FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
.. 
~~~~~~V~~ BY: 
.“...I 
Senate Bill No. - 
1463 
Introduced by Sen. Juan Ponce Enrile 
EXPLANATORY NOTE 
Presidential Decree (PD) No. 1464, otherwise known as the Tariff and Customs 
Code of the Philippines, grants a system of reward to customs officers and men and 
informers who can give information instrumental for the discovery and seizure of 
smuggled goods. Pertinently, there are various statutes like R.A. 2338 (An Act to Provide 
for Reward to Informers of Violations of the Internal Revenue and Customs Laws), R.A. 
8424 (An Act Amending the National Internal Revenue Code, as amended and for other 
purposes), R.A. 4712 (An Act Amending Certain Sections of the Tariff and Customs Code 
of the Philippines), P.D. 34 (Amending the Tariff and Customs Code of the Philippines), 
P.D. 707 (Amending Republic Act Numbered Twenty-three Hundred and Thirty-eight, 
entitled ‘An Act to Provide for Reward to Informers of Violations of the Internal Revenue 
Code and Customs Law‘), and P.D. 708 (Amending the Provisions Pertinent to the Grant 
of Reward under R.A. 4712 and R.A. 4713, entitled, ‘An Act Amending Certain Sections of 
the Tariff and Customs Code of the Philippines‘ and ‘An Act Amending Certain Sections of 
Commonwealth Act No. 466, as amended, otherwise known as the National Internal 
Revenue Code, Respectively’), among others, which were enacted granting similar 
reward system which stand in parimaterial with each other. 
Along this line, Section 3513 of P.D. No. 1464 explicitly provides: 
“The provisions of general and special laws to the contrary 
notwithstanding, a cash reward equivalent to twenty per centum 
(20%) of the fair market value of the smuggled and confiscated goods 
shall be given to the officers and men and informers who are 
instrumental in the discovery and seizure of such goods in accordance 
with the rules and regulations to be issued by the Secretary of 
Finance. 
The provisions of this section, and not those of Republic Act 
Numbered Twenty-three Hundred and Thirty-eight shall govern the 
giving of reward in cases covered by the former.” 
However, in practice, only assessment and intelligence frontline personnel 
performing enforcement functions in the Bureau of Customs (BOC) benefit from such 
grant of rewards to “officers and men”, while BOC lawyers are lamentably left to handle 
the tedious and protracted process of litigating and prosecuting customs-related cases, 
with no reward in sight. 
To encourage proper prosecution and speedy recovery of unpaid taxes and 
duties to meet out tax collection targets, this proposed Bill aims t o  include BOC lawyers 
to the entitlement considering their important and critical role in the tax collection 


effort of the Bureau. Thus, Section 3513 of P.D. 1464 should be amended to also reward 
BOC lawyers for successful prosecution of customs-related cases more so because the 
prosecution of smugglers and recover of unpaid duties and taxes requires technical 
and/or specialized competence and expertise in tariff laws and procedures which may 
not be available to non-customs lawyers. 
It is submitted that rewarding BOC lawyers is a practical solution to the perennial 
problem of dismissal of cases for failure to prosecute and other legal technicalities. It 
shall also encourage BOC lawyers to do the extra mile in prosecuting smugglers, 
unmindful of the dangers and/or hazards it brings to their own personal safety and 
security, or that of their families’. 
More importantly, this Bill is a proactive mechanism necessary to revitalize the 
Bureau as it will foster positive action and cooperation between BOC employees and 
lawyers in the proper implementation and enforcement of customs laws. Also, this bill 
will further enhance the Bureau’s 5-Point Action Plan, foremost of which is to increase 
revenue collections. Beyond argument, this enhanced reward system will benefit not 
only those instrumental in the discovery and seizure of smuggled goods but also those 
instrumental in recovering revenues and/or successfully prosecuting smugglers. Truth 
to tell, this incentive will sustain their relentless effort to prosecute smugglers and 
forfeit smuggled goods even beyond their call of duty. 
All told, the immediately passage of this bill is earnestly sought. 


FOURTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
1 
First Regular Session 
1 
SENATE 
Senate Bill No. 
Introduced by Sen. Juan Ponce Enrile 
AN ACT 
AMENDING SECTION 3513 OF PRESIDENTIAL DECREE NO. 1464, OTHERWISE KNOWN 
AS THE TARIFF AND CUSTOMS CODE OF THE PHILIPPINES, AND OTHER PURPOSES 
Be it enacted in the Senate and House of Representatives in Congress assembled: 
Section 1. Section 3513, Book II, Title VII, Part II, of P.D. 1464, otherwise known as the 
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Sec. 3513. Reward to Persons Instrumental in the Discovery and Seizure 
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of or Recovery of Revenue on Smuggled Goods and Successful Prosecution of 
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Offenders. - The provisions of general and special laws to the contrary 
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notwithstanding, a cash reward equivalent to twenty per centum (20%) of the 
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[fair market value of] REVENUE RECOVERED FROM the [smuggled and] SEIZED 
Tariff and Customs Code of the Philippines, is hereby amended to read as follows: 
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OR confiscated goods shall be given to the officers and men and informers who 
are instrumental in the discovery and seizure of such goods [in accordance with 
the rules and regulations to be issued by the Secretary of Finance.]; PROVIDED, 
THAT IN CASE OF SUCCESSFUL PROSECUTION OF SMUGGLERS OR SEIZURE AND 
FORFEITURE CASES, THE AMOUNT EQUIVALENT TO TEN PER CENTUM (PlO%) 
THEREOF SHALL BE GIVEN TO BUREAU OF CUSTOMS LAWYERIS WHO ACTIVELY 
PROSECUTED THE CASE THAT RESULTED IN THE RECOVERY OF REVENUE, 
SURCHARGES, AND FEES, OR IMPOSITION OF FINE OR PENALTY OR OFFER OF 
COMPROMISE BY THE OFFENDER, OR CONVICTION OF THE OFFENDER; 
PROVIDED, FURTHER, THAT IN CASE OF CONVICTION, WHERE THE PENALTY IS 
INCAPABLE OF PECUNIARY ESTIMATION, THE AMOUNT OF REWARD SHALL BE 


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EQUIVALENT TO TWENTY PER CENTUM (20%) OF THE CIVIL LIABILITY INCLUDING 
FINES, PENALTIES AND SURCHARGES IMPOSED BY THE COURT; PROVIDED, 
FINALLY, THAT WHERE NO CIVIL LIABILITY IS AWARDED BY THE COURT, THE SUM 
OF P250,OOO.OO OR P500,OOO.OO SHALL BE GRANTED WHERE THE CASE IS 
RESOLVED WITH FINALITY IN THE TRIAL COURT OR THE APPELLATE COURTS, 
RESPECTIVELY. 
The provisions of this section, not those of Republic Act Numbered 
Twenty-three Hundred and Thirty-eight, shall govern the giving of reward cases 
covered by the former. 
Sec. 2. lmplementing Rules and Regulations. -Within sixty (60) 
days from the approval 
of this Act, the Bureau of Customs shall promulgate such rules and regulations as may be 
necessary to carry out the provisions of this Act, subject to the approval of the Secretary of 
Finance. 
Sec. 3. Repealing Clause. -All laws, orders, issuances, circulars, rules and regulations or 
parts thereof, which are inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
Sec. 4. Separability Clause. - If any provision of this Act is declared unconstitutional or 
invalid, other parts or provisions hereof not affected shall continue in full force and effect. 
Sec. 5. Effectivity. - This Act shall take effect after fifteen (15) days following its 
publication in at least two (2) newspapers of general circulation. 
Approved