Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Philippines
NINETEENTH CONGRESS
Second Regular Session
House Bill No.             R7 R 1
Introduced by HON. DANTE S. GARCIA
Representative, 2ND District of La Union
AN ACT
STRENGTHENING ANTI-AGRICULTURAL SMUGGLING MEASURES, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 10845, OTHERVISE KNOWN AS THE ANTI-
AGRICULTURAL SMUGGLING ACT OF 2016, AND FOR OTHER PURPOSES
EXPLANATORY NOTE
The 1987 Constitution provides that the State shall promote social justice in all phases
of national development and that it shall develop a self-reliant and independent national
economy  that  is  effectively  controlled  by  Filipinos  and  protect  Filipino  enterprises
against unfair foreign competition and trade practices.
It is with those general precepts that the Anti-Agricultural Smuggling Act (Republic Act
No.10845)was   enacted  in   2016.   However,  since   its   implementation,   the   rampant
smuggling of our national staple and almost all agricultural products has continued to
spiral.   The   unusual   import  volumes   of  agricultural   products   in   the   past  years,
particularly  rice,  onions,  vegetables,  livestock  and  poultry  point to  the  possibility  of
rampant mis-declaration and so many other irregularities in importation.
The impact of smuggling, hoarding, profiteering, and operation of cartels in agriculture
and livestock is felt by food processors and consumerswith frequent uptick in the prices
of commodities. Our nation's farmers severely and atrociously affected by the flood of
imported and smuggled agricultural goods.
It   is   thus   imperative   that  we   implement   stricter   measures   against   agricultural
smuggling.  The  intent of this bill  is to  expand the government's  legal arsenal  of anti-
agricultural smuggling measures via the creation of a National Anti-Smuggling Council
and Task Force, the extension of period of detention for arrested suspected smugglers,
among othersto effectively prosecute those behind these acts of economic sabotage.


The continued smuggling, hoarding, profiteering, and operation of cartels is killing most
of what remains in the countlys agricultural sectors.
This bill is our contribution policy-wise in support to our local producers in agriculture
and livestock.
With the f
HON. D
2nd Dis
9, the approval of this measure is earnestly sought.


Republic of the Philippines
HOUSE 0F REPRESENTATIVES
Quezon City, Philippines
NINETEENTH CONGRESS
Second Regular Session
House Bill No.
Introduced by HON, DANTE S. GARCIA
Representative, 2ND District of La Union
ANACT
STRENGTHENING ANTI-AGRICULTURAL SMUGGLING MEASURES, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 10845, OTHERVISE KNOWN AS THE ANTI-
AGRICULTURAL SMUGGLING ACT OF 2016, AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:
SECTION1. Republic Act No. 10845 (RA 10845) is hereby amended to read as follows:
AN ACT DECLARING LARGE-SCALE AGRICULTURAL SMUGGLING,HOARDING,
PROFITEERING, AND CARTEL AS ECONOMIC SABOTAGE, PRESCRIBING
PENALTIES THEREFOR, AND FOR OTHER PURPOSES
SECTION2. Section 1 of RA 10845 is hereby amended to read as follows:
Sec. 1. This Act shall be known as the "Anti Agrioultural [Smuggling]ECONOMIC
SABOTAGE Act of 2023".
SECTION3. Section 2 of RA 10845 is hereby amended to read as follows:
Section2. Declaration of Policy. - It is the policy of the State to promote the
productivity of the agriculture sector and to protect farmers from unscrupulous
traders  and  importers,  hoarders,  profiteers,  and  cartels,  who  by  their  illegal
importation,  HOARDING,  PROFITEERING,  AND  CARTELIZING  of agricultural
products, especially rice, significantly affect the production, availability of supply
and stability of prices, and the food security of the State.
THE STATE SHALL LIKEWISE PROMOTE THE AFFORDABILITY OF FOOD AND
OTHER   AGRICULTURAI.   COMMODITIES   FOR   FILIPINO   CONSUMERS   BY
PREVENTING  LARGE-SCALE  SMUGGLING,  HOARDING,  PROFITEERING,  AND
CARTELIZING T0 MANIPULATE PRICES AND UNDULY RESTRAIN SUPPLY.


The State shall impose higher sanctions for large-scale smuggling, HOARDING,
PROFITEERING,   AND   CARTELIZING   of   agricultural   products,   as   a   self-
preservation measure to shield itself from the manipulative scheme of economic
saboteurs,  and  to  protect  the  livelihood  of  our  farmers  and  to  ensure  their
economic well-being and that of the consumers.
TOWARDS  THIS  END,  THE  STATE  SHALL  ESTABLISH  AN  INDEPENDENT
PUBLIC-PRIVATE  ANTI-AGRICULTURAL  SMUGGLING  COUNCIL  MANDATED
AND    EMPOWERED    T0    INVESTIGATE    AND    PROSECUTE    SMUGGLING,
HOARDING,      PROFITEERING,      AND      CARTELIZING      TO      EFFECTIVELY
ELIMINATE  THESE  FORMS  0F  ILLEGAL ACTIVITIES  WHICH ARE  INIMICAL
T0  THE  WELFARE  OF  THE  FARMERS  AND   CONSUMERS,  AND  TO  THE
COUNTRY'S FOOD SECURITY.
SECTION4. A new Section 3A shall be inserted after Section 3 of RA 10845 to read as
follows:
Section 3A. Large-scale Agricultural Smuggling, Hoarding, Profiteering, and
Cartel as Economic Sabotage. - Hoarding, profiteering, or cartel, as defined in
Section  5  of Republic Act No.  7581,  insofar as  they involve  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 (Plo,000,000.00), as valued by
the Bureau of Customs (BOC) for imports or by the Department of Agriculture for
domestically produced commodities, shall constitute economic sabotage.
SECTION5. Section 4 of RA 10845 is amended to read as follows:
Section 4. Penalties.
(a)       The penalty of life imprisonment and a fine of twice the fair value of the
smuggled  agricultural  product  OR  THE  PRODUCT  SUBJECT  TO  HOARDING,
PROFITEERING, OR CARTEL and the aggregate amount of the taxes, duties and
other  charges  avoided  PLUS  INTEREST  AT  THE  PREVAILING  LEGAL  RATE
shall be imposed on any person who commits any of the acts enumerated under
Sections 3 AND 3A of this Act;
(b)      The penalty of imprisonment of not less than seventeen (17) years but not
more than twenty (20) years, and a fine of twice the fair value of the smuggled,
HOARDED,   PROFITEERED,   OR  CARTELIZEDagricultural   products   and   the
aggregate  amount  of  the  taxes,  duties  and  other  charges  avoided  shall  be
imposed on the officers of dummy corporations, nongovernment organizations,
associations,  cooperatives,  or single  proprietorships who knowingly sell,  lend,
lease, assign, consent or allow the unauthorized use of their import permits for
purposes of smuggling, HOARDING, PROFITEERING, OR CARTELIZING;


(c)       The penalty of imprisonment of not less than fourteen (14) years but not
more than seventeen (17) years and a fine equal to the fair value of the smuggled,
HOARDED,   PROFITEERED,   OR  CARTELIZED  agricultural   product  and  the
aggregate amount taxes, duties and other charges avoided 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  of more  than  three  (3)
gross tonnage, who knowingly transports the agricultural product subject
to economic sabotage, regardless of quantity;
(2)       The registered owner and its lessee, in case of lease of six  (6)  or
more wheeler trucks, vans other means of transportation, who knowingly
transports   the   agricultural   product   subject   to   economic   sabotage,
regardless of quantity;
(3)       The registered owner and lessee ofa warehouse, or any property,
who  knowingly  stores  the  smuggled,  HOARDED,  PROFITEERED,  OR
CARTELIZED agricultural 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,  and  airports  who
knowingly  allows  the  agricultural  product  to  be  smuggled   into  the
country, OR T0 BE HOARDED WITHIN THEIR FACILITIES.
(d) The penalty of imprisonment of not less than twelve (12) years but not more
than  fourteen  (14)  years  and  a  fine  equal  to  the  fair  value  of the  smuggled
agricultural product subject to economic sabotage and the aggregate amount of
the taxes, duties and other charges avoided 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  of  three  (3)  goss
tonnage  or  less,  who  knowingly  transports  the  agricultural  product
subject to economic sabotage, regardless of quantity; or
(2)       The registered owner and its lessee, in case of lease, of less than
six-wheeler   trucks,   vans   and   other   means   of   transportation,   who
knowingly  transports   the   agricultural   product   subject   to   economic
sabotage, regardless of quantity.
In   all   cases,  the   smuggled  agricultural  products  shall  be   confiscated  AND
DESTROYED WITHIN SEVEN  (7)  DAYS and the property used in agricultural
smuggling,  consistent  with  SECTIONS  1113  AND  1114  0F  THE  CUSTOMS
MODERNIZATION AND TARIFF ACT and without prejudice to SECTION 1115
of the same ACT, shall be forfeited in favor of the government.


When  the  offender  is  a  juridical  person,  criminal  liability  shall  attach  to  its
president,  chief operating  officer  or  manager  who  consents  to  or  knowingly
tolerates the commission of the prohibited crime.
Any person, natural or juridical, found guilty under this Act shall also suffer the
penalty   of  perpetual   absolute   disqualification   to   engage   in   any   business
involving importation.
In  applying the abovementioned  penalties, if the  offender is  an  alien  and  the
prescribed  penalty  is  not  life  imprisonment,  he/she  shall  be  deported  after
serving the sentence without further proceedings for deportation.
If the  offender is  a government offlcial  or employee,  the  penalty shall  be  the
maximum as hereinabove prescribed and the offender shall suffer an additional
penalty of perpetual disqualification from public office, to vote and to participate
in any public election.
SECTION6.  Creation  of National  Anti-Agricultural  Smuggling  Council.  -  Thereis
hereby created a National Anti-Agricultural Smuggling Council, hereinafter referred to
as  the  "Council",  which shall be headed by the  Office  of the  President,  principally to
combat large-scale agricultural smuggling, hoarding, profiteering, and cartels provided
under this law.
SECTION 7. Composition. -The Council shall be composed of the following members:
a.    Presidential security Group, or whoever may be appointed by the president
b.    Representative from the Bureau of customs
c.    Department  of  Agriculture,  Assistant  Secretary  for  DA  Inspectorate  and
Enforcement
d.    Representative from the rice farmers sector
e.    Representative from the pork producers sector
f.     Representative from the poultry producers sector
9.    Representative from the egg producers sector
h.    Representative from the corn farmers sector
i.     Representative from the vegetable farmers sector
j.     Representative from the fisherfolk sector
k.    Representative from the sugar planters sector
I.     Representative from the tobacco farmers sector
SECTION8.  Powers  and  Functions  of  the  Council.  -  The  Council  shall  have  the
following powers and functions:
a.   To prepare and implement appropriate and effective measures to prevent and
suppress large-scale agricultural smuggling, hoarding, profiteering, and cartels;
b.   To   direct  and   oversee   the   conduct  of  anti-agricultural   economic   sabotage
intelligence  operations  and  the  operations  of  the  Task  Force,  including  the
monitoring  of situations,  circumstances,  activities  of individuals,  groups,  and
entities  who  are  involved  or  who  are  reasonably  believed  to  be  involved  in


smuggling and other market abuses of agricultural products provided for in RA
10845;
c.   To establish a mechanism for an interactive and coordinative mode of operations
to ensure operational effectiveness with utmost economy andefficiency;
d.   To recommend the issuance of alert orders, search warrant, warrant of seizure
and detention in appropriate cases;
e.   To   deputize   the   Anti-Agricultural   Smuggling   Task   Force   and   other   law
enforcement agencies for the investigation, prosecution, search and seizure, and
arrest of suspected smugglers;
f.    To  cause  or  direct  the  immediate  investigation  and  initiate  cases  before  the
prosecutor mofupraprT.a involving smuggling, hoarding, profiteering, and cartels
of agricultural products, and monitor the progress of such cases;
9.   To grant monetary rewards and incentives to informants who are willing to give
vital  and  material  information  for the building up  of cases  for the  arrest and
prosecution of agricultural smuggling suspects; and
h.   To perform such functions and carry out such activities as may be directed by the
President.
SECTION9.  Anti-Agricultural  Smuggling  Task  Force.  -  There  shall  be  an  Anti-
Agricultural  Smuggling Task Force,  hereinafter referred  to  as the  "Task Force",  to  be
headed  by  the  Presidential  Security  Group,  with  an  assistant  team  leader  from  the
Armed Forces of the Philippines, and shall be composed of the following:
a.    Philippine National police;
b.    National Bureau of Investigation;
c.    Armed Forces of the philippines;
d.   Philippine coast Guard; and
e.   Representatives of the agricultural sectors who are members of the council.
SECTION10. Powers and functions of the Task Force. -The Task Force shall be under
the  control  and  supervision  of the  Council  and  shall  have  the  following  powers  and
functions:
a.   To effect searches, seizures, and arrests, and to file administrative and criminal
cases before the prosecutor as may be directed by the Council;
b.   To inspect warehouses where seized commodities are stored to ensure that such
commodities    are    not   being   ferreted    out    or    removed    without    proper
documentation; and
c.   To secure copies of documents pertaining to the nature and particulars  of the
commodity or goods subject of importation, i.e., quantity or volume, technical or
qualitative  specifications,  port  of destination/estimated  date  of arrival  in  the
Philippines,  cargo  manifest,  reference  values  from  the  Bureau  of  Customs,
transaction  values   of  importers,   among  others,   from  government  agencies


concerned,  including but not limited to the Bureau of Customs,  Department of
Agriculture, and also from non-government sources like pre-shipment companies
at the port of origin,  and  commercial banks  in accordance with  existing laws,
rules, and regulations.
SECTION   11.   Extension  of  period  of  detention  without  judicial  warrant  of
arrest.-Any member of the Task Force who, having been duly authorized by the Council
in writing, has taken custody of a person suspected of committing any of the following
acts defined and penalized under Sections 3 and 4 of this Act, and Section 3 of RA 10845,
shall,  without  incurring  any  criminal  liability  for  delay  in  the  delivery  of  detained
persons to the proper judicial authorities, deliver said suspected person to the proper
judicial  authority within  a  period  of fourteen  (14)  calendar  days  counted  from  the
moment the suspected person has been apprehended or arrested, detained, and taken
into custody by the members of the Task Force and law enforcementagencies.
Articles, effects, and other properties used in the commission of the crimes enumerated
in this Act shall be immediately seized in accordance with the provisions of this Act, the
Customs Modernization and Tariff Act, Rules on Criminal Procedure, and existing laws,
rules, and regulations.
SECTION 12. Special Team of Prosecutors. -  To assist the Council and the Task Force
in  the  expeditious  prosecution  of criminal  and other  cases  covered  under this  law,  a
Special Team of Prosecutors from the Department of Justice shall be assigned to and be
under the supervision  of the  Council. The Team shall  have the  following powers  and
duties:
a.   To evaluate evidence gathered by the Council and to determine whether or not
violation of RA 10845, as amended, other related laws and regulations, and/ or
pertinent provisions of the Revised Penal Code, as amended, among others, has
been committed;
b.   To  apply for the  issuance  of warrant of seizure  and  detention  in  appropriate
Cases;
c.   To initiate and conduct preliminary investigations and timely file and prosecute
the appropriate administrative and criminal charges against the person, group, or
entity responsible for smuggling, hoarding, profiteering, and cartel; and
d.   To apply for the issuance of search warrant or warrant of arrest before the courts
in appropriate administrative or criminal cases.
SECTION 13. Funding. -Five percent (5%) of the total tariff collections from livestock,
poultryand dairy;  five percent (5%)  of the excess tariff collections from rice;  and five
percent (5%) of the total tariffs collected from other agricultural products enumerated
in Section 3 of this Act, shall be set aside to flnance the operations of the Council and the
Task Force and the implementation of this Act.
SECTION 14, Reporting Requirements. -The Council shall submit an annual report to
Congress on the progress and accomplishments made in the implementation of this Act,
including poliey recommendations to improve anti-smuggling operations.


SECTION  15.  Implementing  Rules  and  Regulations.-Within  thirty  (30)  days  from
effectivity of this Act, the Council shall, in coordination with other government agencies
concerned,  promulgate  the  mles  and  regulations  to  expeditiously  implement  the
provisions of this Act.
SECTION   16.   Repealing   clause.-All   laws,   decrees,   executive   orders,   rules   and
regulations, and other issuances, or parts thereof, contrary to or inconsistent with this
Act are hereby modified, amended or repealed accordingly.
SECTION   17.   Separabitity  Clause.   -If  any  provision   of  this  Act  shall   be   held
unconstitutional  or  invalid,  the  remaining provisions  which  are  not affected  thereby
shall continue to be in full force and effect.
SECTION 18. Effectivity. -ThisAct shall take effect fifteen (15) days after its publication
in the O#ci.a/ Gazette or in a newspaper of general circulation.
Approved,