Atty. Manuel J. Laserna Jr.

Saturday, November 28, 2015

Strategic Trade Management Act (STMA) - Republic Act No. 10697 | Official
Gazette of the Republic of the Philippines

See - Republic Act No. 10697 | Official Gazette of the Republic of the Philippines

[Republic Act No. 10697]

AN ACT PREVENTING THE PROLIFERATION OF WEAPONS OF
MASS DESTRUCTION BY MANAGING THE TRADE IN STRATEGIC
GOODS, THE PROVISION OF RELATED SERVICES, AND FOR
OTHER PURPOSES
CHAPTER I
GENERAL PROVISIONS
SECTION 1. Title. – This Act shall be known as the “Strategic Trade
Management Act (STMA)”.
SEC. 2. Declaration of Policy. – It is declared a policy of the State to be
free from Weapons of Mass Destruction (WMD) in its territory,
consistent with the national interest, to fulfill its international
commitments and obligations, including United Nations Security
Council Resolution (UNSCR) 1540, to take and enforce effective
measures to establish domestic controls to prevent the proliferation of
WMDs and their means of delivery; and to maintain international peace
and security, and promote economic growth by facilitating trade and
investment through the responsible management of strategic goods
and the provision of related services.
Towards this end and consistent with its foreign policy and national
security interests, and in support of efforts to counter terrorism, control
crime, and safeguard public safety, the State shall manage the trade of
strategic goods and provision of related services in accordance with
international standards and best practices.
SEC. 3. Scope and Coverage. – This Act shall apply to:
a. Any natural or juridical person operating within the Philippines who
engages or intends to engage in the export of strategic goods from the
Philippines, including designated special economic and freeport zones,
the import of strategic goods into the Philippines; or the transit or
transshipment of strategic goods through the territory of the Philippines
and the provision of related services; and all Filipino persons providing
these services wherever located; and
b. The re-export of strategic goods that have been imported from tne
Philippines to a foreign country, and the reassignment of strategic
goods imported from the Philippines to a new end-user in the country
of import subject to authorization under this Act.
SEC. 4. The National Strategic Goods List. – There shall be a National
Strategic Goods List (NSGL) to describe with specificity the strategic
goods subject to authorization. The NSGL shall be in conformity with
international commitments and nonproliferation obligations pursuant to
bilateral and multilateral treaties, international conventions and
international non-proliferation regimes.
Upon its establishment, the NSGL shall be published in the Official
Gazette and in at least two (2) newspapers of general circulation. The
NSGL shall be reviewed and updated on a regular basis.
Updates and revisions to the NSGL shall also be published in
the Official Gazette and in at least two (2) newspapers of general
circulation.
The NSGL shall comprise three (3) annexes: Military Goods (Annex 1),
Dual Use Goods (Annex 2), and Nationally Controlled Goods (Annex
3).
SEC. 5. Definition of Terms. – As used in this Act:
a. Authorization refers to an individual, global or general license issued
by the Strategic Trade Management Office (STMO) for the export,
import, re-export, reassignment, transit, transshipment of strategic
goods and provision of related services;
b. Carrier refers to any vessel, train, vehicle, aircraft or other modes of
transportation;
c. Document refers to any record on paper, in electronic form, kept on
any magnetic, optical, chemical or other medium; photograph map,
plan, graph, picture or drawing or device;
d. Dual-use goods refer to items, software, and technology which can
be used for both civil and military end-use or in connection with
development, production, handling, operation, maintenance, storage,
detection, identification, or dissemination of WMD or their means of
delivery. These goods are listed in Annex 2 of the NSGL;
e. End-use controls refer to a specific procedure authorizing the
establishment of controls over any item, software, and technology not
listed in the NSGL (unlisted goods) based on concerns related to WMD,
their means of delivery, or military end-use in destinations subject to
embargoes decided by the United Nation (UN) Security Council, or to
prohibited/restricted end-users;
f. End-user refers to a person who is outside or inside the Philippines
and is the recipient and ultimate user of the strategic goods and related
services that are exported from or imported to the Philippines;
g. End-user certificate refers to a document which contains confirmation
of the following: (a) that the end-user has undertaken to import the
goods with specific value and amount; (b) the purpose of the use of the
goods; and (c) that the end-user shall not re-export or re-assign the
goods without prior written authorization. The certificate likewise refers
to a document that verifies the end-use and end-user of military and
dual-use items as defined by this Act;
h. Export refers to an actual shipment of strategic goods out of the
Philippines, or to a transmission of software and technology by
electronic media, including by fax, telephone, electronic mail or any
other electronic means to an ultimate destination outside the
Philippines. The term includes making available in electronic form such
software and technology to persons outside the Philippines. It also
applies to non-electronic reassignments of software or technology
through face-to-face communication, personal demonstration, or
handing over material or information to a foreign person wherever
located;
i. Financing refers to making available or providing funds to facilitate the
movement/flow of (a) strategic goods and/or related service if this
contributes to WMD or their means of delivery; or (b) military goods if
destined for a destination subject to a UN Security Council embargo or
to prohibited/restricted end- users;
j. Import refers to the shipment of strategic goods or transmission of
software or technology by any means from a foreign country into the
Philippines;
k. Juridical person refers to either: (a) a partnership, a cooperative, and
a private corporation, to which the law grants a juridical personality,
separate and distinct from that of each shareholder, partner, or
member, or (b) a government-owned and -controlled corporation
created by law that engages or intends to engage in the trade of
strategic goods or provision of related services;
l. Knowledge refers to awareness or cognizance that a circumstance
exists or is substantially certain to occur. It is also an awareness or
cognizance of facts and circumstances that would lead a reasonable
person to believe its existence or factual occurrence. It also refers to
the willful disregard of facts known to a person or willful avoidance of
facts;
m. Military goods refer to items, software, and technology that are
specifically designed, developed, configured, adapted, or modified for
military end-use. These goods are fisted at Annex 1 of the NSGL;
n. Military end-use refers to: (a) incorporation into “military goods” listed
in the NSGL; (b) use of production, test or analytical equipment and its
components for the development, production or maintenance of
“military goods” listed in the NSGL; and (c) use of any unfinished
products in a plant for the production of “military goods” listed in the
NSGL;
o. Nationally controlled goods refer to strategic goods placed under
unilateral controls for reasons of national security, foreign policy, anti-
terrorism, crime control, and public safety;
p. Premises refer to any land, place or building, whether open or
enclosed, and whether built on or not, including any free trade zones
within the territory of the Philippines;
q. Reassignment refers to the reallocation of strategic goods previously
exported from the Philippines from one person to another within a single
foreign country by any means, including the electronic transmission of
software and technology;
r. Re-export refers to the export to a foreign country of strategic goods
either previously imported to or exported from the Philippines;
s. Registration refers to the act of entering the exporters, importers and
brokers of strategic goods and providers of services into the registry
established by the STMO;
t. Related services refer to brokering, financing, and transporting in
relation to the movement of strategic goods between two (2) foreign
countries and providing technical assistance. For this purpose,
brokering refers to activities such as: (a) negotiating or arranging
transactions that involve the shipment of strategic goods from a foreign
country to any other foreign country; or (b) selling or buying with the
intent to move strategic goods that are in a broker’s possession or
control from a foreign country to any other foreign country;
u. Software refers to a collection of one or more programs or micro
programs fixed in any tangible medium of expression;
v. Strategic goods refer to products that, for security reasons or due to
international agreements, are considered to be of such military
importance that their export is either prohibited altogether or subject to
specific conditions. Such goods are generally suitable to be used for
military purposes or for the production of WMD, and for the purposes of
this Act, Are goods listed in the NSGL under Annex 1 (Military Goods);
Annex 2 (Dual Use Goods); Annex 3 (Nationally Controlled Goods); and
any unlisted goods as provided for in Section 11;
w. Technical assistance refers to any support provided in relation to
strategic goods such as repair, development, manufacture, assembly,
testing, maintenance, or any other technical service, and may take such
forms as instruction, training, transmission of working knowledge or
skills, or consulting services. Technical assistance can be provided
by inter alia verbal, written or electronic means;
x. Technology refers to specific information and processes necessary
for the development, production, or use of strategic goods, and may
take such forms as blueprints, plans, diagrams, models, formulae,
tables, engineering designs and specifications, manuals, and
instructions written or recorded on other media or devices such as disk,
tape, read-only memories;
y. Transporting refers to the act of moving the strategic goods, agreeing
to move them, any supporting services being provided to the transport
provider, and any act calculated to promote their supply or delivery if
this contributes to WMD, or means of their delivery, or military goods if
destined to an embargoed destination subject to a UN Security Council
embargo, or to prohibited/ restricted end-users;
z. Transit refers to shipment of strategic goods within the Philippines
and those entering and passing through the territory of the Philippines
with an ultimate destination outside the Philippines in such a manner
that the strategic goods remain at all times in or on the same carrier;
aa. Transshipment refers to a mode of shipping a good on a carrier
which enters the territory of the Philippines, wherein the good is
unloaded from the carrier and reloaded in the same or on another
carrier that is bound for an ultimate destination outside the Philippines;
bb. Unlisted goods refer to goods that are not in the NSGL and may be
subject to an authorization requirement under this Act; and
cc. WMD refers to any destructive device or weapon that is designed or
intended to cause death or serious bodily injury through the release,
dissemination, or impact of toxic or poisonous chemicals, or their
precursors, any weapon involving a biological agent, toxin, or vector, or
any weapon that is designed to release radiation or radioactivity at a
level dangerous to human life. This includes, but not limited to: (a)
nuclear and radiological explosive devices and their major sub-
systems; (b) chemicals covered by Schedule I, II and III of the Chemical
Weapons Convention; and (c) biological agents and biologically derived
substances specifically developed, configured, adapted, or modified for
the purpose of increasing their capability to produce casualties in
humans or livestock, degrade equipment, or damage crops.
CHAPTER II
IMPLEMENTING STRUCTURE AND MECHANISM
Sec. 6. Central Authority. – A permanent committee under the National
Security Council (NSC), to be known as the NSC-Strategic Trade
Management Committee (NSC-STMCom), is hereby constituted and
deemed the central authority on any and all matters relating to strategic
trade management with the following composition: (1) the Executive
Secretary, as Chairperson; (1) the Executive Secretary, as
Chairperson; (2) the Secretary of Trade and Industry, as Vice
Chairperson; and (3) the Secretary of Foreign Affairs; (4) the Secretary
of Justice; (5) the Secretary of National Defense; (6) the Secretary of
the Interior and Local Government; (7) the Secretary of Finance; (8) the
Secretary of Transportation and Communications; (9) the National
Security Advisor; (10) the Secretary of Environment and Natural
Resources; (11) the Secretary of Science and Technology; (12) the
Secretary of Agriculture; and (13) the Secretary of Health; as Members.
The Anti-Terrorism Council (ATC) – Program Management Center
(PMC) shall serve as the Secretariat.
The members may designate a representative to the NSC-STM Com,
who shall have a rank not lower than an Undersecretary. Five (5)
members of the NSC-STMCom shall constitute a quorum for the
transaction of business.
For purposes of this Act, the NSC-STMCom shall be complemented by
the following support agencies and bureaus:
a. Bureau of Customs (DOF-BOC);
b. Bureau of Animal Industry (DA-BAI);
c. Food and Drug Administration (DOH-FDA);
d. Bureau of Quarantine (DOH-BOQ);
e. Philippine Nuclear Research Institute (DOST-PNRI);
f. Information and Communication Technology Office (DOST-ICTO);
g. Armed Forces of the Philippines (AFP);
h. Philippine National Police (PNP);
i. Philippine Coast Guard (PCG);
j. Office of Transport Security (DOTC-OTS);
k. National Bureau of Investigation (DOJ-NBI);
l. Presidential Legislative Liaison Office (OP-PLLO);
m. Office of the Special Envoy on Transnational Crime (OSETC): and
n. Such other offices, agencies or units as necessary.
SEC. 7. Powers and Functions of the NSC-STMCom. – As the central
authority focused on the country’s international commitment towards
the promotion of a secured and safe environment for trade in strategic
goods consistent with the objectives of this Act, the NSC-STMCom shall
have the following powers and functions:
a. Formulate and adopt strategies, policies and guidelines for the
effective implementation of this Act;
b. Establish, publish, review and update the NSGL;
c. Develop a standard end-users’ certification;
d. Monitor and evaluate the implementation of plans, programs and
activities of the STMO;
e. Review and decide appeals on decisions made by the STMO;
f. Establish exemptions from an authorization requirement as provided
for in Section 15, and taking into consideration national security, foreign
policy and law enforcement concerns. These exemptions shall be
published, reviewed arid updated;
g. Create working groups on specific issues by enlisting the assistance
and support of government agencies, the academe, as well as private
institutions, or persons to carry out its functions;
h. Establish and maintain coordination, cooperation, assistance and
information sharing with government agencies in the implementation of
this Act;
i. Establish and maintain coordination, cooperation, assistance and
information sharing with other nations in the regulation of strategic
goods; and
j. Perform such other tasks and functions it may deem necessary to
effectively carry out the provisions of this Act.
SEC. 8. Executive and Technical Arm. – The STMO is hereby created
as a bureau under the administrative supervision of the Department of
Trade and Industry (DTI) to serve as the executive and technical agency
of the national government for the establishment of the management
systems for the trade in strategic goods pursuant to this Act. The STMO
shall be headed by a Director who shall be responsible for the pursuit
of the office mandate, the discharge of its duties and functions and the
exercise of supervision and control over the STMO and its constituent
units. The STMO, through the Secretary of Trade and Industry, shall
submit periodic updates to the NSC-STMCom.
The organizational structure and staffing pattern of the STMO shall be
formulated by the DTI Secretary in coordination with the NSC-
STMCom, subject to the approval by the Department of Budget and
Management (DBM) in accordance with Executive Order No. 292
(Administrative Code of 1987).
SEC. 9. Powers and Functions of the STMO. – The STMO shall have
the following powers and functions:
a. Implement strategies, policies and guidelines formulated by the NSC-
STMCom and develop, evaluate, and monitor corresponding programs
and activities;
b. Develop and maintain the register and carry out registration activities
to include registration, registration with conditions, denial of registration,
modification, suspension, revelation or annulment of registration;
c. Establish and maintain a comprehensive database information
system on strategic goods and on persons engaged in the trade of
strategic goods and the provision of related services;
d. Issue or deny issuance of authorizations for the trade of strategic
goods and the provision of related services;
e. Modify, condition, limit, suspend, revoke, or annul authorizations that
have been issued as circumstances warrant in consultation with the
NSC-STMCom;
f. Issue, modify, suspend and revoke governmental end-use
assurances in consultation with the NSC-STMCom;
g. Ensure and operate end-use/end-user controls and establish
compliance checks and exercise authority to enter premises for such
purposes;
h. Issue warning letters and orders for corrective action;
i. Conduct investigation into violations committed under this Act;
j. Undertake the enforcement of the provisions of this Act in cooperation
with other agencies;
k. Coordinate, cooperate, provide assistance and share information
with the ATC and other departments/agencies in the implementation of
this Act;
l. Conduct capacity building and training of personnel for the effective
implementation of this Act;
m. Coordinate with the industry and the public regarding their
obligations under this Act;
n. Encourage and facilitate international cooperation, including the
exchange of assistance such as information on matters regarding the
implementation and application of this Act or its implementing rules and
regulations (IRR); and
o. Perform such other tasks and functions necessary to effectively cany
out the provisions of this Act.
CHAPTER III
RESPONSIBILITIES OF PERSONS IN STRATEGIC TRADE
TRANSACTIONS
Sec. 10. Responsibilities of Persons. – It shall be the responsibility of
any person, subject to this Act; who intends to engage in the export,
import, transit, and transshipment of strategic goods, under the NSGL,
or the provision of related services to obtain an authorization from the
STMO as provided in this Act and its implementing rules and
regulations. In addition, any person who intends to engage in the re-
export or reassignment of strategic goods is required to obtain an
authorization when this has been made a condition for the authorization
of the exports from the Philippines.
No person shall be allowed to place .any strategic goods in or on any
carrier located within the territorial and economic jurisdiction of the
Philippines without the consent of the owner or operator of the carrier.
Such owners and operators shall be prohibited from allowing the
placement of strategic goods in or on any carrier unless the person
presents an authorization issued by the STMO to export, import, transit
or transship strategic goods.
All persons engaged in the business involving strategic goods are
required to keep at their principal place of business, in the manner
prescribed by the IRR to be issued by the NSC-STMCom for a period
often (10) years from the date of the completion of the transaction, all
records of the transaction and/or books of accounts, business and
computer systems and all commercial and technical data related to the
transaction including:
a. The description of the strategic goods or related services;
b. The quantity and the value of the strategic goods or value of the
related service provided;
c. The name and address of the parties in the transaction or activity;
d. The end-use and end-user of the strategic goods or related services;
and
e. The date of the transaction or activity.
The customs broker shall submit to the BOC, a copy of the authorization
and a copy of the extract of the manifest of the carrier, in or on which
the strategic goods were loaded prior to its departure or arrival.
SEC. 11. End-Use Controls. – End-use controls may be imposed on
strategic goods that are not in the NSGL (unlisted goods) and related
services, and shall apply as follows:
a. An individual license shall be required for the export, re-export,
reassignment, transit and transshipment of unlisted goods, or the
provision of technical assistance or related services if the exporter or
principal party has been informed by the STMO that the goods or
services are or may be used, partly or entirely, in-connection with the
acquisition, development, production, handling, operation,
maintenance, storage, detection, identification or dissemination of
WMDs or their means of delivery;
b. An individual license shall also be required for the export, re-export,
reassignment, transit and transshipment of unlisted goods, or the
provision of technical assistance or related services if the purchasing
country or country of destination or juridical or natural person receiving
the goods is subject to an international sanction or an arms embargo
imposed by a binding resolution of the UN Security Council and if the
exporter or principal party has been informed by the STMO in close
consultation with the NSC-STMCom that the goods in question are or
may be used, partly or entirely, for a military end-use;
c. An individual license shall also be required for the export of unlisted
goods, or the provision of related services if the exporter has been
informed by the STMO that the goods in question are or may be used,
partly or entirely, as parts or components of military items listed in the
NSGL, that have been exported from the territory of the Philippines
without license or in violation of a license; and
d. If an exporter or principal party has knowledge or has grounds for
suspecting that unlisted goods proposed for export are or may be used,
partly or entirely, for any of the uses referred to in paragraphs (a) and
(b), or for suspecting that the provision of related services will facilitate
that use, the exporter or principal party must notify the STMO. The
STMO shall decide whether or not such goods are subject to a license.
SEC. 12. Control Over End-Use of Strategic Goods in the Philippines
Under Governmental End-Use Assurances. – The STMO, in
consultation with the NSC-STMCom as may be necessary, is
authorized to certify the end-use of strategic goods in the Philippines
based on the International Import Certificate, End-Use Certificate and
Delivery Verification Certificate.
The STMO, within the limits of its competence on the basis of end-use
licensing documents, shall exercise the function of certification of the
end-use of strategic goods. In addition to the standard end-use
certification assurances contained in the end- use documents, the
STMO, in consultation with the NSC- STMCom, may add other terms
and conditions in order to meet the requirements of the exporting
country of the goods and the security interest of the Philippines.
The STMO shall be responsible for informing the competent authority
of the end-use country and all countries through which the goods will
be transshipped or transited. In fulfilling this responsibility, the STMO
may request additional documents such as declarations of the shippers
or refer to other relevant information obtained in the course of
performing their functions under this Act.
The application, issuance, modification, suspension, or revocation
procedures of end-use certification documentation shall be in
accordance with the IRR and in consultation with the NSC-STMCom as
may be necessary.
SEC. 13. Registration. – Any person who engages or intends to engage
in the export, import, and re-export of strategic goods or provide related
services shall register directly with the STMO.
SEC. 14. Issuance of Authorization.- Any person, prior to engaging in
the export, import, re-export, reassignment, transit, transshipment of
strategic goods, or the provision of technical assistance or related
services shall apply for an authorization from the STMO. The
application shall be in the manner and form prescribed under the IRR
of this Act. The STMO is authorized to collect fees to cover the cost to
be incurred in the processing of applications for authorization.
The STMO may issue an authorization to an applicant subject to
conditions it may deem fit. It may renew an authorization with or without
conditions.
The STMO may deny, issue with or without conditions, modify, limit,
suspend, revoke, or annul the authorization based on its discretionary
powers as specified in the IRR.
SEC. 15. Exemption from Authorization Requirement. – An
authorization is not required under the following circumstances:
a. Import of strategic goods by the government for the use of the
Philippine military or police forces;
b. Temporary export of strategic goods by the government for the use
of the Philippine military or police forces assigned outside of Philippine
jurisdiction;
c. Export, transit, and transshipment of strategic goods •which are
provided in connection with a military, peacekeeping, or government
humanitarian mission;
d. Export, import, transit and transshipment of strategic goods by the
government in connection with law enforcement activities; and
e. Any other circumstances as provided by the NSC-STMCom pursuant
to Section 7(f) of this Act.
SEC. 16. Administrative Appeals. – Any person whose .registration or
authorization has been denied, suspended, modified, limited, revoked,
or annulled, and any person upon whom administrative penalties have
been imposed shall have the right =to appeal in accordance with the
IRR. The decision on the appeal is final and executory.
SEC. 17. Liability Limitation. – If the STMO denies, suspends, limits,
revokes or annuls an authorization or registration, it shall not be liable
for damages that may be caused by such acts.
SEC. 18. Confidentiality of Business Proprietary Information. – Any
information obtained under this Act that are marked as confidential
business information shall not be disclosed to any other party except in
the furtherance of justice and law enforcement, national security or
foreign policy interest, as determined by the STMO, unless the party
providing such information has consented to its disclosure.
CHAPTER IV
LIABILITIES, VIOLATIONS, PENALTIES AND SANCTIONS
Sec. 19. Unlawful Act and Penalties. –
a. Any person who willfully and intentionally engages in any of the
following activities shall be imprisoned for a period from six (6) years
and one (1) day to twelve (12) years imprisonment, and a fine from one
million pesos (P1,000,000.00) to five million pesos (P5,000,000.00):
1. To engage in any of the regulated activity prohibited by, or in
contravention of, this Act, including: failure to register; acts without an
authorization; or acts in breach of the conditions and terms of an
authorization or governmental end-use assurances;
2. To make false or misleading representations or conceal any material
fact, including in the submission of any document, to the NSC-STMCom
or the STMO or any other Philippine government agency;
3. To engage in any activity prohibited by, or in contravention of, any
orders or regulations issued by the NSC-STMCom to implement the
provisions of this Act;
4. To conspire or act in concert with one or more persons in any manner
or for any purpose to bring about or to do any act that constitutes a
violation of this Act, or any order, regulation, or authorization issued
thereunder;
5. To forge or alter any authorization, registration, certificate or any or
other document issued under the provisions of this Act;
6. To obstruct or hinder the NSC-STMCom or any government agency
in the execution of its powers conferred under this Act; or
7. To induce a violation of this Act or any order, regulation, or
authorization issued thereunder.
a. Any person found guilty of committing any of the following shall be
imprisoned for a period from six (6) months and one (1) day to six (6)
years imprisonment, and a fine from one hundred thousand pesos (P
100,000.00) to one million pesos (P1,000,000.00):
1. To fail to report or notify the STMO as required by this Act;
2. To fail to comply with record keeping requirements as provided in this
Act; or
3. To engage in any activity with intent to evade the provisions of this
Act, or any order, regulation, or authorization issued thereunder.
SEC. 20. Attempt to Commit Violations of this Act. — Any attempt to
commit any crime under Section 19(a) of this Act shall be penalized by
imprisonment for a period from six (6) months and one (1) day to six (6)
years, and a fine from one hundred thousand pesos (P100,000.00) to
one million pesos (P1,000,000.00).
SEC. 21. Investigation. – If in the course of conducting an investigation
for violations committed under this Act, the STMO comes across
evidence of possible criminal violations, it shall refer the matter and turn
over all available evidence to the following agencies:
a. BOC on matters involving violations of import and export provisions
of this Act as well as the Tariff and Customs Code;
b. PCG on matters involving violations that pertainto physical or outright
smuggling on border security; or
c. PNP/NBI on acts involving violations outside the jurisdiction of the
BOC and PCG.
After a finding that a prima facie case exists, the aforementioned
agencies shall refer such case to the Department of Justice for
preliminary investigation.
Appropriate forfeiture proceedings for materials and goods confiscated
shall be filed in accordance with existing laws, rules and regulations.
SEC. 22. Administrative Penalties. – The STMO shall impose on any
person found to have committed violations under this Act the following
administrative penalties:
1. Limitation, revocation or annulment of any authorization and/or
registration;
2. Imposition of fines of up to two hundred fifty thousand pesos
(P250,000.00) or twice the value of the strategic good or related service
under the contract or as assessed by the STMO; and
3. Upon request by the Securities and Exchange Commission and/or
the Department of Trade and Industry or any other relevant agencies,
order the cancellation or suspension of the registration and
authorization/license to operate of the partnership, corporation,
association and other juridical entity.
The imposition of the penalty shall be without prejudice to the filing of
appropriate criminal charges against the persons responsible for the
violation.
SEC. 23. Criminal Liability of Officers of Partnerships, Corporations,
and Other Juridical Entities.- In case any of the violations of this Act is
committed by a partnership, corporation, association, or any other
juridical persons, the partner, president, director, manager, trustee,
administrator, or officer who willfully and intentionally consents to, or
tolerates such violation shall be held criminally liable as co-principal.
The penalty provided for the offense shall be imposed upon the
responsible officers who participated in the commission of the crime or
who have willfully and intentionally permitted its commission.
SEC. 24. Administrative Liability of Government Officials and
Employees. – Any government official or employee who commits, or
facilitates the commission of, any violation of this Act shall be
administratively liable under Civil Service rules, without prejudice to
criminal liability under this Act. The concerned government official or
employee shall, upon conviction, be dismissed from the service.
SEC. 25. Additional Penalty if Offender is an Alien/ Foreign National. –
In addition to the penalties prescribed in this Act, any alien/foreign
national who violates any provision of this Act shall, after service of
sentence, be deported immediately without further proceedings, and be
barred permanently from entering the country.
SEC. 26. Forfeiture. – In addition to imprisonment and fine, the strategic
goods subject of the offense, including the proceeds derived therefrom,
shall be forfeited in favor of the government.
After conviction, the Regional Trial Court shall enter a judgment of
forfeiture of the goods, including its proceeds, in favor of the
Government of the Philippines and shall authorize the forfeiture of the
seized goods.
Following the seizure of the strategic goods, the relevant government
agency shall direct the disposition of the property by sale or other
commercially feasible means. The offender or any person acting on
behalf of the offender shall not be eligible to purchase the forfeited
property. The proceeds of any sale or disposition of any property
confiscated or forfeited under this section shall be paid directly to the
National Treasury. All proper expenses .incurred in the proceedings for
the confiscation, forfeiture, custody and maintenance of the property
pending disposition, as well as expenses for publication and court costs
shall be taken from the General Appropriations Act (GAA).
If the strategic goods are located outside of the Philippines, the court
may order the convicted offender to pay to the National Treasury the
amount equal to the value of the strategic goods or related services
under the contract or as assessed by the STMO, whichever is greater.
SEC. 27. Protection of Officers. – No action or prosecution shall be
brought, instituted or maintained against the NSC-STMCom or the
STMO or an authorized officer for or on account of or in respect of any
act ordered or done for the purpose of carrying into effect this Act or
IRR if the act was done in good faith and under a reasonable belief that
it was necessary for the purpose intended to be served thereby.
SEC. 28. Jurisdiction.- The Regional Trial Court shall have jurisdiction
over criminal prosecutions for violation of any provision of this Act, as
well as over applications for the issuance and grant of applicable
provisional remedies under the Rules of Court.
SEC. 29. International Legal. Cooperation. – For the purposes of this
section, the Department of Justice (DOJ) shall make and receive
requests for assistance and to execute or arrange for the execution of
such requests.
a. Types of assistance – the DOJ may execute or make a request for
assistance from a foreign state to: (1) take evidence or obtaining
voluntary statements from persons; (2) make arrangements for persons
to give evidence or to assist in criminal matters; (3) effect service of
judicial documents; (4) execute searches and seizures; (5) examine
objects and sites; (6) provide or obtain original or certified true copies
of relevant documents, records and items of evidence; (7) identify or
trace property derived from the commission of an offense and
instrumentalities of crime; restrain dealings in property or freeze
property derived from the commission of an offense that may be
recovered, forfeited or confiscated; (9) recover, forfeit or confiscate
property derived from the commission of an offense; and (10) locate
and identifying witnesses and suspects.
b. Request for legal assistance from a foreign State – where a’ foreign
State makes a request for assistance in the investigation or prosecution
for violation of any of the regulated activities under this Act, or in related
criminal proceedings, the DOJ may execute the request or refuse to
execute the request, and inform the foreign State of valid reason for not
executing the request or for delaying its execution. The DOJ may refuse
a request for assistance where the action sought by the request
contravenes any provision of the Constitution or the execution of a
request is likely to prejudice the national interest of the Philippines,
unless there is an existing treaty on mutual legal assistance between
the Philippines and the requesting State.
c. Requirements for requests for mutual assistance from foreign States
– a request for mutual assistance from foreign States must contain the
following: (1) name of the authority conducting the investigation,
prosecution or judicial proceeding to which the request relates,
including contact details of the person capable of responding to
inquiries concerning the request; (2) specific purpose of the request and
the nature of the assistance sought; (3) confirmation that an
investigation or prosecution is being conducted in respect to the person
named therein or that the person has been convicted for violation of any
of the regulated particulars, if known; (4) specify the manner in which
and to whom said information, document, material or object obtained
pursuant to the request, is to be produced; (5) all the particulars
necessary for the issuance by the court in the requested State of the
writs, orders or processes needed by the requesting State; and (6) such
other information as may assist in the execution of the request.
d. Authentication of documents – any document submitted by the
foreign state pursuant to this section, shall be admissible as evidence
in any proceeding, without need for further authentication.
Subject to the provisions of the extradition law and the applicable
extradition treaty, the offenses defined in this Act shall be deemed
included as extraditable offenses in an extradition treaty in which the
Philippines is a party.
CHAPTER V
FINAL PROVISIONS
SEC. 30. Implementing Rules and Regulations (IRR). – Within six (6)
months from the effectivity of this Act, the Implementing Rules and
Regulations Committee to be composed of the member-agencies of the
NSC-STMCom shall draft and issue the IRR for its effective
implementation, after public consultations with stakeholders: Provided,
That the non-issuance of the IRR shall not prevent the coming into force
of this Act: Provided, further, That any administrative proceedings under
this Act shall be suspended pending the issuance of the IRR.
SEC. 31. Appropriations. – The amount needed for the initial
implementation of this Act shall be charged against the current year’s
appropriations of the DTI. Thereafter, such sums as may be necessary
for the implementation of this Act shaffbe included in the annual General
Appropriations Act.
SEC. 32. Separability Clause. – If any provision of this Act is held to be
invalid or unconstitutional, the provisions not otherwise affected shall
remain valid and subsisting.
SEC. 33. Suppletory Application. – For purposes of this Act, the
Revised Penal Code and other applicable laws shall have suppletory
application.
SEC. 34. Repealing Clause. – All laws, decrees, executive orders, rules
and regulations and other issuances or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed,
amended or modified accordingly.
SEC. 35. Effectivity Clause. – This Act shall take effect after fifteen (15)
days from its publication in theOfficial Gazette or in a newspaper of
general circulation.
Posted by Atty. Manuel J. Laserna Jr. at 5:01 PM
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About Me
Atty. Manuel J. Laserna Jr.
Las Pinas City, Metro Manila, Philippines
MANUEL J. LASERNA JR.- Partner, Laserna Cueva-Mercader Law Offices. Admitted
to the Bar in 1985 (3rd placer, 1984 bar exam). Law professor of FEU, Manila, 1985 to
2006 (ret.). Educ.: AB Journ., UP, Diliman, QC, 1975; Bachelor of Laws (LL.B.), cum
laude, FEU, 1984; Master of Laws (LL.M.), UST, (cand.), Manila [as FEU fellow, 1998-
2000]. Honors: 3rd placer, 1984 Bar Exams (90.95%; only 22% passed); Meralco pre-law
scholar; Cocofed law scholar; Cocofed management scholar (AIM, Makati); FEU fellow
(LLM, UST). Bar leader in southern Metro Manila area since 1995. Founded Las Pinas
City Bar Assn (2001). Served as director/sec./vice pres., IBP PPLM Ch., 1995-2007. -
Contact: Email "lcmlaw@gmail.com". Google Maps - "Laserna Cueva-Mercader Law
Offices".
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