2. At the end of the discussion the students
will be able to:
Explain the elements, types and factors
that contribute Smuggling as a Economy
Crime.
Value the impact of this illegal activity in
the economy.
Investigate related cases in this
Economic Crime and the laws governing
it.
OBJECTIVES
5. takes place through
underevaluation
misdeclaration of the
volume of shipped
misclassified and
diversions of cargo
act of importing goods
into the country through
fraudulent, falsified or
erroneous declarations
The Two Kinds of SMUGGLING
Technical Smuggling
6. - when acts contrary
to customs laws
involve the
importation of
goods/ contraband
with a determinably
value at least P5
million.
The Two Forms of SMUGGLING
Large Scale Smuggling SmugglingcommittedbytheSyndicate
- shall be deemed to be
committed when
carried out by a group
of 3 or more persons
conspiring and/or
confederating with one
another in carrying out
the unlawful act of
smuggling.
under E.O. 297
30. • Loss Revenue
• Distortion of Market Prices
• Collapse of Local Industries
• Unemployment
• Prevents domestic Traders
• GDP Per Capita
• Distortion of Competition
• Risk in Consumer Welfare
• Destroy Local Economy
Effect
32. Focused on offenses
Defined unlawful importation
Fraudulent
Import
Assist
Receive
Conceal
Buy
Sell
Transport
RA 4712
33. Penalty Fine (in Peso) Amount (in Peso)
5 – 20 days 50 -200 Not exceeding 25
6 mos. – 1 day – 4
years
800-5000 50 – 50000
5 years 1 day – 8
years
6000 – 80000 50,000 - 100,000
8 years 1 day – 12
years
8000 – 10,000 Above 150,000
RA 4712
34. In the course of commission of unlawful
importation
Serious Physical Injury – Prision Mayor
Homicide – reclusion perpertua – death
If committed by an alien/foreigner – deported
If committed government employee/official –
penalty + perpetual disqualification from
public office + to vote + participation for
election
RA 4712
35. Failure to report
An owner / in command of a vessel or aircraft
Failed to report and occurrence of unlawful
importation
Fine not more than 500,000
If alien, deported
If committed government employee/official – penalty
+ perpetual disqualification from public office + to
vote + participation for election
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36. If an employee of Bureau of Customs is guilty
of
Extortion
Demands fees not listed
Neglect to give receipt
Conspire
Wilfully make opportunity to commit
Negligently, designed to permit
False entry to book or giving false certificate
Failure to report
Accepts payment
RA 4712
Penalty – 1 year – 10 years
Fine – 5000 – 50,000
37. Concealment of
evidence
Penalty – 2 years
Fine – 5000
Affixing seals
Penalty – 5 years
Fine – 20,000
Removal, breakage
alteration of works
Penalty – 5 years
Fine – 20,000
Removing / repacking
of merchandise
Penalty – 5 years
Fine – 20,000
Removing goods from
custody
Penalty – 5 years
Fine – 20,000
Violation of tariff
laws/customs
Penalty – 5 years
Fine – 20,000
RA 4712
38. PPA – Philippine Port Authority
AFP – Armed Forces of the Philippines
NICA – National Intelligence
Coordinating Agency
DA – Department of Agriculture
SRA – Sugar Regulatory Association
NFA – National Food Authority
DOJ – Department of Justice - IACAT
AgenciesAssistingin Combating
SMUGGLING
39. BID – Bureau of Immigration and
Deportation
PNP – Philippine National Police
DepEd – Department of Education
BOC – Bureau of Immigration
PDEA
DOTR
NBI
FDA
AgenciesAssistingin Combating
SMUGGLING
42. GREEN LANE TEMPORARILY SUSPENDED UNTIL
PERFECTION OF RISK MANAGEMENT PARAMETERS
Three selectivity system
1.Red Lane – document and physical check
2.Yellow Lane – document check
3.Green Lane – no examinations at all after
paying corresponding dues and taxes
The integrated Risk Management System which is said
to be vulnerable to manipulation from unscrupulous
traders and their cohorts inside the agency prompted
Commissioner Isidro Lapeña to subject all shipments
to pass either Yellow Lane or Red Lane.
43. At present, shipments pass through the default
Yellow Lane or the Red Lane set up at a ratio of
55:45. Once the system is established, the
profiles along with other information and
intelligence will provide a basis for targeting
potentially high risk shipments and travelers
while not impeding the movement of low risk
cargoes and travelers. The Bureau of Customs
envisions a customs administration with a
conflict-free border protection and trade
facilitation
GREEN LANE TEMPORARILY SUSPENDED UNTIL
PERFECTION OF RISK MANAGEMENT PARAMETERS
44. BATAS REVS UP FIGHT VERSUS SMUGGLERS
The Bureau’s Action Team Against Smugglers
(BATAS) under the Legal Service is now the sole
office tasked to run after smugglers after
Commissioner Isidro Lapeña ordered the
abolition of the Special Studies and Project
Development Committee (SSPDC).
BATAS is responsible for the filing of cases with
the Department of Justice against importers,
brokers and/or erring Customs officials and
personnel for violating provisions of the
Customs Modernization and Tariff Act
45. WCO, UNODC SPONSORS BOC BORDER PROTECTION UNIT
As part of the agency’s continuous effort in strengthening its campaign
towards effective border security and trade facilitation, a Container
Control Unit (CCU) was created as sponsored by the United Nations on
Drugs and Crime (UNODC) in partnership with the World Customs
Organization (WCO).
This unit will serve as an intelligence office that will focus on non -
fiscal violations like illicit trade and proliferation of strategic goods. It
will recommend high-risk shipments to a higher authority to exercise
proper enforcement of laws, rules, and regulations, as well as to
exercise any type of control in relation to the aforementioned non -
fiscal violations.
Collaborative cooperation with the ASEAN and UN is necessary in
securing trade culture and in eradicating poverty, crime, and corruption
in the country. The unit also enhances the BOC’s mandate of trade
facilitation and securing the Philippine borders from smuggling and
other forms of customs fraud. The newly-created unit will operate
under BOC’s Revenue Collection and Monitoring Group.
46.
47.
48. • NAIA Customs confiscates guns, ammo in Pasay
warehouse (July 10, 2019)
SMUGGLING CASES in the Philippines
49. Customs seizes P1.4M worth of marijuana hidden
in snack packs (July 2, 2019)
SMUGGLING CASES in the Philippines
