Creation of Presidential Anti-Smuggling Task Force

Policy, Purpose, and Legal Basis

Executive Order No. 196 declares that large scale smuggling and frauds upon customs and other related illegal practices undermine national interest and security.
Executive Order No. 196 frames anti-smuggling and anti-fraud enforcement as an urgent concern essential to the success of the government’s economic reforms.
Executive Order No. 196 directs that a presidential body directly empowered to investigate and prosecute large-scale smuggling and other unlawful importations is necessary to counteract economic sabotage and strengthen enforcement of revenue laws.
Executive Order No. 196 relies on the Administrative Code of 1987, which empowers the President to reorganize the Office of the President and to transfer functions from one department or agency to another.
Executive Order No. 196 requires the continued role of the Philippine National Police as primary general law enforcement under Republic Act No. 6875, as amended, without interference in anti-smuggling operations.

Composition and Leadership Structure

Task Force Aduana is composed of elements from the Presidential Security Group (PSG) and the Intelligence Service, Armed Forces of the Philippines (ISAFP).
If necessary, Task Force Aduana may be augmented by elements of the Philippine Army, Philippine Air Force, Philippine Navy, and the National Intelligence Coordinating Agency (NICA).
Task Force Aduana is headed by a senior AFP General Officer designated by the President.
A deputy, also designated by the President, assists the Task Force head.

Powers, Core Functions, and Investigative Activities

Task Force Aduana must prepare and implement measures to prevent and suppress large-scale smuggling and other prohibited and unlawful importations.
Task Force Aduana may conduct searches, seizures, and arrests, and the Task Force Commander must file administrative and criminal cases consistent with the Tariff and Customs Code of the Philippines, as amended, the pertinent provisions of the Revised Penal Code, as amended, and the Rules of Criminal Procedure.
Task Force Aduana must conduct intelligence and counter-intelligence on smuggling and other unlawful importations, including monitoring persons, groups, and entities reasonably believed to be involved.
Task Force Aduana may select and recruit personnel from the PSG and ISAFP for assignment to the Task Force, consistent with the concerned office or agency’s conformity.
Task Force Aduana may enlist assistance of any department, bureau, office, or agency, including government-owned or controlled corporations, using their respective personnel, facilities, and resources.
Task Force Aduana must conduct investigation of the ill-gotten wealth of all persons, including government officials involved in smuggling activities, in coordination with other government agencies.
Task Force Aduana must verify with the Bureau of Customs all documents pertaining to the payment of duties and taxes of imported articles.
Task Force Aduana must suppress and prevent other economic frauds as directed by the President.
Task Force Aduana must perform such additional functions and carry out such activities as directed by the President.

Covered Offenses and Syndicate/Large-Scale Standards

Task Force Aduana has authority to take cognizance of (a) smuggling and customs frauds committed by organized or syndicated groups or criminal enterprises.
Task Force Aduana has authority to take cognizance of (b) smuggling and other false and fraudulent importations or violations of customs laws committed in large scale.
Task Force Aduana has authority to take cognizance of (c) other cases of violations of the Tariff and Customs Code, as amended, and other related laws that the President may determine from time to time.
Smuggling and customs frauds are deemed committed by a syndicate if carried out by a group of three (3) or more persons conspiring, confederating with, or mutually helping one another in carrying out the criminal acts.
Smuggling and other customs frauds and violations of customs laws are deemed committed in large scale if committed in connivance with officials and employees of the Bureau of Customs, or where the determinable value of importations exceeds P1 Million pesos.

Organizational and Prosecutorial Support

Task Force Aduana must organize technical, administrative, and special staffs composed of personnel assigned or detailed from different agencies to assist the Task Force.
The head of the Task Force must delineate the responsibilities of the supporting staffs.
A Special Team of Prosecutors from the Department of Justice must be assigned to assist in expeditious prosecution of criminal and other cases involving syndicated and large-scale smuggling and customs frauds.
The Special Team of Prosecutors must (a) evaluate evidence gathered by the Task Force and determine whether violations of the Tariff and Customs Code, as amended, and other related laws and regulations have been committed.
The Special Team of Prosecutors must (b) initiate and conduct preliminary investigations and file and prosecute the appropriate administrative and criminal charges against persons responsible for violations of customs laws or other related laws and regulations.
The Special Team of Prosecutors must (c) recommend the issuance of warrant of seizure and detention in appropriate seizure cases of suspected smuggled articles.
The Special Team of Prosecutors may be assisted by lawyers selected and recruited by the Task Force from the Department of Justice and the Bureau of Customs.
Task Force Aduana may coordinate with the Bureau of Customs through verification of customs tax and duty payment documents tied to imported articles.

Hearing Officers and Seizure Proceedings Timelines

A Special Pool of Hearing Officers in the Bureau of Customs is created under the Deputy Commissioner for Revenue Collection and Monitoring Group.
Special Pool members are selected by the Task Force Commander.
Special Pool Hearing Officers must specifically attend to or hear seizure cases arising from unlawful importations and violations of customs laws being investigated by the Task Force.
Hearing Officers must have powers under the Tariff and Customs Code, as amended, and customs rules and regulations issued pursuant thereto, and they must also have authority to:
- summon witnesses;
- administer oaths; and
- take testimony or evidence relevant to the investigation using subpoena ad testificandum and subpoena duces tecum.
Hearing Officers must rule on motions and issues presented during proceedings and must perform other acts necessary and incidental to discharge of their functions.
The Special Pool of Hearing Officers must initially be composed of at least six (6) members selected from various legal units of the Bureau of Customs.
Seizure proceedings must be terminated within thirty (30) days from the date of commencement of hearing.
The decision on seizure proceedings must be rendered by the Collector of Customs within five (5) days from termination of the formal hearing.
The technicalities of law and procedure and the rules on admissibility and sufficiency of evidence applicable in courts of law must not strictly apply, subject to the essential requirement of due process.
The mandatory time limits for termination of proceedings and rendition of decision must be strictly observed unless extension is necessary to avoid miscarriage of justice.
The Commissioner of Customs must issue authorizations and orders required under the Tariff and Customs Code, as amended, for purposes relevant to the effective exercise and performance of the Task Force’s powers and functions.

Funding and Implementation Requirements

Task Force Aduana must receive an initial annual allocation of Fifty Million Pesos (P 50M), subject to usual audit.
The initial PHP 50M allocation must be drawn from the President’s Contingency Fund and from government savings.
Appropriations for succeeding years must be incorporated in the budget proposal of the Office of the President.
Task Force Aduana must adopt operating guidelines necessary to implement the Executive Order, in coordination with customs law enforcement agencies, subject to approval of the President.
Task Force Aduana must submit reports of its activities to the President with appropriate recommendations for the President’s information and guidance.

Coordination With PNP and Related Agencies

The objective of Executive Order No. 196 is to focus and maximize impact on organized and large-scale smuggling and related crimes addressed solely by the Presidential Anti-Smuggling Task Force “Aduana” operating directly under the Office of the President.
The Philippine National Police must continue as the primary general law enforcement agency pursuant to Republic Act No. 6875, as amended, and must not interfere with anti-smuggling operations.
Close coordination and cooperation must be undertaken by the head of the Task Force, the Chief of the PNP, and heads of customs law enforcement agencies to ensure effective and efficient prosecution of the anti-smuggling campaign and to avoid overlapping functions.

Repeal and Effectivity

Executive Order No. 150, dated September 3, 1999, is repealed.
All other orders, issuances, rules and regulations, or parts thereof inconsistent with Executive Order No. 196 are repealed or modified accordingly.
Executive Order No. 196 takes effect immediately.