Two priority economic measures were ratified by the House of Representatives and the Senate and are expected to be signed into law by President Aquino.

Congressmen unanimously ratified the bicameral committee reports on the proposed Customs Modernization and Tariff Act and the Agricultural Smuggling Act.

The bill seeks to enact an enabling domestic legislation to make the Tariff and Customs Code of the Philippines compliant with the Revised Kyoto Convention.

Tax exemption for balikbayan boxes has also been increased from P10,000 to P150,000.

The CMTA measure proposes additional penalties on various smuggling activities involving government workers. Among these are the forfeiture of all benefits due from service in government as well as perpetual disqualification to hold public office, from exercising the right to vote and to participate in any public election.

The bicameral committee version of House Bill 6368 or the Anti-Agircultural Smuggling Act has also been ratified.

HB 6368 seeks to declare large-scale agricultural smuggling as economic sabotage.

Marikina City Rep. Romero Quimbo, chairman of the House Committee on Ways and Means, said the bill proposes higher sanctions for large-scale smuggling of agricultural products to ensure food security and prices stability as well as to protect the income and well-being of Filipino farmers.

Under the bill, the penalty of imprisonment of not less than 17 years but not more than 20 years, and a fine of twice the fair value of the smuggled agricultural product in the kind and value describe in this act and the aggregate amount of the taxes, duties and other charges legally due on the said smuggled agricultural products shall be imposed on the officers of dummy corporations, nongovernment organizations, associations, cooperatives, or single proprietorships who knowingly sell, lend, lease, assign, consent or allow the unauthorized use of their import permits for purposes of smuggling.

Economic sabotage is defined as an act or activity which undermines, weakens or renders into disrepute the economic system or viability of the country or tends to bring out such effects and shall include, among others, price manipulation to the prejudice of the public especially in the sale of basic necessities and prime commodities,

The agricultural products, meanwhile, refers to any agricultural commodity or product, whether plant based, animal based, raw or processed, including any commodity or product derived from livestock that is available for human or livestock consumption. This definition includes fish, forestry, seeds, poultry and dairy products that have undergone various degrees of processing.

Expected to be ratified is the bicameral conference committee report allowing foreigners to own 100 percent of adjustment companies, lending companies, financing companies and investment houses.

The bill amends investment restrictions in specific laws governing adjustment companies, lending companies, financing companies and investment houses cited in the Foreign Investment Negative List (FINL).

The measure also seeks to amend “The Insurance Code” for adjustment companies, “The Investment Houses Law” for investment houses, “Lending Company Regulation of 2007” for lending companies and “Financing Company Act of 1998” for financing companies.

Under Article XII of the Constitution, foreign investors are prohibited to own more than 40 percent on certain industries, while they are totally restrict d to exploit natural resources, public utilities and own any company in the media industry.

Under the bill, FINL refers to a list of areas of economic activity whose foreign ownership is limited to a maximum of 40 percent of the outstanding capital stock in the case of a corporation or capital in the case of a partnership.

Source: Manila Bulletin