Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasan Hills, Quezon City

16th CONGRESS
1st Regular Session

House Bill No. 3536

Introduced by: HON. AGAPITO H. GUANLAO

EXPLANATORY NOTE

Smugglers of food staples such as rice and corn profit from the goods siezed by
customs authorities simply because they become buyers of the same they smuggled in
auctions conducted by the Bureau of Customs.

Numerous measures have been filed to deny smugglers access to forfeited or
seized agricultural products such as those directed to judicial interventions and other
efforts to deny smugglers’ access to seized goods have not been felt, and the threats
posed by the resulting flooding of cheap, smuggled rice and com in the market to the
local producers pervades. Smugglers through their network continue to dip their hands
on goods they themselves smuggled through auctions conducted by the Bureau of
Customs, and impinge upon customs laws and regulations.

Denying therefore the access of smugglers to siezed goods such as agricultural
products in legitimate auctions is a logical move. Radical as it may be, the immediate
transfer or conveyance of smuggled and siezed agricultural staple foods such as rice
and com to the National Food Authority (NFA) after seizure or forfeiture without the
mandated auction procedings effectively denies smugglers access to the goods they
smuggled

On the other hand smuggling continues with impunity, with smugglers mindless
of the penalties of the old, and perhaps antiquated provisions of the law that dates back
to June 1966, referring to Republic Act 4712

The amendment of certain provisions of the Tariff and Customs Code to these

effect is in order to curb if not eradicate smuggling. Thus, the passage of this piece of
legislation is earnestly sought.

AGAPHIO H. NLAO-


HOUSE OF REPRESENTATIVES.
Batasan Hills, Quezon City

16th CONGRESS
4st Regular Session

House Bill No. 3536

Introduced by: HON, AGAPITO H. GUANLAO.

AN ACT

AMENDING CERTAIN PROVISIONS ON THE DISPOSITION OF SEIZED
SMUGGLED RICE AND CORN AND INCREASING PENALTIES FOR SMUGGLING
UNDER THE TARIFF AND CUSTOMS CODE AS AMENDED

Be it enacted by Senate and House of Representatives in Congress assembled:

SECTION 1. Section 2607 — Disposition of articles liable to deterioration of the Tariff

and Customs Code of the Philippines, as amended, is hereby further
amended to include a sub-section (a) to read as follows:

(a) Disposition of Siezed Rice and Corn

“SEIZED RICE AND CORN SHALL BE TRANSFERED OR
CONVEYED TO THE NATIONAL FOOD AUTHORITY (NFA)
WITHOUT AUCTION PROCEEDINGS, IMMEDIATELY AFTER
SEIZURE AND FORFEITURE PROCEDINGS; PROVIDED THAT
THE GOODS TRANSFERED OR CONVEYED TO THE NFA SHALL
BE FREE; PROVIDED MOREOVER, THAT THE COST OF
TRANSFER OR CONVEYANCE SHALL BE CHARGED AGAINST
THE NFA.”

SECTION 2. Section thirty-six hundred one of RA 4712 is hereby amended to read as

follows:

"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:

4

"9

‘A fine of not less than fifty pesos more than two hundred pesos and
imprisonment of not less than five days nor more than twenty days, if the
appraised value, to be determined in the manner prescribed under the
Tariff and Customs Code, including duties and taxes, of the article
unlawfully imported does not exceed TEN PESOS [twenty-five pesos] ;

A fine of not less than eight hundred pesos nor more than five thousand
pesos and imprisonment of not less than six months and one day nor
more than four years, if the appraised value, to be determined in the


"4.

manner prescribed under the Tariff and Customs Code, including duties
and taxes, of the article unlawfully imported exceeds FIFTEEN PESOS
[twenty-five] pesos but does not exceed THIRTY THOUSAND PESOS
[fifty thousand pesos];

A fine of not less than six thousand pesos nor more than eight thousand
pesos and imprisonment of not less than five years and one day nor more
than eight years, if the appraised value, to be determined in the manner
prescribed under the Tariff and Customs Code, including duties and taxes,
of the article unlawfully imported is more than THIRTY THOUSAND
PESOS [fifty thousand pesos] but does not exceed FIFTY THOUSAND
PESOS [one hundred fifty thousand pesos].

A fine of not less than eight thousand pesos nor more than ten thousand
pesos and imprisonment of not less than eight years and one day nor
more than twelve years, if the appraised value, to be determined in the
manner prescribed under the Tariff and Customs Code, including duties
and taxes, of the article unlawfully imported exceeds FIFTY THOUSAND
PESOS [one hundred fifty thousand pesos].

SECTION 3. This Act shall take effect upon its approval.

Approved: