Business group backs stricter laws vs cigarette smuggling

A representative of the Bureau of Customs (BOC) inspects the boxes containing smuggled cigarettes that arrived at Subic port recently. (Photo courtesy of BOC)

MANILA, Philippines — An umbrella organization of various trade groups in the country is supporting the enactment of laws that will classify the smuggling of raw tobacco, cigarettes, cigars, and heated tobacco products as economic sabotage, thus making the crime a nonbailable offense.

In an emailed statement, the Federation of Philippine Industries (FPI) expressed support for House Bill No. 3917, a proposed law that targets stiffer penalties on tobacco smuggling by amending Republic Act No. 10845, or the Anti-Agricultural Smuggling Act of 2016.

“Tobacco smuggling drains the country of billions in tax revenue, fuels criminal activity, puts consumers in danger and undercuts legitimate local manufacturers. Even before being codified in the bill as a heinous crime, it really is economic sabotage because it destabilizes communities and countries,” FPI chair Jesus Arranza said.

Expanded scope

The bill was filed by Ilocos Rep. Sandro Marcos, who is also the current senior majority floor leader, and Puwersa ng Bayaning Atleta Rep. Margarita Ignacia Nograles.

The proposed amendments will see the inclusion of raw and finished tobacco products categorized under the definition of “agricultural commodities.”

Penalties

Under the current law, only goods such as rice, sugar, corn, pork, poultry, garlic, onion, carrots, fish and cruciferous vegetables are classified under the said category.

“One way we can significantly deter this practice is by imposing heavier punishments for smugglers. If the proposed amendment by Rep. Marcos and Rep. Nograles passes, we now have a formidable chance of combating and even eliminating this scourge on our national economy,” said Arranza.

Currently, parties caught in possession of cigarette products that failed to settle excise taxes are penalized with a prison term of 10 to 12 years.

The bill seeks heavier penalties, with a prison term of 30 to 40 years and no bail, on top of paying fines equal to double the value of the seized contraband, as well as the total amount of unpaid duties and other taxes.

“Illicit smuggling does not just threaten our government institutions and enforcement agencies. Government revenue lost from foregone excise taxes and customs duties concerns all of us as law-abiding consumers and citizens,” Arranza said further.

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