NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
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SENATE
s. No. 1812
o{ ''I1-' Sh'h etsiT
23 JAN 31 P1 :38
RECEIVED BY.
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
AMENDING SECTIONS 3 AND 4 OF REPUBLIC ACT NO. 10845, OTHERWISE 
KNOWN AS THE ANTI-AGRICULTURAL SMUGGLING ACT OF 2016 AND FOR
OTHER PURPOSES
EXPLANATORY NOTE
As cigarette smuggling pushes the prices of cigarettes down, it neither restricts 
nor prevents the people, especially the youth, from consuming cigarettes. Worse, it 
encourages the same to use cigarettes. It runs counter to our Sin Tax Law to utilize 
tax to deter or reduce cigarette consumption. Further, it endangers public health by 
increasing the availability of cheap, untaxed cigarettes, which in turn deprives the 
national government of excise tax revenues.
Smuggling of cigarettes from neighboring ASEAN countries resulted to a loss in 
fiscal gains of P26-billion in taxes annually. The latest estimates of market analysis 
provider Euromonitor International had shown that 13 percent of cigarettes being sold 
in the Philippines was illegal, either smuggled without payment of import duties, or 
manufactured locally but sold without tax stamps signifying correct excise payments. 
In fact, in Mindanao, six out of every 10 cigarettes sold was illegal.
Albay Representative Joey Salceda, who chairs the House Ways and Means 
Committee, had estimated bigger foregone revenue of P60 billion yearly. On April 16, 
2022 in Ipil, Zamboanga Sibugay alone, police seized smuggled cigarettes worth


around P5.266 million. Further, on July 25 to August 11, 2022, the Bureau of Customs 
- Port of Zamboanga confiscated P8.6 million worth of cigarettes during multiple anti­
smuggling operations.
Given these, it is important to combat large-scale tobacco smuggling through the 
imposition of stringent penalties and by deterring the entry and sale of illegal tobacco 
in the country. It must be remembered that during the tough times brought by the 
COVID-19 pandemic, revenues from the sin products, such as the cigarettes, were 
used to finance the government's universal health care program.
Thus, this bill seeks to include tobacco as among those agricultural commodities 
the illegal importation of which can be classified as economic sabotage.
In view of the foregoing, early passage of this bill is earnestly sought.
rUEL "LITO" M. LAPID
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
% senate
of ll)c ftar}>
23 JAN 31 PI 38
SENATE 
S. No.
RECEIVLOBV.
Introduced by Senator Manuel "Lito" M. Lapid
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AN ACT
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AMENDING SECTIONS 3 AND 4 OF REPUBLIC ACT NO. 10845, OTHERWISE
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KNOWN AS THE ANTI-AGRICULTURAL SMUGGLING ACT OF 2016 AND FOR
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OTHER PURPOSES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
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Section 1. Section 3 of Republic Act No. 10845 or the Anti-Agricultural
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Smuggling Act of 2016 is hereby further amended to read as follows:
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SEC. 3. Large-Scale Agricultural Smuggling as Economic 
Sabotage. - The crime of large scale agricultural smuggling as 
economic sabotage, involving sugar, corn, pork, poultry, garlic, 
onion, carrots, fish, and cruciferous vegetables, in its raw state, 
or which have undergone the simple processes of preparation or 
preservation for the market, with a minimum amount of one 
million pesos (P1,000,000.00), or rice, with a minimum amount 
of ten million pesos (P10,000,000.00), OR TOBACCO, 
WHETHER MANUFACTURED OR UNMANUFACTURED, 
INCLUDING FINISHED PRODUCTS SUCH AS CIGARS, 
CIGARETTES OR HEATED TOBACCO PRODUCTS, WITH A 
MINIMUM EXCISE TAX AND VAT PAYABLE IN THE


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AMOUNT OF ONE MILLION PESOS (Pl/000,000.00), as
valued by the Bureau of Customs (BOC), is committed through 
any of the following acts:
a. Importing or bringing into the Philippines without the 
required import permit from the regulatory agencies;
b. Using import permits of persons, natural or juridical, other 
than those specifically named in the permit;
c. Using fake, fictitious or fraudulent import permits or 
shipping documents;
d. Selling, lending, leasing, assigning, consenting or allowing 
the use of import permits of corporations, non­
government organizations, associations, cooperatives, or 
single proprietorships by other persons;
e. Misclassification, undervaluation or misdeclaration upon 
the filing of import entry and revenue declaration with the 
BOC in order to evade the payment of rightful taxes and 
duties due to the government;
f. Organizing or using dummy corporations, non­
government organizations, associations, cooperatives, or 
single proprietorships for the purpose of acquiring import 
permits;
g. Transporting or storing the agricultural product subject to 
economic sabotage regardless of quantity;
h. Acting as A broker, AGENT, FACILITATOR, 
FORWARDER, OR WAREHOUSE LESSOR of the
violating importer;
i. 
ALLOWING THE USE OF A PRIVATE PORT, FISH 
PORT, FISH LANDING SITE, RESORT, AND/OR


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AIRPORT TO PERPETUATE THE ECONOMIC 
SABOTAGE REGARDLESS OF QUANTITY;
j. IMPORTING FINISHED PRODUCTS SUCH AS 
CIGARETTES, CIGARS, AND HEATED TOBACCO 
PRODUCTS, THAT ARE NOT REGISTERED WITH 
THE BUREAU OF INTERNAL REVENUE, FOR THIS 
PURPOSE, THE BUREAU OF INTERNAL REVENUE 
SHALL PUBLISH AND REGULARLY UPDATE THE 
LIST OF FINISHED GOODS THAT ARE REGISTERED 
IN THEIR OFFICE, STATING THEREIN THAT ALL 
UNREGISTERED PRODUCTS ARE ILLEGAL AND ARE 
SUBJECT TO IMMEDIATE CONFISCATION; AND
k. MANUFACTURED TOBACCO REFERS TO ANY 
PRODUCT THAT CONSISTS OF LOOSE TOBACCO 
THAT CONTAINS NICOTINE AND IS INTENDED FOR 
USE IN A CIGARETTE, INCLUDING ANY PRODUCT 
CONTAINING TOBACCO AND INTENDED FOR 
SMOKING OR HEATING OR PUFFING OR ORAL OR 
NASAL USE. UNMANUFACTURED TOBACCO REFERS 
TO AGRICULTURAL COMPONENTS DERIVED FROM 
THE TOBACCO PLANT, WHICH ARE PROCESSED 
FOR USE IN THE MANUFACTURING OF 
CIGARETTES AND OTHER TOBACCO PRODUCTS.
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Section 2. Section 4 of Republic Act No. 10845 or the Anti-Agricultural
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Smuggling Act of 2016 is hereby further amended to read as follows:
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SEC 4. Penalties. - (a) The penalty of life imprisonment 
and a fine of twice the fair value of the smuggled agricultural 
product and the aggregate amount of the taxes, duties, and 
other charges avoided shall be imposed on any person who 
commits any of the acts enumerated under Section 3 of this Act.
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HOWEVER, IN THE CASE OF TOBACCO PRODUCTS 
WHETHER MANUFACTURED OR UNMANUFACTURED, THE 
PENALTIES TO BE IMPOSED ARE THOSE SPECIFIED 
UNDER PARAGRAPH (E) OF THIS SECTION.
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(E) THE PENALTY OF IMPRISONMENT OF NOT LESS 
THAN THIRTY (30) YEARS BUT NOT MORE THAN FORTY 
(40) YEARS AND A FINE OF TWICE THE FAIR VALUE AND 
THE AGGREGATE AMOUNT OF THE TAXES, DUTIES AND 
OTHER CHARGES AVOIDED BY THE SMUGGLING OF 
TOBACCO, WHETHER MANUFACTURED OR 
UNMANUFACTURED, INCLUDING FINISHED PRODUCTS 
SUCH AS CIGARS, CIGARETTES OR HEATED TOBACCO 
PRODUCTS SHALL BE IMPOSED ON THE FOLLOWING:
(1) THE REGISTERED OWNER AND ITS 
LESSEE OR CHARTERER, IN CASE OF LEASE, OF A 
CHARTERED BOAT, MOTORIZED COMMERCIAL 
VESSEL, WHO KNOWINGLY TRANSPORTS THE 
TOBACCO PRODUCT SUBJECT TO ECONOMIC 
SABOTAGE, REGARDLESS OF QUANTITY;
(2) THE REGISTERED OWNER AND ITS 
LESSEE, IN CASE OF LEASE OF TRUCKS, VANS AND 
OTHER MEANS OF TRANSPORTATION, WHO 
KNOWINGLY TRANSPORTS THE TOBACCO 
PRODUCT SUBJECT TO ECONOMIC SABOTAGE, 
REGARDLESS OF QUANTITY;
(3) THE REGISTERED OWNER AND LESSEE 
OF A WAREHOUSE, OR ANY PROPERTY, WHO


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KNOWINGLY STORES THE SMUGGLED TOBACCO 
PRODUCT SUBJECT TO ECONOMIC SABOTAGE; OR
(4) THE REGISTERED OWNER, LESSEE, 
PRESIDENT OR CHIEF EXECUTIVE OFFICER OF THE 
PRIVATE PORT, FISH PORT, FISH LANDING SITES, 
RESORTS, OR AIRPORTS WHO KNOWINGLY 
ALLOWS THE TOBACCO PRODUCT TO BE 
SMUGGLED INTO THE COUNTRY.
PROVIDED, THAT FOR PURPOSES OF THIS ACT, 
THE OFFENSE UNDER THIS PARAGRAPH SHALL BE NON- 
BAILABLE.
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Section 3. Repealing Clause. - All laws, executive orders, presidential decrees,
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rules and regulations and other issuances contrary to or inconsistent with this Act shall
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be deemed repealed or modified accordingly.
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Section 4. Separability Clause. - If any provision of this Act is subsequently
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declared invalid or unconstitutional, the other provisions hereof which are not affected
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thereby shall remain in full force and effect.
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Section 5. Effectivity. - This Act shall take effect fifteen (15) days from the
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date of publication in the Official Gazette or in a newspaper of general circulation.
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Approved,