Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HOUSE BILL No.   8600
Introduced  by:  Hon.  Keith  Micah "Atty.  Mike"  D.L.  Tan
AN ACT
AMENDING CERTAIN  PROVISIONS OF REPUBLIC ACT NO.10845, OTHERWISE KNOWN
AS THE ANTl-AGRICULTURAL SMUGGLING ACT OF
2016
EXPLANATORY NOTE
Article Xll,  Section  1  of the  1987  Philippine Constitution states that:
"The  goals  of the  national  economy  are  a  more  equitable  distribution  of  opportunities,
income,  and wealth;  a sustained increase in the amount of goods and services produced by the
nation  for  the  benefit  of  the  people;  and  an  expanding  productivity  as  the  key  to  raising  the
quality of life for all,  especially the underprivileged.
The    State   shall    promote    industrialization    and   full    employment    based    on    sound
agricultural development and agrarian  reform,  through  industries that make full and efficient use
of  human  and   natural   resources,   and  which   are  competitive   in   both  domestic  and  foreign
markets.  However,  the  State shall  protect  Filipino  enterprises against  unfair foreign  competition
and trade practices.
In  the  pursuit  of these  goals,  all  sectors  of the  economy  and  all  regions  of the  country
shall   be  given   optimum   opportunity  to   develop.   Private   enterprises,   including   corporations,
cooperatives,  and  similar collective  organizations,  shall  be  encouraged  to  broaden the  base  of
their ownership."
Pursuant to this  goal,  Republic Act  No.10845,  otherwise  known  as the Anti-Agricultural
Smuggling Act of 2016 was  passed  into  law with the  primary objective of protecting the  Filipino
farmers and their families with the rise of agricultural smuggling in the country.
Since  the  law's  passage  in  2016,  however,  even  if there  have  been  several  reports  of
seizure   of  smuggled   products,   there   have   been   no   prosecution   of  individuals,   groups   or
corporations under the  law.  It may appear that some  have mastered  how to circumvent the law
in order not to be punished.
Obviously,    Republic   Act   No,    10845's   potential   to   finally   end   illegal   activities   that
sabotage the country's  economy and the  livelihood  of farmers  have  not been  fully  utilized  over
the  years.  The  present  condition  of  our  farmers  and  the  rising  price  of  agricultural  products
because of its scarcity reflect the failure of national  government agencies to fully  implement the
law.
The  Economist's  2021   Global  Food  Security  Index  (GFsl)  reveals  that  the  Philippines
ranked  64th  out of  113  countries  in terms  of four dimensions  of food  security -food  availability,
food  accessibility,  food  utilization  and stability.
The  difficulty of the country to  cope with  other countries  in terms  of food  security  is  apparent  in
the rising prices of basic commodities and the scarcity and shortage of such.
The  country  has  been  experiencing  the  highest  price  of onion  in  recent  history  -  an  all-
time   high   of  P700   per  kilogram.   This  was   made  worse   by  reports  of  smuggling   and   price
manipulations by unscrupulous people.


Based  on  the  records  of the  Bureau  of Customs,  a  total  value  of Pl.2  billion  smuggled
agricultural  products have  been  confiscated in 2022.  In  connection with this  is the millions worth
of revenues that the government is losing as a result of smuggling which is revealed to be P250
million  per year.
President  Bongbong  Marcos  has  recognized  the widespread  smuggling  with  his  recent
call for significant reforms in the bureaucracy in order to thwart and curtail the proliferation of the
Same.
In light of this,  it is high time to introduce amendments to the law,  in order to address and
hopefully  end  not  only  smuggling,  but  also  the  issues  of  hoarding,   profiteering  and  cartel  of
agricultural  products.
The  ultimate  goal  is  safeguarding  our farmers,  consumers  and  the  agricultural  sector,
and attaining the goal of food security for the country.
In   view   of   this,   the   proposed   legislation   will   consider   as   economic   sabotage   the
hoarding,   profiteering  and  cartel  of  sugar,  corn,   pork,  poultry,  garlic,  onion,  carrots,  fish  and
cruciferous vegetables in the amount of one million  pesos (P1,000,000.00) or rice in the amount
of ten million  pesos (P10,000,000).
Moreover,  in  order  to  strengthen  the  enforcement  and  implementation  of  the  law,  an
Inter-Agency  Council  on  Economic  Intelligence  will  be  created.  This  will  be  co-chaired  by  the
Department of Agriculture,  Department of Trade and  Industry,  and the  Bureau of Customs,  and
will  include  Department of Justice  (DOJ),  National  Bureau  of Investigation  (NBI),  Department of
Interior And  Local  Government  (DILG),  Philippine  National  Police  (PNP),  Philippine  Competition
Commission  (PCC),   National  Security  Council   (NSC),  And  National  Intelligence  Coordinating
Agency (NICA).
In view thereof,  immediate consideration and passage of this measure is highly sought.
I-,
Kei,h#<c-
Micah "Atty.  Mike"  D.L. Tan
4th District,  Quezon


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
Second Regular Session
HoUSE BILL No.  8600
Introduced  by:  Hon.  Keith  Micah "Atty.  Mike"  D.L.  Tan
AN ACT
AMENDING CERTAIN PROVISIONS OF REPUBLIC ACT NO.10845, OTHERWISE KNOWN
AS THE ANTl-AGRICULTURAL SMUGGLING ACT OF
2016
Be  it enacted  by the  Senate and the  House of Representatives of the  Philippines in  Congress
assembled:
SECTION  1.  The title of Republic Act No.  10845 is hereby amended to read as follows:
"AN  ACT  DECLARING   LARGE-SCALE  AGRICULTURAL  SMUGGLING,   HOARDING,
PROFITEERING,   CARTEL,   AND   OTHER   ACTS   OF   MARKET   ABUSES   AS   ECONOMIC
SABOTAGE,  PRESCRIBING PENALTIES THEREFORE AND FOR OTHER PURPOSES"
SEC.   2.   Section   1   of  Republic  Act  (R.A.)   No.10845  is  hereby  amended  to  read  as
follows:
"SECTION    1.   SHORT   TITLE.   -This   Act   shall   be   known   as   the   "Anti-Agricultural
[Smuggling] ECONOMIC SABOTAGE Act of 2023".
SEC.  3.  Section 2 of R.A.  No.10845 is hereby amended to read as follows:
"See.  2.  Declaration  of Policy.  - It is the policy of the State to promote that productivity of
the  agriculture sector and  to  protect farmers from  unscrupulous traders  and  importers,  who  by
their   illegal    importation    of   agricultural    products,    especially    rice,    significantly    affects   the
production,  availability of supply and stability of process and food security of the State.
FURTHERMORE,   IT   IS  ALSO  THE   POLICY  OF  THE   STATE  TO   PROMOTE   THE
AFFORDABILITY  OF  FOOD  AND  OTHER  AGRICULTURAL  COMMODITIES  FOR  FILIPINO
CONSUMERS  BY PREVENTING  LARGE-SCALE ABUSE OF  MARKET POWER,  HOARDING
AND OTHER PRACTICES TO MANIPULATE PRICES AND UNDULY RESTRAIN SUPPLY.
The   State   shall   impose   higher   sanctions   for   large-scale   smuggling   of   agricultural
products AND  OTHER ABUSES  OF  MARKET  POWER  as 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 CONSUMERS."
SEC.  4.  A  new  Section  3-A  shall  be  inserted  after Section  3  of R.A.  No.10845 to  read
as:
"SEC.    3-A.    LARGE-SCALE   AGRICULTURAL    HOARDING,    PROFITEERING,    AND
CARTEL  AS   ECONOMIC   SABOTAGE.   -   HOARDING,   PROFITEERING,   OR   CARTEL,   AS
DEFINED   IN   SECTION   5   0F   REPUBLIC   ACT   NO.   7518,   lNSOFAR  AS   THEY   INVOLVE
SUGAR,  CORN,  PORK,  POULTRY,  GARLIC,  ONION,  CARROTS,  FISH AND CRUCIFEROUS
VEGETABLES,    lN    ITS    RAW   STATE,    OR   WHICH    HAVE    UNDERGONE   THE    SIMPLE
PROCESSES   OF    PREPARATION   OF    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   (P10,000,000.00),   AS   VALUED   BY   THE   DEPARTMENT   OF
AGRICULTURE  FOR  DOMESTICALLY  PRODUCED  COMMODITIES,  SHALL  CONSTITUTE
ECONOMIC SABOTAGE."


SEC.  5. A new Section 5 shall be inserted after Section 3 of R.A.  No.10845 to read as:
"SEC.    5.    THERE    IS    HEREBY    CREATED   AN    INTER-   AGENCY   COUNCIL   ON
ECONOMIC   INTELLIGENCE,   HEREINAFTER   REFERRED   TO  AS   "COUNCIL",   WHICH   IS
MANDATED   TO   ENFORCE   THE   PROVISIONS   OF   THIS   ACT   AND   TO   PRINCIPALLY
COMBAT  SMUGGLING,   HOARDING,   PROFITEERING,   AND   CARTEL:   PROVIDED,   THAT
THE  TASK  FORCE  SHALL  BE  CO-CHAIRED  BY  THE  DEPARTMENT  OF  AGRICULTURE
(DA),  DEPARTMENT  OF  TRADE  AND  INDUSTRY  (DTl),  AND  THE  BUREAU  OF  CUSTOMS
(BOC)   AND   SHALL   INCLUDE   AS   MEMBERS   THE   DEPARTMENT   OF   JUSTICE   (DOJ),
NATIONAL   BUREAU   OF   INVESTIGATION   (NBI),   DEPARTMENT  OF  THE   INTERIOR  AND
LOCAL    GOVERNMENT    (DILG),     PHILIPPINE     NATIONAL    POLICE     (PNP),     PHILIPPINE
COMPETITION     COMMISSION    (PCC),     NATIONAL    SECURITY    COUNCIL    (NCS),    AND
NATIONAL INTELLIGENCE  COORDINATING AGENCY (NICA)."
SEC.  6.  Section 4 of R.A.  No.10845 is hereby amended to read as follows:
"Sec. 4.  Penalties.  -(a) The penalty of life imprisonment and a fine of twice the fair value
of    smuggled     agricultural     product     OR     THE     PRODUCT     SUBJECT    TO     HOARDING/
PROFITEERING/  OR   CARTEL   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 Sections 3 AND 3-A of this Act.
(b) The penalty of imprisonment of not less than seventeen (17) years but not more than
(20) years,  and  a fine of twice the fair value of the smuggled,  PROFITEERED/ HOARDED/ OR
CARTELLED  agricultural  product  and  the  aggregate  amount  of  the  taxes,   duties  and  other
charges  avoided  shall  be  imposed  on  the  officers  of  dummy  corporations,   non-government
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,  PROFITEERING/ HOARDING/ OR CARTELLING.
(c)  The  penalty  of imprisonment of not  less than fourteen  (14)  years  but  not  more than
seventeen  (17)  years,   and  a  fine  of  twice  the  fair  value  of  the  smuggled,   PROFITEERED/
HOARDED/  OR  CARTELLED  agricultural   product  and  the  aggregate  amount  of  the  taxes,
duties and other charges avoided shall be imposed on the following:
XXX
(3)  The  registered  owner  and  lessee  of a  warehouse,  or  any  property,  who  knowingly
stores   the   smuggled,    PROFITEERED,    HOARDED,    OR   CARTELLED   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 TO BE HOARDED WITHIN THEIR FACILITIES."
SEC.  7.  Section 7 of R.A.  No.10845 is hereby amended to read as:
"See.  7.  Prescription of Crimes.  -The crimes  punishable  under this Act shall  prescribe in
twenty (20) years."
SEC.  8.  /mp/emenf/'ng Ru/es and Regu/af/-ons.  -The  DA,  DTI AND  BOC,  in  consultation
with  concerned  agencies,  shall  promulgate  the  implementing  rules  and  regulations  of this  Act
within thirty (30) days upon  its effectivity.
SEC.    9.    Saparab/.//ty   C/ause.    -   lf   any   portion   of   this   Act   is   declared   invalid   or
unconstitutional the portions or provisions which are not affected shall continue to be in full force
and effect.
SEC.    10.   Rapea//.ng   C/ause.   -   All   laws,   decrees,   executive   issuances,   rules   and
regulations inconsistent with this Act are hereby repealed and/or modified accordingly.
SEC.  11.  Effect/.vt.fy C/ause.  -This Act shall take effect after fifteen (15) days following  its


publication either in the Official Gazette or in two (2) newspapers of general circulation.
Approved,