The rampant rise and open selling of smuggled cigarettes in many parts of Mindanao have prompted revenue, customs and police authorities to renew their drive against untaxed cigarette brands.
These contrabands are considered detrimental to both consumers and the local economy as they are openly displayed and sold by thousands of stores in the provinces of Lanao del Sur, Lanao del Norte, Bukidnon, Iligan, Misamis Occidental, Zamboanga Peninsula and the Cotabato region.
Any person caught in possession or selling smuggled or fake cigarettes will be charged and penalized accordingly.
Imprisonment
Violators face imprisonment from 2 to 5 years and a fine of P50,000 to P200,000 for unfair competition, under Section 155 in relation to Section 168, 169 and 170 of the Intellectual Property Code of the Philippines.
Under Republic Act No. 7394 or the Consumer Protection Act, violators face imprisonment from 1 year to 5 years, or a fine of P5,000 to P10,000, or both.
A maximum imprisonment of 12 years and a fine of P100,000 will also be imposed on violators in accordance with pertinent provisions of the National Internal Revenue Code.
Cigarettes smuggled into the country are subject to outright confiscation by local authorities.
Retailers, distributors and importers involved in the sales of smuggled or counterfeit cigarettes will also be held liable for tax violations and subject to criminal prosecution pursuant to the laws cited above.