SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
Second Regular Session 
SENATE 
Senate Bill No.2765 
Introduced by SENATOR CYNTHIA A. VILLAR 
'15 
MAY 13 P3 :14 
AN ACT DECLARING CERTAIN ACTS OF AGRICULTURAL SMUGGLING AS 
ECONOMIC SABOTAGE, PRESCRIBING PENALTIES THEREFOR AND FOR 
OTHER PURPOSE 
EXPLANATORY NOTE 
While the government is working on agricultural sustainability and security, policies must 
also be put in place, to protect the agricultural industries we currently have. Part of which 
is to ensure that our small scale and subsistence farmers are able to compete in the 
market without unjust distraction and interference from smuggled goods which 
necessarily affect and manipulate the prevailing market prices. 
While some acts of smuggling are already punishable under the Tariff and Customs Code, 
some acts of smuggling, however, are too ruthless by its very scope making it tantamount 
to economic sabotage. 
Smuggling which includes agricultural products of at least 
5,000,000 Php worth, more so that of agricultural political commodity which is rice, of at 
least 10,000,000 Php worth, effectively put our local industries and food producers in a 
very dangerous and vulnerable situation. 
The unauthorized presence of smuggled agricultural products, if done in bulk, saturate 
the market, thereby manipulating the prices, at some point it unjustly lowers the market 
price, making it almost impossible for locally produced goods to compete. With such 
scenario, small scale farmers become highly discouraged to further produce with fear that 
they might not be able to get back their investments. With that, farmers and small time 
food producers might totally give up food production in favor of more lucrative endeavors. 
Hence, it is necessary for the State to protect our local agricultural industry and farmers 
from unscrupulous traders and importers, who by the sheer volume of their illegal 
importation significantly affect the production, stability of our agricultural products. 
Now that ASEAN Integration has begun, trade filters must be created to avoid our 
agriculture sector becoming a casualty of trade liberalization. 
Agricultural smuggling involves misdeclaration, undervaluation, misclassification, and 
use of falsified documents. It has robbed the government of much-needed revenues 
and promote unfair competition to local farmers and the entry of pests and diseases 
endangering the health of our local consumers. 
According to the Southeast Asia Regional Center for Graduate Study and Research in 
Agriculture (SEARCA), from 1986 to 2008, in terms of volume in metric tons, the top five 
agricultural products smuggled into the country are milled rice, refined sugar, beef 
meat, dry onion, and pork, in that order. In terms of value the order of selected 
agricultural commodities technically smuggled from 1986 to 2009 are milled rice, beef 
eat, sugar, pork, and chicken meat. 


, . 
Over that 22-year period, according to the said report, the amount of smuggled rice 
reached $1,96 billion. Apart from rice, other farm products that were smuggled and the 
amounts involved are as follows: Refined sugar, $448.2 million; Beef, $428.8 million; 
Onion $259.55 million; Pork, $117.45 million; Chicken, $27.8 million; Ginger, $7.8 
million; and Carrots and turnips, $6.5 million. 
SEARCA said farm products smuggling in the mid-1980s was valued at $6 billion a year, 
increasing every year to reach at least $10 billion in 2008. 
In one of the recent investigation conducted the Committee on Agriculture and Food, the 
problem of rice smuggling is going on specifically in Zamboanga. Rice is being brought in 
not in containers, but in motor launches. Such activities is pulling down the price of palay. 
The palay farm-gate price has gone down to P18.50 per kilo this harvest from P25 in 
November 2014. In December 2014, the Bureau of Customs (BoC) intercepted P200 
million worth of smuggled Vietnamese rice, misdeclared as tiles and stonewares, at the 
Mindanao Container Terminal. Apart from glutinous rice, some container vans were filled 
with imported sugar. 
The Philippine government lost close to P4 billion in revenues in 2013 and almost a 
million Filipinos dependent on hog raising lost their livelihood in the last four years due 
to outright and technical smuggling of pork meat, according to the Samahang Industriya 
ng Agrikultura (SINAG). 
Data from the Bureau of Animal Industry (BAI) indicate that 199 million kilos of pork 
were imported in 2013. However, a United Nations Commodity Trade Division (UN 
ComTrade) report of countries that exported pork meat to the Philippines showed pork 
importation at 237 million kilos - a difference of 38 million kilos that are presumed 
smuggled to the country. If we multiplying the 38 million kilos unaccounted for with the 
correct duties for prime cuts which was misdeclared as pork fats or offal, the result is a 
staggering P3.85-billion in lost revenues for government. 
There is a need for a relevant legislation to stop agriculture products smuggling in the 
country. A law which shall provide safeguards and indirectly increase income 
opportunities to local producers which shall help alleviate poverty among farmers and 
agricultural households in the country, is earnestly sought. 
Lastly, in order to ensure food security and stability, higher sanctions for certain acts of 
agricultural smuggling, tantamount to economic sabotage must be imposed. Certainly, 
harsher punishments to smugglers, traders, government officers, if enacted will curtail 
such acts which compromise the country's level of food security and income generation . 
. ~Ij~ 
SEN. CYNTHIA A. VILLAR 


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SENATE OF THE PHILIPPINES 
SIXTEENTH CONGRESS 
Second Regular Session 
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'15 
MAY 13 p 3 :14 
SENATE 
Senate Bill No. 
2765 
Introduced by Senator Cynthia A. Villar 
AN ACT 
DECLARING CERTAIN ACTS OF AGRICULTURAL SMUGGLING AS 
ECONOMIC SABOTAGE, PRESCRIBING PENALTIES THEREFOR 
AND FOR OTHER PURPOSES 
Be it enacted by the Senate and the House oj Representatives oj the 
Philippines in Congress assembled: 
1 
SECTION 1. Short Title. - This Act shall be known as the "Anti-
2 
Agricultural Smuggling Act of 2015". 
3 
SEC. 2. Declaration oj Policy - It is the policy of the State to protect and 
4 
promote the productivity of the agriculture sector and farmers from 
5 
unscrupulous traders and importers, who by the sheer volume of their 
6 
illegal importation of agricultural products significantly affect the 
7 
production, availability of supply and stability of prices. 
8 
Graver penalties for large-scale smuggling of rice shall be 
9 
imposed. Rice, as political commodity determines the level of our 
10 
country's food security. 
It is in rice production too, that farmers are 
11 
highly dependent for their income. 
12 
It is also the policy of the State to accord subsistence farmers' 
13 
protection, being the front-liners of food production. 
Large-scale 
14 
presence of smuggled products effectively manipulates the prices by 
15 
lowering it down, therefore discouraging food producers to continue 
16 
their production, due to lack of satisfactory return on investment. Such 
17 
Situation, will eventually lead to the demise of our local industries 
18 
thereby constituting economic sabotage. 
19 
The State, therefore, shall impose higher sanctions for large-scale 
20 
smuggling, tantamount to economic sabotage of agricultural products 
21 
in order to protect the livelihood of our farmers. 
22 
SEC. 3. DeJinition oj Terms. - As used in this Act, the following terms 
23 
shall mean: 
1 


1 
(1) "Economic Sabotage" - any act or actiVity which undermines, 
2 
weakens or renders into disrepute the economic system or 
3 
Viability of the country or tends to bring out such effects and shall 
4 
include, among others, price manipulation to the prejudice of the 
5 
public especially in the sale of basic necessities and prime 
6 
commodities. 
7 
8 
(2) "Agricultural Products" - any agricultural commodity or product, 
9 
whether plant based, animal based, raw or processed, including 
10 
any commodity or product derived from livestock that is available 
11 
for human or livestock consumption. This definition includes 
12 
fish, forestry, seeds, poultry and dairy products that have 
13 
undergone various degrees of processing; 
14 
15 
(3) "Agricultural Political Commodity' - for purposes of this Act, rice 
16 
shall be classified as agricultural political commodity. 
17 
18 
(4) "Smuggling" - also known as direct or outright smuggling, refers 
19 
to the act of importing or bringing into or assisting in importing 
20 
or bringing into the Philippines, any article, good or product 
21 
without the corresponding documents, permits or licenses when 
22 
these are reqUired by existing laws, order, rules and regulations, 
23 
including the receipt, concealment, purchase or sale or in any 
24 
manner, facilitating the transportation, after importation, 
25 
knowing the same to have been imported contrary to law; 
26 
27 
(5) "Technical 
Smuggling" 
pertains 
to 
misdeclaration, 
28 
misclassification or undervaluation of imported goods or products 
29 
in Violation of the Tariff and Customs Code of the Philippines and 
30 
other related laws. 
31 
SEC. 4. Definition of Crime of Agricultural Smuggling. - Any person who 
32 
shall import or bring into the Philippines agricultural products without 
33 
the required import permit from the implementing agency, or any person 
34 
who shall import agricultural products by means of fraud or by illegally 
3S 
obtaining the reqUired import permit shall be guilty of the crime of 
36 
smuggling, including those acts which are within the purView of 
37 
technical smuggling. 
38 
SEC. 5. Agricultural Smuggling as Act of Economic Sabotage. - The acts 
39 
of agricultural smuggling, including technical smuggling thereof, are 
40 
acts inimical to the national interest, 
economic growth and 
41 
development. 
42 
Any person regardless of nationality or Citizenship found guilty of 
43 
engaging in agricultural smuggling, or technical smuggling thereof, of a 
44 
minimum aggregate amount of One Million Pesos (Phpl,OOO,OOO.OO) 
4S 
worth of agricultural products or has been found guilty of engaging in 
2 


1 
agricultural smuggling of rice, or technical smuggling thereof, with a 
2 
mmlmum 
aggregate 
amount 
of 
Fifteen 
Million 
Pesos 
(Php 
3 
15,000,000.00), as valued by the Bureau of Customs, utilizing methods 
4 
of value verification such as, but not liInited to, Revision Orders and/or 
5 
by appropriate agencies and entities identified, accredited or certified by 
6 
the Bureau of Customs, shall be guilty of econoInic sabotage. 
7 
SEC. 6. Penalties. - Any person, natural or juridical, regardless of 
8 
nationality or citizenship, found guilty of engaging in smuggling or 
9 
technical smuggling of a minimum aggregate amount of One Million 
10 
Pesos (Php 1,000,000.00) worth of agricultural products and Fifteen 
11 
Million Pesos (Php 15,000,000.00) of rice, shall suffer the following 
12 
penalties: 
13 
a. Fine equal to twice the fair value of the smuggled articles; 
14 
b. Fine equal to the aggregate amount of the taxes, duties and other 
15 
charges avoided; 
16 
c. Imprisonment of a minimum of six (6) years and one (1) day up to 
17 
twelve (12) years imprisonment; 
18 
d. Confiscation of the smuggled articles. 
19 
e. Cancellation and revocation of business license, import perInits 
20 
and other pertinent documents for importation 
21 
f. Perpetual disqualification to import agricultural products 
22 
When the offender is a juridical person, criminal liability shall 
23 
attach to its preSident, chief operating officer or manager. In addition, 
24 
the business perInit or licenses of the business entity shall be revoked 
25 
or cancelled. 
26 
The following shall be considered as principals to the crime of 
27 
econoInic sabotage; 
28 
• Traders who prey on cooperatives and by using their perInits for 
29 
purposes of smuggling; 
30 
• The officers of the cooperatives who knowingly sell, lend, lease, 
31 
assign, allow the unauthorized usage of their import perInits for 
32 
purposes of smuggling ; 
33 
34 
35 
• Traders who deliberately use dummy 
government 
organizations, 
associations 
smuggling; 
corporations, non-
for 
purposes 
of 
36 
• The 
officers 
of 
dummy 
corporations, 
non-government 
37 
organizations, aSSOCiations, 
who knowingly sell, lend, lease, 
38 
assign, allow the unauthorized usage of their import perInits for 
39 
purposes of smuggling and; 
40 
• The broker of violating importers. 
3 


1 
When the offender is a government official or employee acting in 
2 
connivance with private individuals or entities or other government 
3 
officials or employee, he shall be charged as principal without prejudice 
4 
to administrative, civil and criminal cases which may be filed against 
5 
him. 
6 
SEC. 7. Implementing Rules and Regulations. - The Bureau of Customs 
7 
in coordination of appropriate agencies shall promulgate the 
8 
implementing rules and regulations of this Act within thirty (30) days 
9 
after its effectivity. 
10 
SEC. 8. Prescription oj Crimes. - The crime punishable under this Act 
11 
shall prescribe in twenty (20) years. 
12 
SEC. 9. Separability Clause. - The prOVISIOn of this Act are hereby 
13 
declared to be separable from, and independent of, one another and that 
14 
should one or more of such proviSions be declared unconstitutional, the 
15 
Validity of the remaining provisions shall not be affected thereby. 
16 
SEC. 10. Repealing Clause. - All laws, decrees, executive issuances, 
17 
rules and regulations inconsistent with this Act are hereby repealed 
18 
and/or modified accordingly. 
19 
SEC. 11. Effectivity Clause. - This Act shall take effect immediately 
20 
upon its approval. 
21 
Approved, 
4