JAN 30, 2016

NR # 4095

Committee on Ways and Means endorses plenary approval of bill

declaring large-scale agricultural smuggling as economic sabotage
The House Committee on Ways and Means has endorsed for plenary approval a bill seeking to
declare large-scale agricultural smuggling as economic sabotage and punishable by life
imprisonment.
The committee chaired by Rep. Romero S. Quimbo (2 nd District, Marikina City) approved
House Bill 6380 or the proposed Anti-Agricultural Smuggling Act, which substituted House Bill
6171 authored by Rep. Delphin Gan Lee (Party-list, AGRI), HB 6209 by Rep. Conrado M. Estrella
III (Party-list, ABONO), HB 6259 by Quimbo, and HB 6306 by Rep. Mark A. Villar (Lone District,
Las Pias City).
Citing a report by the Samahang Industriya ng Agrikultura (SINAG), Quimbo said that from
2013 to 2014, the government incurred a total of P64 billion foregone revenue due to the widespread
smuggling of agricultural products.
This amount represents a P32 billion loss per year, which could have been used for the
construction of approximately 21,000 classrooms, or 2,600 health centers. In fact, the amount of loss
reported for these two years is more than enough to cover the budget of the Department of
Agriculture (DA) for 2016, and with an excess sufficient to help rehabilitate our agricultural sector,
said Quimbo.
With the adverse effects of agricultural smuggling to the government budget, food security,
poverty alleviation, and its connection to all other national concerns, Quimbo said there is thus the
need to strengthen laws to deter its commission.
House Bill 6380 declares it is the State policy to promote the 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 affect t the production, availability
of supply and stability of prices, and the food security of the State.
Furthermore, the State shall impose higher sanctions on large-scale smuggling of agricultural
products, as a measure to shield the agricultural sector from the manipulation of economic saboteurs,
and to protect the livelihood of farmers and ensure their economic well-being.
The bill defines economic sabotage as any act or activity which undermines, weakens or
renders into disrepute the economic system or viability of the country or tends to bring out such
effects and shall include, among others, price manipulation to the prejudice of the public especially in
the sale of basic necessities and prime commodities.
It refers to agricultural product as any agricultural commodity or product, whether plant
based, animal based, raw or processed, including any commodity or product derived from livestock
that is available for human or livestock consumption. This definition includes fish, forestry, seeds,
poultry and dairy products that have undergone various degrees of processing.

It provides that the crime of large-scale agricultural smuggling as economic sabotage,

involving sugar, corn, pork, poultry, garlic, onion, carrots, fish, and cruciferous vegetables, in their
raw state, or which have undergone the simple processes of preparation or preservation for the
market, with a minimum amount of P1 million, or rice with a minimum amount of P10 million, as
valued by the Bureau of Customs (BOC) is deemed committed through the following acts:
a. Importing or bringing into the country without the required import permit from the
regulatory agencies;
b. Using import permits of persons, natural, juridical or entities without juridical personality
other than those specifically named in the permit;
c. Using fake, fictitious or fraudulent import permits or shipping documents, names of
natural or juridical persons or entities without juridical personality, and addresses of
consignee;
d. Selling, lending, leasing, assigning, consenting or allowing the use of import permits of
corporations, nongovernment organizations (NGOs), 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 to evade the payment of rightful taxes and duties due to
the government;
f. Organizing or using corporations, NGOs, cooperatives, single proprietorships to acquire
import permits;
g. Transporting or storing the agricultural product subject to economic sabotage regardless of
quantity; or
h. Acting as broker of the violating importer.
Any person who commits any of these acts shall be penalized with life imprisonment and a
fine of twice the fair value of the smuggled agricultural product in the abovementioned kind and
value, and the aggregate amount of the taxes, duties and other charges legally due on the said
smuggled agricultural product.
The bill provides for a penalty of 17 to 20 years of imprisonment, and a fine of twice the fair
value of the smuggled agricultural products and the aggregate amount of taxes, duties and other
charges avoided, to the officers of dummy corporations and other entities who knowingly sell, lend,
lease, assign, consent or allow the unauthorized use of their import permits for purposes of
smuggling.
Meanwhile, imprisonment of 14 to 17 years and a fine equal to the fair value of the smuggled
agricultural product and the aggregate amount of taxes, duties and other charges avoided, shall be
imposed on the registered owner and its lessee of boats, vessels, trucks, vans and other means of
transportation used in the transport of smuggled agricultural products subject to economic sabotage.
The same penalty awaits the owner and lessee of a warehouse or property, who knowingly
stores the smuggled agricultural product. The same penalty shall also be imposed on the registered
owner, lessee, president or chief executive officer of the private port, fish port, fish landing sites,
resorts, airports, who knowingly allow agricultural smuggling.
If the offender is a government official 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.
Other authors of HB 6380 are: Reps. Mylene J. Garcia-Albano, Estrellita B. Suansing,
Delphine Gan Lee, Raneo E. Abu, Nicanor M. Briones, Raul Del Mar, Agapito H. Guanlao,
Magtanggol T. Gunigundo, Joseller M. Guiao, and Andres D. Salvacion, Jr. (30) rbb