Bill seeks to declare rice smuggling as an act of economic sabotage

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MANILA — A lady lawmaker has filed a bill declaring rice smuggling as an act of economic sabotage punishable by heavy penalties.

Rep. Susan Yap (2nd District, Tarlac) said House Bill No. 4676, to be known as the Anti-Rice Smuggling Act of 2014, shall penalize any person found guilty of smuggling a minimum aggregate value of Php 1 million worth of rice.

Yap said the increasing number of free trade agreements and the Revised Kyoto Protocol stress the need to refocus the role of the Bureau of Customs from trade regulation to trade facilitation.

“With this shift in the policy environment, and with the impending implementation of the Asian Economic Community by 2015, we must remain vigilant in ensuring food security against rice smuggling,” Yap said.

Yap filed the bill as she cited newspaper reports of the rampant rice smuggling with some smugglers exploiting farmers’ cooperatives by using their import quotas.

“Under this proposal, the acts of rice smuggling, including technical smuggling, are acts inimical to national interest, economic growth and development,” Yap said.

The measure defines economic sabotage as an act which undermines, weakens or renders into disrepute the economic system or viability of the country or tends to bring about such effects.

Smuggling refers to the act of importing or bringing into the Philippines, any article, good or product without the corresponding documents, permits or licenses.

Technical smuggling, on the other hand, pertains to misdeclaration, misclassification, or undervaluation of imported goods or products in violation of the Tariff and Customs Code of the Philippines and other related laws.

The measure provides that the violators shall pay a fine equal to twice the fair value of the smuggled rice, equal to the aggregate amount of the taxes, duties and other charges avoided and also possibly face life imprisonment. The smuggled rice shall also be confiscated.

When the offender is a juridical person, criminal liability shall attach to its president, chief operating officer or manager and their business permit and license may be revoked or cancelled.

The broker of violating importers shall likewise be held liable and charged as principal.

Also, under the measure, when the offender is a government official or employee acting in connivance with private individuals or entities or other government officials or employees, he shall be imposed the same penalty as the principal offender, and be disqualified from holding any public office, whether by election or appointment.

The Bureau of Customs, in coordination with the appropriate agencies, shall promulgate the implementing rules and regulations for the effectivity of the proposed Act.