strategic or dual-use item/goods and related technologies 
including their means of delivery. 
As it is at present, there is an absence of an integrated Philippine legislation that 
would prevent the unauthorized trade of strategic or dual-use items/goods and related 
technologies which would certainly contribute to the proliferation of weapons of mass 
destruction throughout the islands. With the apparent lax in security control and the lack 
of strong regulatory mechanism in the area of law enforcement, intelligence and inter-
government agency cooperation, those people who would like to sow terror in the 
country would have their grand time carrying out their evil plans in just a snap. 
While our neighboring countries have already been able to put in place their own 
legislation against the proliferation of these weapons of mass destruction, the 
Philippines has yet to come up with a legislative measure that would address the grim 
scenario wherein our country would become a terrorist haven for the manufacture and 
assembly of such weapons. 
Hence, this bill seeks to prevent the proliferation of weapons of mass destruction 
in the country through the enforcement of a stringent strategic items/goods trade control 
system by regulating and monitoring the transfer of such items/goods. This bill therefore 
intends to establish an effective regulatory and organizational structure that would both 
address the Philippines' obligation to its international commitments as well as pursue its 
economic end in the area of free trade with other countries without compromising the 
internal security of the nation and the safety of the Filipino people. 
The immediate passage of this bill is hereby earnestly so 
2 


FIFTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session 
) 
) 
) 
SENATE 
S.B. No. 2449 
INTRODUCED BY SEN. MANNY VILLAR 
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AN ACT TO PREVENT THE PROLIFERATION OF WEAPONS OF MASS 
DESTRUCTION BY REGULATING THE TRANSFER OF STRATEGIC ITEMS/GOODS 
WHICH ARE BEING USED TO CARRY OUT ACTS OF TERRORISM, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
TITLE I - GENERAL PROVISIONS 
SECTION 1. Short Title. - This Act shall be known as the "Weapons of Mass 
Destruction Non-Proliferation and Strategic Items/Goods Regulation Act". 
SECTION 2. Declaration of Policy. - It is declared a policy of the state to be 
free from nuclear, chemical and biological weapons in its territory, to abide by its 
international commitments in the areas of non-proliferation and strategic trade 
regulation, and to promote international peace and stability, while also promoting 
economic growth through responsible trade and management of strategic items. Toward 
this end, the unregulated flow of goods, technologies, information, equipment and 
services that are capable of being used to acquire, develop, produce, operate, stockpile, 
maintain, detect, identify or deliver weapons of mass destruction and other strategic 
items shall be considered dangerous and inimical to the security of the country and to 
the Filipino people, and the global community. Foreign trade activity involving such 
items, including cross-border transfer, facilitation or investment shall be regulated by the 
Government. 
SECTION 
3. Scope and Coverage. - This Act shall apply to any person, 
whether natural or juridical, engaged in trade of strategic items, technologies, 
equipment and services, and operating within the territorial and economic boundaries of 
the Philippines, including designated free trade zones, and to all Filipino citizens 
whether residing in the country or abroad. 
3 


Without impeding the normal course of trade activities, provisions of this Act shall 
involve the regulation, import, export, re-export, transit, transshipment and retransfer of 
strategic goods and items, technologies, equipment and services which are herein 
defined as regulated items under the National Control List. 
SECTION 4. Definition of Terms. - For purposes of this Act, the following terms 
are hereby defined: 
a) Conveyance refers to any vessel, train, vehicle, aircraft or other modes of 
transportation. 
b) Device refers to any tangible medium wherein information, visual images, sound 
or other data is recorded, stored, or embodied in any form so as to be capable of 
being retrieved or produced with or without the aid of any equipment. 
c) Document refers to any records on paper; in electronic form, kept on any 
magnetic, optical, chemical or other medium; photograph map, plan, graph, 
picture or drawing or device. 
d) Dual-Use Items/Goods refer to items or goods capable of being used for both 
non-military and military purposes or related activity which include software or 
technology relating to the production or use of such items/goods. 
e) Dual-Use Technology refers to technology necessary for the development, 
production or use of any dual-use items/goods. 
f) 
Export refers to the shipment or transmission by any means of any strategic 
items/goods from the territory of the Philippines. 
g) Exporter refers to any natural or juridical person who ships or transmits any 
strategic items/goods out of the territory of the Philippines. 
h) Intermediary activity refers to brokering, forwarding, servicing or financing 
export transactions involving any strategic items/goods. 
i) 
Import refers to commodities, which may either be items/goods or services that 
are bought from a foreign country. 
j) 
License or Permit refers to a written authorization issued by the Government for 
the import, export, transit or. transshipment of any strategic item into, out of, or 
through the territory of the Philippines, which also includes the provision of 
services pertinent to the trade of strategic item/goods, technology and 
equipment. 
k) Military Goods or Munition Items/Goods refers to any item/goods, solely or 
predominantly designed or modified for military purposes which includes the 
entire products as well as specifically-designed parts, accessories, components 
and related software and technology such as firearms, warships, lasers 
designated for military application, biological agents and sophisticated night-
vision equipment. 
I) 
National Control List refers to a list of strategic items subject to special controls 
pursuant to this Act. 
m) Premises refer to any land, place or building, whether open or enclosed, and 
whether built-in or not, and includes any free trade zones. 
n) Re-export or Re-transfer refers to any shipment, transmission or release by any 
means of any item/goods from one foreign country to another which may also 
4 


include a transfer of an exported item to a new end-user within the recipient 
country. 
0) Registration refers to an application for registration to carry out an act such as 
to arrange, negotiate or do any act to facilitate the arrangement or negotiation of 
a contract for the acquisition or disposal of strategic items/goods, technology, 
equipment and services, to include transmission of any technology or document. 
p) Services refer to, without limiting the generality of the expression, any reference 
to doing anything, other than supplying or exporting of goods that confers a 
benefit on, grants a right or privilege to, provides a facility for, or otherwise 
assists someone, including work of a professional nature with or without the 
supply or export of goods, or a contract for and in relation to the lending of 
money or other provision of financial assistance. 
q) Software refers to a collection of one or more programs or microprograms 
recorded, stored or embodied in a device. 
r) StrategiC Items/Goods refer to any weapon of mass destruction, military or 
dual-use items/goods, service or technology. 
s) Strategic Items/Goods Trade Control refers to a system of laws and 
regulations designed to regulate the trade and transfer of weapons of mass 
destruction and related materials, components and technologies as well as 
conventional weapons. 
t) Technology refers to information, including information in such documents or 
software as specification, blueprints, plans, manuals, models, diagrams, 
formulae, tables and design, that is necessary for the development, production or 
use of any items/goods. 
u) "Through bill of lading" or "Through air waybill" refers to a bill of lading, air 
waybill and manifest, respectively, for the consignment of items/goods from a 
place outside the Philippines to a destination which is also outside the Philippines 
without a consignee in the Philippines. 
v) Transit refers to the import into, and subsequent export from, the territory of the 
Philippines of a strategiC item that does not enter the commerce of the 
Philippines but is consigned on a "through bill lading" or a "through air waybill" 
from a location outside the territory of the Philippines to another location outside 
the territory of the Philippines, such that the item remains at all times in or on the 
vessel on which it is imported in the Philippines. 
w) Transshipment refers to the import into, and subsequent export from, the 
territory of the Philippines, of a strategic item that does not enter the commerce 
of the Philippines but is consigned on a "through bill lading", a "through air 
waybill", or "through manifest" from a location outside the territory of the 
Philippines to another location outside the territory of the Philippines, and such 
that the item is removed or is to be removed from the vessel in which it was 
imported and either returned to the same vessel, or transferred to another vessel 
before being exported, whether it is to be transferred directly between such 
vessels or whether it is to be landed in the Philippines after its importation, and 
stored, or otherwise handled, pending export. 
5 


x) Vessel refers to any ship, aircraft, automobile, truck train or other means of 
transporting items/goods imported into or exported from the territory of the 
Philippines. 
y) Weapons of Mass Destruction refer to weapons that are capable of a high 
order of destruction and/or being used in such a manner as to create large 
numbers of casualties during a single event or incident. 
z) Weapons of Mass Destruction Program refers to a plan or program for the 
development, production, acquisition, or stockpiling of nuclear, biological or 
chemical weapon or missiles capable of delivering such weapons. 
TITLE II - IMPLEMENTING AUTHORITIES 
SECTION 5. Creation of Strategic Item/Goods Trade Control Council. - There is 
hereby created a Strategic Items/Goods Trade Control Council, hereinafter referred to 
as the "Council" to serve as the governing and policymaking body for the formulation, 
development, implementation, coordination, monitoring and evaluation of policies, 
programs, plans and activities relative to the establishment and institutionalization of the 
strategic items/goods trade control system. It shall be composed of the heads or 
permanently designated representatives of the follOWing offices: 
a) Office of the Special Envoy on Transnational Crime (OSETC), Office of the 
President (OP); 
b) Department of Trade and Industry (DTI); 
c) Department of Finance (DOF); 
d) Department of National Defense (ON D); 
e) Department of the Interior ana Local Government (DILG) 
f) Department of Transportation and Communication (DOTC) 
g) Department of Environment and Natural Resources (DENR); 
h) Department of Health (DOH); 
i) 
Department of Science and Technology (DOST); 
The OSETC, as an oversight body on transnational crime, shall chair the Council. It 
shall coordinate the overall programs and provide the daily operational, administrative 
and staff support to the Council. 
The Vice-chairman shall be elected by the members of the Council from 
among themselves. 
SECTION 
6. Powers and Functions of the StrategiC Items/Goods Trade 
Control Council. - The Council shall have the following powers and functions: 
a) Formulate strategies and policies for the effective implementation of this Act; 
b) Coordinate, implement, monitor and evaluate policies and measures, programs, 
plans and activities that will establish the country's strategic items/goods trade 
control system; 
c) Create specific working groups by enlisting the assistance and support of 
government agencies, bureaus, boards, instrumentalities of government owned 
and/or controlled corporations; the academe; as well as private institutions, 
6 


corporations, firms, associations or persons to carry out its functions, including 
the use of its personnel, facilities and resources for research, developmental and 
promotional activities necessary in support of the provisions of this Act; 
d) Formulate policies and recommendations, regulate programs and advise 
government agencies and private organizations engaged or involved in activities 
allied to or affecting the country's importation, exportation and re-exporting, 
transiting and transshipping such as forwarding, brokering, shipping, insurance, 
warehousing, financing; and recommend measures that will enhance effective 
monitoring of strategic items/goods; 
e) Develop common end-users' certification standards in strategic items/goods 
control for purpose of transparency and accountability; 
f) 
Develop, maintain, update and publish the National Control List; 
g) Strengthen capability-building through technical assistance and training on 
various measures to detect, monitor, investigate and/or seize inadvertent or illicit 
import, export, re-export, transit, transshipment of strategic items/goods; 
h) Identify stakeholders both from the public and private sector, particularly 
business and other civil entities, and define their roles and responsibilities in the 
strategic item/goods trade control system; 
i) 
Strengthen and enhance bilateral/multilateral cooperation and recommend 
amendments, as appropriate, to existing agreements where the State signatories 
are the point of origin, destinations or transit of strategic items/goods; 
j) 
Come up with policy recommendations to maintain the confidentiality of the 
disclosure of information, unless and until it meets the national security or foreign 
policy interests of the country; and 
k) Perform such other tasks and functions necessary to effectively carry out the 
provisions of the Act. 
TITLE 111- RESPONSIBILITIES AND RESTRICTIONS OF PARTIES 
IN STRATEGIC ITEMS/GOODS TRADE TRANSACTIONS 
SECTION 7. Responsibilities of Traders. - Any person who intends to export, 
import, transit, transship or re-export any strategic item/goods herein defined shall 
be required to obtain a license from the duly designated government authority 
provided in this Act. No person shall be allowed to place any strategic item/goods 
in or on any vessel located within the territorial and economic jurisdiction of the 
Philippines without the consent of the owner or operator. 
SECTION 
8. Responsibilities of Owners and Operators of Vessels. -
Owners and operators of a vessel shall be prohibited from releasing any strategic 
items/goods within the territory of the Philippines unless the person to whom an import 
license has been issued presents p license to such owner or operator. The owner or 
operator of a vessel shall submit to the Bureau of Customs and other duly deSignated 
offices, a duly certified copy of the license and a copy of the extract of the manifest of 
the vessel in or on which the strategic items/goods arrived. 
7 


All strategic items/goods which are imported, exported, transited, transshipped, 
or re-exported shall be recorded in a manifest that shall contain such particulars which 
the Implementing Rules and Regulations of this Act may prescribed. 
The owner or operator of a vessel, on entering or leaving the territory of the 
Philippines shall, upon request: 
a) Furnish the Bureau of Customs a manifest identifying any strategic items/goods 
being imported or exported in the vessel; 
b) Allow any member of the Bureau of Customs to board a vessel, inspect the cargo 
for strategic items/goods and/or search the vessel for strategic items/goods; and 
c) Furnish a written list of every port or place at which such vessel has docked 
during the period of three (3) months immediately preceding the date of its arrival 
in Philippine territory. 
SECTION 
9. Responsibilities of Persons Engaged in Any Intermediary 
Activity. - No person, subject to this Act, may engage in any intermediary activity 
without a license, including intermediary activities that involve strategic items/goods as 
herein defined, even if the same is not transited or transshipped through, or exported or 
re-exported from the territory of the Philippines. 
SECTION 10. Responsibilities of Parties. - It shall be the responsibility of any 
person, subject to this Act, to verify whether an item falls under the National Control List 
and subject to regulations. Where any unit or individual knows or should know that the 
goods and items, technologies, equipment and services to be exported will be used by 
the receiving party for the purpose of putting together a weapon of mass destruction or 
a weapon of mass destruction program, it shall not export such goods and items, 
technologies, equipment and services whether included in the National Control List or 
not, unless appropriate licenses are obtained. 
SECTION 11. Registration and Issuance of Permits and Licenses. - Anyone 
who intends to engage in the trade of strategic item/goods, technologies, equipment 
and services shall register directly with the DTI and file for a license application to be 
accomplished in such a prescribed manner and form and accompanied by such fees as 
may be prescribed under the IRR of this Act. 
The DTI may likewise grant permit or license to an applicant subject to conditions 
it may deem fit and may renew a license with or without conditions: Provided, That any 
person whose application for a license has been denied by the DTI may file an appeal 
to the Council as constituted under this Act, whose decision shall be final and 
executory. 
The Council and the DTI may, upon recommendation of involved regulatory 
branches of the government, temporarily decide to exercise export control on specific 
dual-use item/goods and related equipment and technologies other than those listed in 
the National Control List if deemed necessary. 
8 


SECTION 12. Breach of Conditions of Registration, License or Permit. -
Any person who holds a permit or is registered to engage in trade of strategic 
items/goods and who contravenes, without lawful excuse, a condition of the permit or 
license or registration prescribed under the IRR of this Act shall be held liable and shall 
suffer the penalty of two (2) years imprisonment but not to exceed four (4) years 
imprisonment. 
Anyone who undertakes trade of strategic items/goods, technologies, equipment 
and services without being licensed, or trade beyond the scope of the license granted 
without authorization shall be investigated for criminal liability in accordance with the 
relevant provisions of existing laws on the crime of smuggling, illegal business 
operations, or such other crimes. If such crimes are not serious enough for criminal 
punishment by distinguishing different circumstances, such person shall be punished in 
accordance with applicable provisions of the Customs Law, or be given a warning, or 
have the items/goods confiscated, and/or be fined according to the relevant provisions 
of the Philippine Trade Laws. The DTI may concurrently revoke the license for such 
person's foreign trade operations. 
Where the receiving party contravenes the guarantees made according to the 
conditions, permit or license granted, or there is a risk of proliferation of dual-use 
restricted items/goods, technologies, equipment and services, the Council thru the DTI, 
shall suspend or revoke the license or permit initially granted and immediately notify the 
Bureau of Customs of such suspension or revocation of license or permit. 
SECTION 13. Other Restrictions. - A license holder who intends to change the 
original declaration of end-use of the strategic items/goods, technologies, equipment 
and services as previously declared shall surrender the original license and must file for 
a new license subject to the provisions of this Act. 
Any person who forge, buy or sell license for the conduct of trade transactions on 
strategic item/goods, technologies, equipment and services shall be held criminally 
liable in accordance with existing laws on the crime of illegal business operations, the 
crime of forging, altering, buying or selling of official documents, certificates or seal of 
State functionaries. If such act is not serious enough for criminal punishment, such 
person shall be punished in accordance with the relevant proviSions of the Customs 
Law, and the DTI may concurrently revoke the license for foreign trade operations . 
• 
When the license for the trade of strategic goods and items, technologies, 
equipment and services is obtained through fraud or other illegal means, the DTI shall 
impose the following penalties: 1) revocation of license; 2) confiscation of subject illegal 
items/goods; 3) imposition of fines; and 4) suspension or revocation of the license for 
their foreign trade operations. 
SECTION 14. Liability of State Functionaries. - State functionaries in charge 
of controlling and regulating the trade of strategiC items/goods, technologies, equipment 
and services who abuse their powers, neglect their duties or extort or accept money or 
9 


bribe by taking advantage of their positions, shall be investigated for criminal and/or 
administrative liability in accordance with existing criminal and/or administrative laws. 
SECTION 
15. Documents and Records-Keeping Requirements. - As 
provided in Section 1 I of this Act, the following documentary requirements shall be 
complied with when applying for a license or permit: 
a) Identification of the applicant's legal representatives, manager, and the person/s 
handling the deal; 
b) Duplicates of contract agreement and other certification documents, 
c) Technical specification of the strategic goods, items, technologies, equipment 
and services; 
d) Certificate of end-user and declaration of end-use/s; 
e) Documents of guarantee. from the receiving party that such strategic 
items/goods, technologies, equipment and services which are subject of such 
transaction will: 
1) Not be used for the development, production, acquisition or stockpiling of 
nuclear, biological, chemical weapons or missiles capable of delivering such 
weapons; 
2) Not be used for purposes other than the declared end-use without the 
consent of authorized Philippine agencies; and 
3) Not be transferred to any third party other than the declared end user without 
the consent of authorized Philippine agencies. 
The Bureau of Customs shall be provided with copies of all documentations 
mentioned. 
SECTION. 
16. Obligations of Applicants. - Any person subject to the 
requirements of this Act shall keep a record of the transit, transshipment or re-export of 
strategic items/goods, technologies, equipment and services and all other information 
that may be required by the regulations for a period of five (5) years. 
Any person who, in connection with an application for permit or license or 
registration, or being required to give any information or document to an authorized 
officer, gives any information that is false or misleading in a material particular; or givers 
any documents which gives a statement or omits any matter which renders the 
document false or misleading in a particular material shall suffer the penalty of reclusion 
correcional in its medium and maximum period or imprisonment of not less than four (4) 
years and not more than six (6) years and a fine not to exceed one hundred thousand 
pesos (Php 100,000.00). 
SECTION 
17. Confidentiality of Business Proprietary Information. -
No 
information obtained as part of the license application may be disclosed to any 
nongovernment agency unless such disclosure is in the national security or foreign 
policy interest of the Philippines or the same may facilitate progress of pending 
investigations. 
10 


SECTION 18. Penalties for the Obstruction in the Enforcement of this Act-
It shall be unlawful for any person who, without lawful excuse, commits the following 
acts: 
a) Refuse any authorized officer/person. acting in his assistance, access to any 
conveyance or premises which the authorized officer/person is entitled under this 
Act; 
b) Obstructs or hinders any authorized officer/person in the execution of any powers 
conferred upon such authorized officer/person; and 
c) Refuses to provide reasonable assistance to any authorized officer/person in the 
execution of any powers conferred upon such authorized officer/person in this 
Act. 
Any person who commits any of the acts herein mentioned shall suffer the 
penalty of imprisonment of six (6) months to one (1) year imprisonment, a fine not to 
exceed fifty thousand pesos (Php 50,000.00), or both. 
SECTION 19. Prosecution for the Violation of any Provision of this Act.-
The following provides for the prosecution of cases for the violation of any proVision of 
this Act: 
a) The Regional Trial Court (RTC) shall have jurisdiction to try and hear cases 
involving violations of this Act and its implementing regulations: 
b) The Department of Justice (DOJ) shall designate special prosecutors to 
exclusively handle cases in violation of this Act; 
c) The preliminary investigation of cases filed under this Act shall be terminated 
within a period of thirty (30) days from the date of filing; 
d) When the preliminary investigation is conducted by a public prosecutor and a 
probable cause is established, the corresponding information shall be filed in 
court within twenty-four (24) hours from the termination of the investigation. If the 
preliminary investigation is conducted by a judge and a probable cause is found 
to exist, the corresponding Lnformation shall be filed by the proper prosecutor 
within forty-eight (48) hours from the date of receipt of the record; and 
e) Trial of the case under this Act shall be finished by the court not later than ninety 
(90) days from the date of filing of the information. Decision on said cases shall 
be rendered within a period of fifteen (15) days from the date of submission of 
the resolution. 
TITLE IV - FINAL PROVISIONS 
SECTION 
20. Implementing Rules and Regulations. - The constituted 
Strategic Items/Goods Trade Control Council shall, in consultation with all concerned 
agencies, promulgate within sixty (60) days the Implementing Rules and Regulations 
necessary to implement the provisions of this Act. 
SECTION 
21. Appropriations. - The amount necessary to implement the 
provisions of this Act shall come from the General Appropriations Act. 
11 


• 
SECTION 22. Suppletory Application. - For purposes of this Act, the Revised 
Penal Code and other applicable laws shall have suppletory application. 
SECTION 23. Separability Clause. - If any portion or provision of this Act is 
held unconstitutional, the same shall not affect the validity and effectivity of the other 
provisions affected thereby. 
SECTION 24. Repealing Clause. - All laws, decrees, executive orders, rules 
and regulations and other issuances or parts thereof which are inconsistent with this Act 
are hereby repealed, amended or modified accordingly. 
SECTION 25. Effectivity Clause. -This Act shall take effect fifteen (15) days 
after its complete publication in at least two (2) newspapers of general circulation. 
Approved, 
12