The Philippine Amendment Act classifies "cigarette smuggling" as "large-scale smuggling or economic destruction" and offenders are sentenced to 30-40 years in prison!

According to Philippine media reports, on December 6, the Philippine House of Representatives approved House Bill 3917 during its second reading, which classifies smuggled tobacco (whether manufactured or unmanufactured) as large-scale smuggling or economic destruction.

(Philippine customs seized large quantities of smuggled cigarettes)

The measure was approved by an oral vote in the plenary session, amending the Anti-Agricultural Smuggling Act of 2016 and Articles 2530 and 2531 of the Republic Act No. 193 or the Philippine Tariff and Customs Act.

The Philippine House of Representatives bill 3917 defines artificial tobacco as any product consisting of loose tobacco containing nicotine and used in cigarettes, including any product containing tobacco and used for smoking, heating or smoking, oral or nasal use.

On the other hand, the measure defines unprocessed tobacco as an agricultural component from tobacco plants, processed for the manufacture of cigarettes and other tobacco products.

The measure carries a penalty of 30-40 years imprisonment and a fine of twice the fair value, as well as the total amount of taxes, duties and other costs incurred in smuggling tobacco, whether manufactured or unmanufactured, including finished products such as cigars, cigarettes or heated tobacco products.

An explanatory note to the measure reads: "National governments are estimated to lose revenue ranging from 30 pesos to 60 billion pesos due to the rampant proliferation of illegal cigarettes. Global think tank Euromonitor estimates that the Philippine government's loss of revenue will reach 26.2 billion pesos in 2022 and 31 billion pesos by 2023 as a result of this criminal activity."

It added: "There is therefore an urgent need to crack down on large-scale tobacco smuggling by imposing more severe penalties and to discourage the entry into and sale of illegal tobacco in the Philippines. The bill aims to include tobacco, both in its original form and finished products, in agricultural products, and illegal imports can be classified as constituting economic damage."

The authors of the measure also argue that the continued proliferation of smuggled cigarettes is inconsistent with the government's public health concerns, given that current taxes and regulation cover only the legitimate tobacco industry and that illegal cigarettes are rampant.

"In addition to instructing relevant departments to strictly enforce existing laws, legislators should also legislate to plug loopholes to control illegal tobacco. If the entry and sale of smuggled cigarettes continue to be unrestricted, the national government will lose more revenue," the explanation of the measure said."

It added: "[So] this will be detrimental to its pandemic recovery efforts. Obviously, this is one of the biggest tax loopholes that the government needs to close, and given the above, we are eager to pass the bill."

The authors of the measure include Quezon's representative Wilfrido Enverga, Ilocos Norte's Ferdinand Alexander Marcos and PBA party-list's Margarita Ignacia Nograles.