Article 128p. 128

NATIONAL INTERNAL REVENUE CODE TAXATION, TARIFF and CUSTOMS LAWS

(b) Imprisonment of not less than six (6) months and

one (1) day but not more than one (1) year, or a fine of not

less than seventy-five thousand pesos (P75,000.00) but

not

more

than

one

hundred

fifty

thousand

pesos

(P150,000.00), or both, if the appraised value of the goods

unlawfully imported, to be determined in the manner

prescribed under this Act, including duties and taxes,

exceeds two hundred fifty thousand pesos (P250,000.00)

but

not

more

than

five

hundred

thousand

pesos

(P500,000.00);

(c) Imprisonment of not less than one (1) year and one

(1) day but not more than three (3) years, or a fine of not

less than one hundred fifty thousand pesos (P150,000.00)

but

not

more

than

three hundred thousand pesos

(P300,000.00) or both, if the appraised value of the goods

unlawfully imported, to be determined in the manner

prescribed under this Act, including duties and taxes,

exceeds five hundred thousand pesos (P500,000.00) but

not more than one million pesos (P1,000,000.00);

(d) Imprisonment of not less than three (3) years and

one (1) day but not more than six (6) years, or a fine of not

less than three hundred thousand pesos (P300,000.00)

but not more than one million five hundred thousand

pesos (P1,500,000.00), or both, if the appraised value of

the goods unlawfully imported, to be determined in the

manner prescribed under this Act, including duties and

taxes, exceeds one million pesos (P1,000,000.00) but not

more than five million pesos (P5,000,000.00);

(e) Imprisonment of not less than six (6) years and

one (1) day but not more than twelve (12) years, or a fine of

not less than one million five hundred thousand pesos

(P1,500,000.00) but not more than fifteen million pesos

(P15,000,000.00), or both, if the appraised value of the

goods unlawfully imported, to be determined in the

manner prescribed under this Act, including duties and

taxes, exceeds five million pesos (P5,000,000.00) but not

more than fifty million pesos (P50,000,000.00);

(f) Imprisonment of not less than twelve (12) years and

one (1) day but not more than twenty (20) years, or a fine

of not less than fifteen million pesos (P15,000,000.00) but

not more than fifty million pesos (P50,000,000.00), or

both, if the appraised value of the goods unlawfully

imported, to be determined in the manner prescribed

under this Act, including duties and taxes, exceeds fifty

million pesos (P50,000,000.00) but not more than two

hundred million pesos (P200,000,000.00);

(g) If the appraised value of the goods unlawfully

imported to be determined in the manner prescribed

under this Act, including duties and taxes, exceeds two

hundred

million

pesos

(P200,000,000.00)

or

if

the

aggregate amount of the appraised value of the goods

which are the subject of unlawful importation committed

in more than one instance, including duties and taxes,

exceeds two hundred million pesos (P200,000,000.00),

the same shall be deemed as a heinous crime and shall

be punishable with a penalty of reclusion perpetua and a

fine of not less than fifty million pesos (P50,000,000.00);

and

(h) The penalty of prision mayor shall be imposed

when the crime of serious physical injuries shall have

been committed, and the penalty of reclusion perpetua

shall be imposed when the crime of homicide shall have

been committed by reason or on the occasion of the

unlawful importation.

In applying the above scale of penalties, an offender

who is a foreigner shall be deported without further

proceedings after serving the sentence. If the offender is

a public officer or employee, the penalty which is the next

higher in degree shall be imposed in addition to the

penalty of perpetual disqualification from public office,

and disqualification to vote and to participate in any

public election. If the offender fails to pay the fine,

subsidiary imprisonment shall be served.

When, upon trial for violation of this section, the

defendant is shown to have had possession of the goods

in

question,

possession

shall

be

deemed

sufficient

evidence to authorize conviction unless the defendant

shall explain the possession to the satisfaction of the

court: Provided, That each act of unlawful importation or

exportation

shall be deemed as a separate offense:

Provided, however , That payment of the tax due after

apprehension shall not constitute a valid defense in any

prosecution under this section: Provided, further, That

outright smuggling shall also be punishable under this

section: Provided, finally, That the rights and privileges

provided

in

this

Act

for

the

importers,

consignees,

exporters, service providers, third parties and other third

parties who committed this offense shall be revoked.

SECTION 1402. Failure or Refusal of Party to Give

Evidence or Submit Documents for Assessment. —

When the owner, importer or consignee of any imported

goods, or the agent of either, fails or refuses, upon lawful

demand in writing by any customs officer to appear,

lawfully depose, or submit to examination or to answer

any material question or refuses to produce records,

accounts or invoices in possession pertaining to the value,

classification or disposition of the goods in question and

deemed material in assessing the same, the District

Collector shall assess a surcharge of twenty percent (20%)

on the durable value of the goods which is the subject of

the importation.

SECTION 1403. Other Fraudulent Practices against

Customs Revenue. — Any person who makes or attempts

to make any entry of imported or exported goods by

means of any false or fraudulent statement, document or

practice or knowingly and willfully files any false or

fraudulent claim for payment of drawback or refund of

duties shall, for each act, be punished in accordance with

the penalties prescribed in Section 1401 of this Act.

SECTION

1404.

Failure

to

Declare Baggage. —

Whenever dutiable goods are not declared by any person

arriving within the Philippines, such goods shall be seized

and the person may obtain release of such goods, if not

imported

contrary

to

any

law,

upon

payment of a

surcharge equivalent to thirty percent (30%) of the landed

cost of such goods, in addition to all duties, taxes and

other charges due. Nothing in this section shall preclude

the filing of criminal action against the offender.

SECTION

1405.

Vessel,

Seacraft,

or

Aircraft

Departing Before Undergoing Customs Formalities. —

Any vessel, seacraft, or aircraft arriving within the limits of

a Customs District from a foreign port which departs

before undergoing customs formalities, without being

compelled to do so by stress of weather, pursuit or duress

of enemies, or other necessity, shall be liable for a fine of

not less than one hundred thousand pesos (P100,000.00)

but

not

more

than

three hundred thousand pesos

(P300,000.00).

SECTION 1406. Obstruction to Boarding Officer. — If

the master or pilot-in-command or any member of the

complement of any vessel or aircraft arriving at the

Philippine port obstructs or hinders any officer from

lawfully going on board such vessel or aircraft for the

purpose of enforcing this Act, or intentionally causes any

officer to be so obstructed or hindered, the vessel or

aircraft shall be liable to a fine of not less than one

hundred thousand pesos (P100,000.00) but not more

than three hundred thousand pesos (P300,000.00).

SECTION 1407. Unlawful Boarding or Leaving of

Vessel or Aircraft. — If, upon arrival at the Philippine port,

any master of a vessel or pilot-in-command of an aircraft

engaged in a foreign trade permits any person to board

or leave the vessel or aircraft without the permission of

the customs officer-in-charge, the owner or operator of

such vessel or aircraft shall be liable for a fine of not less

than one hundred thousand pesos (P100,000.00) but not

more than three hundred thousand pesos (P300,000.00).

SECTION 1408. Unloading of Cargo before Arrival at

Port of Entry. — If, upon the arrival within the limits of

any Customs District of the Philippines of any vessel or

aircraft

engaged

in

foreign

trade,

the

master

or

pilot-in-command thereof permits any part of the cargo

to be unloaded before arrival at the port of entry, and

© Compiled by RGL

128 of 201