Unlawful Act and Penalties.
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.
Attempt to Commit Violations of this Act.
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).
Investigation.
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.
Administrative Penalties.
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.
Criminal Liability of Officers of Partnerships, Corporations, and Other Juridical Entities.
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.
Administrative Liability of Government Officials and Employees.
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.
Additional Penalty if Offender is an Alien/ Foreign National.
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.
Forfeiture.
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.
Protection of Officers.
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.
Jurisdiction.
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.
International Legal. Cooperation.
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.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
