Anti-Agricultural Economic Sabotage Act (Republic Act No. 12022)

(a) Abnormal Situation refers to supply shortage or any other equivalent document issued for the importation of unreasonable increase in prices of agricultural and fishery agricultural and fishery products; products. It may pertain to only one (1) agricultural or fishery product; (g) Importation refers to the act of bringing in goods from a foreign territory into the Philippine territory, whether for

(b) Broker refers to any person who acts as such, whether consumption, warehousing, or admission as defined in Republic licensed or not, whose services consist of any of the following: Act No. 10863 or the "Customs Modernization and Tariff Act consultation; preparation of customs requisite document for (CMTA)"; imports and exports; declaration of customs duties and taxes; preparation, signing, filing, lodging, and processing of import (h) Person refers to a natural or juridical person; entries; acting as facilitator; acting as agent of importers before government agencies and private entities; and rendering other (i) Sanitary and Phytosanitary (SPS) Measures refer to services on matters relating to customs and tariff laws, its any legislation, regulation, requirement, or procedure applied procedures, and practices; 4 5 for the purpose of (1) protecting animal or plant life and health For purposes of this Act, smuggled tobacco refers to within the territory of the Philippines from risks arising tobacco that is: from the entry, establishment, or spread of pests, diseases, disease-carrying organisms or disease-causing organisms; (1) Not compliant with prevailing laws, or with the (2) protecting human or animal life and health from risks following processes and requirements of the Bureau of Internal arising from additives, contaminants, toxins, or disease-causing Revenue (BIR) and/or other relevant regulatory agencies for the organisms in agricultural imported products; (3) protecting importation of tobacco products including the: human life and health from risks arising from diseases carried by animals, plants, or products thereof, or from the entry, (i) Registration with the BIR of the particular variant establishment, or spread of pests; or (4) preventing or limiting and brand to be imported; other damage from the entry, establishment, or spread of pests within the territory of the Philippines; (ii) Pre-approval of packaging bearing the required graphic health warnings and other mandated fiscal markings for imported tobacco products; and (j) Simple Process of Preparation or Preservation of an Agricultural and Fishery Product for the Market refers to the (iii) Advance payment of excise taxes and affixing of genuine process of handling agricultural and fishery products in its required tax stamp or marking as proof of payment; or original state through freezing, drying, salting, broiling, roasting, smoking, or stripping; (2) Subject of a misdeclaration, misclassification, and/or undervaluation, resulting in the non-payment of the proper (k) SPS Import Clearance refers to the document issued customs duties. by the concerned bureau or agency prior to importation to ensure that imported products meet the standards to protect The sale of tobacco products at a price thirty percent human, animal, or plant life and health, ensure that the (30%) below the DPI shall raise the presumption that acts of agricultural or fishery products are safe for consumers, and smuggling have been committed; to prevent the spread of pests or diseases among animals or plap.ts. Such document also prescribes the conditions to be (m) Trade Regulatory Agencies refer to the Bureau of complied with by the importer to maintain the quality and Plant Industry (BPI), Bureau of Animal Industry (BAI), Bureau suitability of the product for its intended purpose; of Fisheries and Aquatic Resources (BFAR), National Meat Inspection Service (NMIS), National Tobacco Administration (1) Tobacco refers to unmanufactured and manufactured (NTA), and Sugar Regulatory Administration (SRA); and tobacco, including finished products such as cigars, cigarettes, or heated tobacco products. (n) Value refers to the retail prices of agricultural and fishery products as set by the DPI, multiplied by the quantity Unmanufactured tobacco refers to agricultural of the product at the time of the commission of the crime. components derived from the tobacco plant, which are For manufactured tobacco, the retail price shall be inclusive processed for use in the manufacturing of cigarettes and other of excise tax and value-added tax (VAT). tobacco products. SEC. 4. Covered Agricultural and Fishery Products. - The following agricultural and fishery products are covered Manufactured tobacco refers to any finished product that under this Act: rice, corn, beef and other ruminants, pork, contains tobacco such as cigarettes, cigars, heated tobacco poultry, garlic, onion, carrots, other vegetables, fruits, fish, salt, products, or any product containing tobacco that is intended and other aquatic products in their raw state or which have for smoking, heating, puffing, oral, or nasal use. 6 7 undergone the simple process of preparation or preservation (a) The name of the owner of the facility; for the market within the primary and post-harvest stages of the food supply chain, palm oil, palm olein, raw and refined (b) The contractual arrangement for the use of the facility sugar, and tobacco. (whether leased or other arrangements), if applicable; SEC. 5. Daily Price Index. - In support of the (c) The complete address of the facility; implementation of this Act, the Agribusiness and Marketing Assistance Service (AMAS) and the Bureau of Agricultural (d) The agricultural and fishery products being stored in Research (BAR) of the Department of Agriculture (DA) are said facility; hereby mandated to establish, strengthen, and maintain a DPI: (e) The maximum storage capacity of the facility for a Provided, That the BIR, in consultation with the NTA, particular product in bags, sacks, or kilos; and will set a minimum price for the sale of tobacco products. The minimum retail price shall take into account the applicable (f) The inventory of any agricultural product in the facility at any given time. taxes, reasonable production cost, and trade margins for the lowest priced brands registered with the BIR. They shall prepare a monthly report on the operations of the said facilities, which shall include an inventory of any The AMAS and BAR, in coming up with the prices, agricultural product in the facilities at any given time, which shall ensure that the DPI exhibits transparency and shall be electronically submitted quarterly to the Council, under accountability and is published on their official websites and Section 15 of this Act, through the regulatory agency. social media platforms. These agencies shall be subject to a periodic audit by an independent party to be decided upon by Failure to produce documents and/or records required to the Anti-Agricultural Economic Sabotage Council (Council). be acquired or maintained under this Act, applicable laws, rules, or regulations in connection to a business transaction, The DA shall finish the establishment of the DPI within or failure to produce a copy of an updated report of the ninety (90) days from the effectivity of this Act. operations of the facilities as submitted to the Council through the regulatory agency, upon demand by any member or a • Failure in the implementation of this section shall render combination of members of the Enforcement Group, shall the head of the concerned offices of the DA liable for constitute a prima facie evidence of violation of this Act: administrative and criminal prosecution in accordance with Provided, That the collection, storage, utilization, and applicable laws and regulations. transmission of such record submitted to the Council shall be in accordance with Republic Act No. 10173 or the "Data SEC. 6. Registration and Reportorial Requirements. - Privacy Act of 2012". Upon effectivity of this Act, all persons engaged in a business involving agricultural and fishery products shall maintain CHAPTER III records of their business, which shall be safely stored for five ECONOMIC SABOTAGE (5) years from the dates of transactions. SEC. 7. Agricultural Smuggling as Economic Sabotage. - All persons with warehouses, cold storage facilities, or Smuggling is the fraudulent act of importing or bringing any property involved in the storage of agricultural and agricultural and fishery products into the country, or the act fishery products, whether owned, leased, or maintained of assisting in receiving, concealing, buying, selling, disposing, through third persons, shall, upon effectivity of this Act, storing, or transporting such products, with full knowledge that register the storage facilities with the appropriate regulatory the same have been fraudulently imported. agencies, stati~g therein: 8 9 The crime of agricultural smuggling as economic sabotage any of the above means, regardless of the value. Selling of is committed when the value of each or of the combination tobacco products below the DPI is likewise prohibited; or of agricultural and fishery products smuggled by a person is at least Ten million pesos (Pl0,000,000.00) computed using the (k) Having been convicted of acts of smuggling under DPI at the time the crime was committed. relevant provisions of the CMTA on two (2) separate instances, Agricultural smuggling as used in this Act shall be commits a third violation, which shall now be covered by this committed through any of the following acts: Act, regardless of the value of the product. (a) Importing or bringing agricultural and fishery products The Enforcement Group, on the strength of a Letter of into the Philippines without the required import clearance from Authority (LOA) issued by the Council, shall have the regulatory agencies; authority to visit areas where the agricultural and fishery products are located, for the purpose of ensuring compliance (b) Use of import clearance by persons other than those with this Act and other relevant laws concerning the specifically named in the permit; importation, storage, and/or sale of agricultural and fishery products. The Enforcement Group shall give due notice to

(c) Use of fake, false, fictitious, or fraudulent import clearance, shipping documents, or any other transport documentation; the relevant persons, who may be the owner, possessor, or person exercising control over the agricultural and fishery

(d) Selling, lending, leasing, assigning, consenting to, or products, to provide proof of compliance with this Act, allowing the use by other persons of the import clearance in particularly import documents and proof of payment of duties the name of corporations, nongovernment organizations, and taxes in the case of importers, and purchase receipts from associations, cooperatives, partnerships, or single proprietorships; suppliers in the case of business establishments other than importers, within twenty-four (24) hours, pending which, the

(e) Misclassification, undervaluation, or misdeclaration upon goods shall be placed in the constructive custody of the the filing of import entry declaration or transport documentation Enforcement Group. with the Bureau of Customs (BOC) in order to evade the payment of correct taxes and duties due the government; In the event that the relevant person fails to produce

(f) Organizing or using dummy corporations, such evidence of compliance within twenty-four (24) hours, the nongovernment organizations, associations, cooperatives, Enforcement Group shall immediately apply for a seizure order partnerships, or single proprietorships for the purpose of and file the relevant case or criminal action in court. Pending acquiring import clearance; the issuance or denial of the seizure order, the subject goods shall remain in constructive custody.

(g) Knowingly transporting or storing smuggled agricultural and fishery products; The mere possession or presence of agricultural and fishery products which have been the subject of smuggling

(h) Acting as a broker of the importer; referred to in this Act in any fish port, fish landing site, resort, airport, BOC-controlled port, or any warehouse, cold storage,

(i) Allowing the use of a private port, fish port, fish landing site, resort, and/or airport to perpetrate economic sabotage; vessel, transport conveyance, and other storage areas shall constitute prima facie evidence of agricultural smuggling as

(j) Distributing, selling, or dealing in any other manner economic sabotage. with any agricultural and fishery product which a person knows or should have known to have been imported through Any provision of the CMTA to the contrary notwithstanding: 10 11 (a) The assessment of duties and taxes of the agricultural Agencies to administrative and criminal prosecution m and fishery products shall be based on the classification entered accordance with applicable laws and regulations. in the import entry declaration; SEC. 8. Agricultural Hoarding as Economic Sabotage. - (b) The assessment and readjustment of appraisal of the Agricultural hoarding as economic sabotage is committed by agricultural and fishery products subject of this Act, insofar a person or combination of persons by having stocks of as allowing the BOC to adjust and settle the final assessment, agricultural and fishery products in excess of thirty percent are hereby disallowed; and (30%) of their normal inventory level ten (10) days after the declaration of an abnormal situation by the Council or after (c) The Trade Regulatory Agencies are hereby empowered to declare misclassification and misdeclaration, as found in the declaration of an emergency or state of calamity by violation of the import clearance. competent authority. SEC. 7-A. Implementation of the National Single Window Upon the declaration of an abnormal situation by the (NSW). - The BOC and all Trade Regulatory Agencies shall Council, or an emergency or state of calamity by competent fully implement the NSW program as originally mandated in authority, all persons shall sell to the public their stocks of Executive Order No. 482," series of 2005, within ninety (90) agricultural and fishery products in excess of their normal days from the effectivity of this Act. inventory level within ten (10) days from the said declaration. Upon the effectivity of this Act and until the full After ten (10) days from said declaration, the Enforcement implementation of the NSW, the BOC and Trade Regulatory Group, on the strength of a LOA issued by the Council, shall Agencies concerned shall, immediately after approval of import have the authority to visit areas where the agricultural and application and receipt of notice of arrival, furnish the Council fishery products are located, for the purpose of ensuring with electronic copies of the following: compliance with this Act and other relevant laws concerning the sale of agricultural and fishery products to the general (a) All import applications containing relevant information public. The Enforcement Group shall give due notice to the of the importer(s), consignee(s), and broker(s); relevant persons, who may be the owner, possessor, or person exercising control over the agricultural and fishery products, • (b) All import orders and import clearances; to provide proof of compliance with this Act, particularly documentary proof that stocks are within normal inventory (c) Name and other relevant information of the foreign level or final contracts of sale covering existing stocks, within exporter(s); twenty-four (24) hours, pending which the goods shall be placed (d) All certificates issued in the country of origin proving in the constructive custody of the Enforcement Group. compliance with the conditions set in the import clearance; In the event that the relevant person fails to produce (e) Other equivalent documents issued to or submitted by such evidence of compliance within twenty-four (24) hours, the importers of agricultural and fishery products; and Enforcement Group shall immediately apply for a seizure order and file the relevant case or criminal action in court. Pending (f) Such other relevant documents as may be required the issuance or denial of the seizure order, the subject goods by the Council pursuant to the implementation of this Act. shall remain in constructive custody. Failure to implement the NSW and/or furnish the In cases where the business has been in existence for Council with the above-enumerated documents shall subject the more than a year, the normal inventory level shall be the head of the concerned office of the BOC and Trade Regulatory average inventory for the twenty-four (24)-month period preceding the declaration by the Council of an abnormal 12 13 situation, or declaration by competent authority of emergency SEC. 10. Engaging in Cartel as Economic Sabotage. - or state of calamity; otherwise, normal inventory level shall There shall be prima facie evidence of engagement in cartel be the average of the months from the start of the business. as economic sabotage when two (2) or more persons competing for the same market and dealing in the same agricultural and SEC. 9. Agricultural Profiteering as Economic Sabotage. - fishery products agree to perform uniform, simultaneous, or Agricultural profiteering as economic sabotage is the sale or complementary acts among themselves and actually perform offer for sale of agricultural and fishery products at a price at least ten percent (10%) in excess of the DPI, at the time such acts designed to artificially and unreasonably increase or of the declaration of an abnormal situation by the Council, or manipulate the supply or prices of such products, thereby emergency or state of calamity by competent authority. stifling competition, as defined in Section 14 of Republic Act No. 10667 or the "Philippine Competition Act", to the detriment Profiteering shall not apply to retailers who purchase of consumers, or the decrease in farmgate prices to the goods from wholesalers, importers, or producers, and directly detriment of the agricultural and fishery producers: sell in smaller quantities to the general public, usually in wet markets, talipapa, and cooperative stores with capitalization Provided, That an agreement herein refers to any type not exceeding Two hundred thousand pesos (P200,000.00), or form of contract, arrangement, understanding, collective and farmers and fisherfolk selling their own harvest, produce, recommendation, or concerted action, whether formal or or catch. informal, explicit or tacit, written or oral: There shall also be prima f acie evidence of profiteering Provided, further, That any person or persons include whenever a product is sold or offered for sale at a price unincorporated entity or entities, domestic or foreign, including thirty percent (30%) in excess of the DPI at the time of those owned or controlled by the government, engaged directly said declaration. or indirectly in any economic activity. Profiteering shall not apply to price increases set by The Enforcement Group, on the strength of a LOA issued manufacturers of tobacco as a consequence of mandated excise by the Council, shall have the authority to visit areas where tax increases in accordance with law. the agricultural and fishery products suspected to be the subject of cartel are located and shall give due notice to the relevant The Enforcement Group, on the strength of a LOA issued by the Council, shall have the authority to visit areas where persons, who may be persons suspected of engaging in cartel, the agricultural and fishery products suspected to be the to provide justification within twenty-four (24) hours for the subject of profiteering are located and shall give due notice to unreasonable increase of prices or manipulation of supply or the relevant persons, who may be the owner, possessor, or prices of said products, such as cost of acquisition and sales person exercising control over the agricultural and fishery receipts, or documentary proof that stocks are within normal products to provide justification for the unreasonable price inventory level or final contracts of sale covering existing stocks, increase, such as cost of acquisition and sales receipts, within whichever is applicable under the circumstances, pending which twenty-four (24) hours, pending which the products shall be the products shall be placed in the constructive custody of the placed in the constructive custody of the Enforcement Group. Enforcement Group. In the event that the relevant person fails to provide In the event that the relevant persons fail to provide justification for the unreasonable price increase within justifiable reasons within twenty-four (24) hours for the twenty-four (24) hours, the Enforcement Group shall immer1.iarely unreasonable increase of prices or manipulation of supply or apply for a seizure order and file the relevant case or criminal prices, the products shall remain in constructive custody and action in court. Pending the issuance or denial of the seizure shall be the subject of a criminal action to be filed against order, the subject goods shall remain in constructive custody. the violators. 14 15 CHAPTER IV (e) Unlawfully disclosing confidential information gained during any investigation or audit, or using such information OTHER PROHIBITED ACTS for personal gain or to the detriment of the government or third parties. SEC. 11. Financing Agricultural Economic Sabotage Crimes. - Any person who directly or indirectly, willfully and CHAPTER V without lawful excuse, possesses, provides, collects, uses, or makes available property, funds, financial or other related PENAL PROVISIONS services, or funds the creation of dummy or fictitious entities, with the willful intention that they be used, in full or in part, SEC. 14. Penalties. - to carry out or facilitate the commission of any of the crimes of agricultural economic sabotage shall suffer the penalty provided under Section 14(b) of this Act. (a) The penalty of life imprisonment and a fine five times the value of the agricultural and fishery products subject of SEC. 12. Use of Government Storage Facilities. - the crime shall be imposed on a person who commits any of Cold storage, warehouses, and similar facilities intended for the acts enumerated under Sections 7, 8, 9, and 10 of this agricultural and fishery products granted by the government to Act, except Sections 7(g) and (i), which shall be penalized cooperatives and associations shall exclusively be used by their under subparagraphs (c) and (d) of this section. farmers and fisherfolk members. Renting out to or allowing the use in any way by non-members, such as traders and other (b) The penalty of life imprisonment shall be imposed on private businesses, is prohibited and will cause the revocation any violation under Section 11 of this Act. of the grant. The government shall then immediately repossess the storage facility, and the erring cooperatives and associations (c) The penalty of imprisonment of not less than twenty shall be perpetually disqualified from being granted storage (20) years but not more than thirty (30) years and a fine thrice facilities by the government. the value of the agricultural and fishery products subject of the crime shall be imposed on the following: SEC. 13. Violations of the Enforcement Group. - It shall be a crime for an employee of a member of the Enforcement (1) The registered owner and its lessee or charterer, in Group to commit any of the following acts, which shall be case of lease of a chartered boat or motorized commercial penalized under Section 14(£) of this Act: vessel, who transports the agricultural and fishery products subject of the crime; (a) Extortion or willful oppression under color of law; (2) The registered owner and its lessee, in case of lease, (b) Knowingly demanding documents or records that are of trucks, vans, and other means of transportation, who irrelevant to the case or unjustifiably extending the constructive custody of the goods; transports agricultural and fishery products subject of the crime; (c) Failing to report knowledge or information to their (3) The registered owner and lessee of a warehouse, cold superior officer about the commission of an act or acts storage, facility, or any property, who stores the agricultural punishable under this Act; and fishery products subject of the crime; or (d) Accepting or attempting to collect, directly or (4) The registered owner, lessee, president, or chief indirectly, any sum of money or other thing of value for the executive officer of the private port, fish port, fish landing site, compromise adjustment or settlement of any charge or resort, or airport who allows the entry of agricultural and complaint for any violation of this Act; and fishery products subject of the crime within their facilities. 16 17 (d) The penalty of imprisonment of not less than two (2) Provided, further, That the agricultural and fishery years but not more than four (4) years shall be imposed on products subject of the prohibited acts and the properties used drivers, warehouse men, truck helpers, clerks, or similar to commit the crime of agricultural economic sabotage such personnel who knowingly participated in the commission of as, but not limited to, vehicles, vessels, aircrafts, storage areas, the crime. warehouses, boxes, cases, trunks, and other containers of whatever character used as receptacle of agricultural and (e) Notwithstanding the penalties on government fishery products, shall be confiscated in favor of the employees in subparagraph (f) of this section, every officer, government, subject to Section 19 of this Act: agent, or employee of any member of the Enforcement Group who shall be found guilty of committing any of the acts Provided, finally, That the penalties imposed under this described in Section 13 of this Act shall be penalized with Act shall be separate from any other penalties incurred under imprisonment of not less than six (6) years but not more than other existing laws. twelve (12) years, and perpetual disqualification from holding public office, exercising the right to vote, and participating in CHAPTER VI any public election, and a fine of not less than Five hundred thousand pesos (P500,000.00) but not more than One million IMPLEMENTING BODIES pesos (Pl,000,000.00). SEC. 15. Anti-Agricultural Economic Sabotage Council. - All the benefits due from service in the government, The Anti-Agricultural Economic Sabotage Council, herein including the separation and retirement benefits of the officer, referred to as the Council, is hereby created and shall be agent, or employee found guilty of the foregoing violations shall chaired by the President or the designated permanent likewise be forfeited. representative. It shall have the following members: (f) If a government officer or employee commits any of (a) Department of Agriculture (DA); the crimes as economic sabotage, knowingly abets or aids in the commission of the crime, prevents the filing of a case or (b) Department of Justice (DOJ); its prosecution, prevents the actual arrest of the suspect, or (c) Department of Finance (DOF); co·mmits any of the corrupt practices under Section 3 of Republic Act No. 3019 or the "Anti-Graft and Corrupt Practices (d) Department of the Interior and Local Government (Dll..G); Act", for the purpose of facilitating agricultural economic sabotage, the penalty shall be as provided in subparagraph (a) (e) Department of Transportation (DOTr); of this section; the additional penalties of perpetual disqualification from holding public office, exercising the right (f) Department of Trade and Industry (DTI); to vote, and participating in any public election; and forfeiture of employment monetary and financial benefits. Direct pecuniary (g) Anti-Money Laundering Council (AMLC); and or material benefit js not necessary to prove that a government officer or employee has knowingly aided and abetted the (h) Philippine Competition Commission (PCC): commission of the crime: Provided, That the representatives of the member Provided, That when the offender is a juridical person, agencies shall at least have the rank of an undersecretary: criminal liability shall attach to its president, chief operating officer, manager, or any officer who participated in the decision Provided, furthermore, That one-third of the members, that led to the commission of the prohibited act: with the chair or a designated permanent representative present, shall constitute a quorum: 18 19 Provided, finally, That members of the Council shall be duly (c) Establish a mechanism of information-sharing among notined at least three (3) days prior to the scheduled meeting. concerned agencies: Provided, That confidential information shall be retained within the Council to protect and preserve An Advisory Body is hereby created to provide the the operational integrity of the Council and its prosecutorial Council with expert assistance and advice. The Advisory Body and enforcement bodies; shall have one (1) representative from each of the following agricultural sectors, whose membership shall be nationwide: (d) Establish a comprehensive tracking and tracing system to oversee the value chain of agricultural commodities (1) Sugar; and collect and report real-time data on production, processing, transportation, storage, sale, import, and export documentation; (2) Rice; (e) Direct the speedy investigation and prosecution of all (3) Corn; persons accused or detained for the crimes punishable under this Act, and monitor the progress of their cases; (4) Livestock and Poultry; (f) Coordinate and enlist the assistance of any branch, department, bureau, office, agency, or instrumentality of (5) Vegetables and Fruits; government, including government-owned and -controlled corporations, and local government units (LGUs), as well as (6) Fisheries and other aquatic products; and the business sector and nongovernment organizations, in the implementation of this Act; (7) Tobacco: (g) Deputize other law enforcement agencies to further Provided, further, That the sector representative shall be assist the Enforcement Group; chosen by the President of the Philippines from a list of three (3) nominees submitted by the sector, and shall serve for a (h) Through the Executive Committee (EXECOM), exercise fixed term of three (3) years unless earlier replaced by the visitation and inspection powers by issuing LOA authorizing President upon recommendation of the sector: Provided, any member or a combination of members of the Enforcement further, That the sector representatives must have prior Group to verify compliance with this Act and other relevant laws concerning the importation, purchase, storage, and sale experience or know ledge in pricing or trading agricultural and of the relevant agricultural and fishery products. The fishery products: Provided, further, That the appointed sectoral EXECOM shall be composed of the President or the designated representative shall continue to hold office after the expiration permanent representative to the Council, the DOJ, and the of the term until a successor is appointed. Enforcement Group; SEC. 16. Powers and Functions of the Anti-Agricultural (i) Notwithstanding existing laws to the contrary, Economic Sabotage Council. - The Council shall have the authorize, supervise, and direct the visitation and inspection following powers and functions: by any member or a combination of members of the Enforcement Group, as established under the Rules of (a) Ensure the proper and effective implementation of the Engagement and pursuant to the regulatory powers of each provisions of this Act; concerned agency, of areas where agricultural and fishery products covered by this Act are stored or kept; (b) Coordinate the preparation of appropriate and effective measures to prevent and suppress the prohibited acts defined (j) Formulate the Rules of Engagement of the in this Act; - Enforcement Group, within sixty (60) days from the effectivity of this Act; 20 21

(k) Determine and declare the existence of an abnormal SEC. 17. Special Team of Prosecutors. - To assist the situation under Sections 8 and 9 of this Act; Council in the expeditious prosecution of criminal cases covered under this Act, the Secretary of the DOJ is hereby mandated (1) Facilitate international cooperation on intelligence, to constitute a special team of prosecutors all over the country, investigation, training, and capacity-building related to which shall have the following powers and duties, among others: agricultural smuggling prevention, suppression, and prosecution; (a) Evaluate evidence gathered and submitted by the (m) Hold in custody and dispose of confiscated, seized, Enforcement Group to determine whether any provision of this and/or surrendered agricultural and fishery products subject Act has been violated; of and properties used in the commission of the crime of economic sabotage; (b) Act on criminal complaints directly filed by persons under Section 21 of this Act, which may be consolidated with (n) Grant monetary rewards and other incentives to similar complaints filed by the Enforcement Group; and informers who give vital information leading to the investigation, (c) Initiate and conduct preliminary investigation and apprehension, arrest, detention, prosecution, and conviction of timely file and prosecute the appropriate criminal charges person/s who are liable for the crimes punishable under this Act. against the person/s responsible for the crimes of smuggling, The monetary reward and incentive to informers shall be set hoarding, profiteering, and cartel as economic sabotage and at One million pesos (Pl,000,000.00) or twenty percent (20%) of other prohibited acts under this Act. the value of the product, whichever is higher, but not to exceed Twenty million pesos (P20,000,000.00); SEC. 18. Anti-Agricultural Economic Sabotage Enforcement Group. - To assist the Council, the Anti- (o) Establish mechanisms to compensate persons whose Agricultural Economic Sabotage Enforcement Group, herein agricultural and fishery products and properties have been referred to as the Enforcement Group, is hereby created. It subject of wrongful or illegal seizure, confiscation, destruction, shall be composed of the following agencies: or disposal: Provided, That the compensation shall include the actual value of the agricultural and fishery products and (a) National Bureau of Investigation (NBI); properties at the time of seizure, confiscation, destruction, or (b) Philippine National Police (PNP); disposal, and the earnings lost by reason of wrongful or illegal seizure, confiscation, destruction, or disposal as may be (c) Philippine Coast Guard (PCG); and determined by the Court of Tax Appeals; (d) Department of Finance (DOF). (p) Create a permanent Secretariat, define its functions, constitute its staff complement, and set their salaries and The Enforcement Group, in addition to each agency's other emoluments: Provided, That majority of the staff shall existing regulatory powers, shall have the following powers be selected from the different member agencies of the Council and functions: with individual expertise appropriate to the needs of the Council, consistent with civil service laws, rules, and (a) Subject to the Rules of Engagement of the regulations; and Enforcement Group, notify the Council of any visitation or inspection that it will conduct on any establishment and securn (q) Perform all other powers and functions related to the the necessary LOA; ,/.. efficient and effective prevention and suppression of the acts herein prohibited. ! (b) Subject to the Rules of Engagement of the Enforcement Group, notify the Council of any court-approved 22 23 warrant to search, seize, or arrest for any violation of this provided at the expense of the Government. The Secretaries Act or existing regulations; of the DOF and the DOJ, and the PNP Chief shall jointly promulgate rules and regulations to implement the provisions (c) Visit and inspect at any time, vessels, vehicle, aircraft, of this section. land, enclosure, warehouses, cold storages, store, building, or structure not principally used as a dwelling house and other storage areas where agricultural and fishery products and CHAPTER VII properties are stored, kept, or sold, as authorized by the Council through a duly issued LOA, to determine compliance ADMINISTRATIVE AND JUDICIAL PROCEDURES with this Act and other relevant laws relating to the transport, storage, distribution, or sale of said agricultural and fishery SEC. 19. Custody of Confiscated, Seized, or Surrendered products: Provided, That when a security personnel or any Products and Properties in the Agricultural Crimes of other employee lives in the warehouse, store or any building, Economic Sabotage and Other Prohibited Acts; Destruction structure, or enclosure that is used for storage of goods, it of Smuggled Products; Disposition or Donation of Locally shall not be considered a:s a dwelling house for purposes of Sourced Products. - The Council shall take charge and this Act; custody of all confiscated, seized, or surrendered agricultural and fishery products subject of the crime of economic sabotage (d) Immediately perform any and all acts pursuant to and the properties used in the commission thereof, which shall the implementation of this Act or existing laws and be disposed of in the following manner: regulations, including, among others, taking into constructive custody agricultural and fishery products; (a) The Enforcement Group, which may be composed of any member or a combination of its members, shall conduct (e) Render a report to the Council within forty-eight (48) a physical inventory and valuation of the seized items hours from the conduct of a visitation or inspection or service immediately after seizure and confiscation of the agricultural of judicial warrant; and fishery products and properties used in the commission of the crime and shall take a video recording and/or (f) Apply for judicial warrant before the Court of Tax photograph of the same; Appeals: Provided, That in areas outside Luzon, judicial warrants shall be applied before any regional trial court; and (b) Within twenty-four (24) hours upon confiscation or seizure of the agricultural and fishery products and properties, (g) Effect search, seizure, and arrest warrants and file the same shall be stored in a place to be designated by the criminal and administrative cases before the prosecutor and Council for the purpose of preserving the evidence and appropriate agencies. determining the value of agricultural and fishery products and properties that were seized or confiscated, which shall serve The PNP Chief, and the Secretaries of the DOF and the as the basis for determining the amount of compensation DOJ may authorize lawyers of their respective agencies or pursuant to Section 16(0) of this Act: Provided, That for their attached agencies to provide legal assistance to any evidentiary purposes, a video recording or photograph products employee or member of the Enforcement Group who is facing of highly perishable products taken in the presence of a a complaint or charge before the prosecutor's office, the court, representative of the Council shall suffice, after which the or any competent body, arising from an incident related to the destruction of the products subject of the crime of agricultural performance by the member or employee of his or her official duties under this Act: Provided, That government lawyers so t smuggling or the disposal or donation of products subject of the crimes of hoarding, profiteering, and cartel, as provided authorized sh&lllhave the power to administer oaths: Provided, in this section, may proceed; further, That when necessary, a private counsel may be 24 25 (c) After the filing of the criminal case, the court may, SEC. 20. Institution and Prosecution of Criminal within seventy-two (72) hours, conduct an ocular inspection of Proceedings. - Any criminal action arising from the violation the confiscated, seized, or surrendered agricultural and fishery of this Act shall be instituted by any of the following agencies: products. Within twenty-four (24) hours thereafter, the the NBI, the PNP, the PCG, and the DOF. Enforcement Group, through a member or combination of its members, shall facilitate the destruction of the products subject of smuggling in the presence of representatives from the Criminal actions and proceedings instituted under this Act media, the DOJ, the agricultural and fisheries sector, and an shall be brought in the name of the Government of the elected public official. The Council shall draw up the guidelines Philippines and shall be prosecuted and handled by the DOJ on the manner of proper destruction of such item/s, the with the assistance of the instituting agency: Provided, That expenses for the destruction of which shall be borne by the nothing in this Act shall be construed or interpreted as offender. diminishing the jurisdiction of the implementing agencies under Republic Act No. 10863, Republic Act No. 10667, and Republic A government officer or employee who violates the Act No. 7581 to conduct inquiry on, investigate, hear, and mandatory destruction of agricultural and fishery products decide cases involving any violation of the CMTA, the under this Act shall be held administratively liable; and Philippine Competition Act, and the Price Act, and institute the appropriate civil or criminal proceedings. (d) Any member of the Enforcement Group in charge of the destruction shall issue a sworn certification as to the fact of destruction of the subject item/s which shall be submitted SEC. 21. Citizen's Suit. - Any person may directly file to the court having jurisdiction over the case. a criminal complaint with the DOJ-Special Team of Prosecutors and/or an administrative complaint with the Provided, That locally sourced agricultural and fishery appropriate government agency. The complaint shall be verified products subject of the crimes of hoarding, profiteering, and and supported with affidavits and other evidence. cartel may be donated by the Council to the Department of Social Welfare and Development or LGUs, or disposed of in SEC. 22. Prescription of Offenses. - The crimes any manner: punishable by life imprisonment under this Act shall prescribe in twenty-five (25) years. Other crimes under this Act with Provided, further, That properties used in the commission lower number of years of imprisonment shall prescribe in of the crimes of agricultural economic sabotage such as, but not limited to, vehicles, vessels, aircrafts, storage areas, accordance with Act No. 3326. warehouses, boxes, cases, trunks, and other containers of whatever character confiscated, seized, or surrendered in favor Prescription shall begin to run from the day the violation of the government, may be auctioned off, subject to existing of the law was committed, and if the same be not known at rules and regulations. The proceeds of the auction of the the time, from the discovery thereof by the offended party, the properties shall be deposited in a special account created in law enforcement authorities or their agents. The period shall the name of the Council to be used as additional funding in be interrupted by the filing of an information or the institution the establishment and maintenance of the DPI, the operations proceedings against the offender. It shall again run when such of the Enforcement Group, monetary rewards and other proceedings are terminated without the accused being convicted incentives to informers, and the compensation of damages or acquitted, or when such proceedings are unjustifiably arising from wrongful or illegal seizure, confiscation, stopped through no fault of the accused. destruction, or disposal of agricultural and fishery products and properties, among others. li 26 CHAPTER VIII l I (a) Sixty percent (60%) for the Council and the Enforcement Group, which shall include funding for Section 6 of this Act; 27 JURISDICTION SEC. 23. Jurisdiction. - The provisions of existing laws (b) Thirty percent (30%) for the Special Team of to the contrary notwithstanding, all violations referred to Prosecutors under Section 17 of this Act; and herein shall be under the exclusive jurisdiction of the Court of Tax Appeals, herein referred to as the Court. It may create (c) Ten percent (10%) for the establishment, strengthening its offices in the Visayas and Mindanao for this purpose. and maintenance of the DPI, under Section 5 of this Act. CHAPTER IX Thereafter, such amount necessary to carry out the provisions of this Act shall be appropriated in the annual FINAL PROVISIONS General Appropriations Act. SEC. 24. Transitory Provision. - All pending criminal SEC. 27. Reportorial Requirements. - The Council shall complaints or cases filed and/or prosecuted under Republic Act submit a quarterly report to the COCAAES on the progress No. 10845 or the "Anti-Agricultural Smuggling Act of 2016" and accomplishments made in the implenientation of this Act. and other laws shall continue to be addressed under the said laws until resolved with finality. SEC. 28. Separability Clause. - If any portion of this Act is declared unconstitutional or invalid, the portions or SEC. 25. Congressional Oversight Committee. - There is provisions which are not affected shall continue to be in full hereby created a Congressional Oversight Committee on force and effect. Anti-Agricultural Economic Sabotage (COCAAES) composed of seven (7) members from the Senate and seven (7) members from the House of Representatives, with the chairperson of SEC. 29. Repealing Clause. - Republic Act No. 10845 is the Senate Committee on Agriculture, Food and Agrarian hereby repealed. All laws, decrees, executive issuances, rules, Reform (CAFAR) and the chairperson of the House of and regulations inconsistent with this Act are hereby repealed Representatives Committee on Agriculture and Food, as joint and/or modified accordingly. chairpersons. The six (6) other members from the Senate shall be composed of three (3) members from CAFAR, two (2) from SEC. 30. Effectivity. - This Act is self-executory and shall the Committee on Ways and Means, and one (1) from the take effect fifteen (15) days after its publication in the Official minority, while the six (6) members from the House of Gazette or in a newspaper of general circulation, without the Representatives shall be composed of three (3) members from need for the issuance of implementing rules and regulations. the Committee on Agriculture and Food, and three (3) from the Committee on Ways and Means, to be designated Approved, respectively by the President of the Senate and the Speaker of the House of Representatives. The COCAAES shall conduct a mandatory review of the implementation of this Act three (3) years after its effectivity and every three (3) years thereafter. President of the Senate SEC. 26. Appropriations. - The initial amount of Five hundred million pesos (P500,000,000.00) is hereby appropriated under the Office of the President for the implementation of this Act, which shall be allocated as follows: A '- " ¥ I 3 I;.. 28 This Act, which is a consolidation of Senate Bill No. 2432 and House Bill Nos. 3917 and 9284, was passed by the Senate of the Philippines and the House of Representatives on August 6, 2024. REG~- Secretary General House of Representatives Approved: S£P I 6 202~ Ii ' .. FERDINAND RO MARCOS JR. Pres;d1 the PhiUpp;nes Ill -_-,__--=-'"_::,• : ~ •J-=---:_;-:_:-: ["" ~~•~ I ~.a:._ A.Al.Lila._ I 0 .iaL..,;a..a.:a.. REPUBLIC OP TBE PHILIPPINES IIIPBBM005740 1111111 II1111111111111111 Office of the President MALACANANG RECORDS OFFICE