Anti-Fencing Law of 1979

Policy and intent behind heavy penalties

The decree recognizes rampant robbery and thievery of government and private properties.
The decree states robbery and theft have become profitable because of “ready buyers,” commonly known as fence, of stolen properties.
The decree declares that existing law allows prosecution only as an accessory after the fact and punished lightly.
The decree states the imperative need is to impose heavy penalties on persons who profit by the effects of robbery and theft.

Core definitions: fencing and fence

“Fencing” is the act of any person, with intent to gain for himself or for another, who buys, receives, possesses, keeps, acquires, conceals, sells or disposes of, buys and sells, or otherwise deals in any article or anything of value that the person knows, or should have known to have been derived from the proceeds of robbery or theft. (Sec. 2[a])
“Fence” includes any person, firm, association, corporation, partnership, or other organization who commits fencing. (Sec. 2[b])

Criminal liability and punishment

A person guilty of fencing is punished under Section 3 based on the value of the property involved. (Sec. 3[a]-[f])
If the value is more than 12,000 pesos but not exceeding 22,000 pesos, the penalty is prision mayor. (Sec. 3[a])
If the value exceeds 22,000 pesos, the penalty in Section 3[a] is imposed in its maximum period, adding one year for each additional 10,000 pesos, but the total penalty shall not exceed twenty years. (Sec. 3[a])
When the penalty in Section 3[a] applies, it is termed reclusion temporal, and the accessory penalty pertaining thereto under the Revised Penal Code is imposed. (Sec. 3[a])
If the value of the property robbed or stolen is more than 6,000 pesos but not exceeding 12,000 pesos, the penalty is prision correctional in its medium and maximum periods. (Sec. 3[b])
If the value is more than 200 pesos but not exceeding 6,000 pesos, the penalty is prision correctional in its minimum and medium periods. (Sec. 3[c])
If the value is over 50 pesos but not exceeding 200 pesos, the penalty is arresto mayor in its medium period to prision correctional in its minimum period. (Sec. 3[d])
If the value is over five (5) pesos but not exceeding 50 pesos, the penalty is arresto mayor in its medium period. (Sec. 3[e])
If the value does not exceed 5 pesos, the penalty is arresto mayor in its minimum period. (Sec. 3[f])

Liability of officials in juridical persons

If the fence is a partnership, firm, corporation, or association, the president or manager or any officer who knows or should have known the commission of the offense is liable. (Sec. 4)

Presumption of fencing from possession

Mere possession of any good, article, item, object, or anything of value that was the subject of robbery or thievery is prima facie evidence of fencing. (Sec. 5[a])

Clearance/permit requirement for used articles

Stores, establishments, or entities dealing in buying and selling goods obtained from an unlicensed dealer or supplier must, before offering the same for sale to the public, secure the necessary clearance or permit from the station commander of the Integrated National Police in the town or city where the store, establishment, or entity is located. (Sec. 6[a])
The Chief of Constabulary/Director General, Integrated National Police must promulgate rules and regulations to carry out Section 6. (Sec. 6[a])
A person who fails to secure the required clearance/permit or who violates provisions of the rules and regulations is punished upon conviction as a fence. (Sec. 6[a])

Implementing rules: definitions and coverage

“Used secondhand article” means any goods, article, item, object, or anything of value obtained from an unlicensed dealer or supplier, regardless of whether the same has actually been used.
“Unlicensed dealer/supplier” means any persons or entities not licensed by the government to engage in dealing in or supplying the defined used secondhand articles.
“Store,” “establishment” or “entity” covers any individual dealing in buying and selling used secondhand articles.
“Buy and sell” refers to purchasing used secondhand articles for resale to third persons.
“Station Commander” refers to the Integrated National Police Station Commander within the territorial limits of the town or city district where the store, establishment, or entity is located.

Implementing rules: duties before selling

No person may sell or offer to sell to the public any used secondhand article without first securing a clearance or permit from the proper Station Commander.
If the applicant is a partnership, firm, corporation, association, or group of individuals, the clearance/permit must be obtained by or in the name of the president, manager, or other responsible officer-in-charge.
If a store, firm, corporation, partnership, or entity has a branch or subsidiary that acquires the used secondhand articles for sale to the public, the branch or subsidiary must secure the required clearance/permit.
Goods acquired from any source for which the present possessor or holder cannot present a receipt or equivalent document evidencing lawful acquisition, or where the covering receipt/document is fake, falsified, or irregularly obtained, are presumed acquired from an unlicensed dealer/supplier; the possessor must secure the required clearance/permit before selling or offering for sale.

Implementing rules: filing, affidavits, and inventory

The Station Commander requires the owner or the president/manager/responsible officer-in-charge to submit an initial affidavit within thirty (30) days from receipt of notice.
The Station Commander requires subsequent affidavits once every fifteen (15) days, filed within five (5) days after the period covered.
Each affidavit must contain:
- A complete inventory of articles acquired daily from whatever source and the names and addresses of persons from whom acquired.
- A full list of articles to be sold or offered for sale and the place and date when the sale or offer for sale will commence.
- The place where the articles are presently deposited or kept in stock.
The Station Commander may require additional documents proving legitimacy of acquisition when circumstances warrant.

Implementing rules: application contents and supporting papers

A party required to secure a clearance/permit must file an application with the concerned Station Commander.
The application must state:
- The name, address, and other pertinent circumstances of the individual; or
- In the case of a firm, corporation, association, or partnership, the name, address, and other pertinent circumstances of the president, manager, or officer-in-charge; and
- The article to be sold or offered for sale, and the name and address of the unlicensed dealer or supplier from whom it was acquired.
The application must attach the corresponding receipt or other equivalent document proving legitimacy of acquisition.
The Station Commander examines the documents and may require additional documents to show satisfactory proof of legitimacy.

Implementing rules: publication notice and issuance after lapse

If legitimacy of acquisition from an unlicensed source cannot be satisfactorily established by presented documents, the Station Commander causes publication of a notice in a newspaper of general circulation for two (2) successive days enumerating the articles, listing the names and addresses of the persons from whom acquired, and stating the address of the store/entity seeking clearance/permit where the articles will be sold or offered for sale; this action is done at the expense of the party seeking the clearance/permit.
In places without newspapers of general circulation, the party seeking clearance/permit posts a notice daily for one week on the bulletin board of the municipal building where the store/entity is located, or where the individual’s articles are kept for sale.
If after 15 days from expiration of the publication or posting period no claim is made regarding any enumerated article, the Station Commander issues the clearance or permit sought.

Implementing rules: restraint of suspected stolen articles

If, before expiration of the publication/posting period, it appears that any listed article is stolen property, the Station Commander holds the article in restraint as evidence for any appropriate case to be filed.
Articles held in restraint are kept and disposed of as the circumstances permit, considering right and justice.
When an article is held in restraint, it is the duty of the Station Commander to advise/notify the Commission on Audit and comply with proper procedures under applicable existing laws, rules, and regulations.

Implementing rules: decision timeline and fees

The Station Commander must act on the application within seventy-two (72) hours from receipt of the application by either issuing the clearance/permit requested or denying it.
Denial must be in writing and must state the reasons briefly.
No fee is charged for issuance of clearances/permits required under Section 6.
The application, clearance/permit, or denial, and pertinent documents must use forms prescribed in Annexes “A,” “B,” “C,” “D,” and “E”, which are integral parts of the rules.

Appeals chain and finality

Any party aggrieved by the Station Commander’s action may elevate to the proper INP District Superintendent.
If still dissatisfied, the party may appeal to the INP Director.
The decision of the INP Director may be appealed to the INP Director-General, whose decision may also be appealed to the Minister of National Defense.
The Minister of National Defense’s decision is final.
Appeals from a commander lower than the INP Director-General must be filed within ten (10) days from receipt of notice of the decision.
Appeals of the INP Director-General’s decision must be filed within fifteen (15) days from receipt of notice of the decision.

Sanctions for noncompliance and consequences

Any person who fails to secure the clearance/permit required by Section 6 or violates any provisions of the rules and regulations is punished upon conviction as a fence.
The INP Director-General recommends to the proper authority the cancellation of the business license of the erring individual, store, establishment, or entity.
Articles obtained from unlicensed sources for sale or offered for sale without prior compliance with Section 6 and the rules are held in restraint until satisfactory evidence of legitimacy of acquisition is established.
Articles for which no satisfactory evidence of legitimacy is established and which are found to be stolen property are held under restraint and are subject to confiscation as evidence in the appropriate case to be filed.
If, upon termination of the case, the articles are not claimed by their legitimate owners, the articles are forfeited in favor of the government and disposed of as the circumstances warrant under applicable existing laws, rules, and regulations.
The Commission on Audit must be notified in all cases.

Police liability and visitorial powers

Integrated National Police personnel who violate Section 6 or any implementing rule, or who connive with, or through negligence or inaction make possible such violations by required parties, are prosecuted criminally without prejudice to administrative penalties.
Store owners, or presidents/managers/responsible officers-in-charge of entities, or individuals with articles for sale must allow the Station Commander or authorized representative to exercise visitorial powers.
Visitation is exercised only during office or business hours and only upon written authority from the INP Superintendent in the district, and solely to determine whether articles are kept contrary to the intents of Section 6 and the rules.

Reporting duties for station and district

At the end of each month, the Station Commander must:
- Maintain a file of all clearances/permits issued.
- Submit a report to the INP District Superintendent on number of applications processed, number of clearances/permits issued, number of applications denied, brief reasons for denial, follow-up actions taken, and an inventory of articles to be sold or offered in his jurisdiction.
The INP District Superintendent must submit quarterly reports to the appropriate INP Director consolidating information from Station Commanders.
INP Directors must submit a consolidated report semi-annually to the Director-General, Integrated National Police.
Reports at all levels must include full and accurate inventories of articles acquired from unlicensed dealers or suppliers and proposed to be sold or offered for sale within covered jurisdictions.

Repeal, implementation effectivity, and transitory clause

All laws or parts inconsistent with the provisions of Presidential Decree No. 1612 are repealed or modified accordingly. (Sec. 7)
The decree takes effect upon approval. (Sec. 8[a])
The implementing rules are effective June 15, 1979 after publication in a newspaper of national circulation.