A TOBACCO company on Wednesday called for stronger prosecution of illegal tobacco cases filed under the Anti-Agricultural Economic Sabotage (AAES) law or Republic Act (RA) 12022 to secure convictions against major offenders.
At a hearing conducted by the House Committee on Ways and Means, Shaiful Mahpar, director for corporate affairs and communications of JTIP, asserted that the passage of the AAES law in 2024 marked a significant policy milestone, declaring large-scale smuggling of agricultural products—including tobacco—as economic sabotage.
Despite numerous large-scale seizures meeting the law’s thresholds, Mahpar noted that the drive has not resulted in convictions for illicit tobacco under the AAES Law.
“Strengthening and focusing on prosecutorial follow-through would be essential to ensure that the law delivers its intended deterrent impact,” Mahpar told the legislators.
The AAES law establishes a threshold of ₱10 million worth of smuggled agricultural products for cases to qualify as economic sabotage which is a capital offense and therefore, non-bailable.
Mahpar also pointed out recent findings by the Department of the Interior and Local Government (DILG), indicating a shift from traditional smuggling to domestic illegal cigarette manufacturing.
Law enforcement agencies have uncovered manufacturing facilities, machinery, raw materials, and counterfeit tax stamps, signaling the presence of organized and well-financed networks operating within the country.
Authorities are currently validating intelligence reports suggesting there are approximately ten illegal cigarette manufacturing sites across the country.
Mahpar called for consistent and comprehensive enforcement of the AAES Law in illicit tobacco smuggling cases that meet statutory thresholds, so the law’s classification of economic sabotage is properly reflected in investigations, prosecutions, and convictions.
He also advocated for reinforcing the legal framework addressing illegal cigarette manufacturing, including the explicit classification of large-scale illicit manufacturing as economic sabotage, especially in light of emerging trends identified by the DILG.
He warned that the proliferation of illicit tobacco undermines hard-won public health gains by making cigarettes more accessible for the youth.
Government data showed that since 2021, youth smoking rates have increased by over 100 percent, a trend closely linked to the widespread availability of extremely cheap illegal cigarettes.
Illicit tobacco is now widespread nationwide, with Mindanao emerging as the epicenter of illegal activity. In several areas, up to 8 out of every 10 cigarette packs sold come from illicit sources, illustrating the depth and scale of the problem.
To date, the government has filed nine active agricultural economic sabotage cases nationwide, six of which involve large-scale tobacco product smuggling under RA 12022.
These six cases account for at least ₱146.45 million worth of seized illicit cigarettes, based on valuations from the National Tobacco Administration (NTA), with figures expected to rise as enforcement continues.
The tobacco-related cases have resulted in the detention of 26 respondents accused of violating Section 7 of RA 12022, which addresses large-scale economic sabotage offenses involving agricultural commodities.
The hearing was initiated by a resolution from Rep. Miro Quimbo, chair of the House ways and means committee, calling for a congressional inquiry into tobacco smuggling.
He cited the seizure of 32 trucks of smuggled cigarettes valued at ₱2.6 billion last Jan. 1. The smuggled cigarettes reportedly came from Taiwan, China, and Malaysia, entering the Philippines as purported transshipments that are then left in the country.
Some shipments also cross borders through Zamboanga City, Basilan, Sulu, and Tawi-Tawi.
