THIRTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
S E N A T E  
S. No 
Introduced by Senator S. R. OsmeAa 111 
EXPLANATORY NOTE 
Smuggling and other acts contrary to customs law committed on a large 
scale or by criminal syndicates pose a serious and direct threat to the national 
economy by depriving the government of much-needed revenues and unfairly 
competing with legitimate businesses and to the national security through the 
introduction into the country of dangerous drugs or prohibited articles. 
Section 1, Article XI1 of the 1987 Constitution upholds the right of the State 
"to protect Filipino enterprises against unfair foreign competition and trade 
practices." 
Despite this constitutional mandate, the government has been unable to 
curb technical and outright smuggling leading to an estimated loss in government 
tax revenues of at least 84 billion pesos last year thereby largely contributing to 
the widening public sector budget deficit confronting our country today. 
To address this major economic concern, this "Anti-Smuggling Act of 
2005" bill, which is the counterpart of the bill filed by Congressman Lorenzo 
TaAada, focuses on the following: 
First, it incorporates in the law, key systemic solutions which will make it 
easier to detect smuggling. Key systemic solutions to detect smuggling provide 
for greater transparency with regard to import transactions. Among these are: 
1) the submission of advanced copies of the inward foreign manifests and 
their publication; 
2) publication of the manifests after entry; 
3) the use of Revision Orders as a third screen in detecting undervaluation; 
4) the accreditation of bonded warehouses by the industry association which 
5) the provision of stricter rules on the use of bonded warehouses; 
6) the availability of books of accounts of bonded warehouses to the industry 
7) the participation of the private sector in deliberations on valuation issues; 
the warehouse seeks to serve; 
association concerned; 
and 


8) the authorization of the industry concerned to finance the Bureau of 
Customs' purchase of undervalued articles. 
Second, violation of the law is slapped with stiffer penalties. Fines for 
outright smuggling are increased from the current maximum of ten thousand 
pesos (Pl0,OOO.OO) to a maximum of two million pesos (P2.0 M )  while the 
current maximum prison term of twelve years is increased to reclusion perpetua. 
The fines are based on the appraised value, including duties and taxes, of the 
article imported. 
For technical smuggling, fines are increased from the current maximum of 
ten thousand pesos to two million pesos and the current maximum term from 
twelve years to reclusion perpetua. Fines are based on the difference between 
the declared value and actual value of the imported article. 
Finally, an Anti-Smuggling Commission is created, armed with powers of 
subpoena duces tecum, with the inclusion of concerned government agencies 
and representatives of the private sector, to investigate and prosecute 
violations of this Act. 
The strict implementation of this Act will concomitantly raise revenues for 
government, increase the viability of domestic industries and ensuie the 
continued employment of millions of workers in both industrial and agricultural 
sectors. 
As such, immediate passage of this bill is earnestly requested. 
/ 
SERGIO OSMENA HI 


THIRTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
1 
) 
OF THE PHILIPPINES 
SENATE 
Introduced by Senator S .  R. OsmeAa 111 
AN ACT 
AMENDING 
CERTAIN 
PROVISIONS 
OF 
PRESIDENTIAL 
DECREE NO. 1464, OTHERWISE KNOWN AS THE TARIFF AND 
CUSTOMS CODE OF THE PHILIPPINES, AS AMENDED, AND 
FOR OTHER PURPOSES 
Be it enacted by the House of Represenfafives and the Senate of the Republic of 
the Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known and cited as the "Anti- 
Smuggling Act of 2005." 
SEC. 2. Section 1005 of Presidential Decree No. 1464, otherwise known 
as the Tariff and Customs Code of the Philippines, as amended, is hereby further 
amended to read as follows: 
"SEC. 1005. Manifest Required of Vessel from Foreign 
Port. - x x x x x x x." 
"All of the cargo intended x x x x x x x x." 
"A TRUE AND COMPLETE COPY OF THE CARGO 
MANIFEST AND BILL OF LADING SHALL BE SENT IN ADVANCE 
TO THE BUREAU OF CUSTOMS AND THE PHILIPPINE PORTS 
AUTHORITY AT LEAST FORTY EIGHT (48) HOURS AFTER 
RECEIPT THEREOF BY THE MASTER OF THE VESSEL." 
"A cargo manifest shall in no case be changed or altered 
after entry of the vessel, except by means of an amendment by the 
master, consignee or agent thereof, under oath, and attached to the 
original manifest: Provided, however, That afler the invoice and/or 
entry covering an importation have been received and recorded [in 
the 
office 
of 
the 
appraiser] 
EITHER 
MANUALLY 
OR 
ELECTRONICALLY IN THE BUREAU OF CUSTOMS OR HAD 
BEEN LOGGED IN ITS COMPUTER SYSTEM, no amendment of 
the manifest shall be allowed, except when it is obvious that a 
clerical error or any discrepancy has been committed in the 
preparation of the manifest, without any fraudulent intent, discovery 
of which would not have been made until after examination has 
1 


been completed. PRIOR TO RELEASE OF THE CARGO, THE 
VERACITY OF THE AMENDMENT SHALL BE EXAMINED BY 
THE COMMISSIONER OF CUSTOMS FOR THE PURPOSE OF 
INVOKING PENAL PROVISION UNDER SECTIONS 2503 AND 
3602 OF THIS CODE." 
SEC. 3. Section 1007 of the same decree, as amended, is hereby further 
"SEC. 1007. Manifest for Commission on Audit and 
Collector. - Papers to be Deposited with Consul. - Immediately 
after the arrival of a vessel from a foreign port, the master shall 
deliver or mail to the Chairman, Commission on Audit, Manila, a 
copy of the cargo manifest properly indorsed by the boarding 
officer, and WITHIN TWENTY-FOUR (24) HOURS AFTER 
ARRIVAL, he shall present to the Collector the original copy of the 
cargo manifest and, for inspection, the ship's register or other 
document in lieu thereof, together with the clearance and other 
papers granted to the vessel at the port of departure for the 
Philippines." 
amended as follows: 
"WITHIN THREE (3) DAYS FROM RECEIPT OF THE 
CARGO MANIFEST FROM THE MASTER, THE COLLECTOR 
SHALL POST COPIES THEREOF AT A CUSTOMS BULLETIN 
BOARD FOR TWO (2) CONSECUTIVE WEEKS." 
SEC. 4. Section 1901 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 
1901 
Establishment 
and 
Supervision 
of 
Warehouses. - When the business of the port requires such 
facilities, 
the 
Collector, 
subject 
to 
the 
approval 
of 
the 
Commissioner, shall designate and establish MAXIMUM OF ONE 
HUNDRED 
(100) WAREHOUSES 
ACCREDITED 
BY THE 
INDUSTRY ASSOCIATION OR INDUSTRY SECTOR AFFECTED 
AND SOUGHT TO BE SERVICED BY THE BONDED warehouse[s] 
for use as public and private bonded warehouses, sheds or yards, 
of for other special purposes. ALL SUCH WAREHOUSES SHALL 
BE ACCREDITED BY THE INDUSTRY ASSOCIATION OR 
INDUSTRY 
SECTOR 
AFFECTED 
OR 
SOUGHT 
TO 
BE 
SERVICED . " 
"All such warehouses and premises shall be subject to the 
supervision of the Collector, who shall impose such conditions as 
may be deemed necessary for the protection of the revenue and of 
the articles stored therein. THE CUSTOMS COLLECTOR SHALL 
CONDUCT SPOT CHECKS AND PERIODIC AUDITS TO 
ENSURE 
THAT 
APPLICABLE 
CUSTOMS 
LAWS 
AND 
REGULATIONS ARE FOLLOWED BY BONDED FACILITIES." 
SEC. 5. A new Section to be known as Section 1910 is hereby inserted in 
Part 1, Title V, Book II of the Tariff and Customs Code of the Philippines, as 
amended, which shall read as follows: 
"SEC. 
1910. 
ACTS 
DEEMED 
AS 
SMUGGLING 
PUNlSHABLE UNDER SECTlONS 3601 AND 3602 OF THIS 
CODE. - THE FOLLOWING SHALL BE DEEMED AS ACTS OF 


SMUGGLING 
WHICH 
SHALL 
BE 
PUNISHABLE 
UNDER 
SECTIONS 3601 AND 3602 OF THIS CODE: 
"(A) 
BREAKING 
OF 
CUSTOMS 
SEALS 
OR 
UNAUTHORIZED REMOVAL OF ARTICLES FROM BONDED 
WAREHOUSES;" 
"(B) 
SUBMISSION 
OF 
INCORRECT 
OR 
FALSE 
INFORMATION BY THE BONDED WAREHOUSE;" 
"(C) WAREHOUSING OF THE FOLLOWING SHIPMENTS: 
1. FIBERS, YARNS, FABRICS AND ACCESSORIES 
FOR THE MANUFACTURE OF GARMENTS; 
2. FINISHED ARTICLES, WITHOUT EXCEPTION; 
3. ARTICLES NOT DECLARED IN THE IMPORT 
ENTRIES OR IN EXCESS OF THE VOLUME AND 
QUANTITY ALLOWED UNDER THE LICENSE OF 
THE CUSTOMS BONDED WAREHOUSE; AND 
4. PROHIBITED ARTICLES, AND REGULATED 
ARTICLES 
WITHOUT 
THE 
CORRESPONDING 
CLEARANCE AND/OR IMPORT AUTH 0 RlTY DULY 
ISSUED BY A COMPETENT AUTHORITY." 
"(D) 
UNAUTHORIZED 
TRANSFERS 
FROM 
THE 
CUSTOMS ZONE OF WAREHOUSING ARTICLES IMPORTED 
BY THE BONDED WAREHOUSE;" 
"(E) UNAUTHORIZED WITHDRAWAL FROM A BONDED 
WAREHOUSE WITHOUT PAYMENT OF DUTIES AND TAXES." 
"(F) FAILURE TO LIQUIDATE IMPORTED ARTICLES 
UNDER BOND WITHIN THIRTY (30) DAYS FROM WITHDRAWAL 
FROM THE BONDED WAREHOUSE." 
"(G) FAILURE TO PAY DUTIES AND TAXES ON THE 
'REMAINING (NOT EXPORTED) IMPORTED MATERIALS WITHIN 
EXPORTATION." 
THIRTY (30) DAYS FROM LAPSE OF THE PERIOD FOR RE- 
"IMPORTATIONS MADE IN VIOLATION OF THE ABOVE 
PROVISIONS IN THIS SECTION SHALL lPS0 FACTO BE 
FORFEITED IN FAVOR OF THE GOVERNMENT TO BE 
DISPOSED OF PURSUANT TO THE PROVISIONS OF THIS 
CODE. " 
SEC. 6. A new Section to be known as Section 191 1 is hereby inserted in 
Part 1, Title V, Book II of the Tariff and Customs Code of the Philippines, as 
amended, which shall read as follows: 
"SEC. 1911. VERIFICATlON OF RECORDS KEPT IN 
SHALL BE KEPT BY THE COLLECTOR OF ALL ARTICLES 
DELIVERED TO ANY BONDED WAREHOUSE, AND A SWORN 
CUSTOMS BONDED WAREHOUSES. - A CAREFUL ACCOUNT 
3 


MONTHLY RETURN, DULY VERIFIED BY THE CUSTOMS 
OFFICIAL IN CHARGE, SHALL BE MADE BY THE BONDED 
WAREHOUSE CONTAINING A DETAILED STATEMENT OF ALL 
IMPORTED ARTICLES STORED THEREIN." 
"ALL 
DOCUMENTS, 
BOOKS 
AND 
RECORDS 
OF 
ACCOUNTS CONCERNING THE OPERATION OF ANY BONDED 
WAREHOUSE SHALL, UPON DEMAND, BE MADE AVAILABLE 
TO THE COLLECTOR OR HIS REPRESENTATIVE OR THE 
INDUSTRY ASSOCIATION OR INDUSTRY SECTOR AFFECTED 
AND 
SOUGHT 
TO 
BE 
SERVICED 
BY 
THE 
BONDED 
WAREHOUSE, FOR PURPOSES OF EXAMINATION AND/OR 
AUDIT." 
SEC. 7. Section 2003 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 2003. Procedure for Withdrawal. - Articles received 
into 
such 
bonded 
manufacturing 
warehouse 
or 
articles 
manufactured therein may be withdrawn or removed therefrom for 
direct shipment and for immediate exportation in bond TO 
FOREIGN COUNTRIES under the supervision of the proper 
customs officer, who shall certify to such shipment and exportation, 
or lading for immediate exportation as the case may be, describing 
the articles by their mark or otherwise, the quantity, the date of 
exportation and the name of the vessel or aircraft: Provided, furfher, 
That all waste materials may be [disposed] DESTROYED under 
government supervision. All labor performed and services rendered 
under these provisions shall be under the supervision of a proper 
customs official and at the expense of the manufacturer." 
"VIOLATION OF THE FOREGOING PROVISION SHALL BE 
DEEMED AS SMUGGLING PUNISHABLE UNDER SECTIONS 
3601 AND 3602 OF THIS CODE." 
"THE ARTICLES SUBJECT OF THE VIOLATION SHALL 
lPS0 
FACTO 
BE 
FORFEITED 
IN 
FAVOR 
OF 
THE 
GOVERNMENT TO BE DISPOSED OF PURSUANT TO THE 
PROVISIONS OF THIS CODE." 
SEC. 8. Section 2308 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 2308. Protest and Payment upon Protest in Civil 
Matters. - When a ruling or decision of the Collector is made 
whereby liability for duties, fees, or other charges are determined, 
except the fixing of fines in seizure cases, the party adversely 
affected OR THE INDUSTRY ASSOCIATION OR INDUSTRY 
SECTOR AFFECTED BY THE ADVERSE RULING may protest 
such ruling or decision by presenting to the Collector at the time 
when payment of the amount claimed to be due the government is 
made, or within [fifteen (15)] THIRTY (30) days thereafter, a written 
protest setting forth his objections 
to the ruling or decision in 
question, together with the reasons therefore. No protest shall be 
considered unless payment of the amount due after final liquidation 
has first been made [and the corresponding docket fee, as provided 
for in Section 33011." 
4 


SEC. 9. A new Section to be known as Section 2308-A is hereby inserted in 
Part I, Title VI, Book II of the Tariff and Customs Code of the Philippines, as 
amended, which shall read as follows: 
"SEC. 2308-A. GENUINE VALUATION ISSUES SHALL BE 
COURSED THROUGH A VALUATION AND CLASSIFICATION 
REVIEW 
COMMITTEE 
(VCRC) 
DIRECTLY 
UNDER 
THE 
CHAIRMANSHIP OF THE RESPECTIVE DISTRICT COLLECTOR 
OF CUSTOMS. 
FROM AMONG THE MEMBERS OF THE VCRC, TWO (2) 
MEMBERS SHALL COME FROM THE PUBLIC SECTOR, EACH 
CHOSEN FROM AMONG THE RECOMMENDEES OF THE 
DEPARTMENT 
OF 
TRADE 
AND 
INDUSTRY AND 
THE 
DEPARTMENT OF AGRICULTURE." 
SEC. I O .  Section 2311 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 2311. Samples to be Furnished by Protesting 
Parties. - If the nature of the articles permit, importers OR THE 
INDUSTRY ASSOCIATION OR 
INDUSTRY SECTOR filing 
protests involving questions of fact must, upon demand, supply the 
Collector with samples of the articles which are the subject matter 
of the protests. Such samples shall be verified by the custom 
official who made the classification against which the protest are 
filed. 
SEC. 11. Section 2317 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 
231 7. 
Government's 
Right 
of 
Compulsory 
Acquisition. - In order to protect the government revenues against 
the undervaluation of goods x x x x x x x x." 
"ANY INDUSTRY ASSOCIATION OR INDUSTRY SECTOR 
MAY LIKEWISE POST A LETTER OF CREDIT, SURETY BOND 
OR SOME OTHER APPROPRIATE INSTRUMENT IN FAVOR OF 
THE BUREAU IN THE AMOUNT EQUAL TO THE DECLARED 
CUSTOMS VALUE OF THE GOODS UNDER QUESTION, PLUS 
ANY DUTIES, TAXES, FEES OTHER CHARGES WHICH HAVE 
ALREADY BEEN PAID THEREON, IN WHICH CASE THE 
COMMISSIONER OF 
CUSTOMS SHALL ACQUIRE SUCH 
IMPORTED GOODS, PAYMENT FOR WHICH SHALL BE MADE 
WITHIN TEN ( I O )  WORKING DAYS FROM THE ISSUANCE OF A 
WARRANT SIGNED BY THE COMMISSIONER OF CUSTOMS 
FOR THE ACQUISITION OF SUCH GOODS: PROVIDED, THAT 
THE PROVISIONS OF SECTION 201 OF THIS CODE SHALL 
APPLY IN THE CASE OF SURETY BONDS AND SURETY 
COMPANIES." 
"An importer who is dissatisfied x x x x x x x x." 
"Where no appeal is made by the importer, or upon 
reaffirmation of the Commissioner's decision during the appeals 
process, the Bureau of Customs or its agent shall sell the acquired 
goods pursuant to existing laws and regulations. IN CASES 
5 


WHERE COMPULSORY ACQUISITION WAS INITIATED BY THE 
INDUSTRY ASSOCIATION OR 
INDUSTRY SECTOR, THE 
COMMISSIONER SHALL CLAIM ON THE LETTER OF CREDIT, 
SURETY BOND OR WHATEVER INSTRUMENT POSTED OR 
USED FOR THE PURPOSE AND THEREUPON RELEASE THE 
ACQUIRED ARTICLES TO THE INDUSTRY ASSOCIATION OR 
INDUSTRY SECTOR WHICH POSTED THE INSTRUMENT." 
"Nothing in this Section limits x x x x x x x x." 
SEC. 12. Section 2503 of the same decree, as amended, is hereby further 
"S 
EC. 2503. 
Undervaluation, 
Misclassification 
and 
Misdeclaration in ,Entry. - When the dutiable value of the 
imported articles shall be so declared and entered that the duties, 
based on the declaration of the importer on the face of the entry 
would be less by ten percent (10%) than should be legally 
collected, or when the imported articles shall be so described and 
entered that the duties based on the importer's description on the 
face of the entry would be less by ten percent (10%) than should be 
legally collected based on the tariff classification, or when the 
dutiable weight, measurement or quantity of imported articles is 
found upon examination to exceed by ten percent (10%) or more 
than the entered weight, measurement or quantity, a surcharge 
shall be collected from the importer in an amount of not less than 
the difference between the full duty and the estimated duty based 
upon the declaration of the importer, nor more than twice of such 
difference: Provided, That an undervaluation, misclassification, 
misdeclaration in weight, measurement or quantity of more than 
thirty percent (30%) between the value, weight, measurement or 
quantity declared in the entry, and the actual value, weight, 
quantity, or measurement shall constitute a prima facie evidence of 
fraud penalized under Section 2530 AND SECTION 3602 of this 
Code: Provided, furtber, That any UNDERVALUED, misdeclared, 
MlSCLASSlFlED or undeclared imported articles/items found upon 
examination shall ipso facto be forfeited in favor of the Government 
to be disposed of pursuant to the provisions of this Code. 
FURTHER, THE LICENSE, PERMIT AND THE BUSINESS NAME 
OF 
THE 
SUBJECT 
IMPORTER 
SHALL 
BE 
DEEMED 
AUTO MA TI CALLY REVOKED . " 
amended to read as follows: 
"When the undervaluation, misdescription, misclassification 
or misdeclaration in the import entry is intentional, the importer shall 
be subject to penal provisions under Section 3602 of this Code." 
SEC. 13. A new Section to known as Section 2503-A is hereby inserted in 
Part 4, Title VI, Book I1 of the Tariff and Customs Code of the Philippines, as 
amended which shall read as follows: 
"SEC. 2503-A. NON-IMPOSITION OF SURCHARGE. - 
EXEMPTION FROM THE SURCHARGE SHALL BE ALLOWED 
ONLY IN CASES WHEN THE DECLARED OR ENTERED 
CLASSIFICATION IS BASED ON RULINGS BY THE TARIFF 
COMMISSION PURSUANT TO SUBSECTION (A) OF SECTION 
1313 OF THIS CODE: PROVIDED, THAT THE DESCRIPTION OF 
THE ARTICLE IS FOUND CORRECT UPON EXAMINATION: 
6 


AND, PROVDED FURTHER, THAT BASED ON THE RESULT OF 
THE EXAMINATION, THE ARTICLE IS FOUND ESSENTIALLY 
THE SAME AS THAT DESCRIBED IN THE RULING." 
SEC. 14. Section 3601 of the same decree, as amended, is hereby further 
"SEC. 3601. Unlawful Importation. - Any person who shall 
fraudulently import or bring into the Philippines, or assist in so 
doing, any article, contrary to law, or shall receive, conceal, buy, 
sell, or in any manner facilitate the transportation, concealment, or 
sale of such article after importation, knowing the same to have 
been imported contrary to law, shall be guilty of smuggling and 
shall be punished with: 
1. A fine of not less than [fifty] THREE HUNDRED THOUSAND 
pesos nor more than FIVE [two] hundred THOUSAND pesos 
and/OR imprisonment of [not less than five days nor more than 
twenty days] PRlSlON CORRECCIONAL, if the appraised value, to 
be determined in the manner prescribed under this Code, including 
duties and taxes, of the article unlawfully imported does not exceed 
ONE HUNDRED THOUSAND [twenty five] pesos; 
amended to read as follows: 
2. A fine of not less than FIVE [eight] hundred THOUSAND 
pesos nor more than EIGHT (five) hundred THOUSAND pesos 
and/OR imprisonment of PRlSlON MAYOR, if the appraised value, 
to be determined in the manner prescribed under this Code, 
including duties and taxes, of the article unlawfully imported 
exceeds ONE HUNDRED THOUSAND [twenty five] 
pesos but 
does not exceed ONE MILLION (fifty thousand) pesos : 
3. A fine of not less than EIGHT HUNDRED THOUSAND (six 
thousand) pesos nor more than ONE MILLION (eight thousand) 
pesos and/OR imprisonment of [not less than five years and one 
day nor more than eight years,] RECLUSION TEMPORAL, if the 
appraised value, to be determined in the manner prescribed under 
this Code, including duties and taxes, of the article unlawfully 
imported [is more than fifty thousand] EXCEEDS ONE MILLION 
pesos but does not exceed FIVE MILLION [one hundred fifty 
thousand] pesos ; 
4. A fine of not less than (eight hundred thousand) ONE 
MILLION pesos nor more than (ten thousand) lW0 MILLION 
pesos and imprisonment of [not less than eight years and one day 
nore more than twelve years) RECLUSION PERPETUA, if the 
appraised value, to be determined in the manner prescribed under 
this Code, including duties and taxes, of the article unlawfully 
imported exceeds FIVE MILLION [one hundred fifty thousand] 
pesos; 
5. The penalty of prison may or shall be imposed when the 
crime of serious physical injuries shall have been committed and 
the penalty of reclusion perpetua [to death] shall be imposed when 
the crime of homicide shall have been committed by reason or on 
the occasion of the unlawful importation. 
xxx" 
7 


SEC. 15. Section 3602 of the same decree, as amended, is hereby further 
amended to read as follows: 
"SEC. 3602. Various Fraudulent Practices Againsf 
Customs Revenue. -Any person who makes or attempts to make 
entry of imported or exported article by means of any false or 
fraudulent invoice, declaration, affidavit, letter, paper or by any 
means of any false statement, written or verbal, or by any means of 
any false or fraudulent practice whatsoever, or [knowingly] effects 
any entry of goods, wares or merchandise, at less than the true 
weight or measures thereof or upon a false classification as to 
quality or value, or by the payment of drawback or refund of duties 
upon the exportation of merchandise, or makes or files any affidavit 
abstract, record, certificate or other document, with a view to 
securing the payment to himself or others of any drawback, 
allowance, or refund of duties on the exportation of merchandise, 
greater than that legally due thereon, or who shall be guilty of any 
willful act of omission shall, for each offense, BE GUILTY OF 
TECHNICAL 
SMUGGLING AND 
SHALL 
be [punished 
in 
accordance with the penalties prescribed in the preceding section] 
PUNISHABLE AS FOLLOWS: 
1. 
A FINE OF NOT LESS THAN THREE HUNDRED 
THOUSAND PESOS NOR MORE THAN FIVE HUNDRED 
THOUSAND 
PESOS AND 
IMPRISONMENT 
OF 
PRlSlON 
CORRECCIONAL, 
IF THE 
DIFFERENCE BETWEEN THE 
VALUE, WEIGHT, MEASUREMENT, OR QUANTITY DECLARED 
IN THE ENTRY AND THE ACTUAL VALUE, WEIGHT, QUANTITY, 
OR 
MEASUREMENT 
OF 
THE 
ARTICLE 
UNLAWFULLY 
IMPORTED DOES NOT EXCEED ONE HUNDRED THOUSAND 
PESOS; 
2. 
A FINE OF'NOT LESS THAN FIVE HUNDRED THOUSAND 
PESOS NOR MORE THAN EIGHT HUNDRED THOUSAND 
PESOS AND IMPRISONMENT OF PRlSlON MAYOR, IF THE 
DIFFERENCE 
BETWEEN 
THE 
VALUE, 
WEIGHT, 
MEASUREMENT, OR QUANTITY DECLARED IN THE ENTRY 
AND 
THE 
ACTUAL 
VALUE, 
WEIGHT, 
QUANTITY, 
OR 
MEASUREMENT OF THE ARTICLE UNLAWFULLY IMPORTED 
EXCEEDS ONE HUNDRED THOUSAND PESOS BUT DOES NOT 
EXCEED ONE MILLION PESOS; 
3. 
A 
FINE OF 
NOT LESS THAN EIGHT HUNDRED 
THOUSAND PESOS NOR MORE THAN ONE MILLION PESOS 
AND IMPRISONMENT OF RECLUSION TEMPORAL, IF THE 
DIFFERENCE 
BETWEEN. 
THE 
VALUE, 
WEIGHT, 
MEASUREMENT, OR QUANTITY DECLARED IN THE ENTRY 
AND 
THE 
ACTUAL 
VALUE, 
WEIGHT, 
QUANTITY, 
OR 
MEASUREMENT OF THE ARTICLE UNLAWFULLY IMPORTED 
EXCEEDS ONE MILLION PESOS BUT DOES NOT EXCEED FIVE 
MILLION PESOS; 
4, 
A FINE OF NOT LESS THAN ONE MILLION PESOS NOR 
MORE THAN TWO MILLION PESOS AND IMPRISONMENT OF 
RECLUSION PERPETUA, IF THE DIFFERENCE BETWEEN THE 
VALUE, WEIGHT, MEASUREMENT, OR QUANTITY DECLARED 
8 


IN THE ENTRY AND THE ACTUAL VALUE, WEIGHT, QUANTITY, 
OR MEASUREMENT 
OF 
THE 
ARTICLE 
UNLAWFULLY 
IMPORTED EXCEEDS FIVE MILLION PESOS. 
IN APPLYING THE ABOVE SCALE OF PENALTIES, IF 
THE OFFENDER IS AN ALIEN, HE SHALL BE DEPORTED 
AFTER 
SERVING THE 
SENTENCE WITHOUT 
FURTHER 
PROCEEDINGS FOR DEPORTATION. IF THE OFFENDER IS A 
GOVERNMENT OFFICIAL OR EMPLOYEE, THE PENALTY NEXT 
HIGHER IN DEGREE SHALL BE IMPOSED IN ADDITION TO THE 
PENALTY OF PERPETUAL DISQUALIFICATION FROM PUBLIC 
OFFICE, TO VOTE AND TO PARTICIPATE IN ANY PUBLIC 
ELECTION. 
SEC. 16. Section 201 of Title II Part 1 of the same decree, as amended, is 
hereby further amended to read as follows: 
'(x x x 
If in the course of determining the dutiable value of imported 
goods, it becomes necessary to delay the final determination of 
such dutiable value, the importer shall nevertheless be able to 
secure the release of the imported goods upon the filing of a 
sufficient guarantee in the form of a surety bond, a deposit, cash or 
some other appropriate instrument in an amount equivalent to the 
imposable duties and taxes on the imported goods in question 
conditioned upon the payment of customs duties and taxes for 
which the imported goods in question conditioned upon the 
payment of customs duties and taxes for which the imported goods 
may be liable: Provided, however, That goods, the importation of 
which is prohibited by law shall not be released under any 
circumstance whatsoever. 
Nothing in this Section shall be construed as restricting or 
calling into question the right of the Collector of Customs to satisfy 
himself as to the truth or accuracy of any statement, document or 
declaration presented for customs valuation purpose. 
When a 
declaration 
has been presented and where the customs 
administration has reason to doubt the accuracy of the particulars 
or of documents produced in support of this declaration, the 
customs administration may ask the importer to further explanation, 
including documents or other evidence, that the declared value 
represents the total amount actually paid or payable for the 
imported goods, adjusted in accordance with the provisions of 
Subsection (A) hereof. 
REFERENCE 
INFORMATION 
OBTAINED 
FROM 
REVISION ORDERS SHALL 
BE 
USED TO TEST 
THE 
TRUTHFULNESS AND ACCURACY OF A GIVEN VALUE 
DECLARATION. 
A VALUE DECLARATION WHICH FALLS 
OUTSIDE OF THE VALUE RANGE OF REVISION ORDERS 
SHALL 
TRIGGER 
A 
VALUATION 
QUERY 
ON 
THE 
APPLICABILITY OF THE METHOD OF VALUATION USED BY 
THE IMPORTER, IN WHICH CASE THE VALUATION 
ISSUE 
SHALL BE DECIDED ON THE APPROPRIATE METHOD OF 
VALUATION PRESCRIBED UNDER SECTION 201 OF THIS ACT. 


xxx" 
SEC. 17. A new Section to be known as Section 713 is hereby inserted in Part 
1, Title I, Book II of the Tariff and Customs Code of the Philippines, as amended, 
which shall read as follows: 
"THERE IS HEREBY CREATED THE OFFICE OF THE 
OFFICE OF THE PRESIDENT. ITS PRINCIPAL MISSION IS TO 
PROVIDE 
ADVICE 
AND 
RECOMMENDATION 
TO 
THE 
PRESIDENT ON MATTERS RELATING TO ACTS CONTRARY 
TO THIS ACT, AS AMENDED, COMMITTED ON A LARGE SCALE 
OR BY CRIMINAL SYNDICATES, AND TO ENSURE THAT 
THERE IS A NATIONAL CAMPAIGN AGAINST SMUGGLING 
WHEREIN 
ALL 
INVOLVED 
LAW 
ENFORCEMENT 
AND 
COUNTERACTION AGENCIES ARE OPERATING AS PART OF 
BASED ON GUIDELINES ISSUED BY THE PRESIDENT, THE 
PRESIDENTIAL ADVISER SHALL FORMULATE POLICIES, 
DEVELOP STRATEGIES, AND EXECUTE PROGRAMS OF 
ACTION FOR A CONSOLIDATED EFFORT TO PREEMPT, 
PREVENT 
AND 
SUPPRESS 
SMUGGLING, 
ARREST 
SMUGGLERS AND THEIR ACCESSORIES AND CAUSE THEIR 
SPEEDY PROSECUTION. 
ANTI-SMUGGLING 
PRESIDENTIAL ADVISER 
UNDER THE 
AN INTEGRATED AND COORDINATED PRO-ACTIVE EFFORT, 
a. 
ACTS CONTRARY TO THIS ACT, AS AMENDED, 
SHALL BE DEEMED TO BE COMMITTED ON A LARGE SCALE 
WHEN THESE ACTS INVOLVE THE IMPORTATION OF GOODS 
OR CONTRABAND WITH A DETERMINABLE VALUE OF AT 
LEAST FIVE MILLION PESOS (P5,000,000.00); AND 
ACTS CONTRARY TO THIS ACT, AS AMENDED, 
SHALL BE DEEMED TO BE COMMITTED BY A SYNDICATE 
WHEN CARRIED OUT BY A GROUP OF THREE (3) OR MORE 
PERSONS CONSPIRING AND/OR CONFEDERATING WITH ONE 
ANOTHER IN CARRYING OUT THESE UNLAWFUL ACTS. 
SEC. 18. Rules and Regulations. - The Secretary of Finance shall, upon 
the recommendation of the Commissioner of Customs, promulgate the necessary 
rules and regulations for the effective implementation of this Act. 
b. 
SEC. 19. 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 or modified accordingly. 
SEC. 20. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in any two (2) newspapers of general 
circulation, whichever date comes earlier. 
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