REPUBLIC ACT No.

6539

AN ACT PREVENTING AND PENALIZING CARNAPPING

Section 1. This Act shall be known and may be cited as the "Anti-Carnapping Act of 1972."

Section 2. Definition of terms. The terms "carnapping", "motor vehicle", "defacing or tampering with",
"repainting", "body-building", "remodeling", "dismantling", and "overhauling", as used in this Act, shall
be understood, respectively, to mean

"Carnapping" is the taking, with intent to gain, of a motor vehicle belonging to another without
the latter's consent, or by means of violence against or intimidation of persons, or by using
force upon things.

"Motor vehicle" is any vehicle propelled by any power other than muscular power using the
public highways, but excepting road rollers, trolley cars, street-sweepers, sprinklers, lawn
mowers, bulldozers, graders, fork-lifts, amphibian trucks, and cranes if not used on public
highways, vehicles, which run only on rails or tracks, and tractors, trailers and traction
engines of all kinds used exclusively for agricultural purposes. Trailers having any number of
wheels, when propelled or intended to be propelled by attachment to a motor vehicle, shall be
classified as separate motor vehicle with no power rating.lawphi1

"Defacing or tampering with" a serial number is the erasing, scratching, altering or changing
of the original factory-inscribed serial number on the motor vehicle engine, engine block or
chassis of any motor vehicle. Whenever any motor vehicle is found to have a serial number
on its motor engine, engine block or chassis which is different from that which is listed in the
records of the Bureau of Customs for motor vehicles imported into the Philippines, that motor
vehicle shall be considered to have a defaced or tampered with serial number.

"Repainting" is changing the color of a motor vehicle by means of painting. There is repainting
whenever the new color of a motor vehicle is different from its color as registered in the Land
Transportation Commission.

"Body-building" is a job undertaken on a motor vehicle in order to replace its entire body with
a new body.

"Remodeling" is the introduction of some changes in the shape or form of the body of the
motor vehicle.lawphi1

"Dismantling" is the tearing apart, piece by piece or part by part, of a motor vehicle.

"Overhauling" is the cleaning or repairing of the whole engine of a motor vehicle by separating
the motor engine and its parts from the body of the motor vehicle.

Section 3. Registration of motor vehicle engine, engine block and chassis. Within one year after the
approval of this Act, every owner or possessor of unregistered motor vehicle or parts thereof in knock
down condition shall register with the Land Transportation Commission the motor vehicle engine,
engine block and chassis in his name or in the name of the real owner who shall be readily available
to answer any claim over the registered motor vehicle engine, engine block or chassis. Thereafter, all
motor vehicle engines, engine blocks and chassis not registered with the Land Transportation
Commission shall be considered as untaxed importation or coming from an illegal source or
carnapped, and shall be confiscated in favor of the Government.

All owners of motor vehicles in all cities and municipalities are required to register their cars with the
local police without paying any charges.

Section 4. Permanent registry of motor vehicle engines, engine blocks and chassis. The Land
Transportation Commission shall keep a permanent registry of motor vehicle engines, engine blocks
and chassis of all motor vehicles, specifying therein their type, make and serial numbers and stating
therein the names and addresses of their present and previous owners. Copies of the registry and of
all entries made thereon shall be furnished the Philippine Constabulary and all Land Transportation
Commission regional, provincial and city branch offices:Provided, That all Land Transportation
Commission regional, provincial and city branch offices are likewise obliged to furnish copies of all
registration of motor vehicles to the main office and to the Philippine Constabulary.

Section 5. Registration of sale, transfer, conveyance, substitution or replacement of a motor vehicle

engine, engine block or chassis. Every sale, transfer, conveyance, substitution or replacement of a
motor vehicle engine, engine block or chassis of a motor vehicle shall be registered with the Land
Transportation Commission. Motor vehicles assembled and rebuilt or repaired by replacement with
motor vehicle engines, engine blocks and chassis not registered with the Land Transportation
Commission shall not be issued certificates of registration and shall be considered as untaxed
imported motor vehicles or motor vehicles carnapped or proceeding from illegal sources.

Section 6. Original Registration of motor vehicles. Any person seeking the original registration of a
motor vehicle, whether that motor vehicle is newly assembled or rebuilt or acquired from a registered
owner, shall within one week after the completion of the assembly or rebuilding job or the acquisition
thereof from the registered owner, apply to the Philippine Constabulary for clearance of the motor
vehicle for registration with the Land Transportation Commission. The Philippine Constabulary shall,
upon receipt of the application, verify if the motor vehicle or its numbered parts are in the list of
carnapped motor vehicles or stolen motor vehicle parts. If the motor vehicle or any of its numbered
parts is not in that list, the Philippine Constabulary shall forthwith issue a certificate of clearance.
Upon presentation of the certificate of clearance from the Philippine Constabulary and after
verification of the registration of the motor vehicle engine, engine block and chassis in the permanent
registry of motor vehicle engines, engine blocks and chassis, the Land Transportation Commission
shall register the motor vehicle in accordance with existing laws, rules and regulations.

Section 7. Duty of Collector of Customs to report arrival of imported motor vehicle, etc. The Collector
of Customs of a principal port of entry where an imported motor vehicle, motor vehicle engine, engine
block chassis or body is unloaded, shall, within seven days after the arrival of the imported motor
vehicle or any of its parts enumerated herein, make a report of the shipment to the Land
Transportation Commission, specifying the make, type and serial numbers, if any, of the motor vehicle
engine, engine block and chassis or body, and stating the names and addresses of the owner or
consignee thereof. If the motor vehicle engine, engine block, chassis or body does not bear any serial
number, the Collector of Customs concerned shall hold the motor vehicle engine, engine block,
chassis or body until it is numbered by the Land Transportation Commission.

Section 8. Duty of importers, distributors and sellers of motor vehicles to keep record of stocks. Any
person engaged in the importation, distribution, and buying and selling of motor vehicles, motor
vehicle engines, engine blocks, chassis or body, shall keep a permanent record of his stocks, stating
therein their type, make and serial numbers, and the names and addresses of the persons from whom
they were acquired and the names and addresses of the persons to whom they were sold, and shall
render an accurate monthly report of his transactions in motor vehicles to the Land Transportation
Commission.

Section 9. Duty of manufacturers of engine blocks, chassis or body to cause numbering of engine
blocks, chassis or body manufactured. Any person engaged in the manufacture of engine blocks,
chassis or body shall cause the numbering of every engine block, chassis or body manufactured in a
convenient and conspicuous part thereof which the Land Transportation Commission may direct for
the purpose of uniformity and identification of the factory and shall submit to the Land Transportation
Commission a monthly report of the manufacture and sale of engine blocks, chassis or body.

Section 10. Clearance and permit required for assembly or rebuilding of motor vehicles. Any person
who shall undertake to assemble or rebuild or cause the assembly or rebuilding of a motor vehicle
shall first secure a certificate of clearance from the Philippine Constabulary: Provided, That no such
permit shall be issued unless the applicant shall present a statement under oath containing the type,
make and serial numbers of the engine, chassis and body, if any, and the complete list of the spare
parts of the motor vehicle to be assembled or rebuilt together with the names and addresses of the
sources thereof.

In the case of motor vehicle engines to be mounted on motor boats, motor bancas and other light
water vessels, the applicant shall secure a permit from the Philippine Coast Guard, which office shall
in turn furnish the Land Transportation Commission the pertinent data concerning the motor vehicle
engines including their type, make and serial numbers.

Section 11. Clearance required for shipment of motor vehicles, motor vehicle engines, engine blocks,
chassis or body. Any person who owns or operates inter-island shipping or any water transportation
with launches, boats, vessels or ships shall within seven days submit a report to the Philippine
Constabulary on all motor vehicle, motor vehicle engines, engine blocks, chassis or bodies
transported by it for the motor vehicle, motor vehicle engine, engine block, chassis or body to be
loaded on board the launch, boat vessel or ship.

Section 12. Defacing or tampering with serial numbers of motor vehicle engines, engine blocks and
chassis. It shall be unlawful for any person to deface or otherwise tamper with the original or
registered serial number of motor vehicle engines, engine blocks and chassis.

Section 13. Penal Provisions. Any person who violates any provisions of this Act shall be punished
with imprisonment for not less than two years nor more than six years and a fine equal in amount to
the acquisition cost of the motor vehicle, motor vehicle engine or any other part involved in the
violation: Provided, That if the person violating any provision of this Act is a juridical person, the
penalty herein provided shall be imposed on its president or secretary and/or members of the board of
directors or any of its officers and employees who may have directly participated in the violation.

Any government official or employee who directly commits the unlawful acts defined in this Act or is
guilty of gross negligence of duty or connives with or permits the commission of any of the said
unlawful act shall, in addition to the penalty prescribed in the preceding paragraph, be dismissed from
the service with prejudice to his reinstatement and with disqualification from voting or being voted for
in any election and from appointment to any public office.

Section 14. Penalty for Carnapping. Any person who is found guilty of carnapping, as this term is
defined in Section two of this Act, shall, irrespective of the value of motor vehicle taken, be punished
by imprisonment for not less than fourteen years and eight months and not more than seventeen
years and four months, when the carnapping is committed without violence or intimidation of persons,
or force upon things; and by imprisonment for not less than seventeen years and four months and not
more than thirty years, when the carnapping is committed by means of violence against or intimidation
of any person, or force upon things; and the penalty of life imprisonment to death shall be imposed
when the owner, driver or occupant of the carnapped motor vehicle is killed in the commission of the
carnapping.

Section 15. Aliens. Aliens convicted under the provisions of this Act shall be deported immediately
after service of sentence without further proceedings by the Deportation Board.

Section 16. Reward. Any person who voluntarily gives information leading to the recovery of
carnapped vehicles and for the conviction of the persons charged with carnapping shall be given as
reward so much reward money as the Philippine Constabulary may fix. The Philippine Constabulary is
authorized to include in its annual budget the amount necessary to carry out the purposes of this
section. Any information given by informers shall be treated as confidential matter.
Section 17. Separability clause. If any provisions of this Act is declared invalid, the provisions thereof
not affected by such declaration shall remain in force and effect.

Section 18. Repealing clause. All laws, executive orders, rules and regulations, or parts thereof,
inconsistent with the provisions of this Act are hereby repealed or amended accordingly.

Section 19. Effectivity. This Act shall take effect upon its approval.

Approved: August 26, 1972

PRESIDENTIAL DECREE No. 532 August 8, 1974

ANTI-PIRACY AND ANTI-HIGHWAY ROBBERY LAW OF 1974

WHEREAS, reports from law-enforcement agencies reveal that lawless elements are still committing
acts of depredations upon the persons and properties of innocent and defenseless inhabitants who
travel from one place to another, thereby distributing the peace, order and tranquility of the nation and
stunting the economic and social progress of the people;

WHEREAS, such acts of depredations constitute either piracy or highway robbery/brigandage which
are among the highest forms of lawlessness condemned by the penal statutes of all countries; and,

WHEREAS, it is imperative that said lawless elements be discouraged from perpetrating such acts of
depredations by imposing heavy penalty on the offenders, with the end in view of eliminating all
obstacles to the economic, social, educational and community progress of the people;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the

powers vested in me by the Constitution and pursuant to proclamation No. 1081, dated September
21, 1972 and No. 1104, dated January 17, 1973 and General Order No. 1, dated September 22, 1972,
do hereby order and decree as part of the law of the land the following:

Section 1. Title. This Decree shall be known as the Anti-Piracy and Anti-Highway Robbery Law of
1974.

Section 2. Definition of Terms. The following terms shall mean and be understood, as follows:

a. Philippine Waters. It shall refer to all bodies of water, such as but not limited to, seas, gulfs,
bays around, between and connecting each of the Islands of the Philippine Archipelago,
irrespective of its depth, breadth, length or dimension, and all other waters belonging to the
Philippines by historic or legal title, including territorial sea, the sea-bed, the insular shelves,
and other submarine areas over which the Philippines has sovereignty or jurisdiction.
b. Vessel. Any vessel or watercraft used for transport of passengers and cargo from one place
to another through Philippine Waters. It shall include all kinds and types of vessels or boats
used in fishing.
c. Philippine Highway. It shall refer to any road, street, passage, highway and bridges or other
parts thereof, or railway or railroad within the Philippines used by persons, or vehicles, or
locomotives or trains for the movement or circulation of persons or transportation of goods,
articles, or property or both.
d. Piracy. Any attack upon or seizure of any vessel, or the taking away of the whole or part
thereof or its cargo, equipment, or the personal belongings of its complement or passengers,
irrespective of the value thereof, by means of violence against or intimidation of persons or
force upon things, committed by any person, including a passenger or member of the
complement of said vessel, in Philippine waters, shall be considered as piracy. The offenders
shall be considered as pirates and punished as hereinafter provided.
e. Highway Robbery/Brigandage. The seizure of any person for ransom, extortion or other
unlawful purposes, or the taking away of the property of another by means of violence against
or intimidation of person or force upon things of other unlawful means, committed by any
person on any Philippine Highway.
Section 3. Penalties. Any person who commits piracy or highway robbery/brigandage as herein
defined, shall, upon conviction by competents court be punished by:
a. Piracy. The penalty of reclusion temporal in its medium and maximum periods shall be
imposed. If physical injuries or other crimes are committed as a result or on the occasion
thereof, the penalty of reclusion perpetua shall be imposed. If rape, murder or homicide is
committed as a result or on the occasion of piracy, or when the offenders abandoned the
victims without means of saving themselves, or when the seizure is accomplished by firing
upon or boarding a vessel, the mandatory penalty of death shall be imposed.
b. Highway Robbery/Brigandage. The penalty of reclusion temporal in its minimum period
shall be imposed. If physical injuries or other crimes are committed during or on the occasion
of the commission of robbery or brigandage, the penalty of reclusion temporal in its medium
and maximum periods shall be imposed. If kidnapping for ransom or extortion, or murder or
homicide, or rape is committed as a result or on the occasion thereof, the penalty of death
shall be imposed.

Section 4. Aiding pirates or highway robbers/brigands or abetting piracy or highway

robbery/brigandage. Any person who knowingly and in any manner aids or protects pirates or highway
robbers/brigands, such as giving them information about the movement of police or other peace
officers of the government, or acquires or receives property taken by such pirates or brigands or in
any manner derives any benefit therefrom; or any person who directly or indirectly abets the
commission of piracy or highway robbery or brigandage, shall be considered as an accomplice of the
principal offenders and be punished in accordance with the Rules prescribed by the Revised Penal
Code.

It shall be presumed that any person who does any of the acts provided in this Section has performed
knowingly, unless the contrary is proven.

Section 5. Repealing Clause. Pertinent portions of Act No. 3815, otherwise known as the Revised
Penal Code; and all laws, decrees, or orders or instructions, or parts thereof, insofar as they are
inconsistent with this Decree are hereby repealed or modified accordingly.

Section 6. Effectivity. This Decree shall take effect upon approval.

Done in the City of Manila, this 8th day of August, in the year of Our Lord, nineteen hundred and
seventy-four.

PRESIDENTIAL DECREE No. 533 August 8, 1974

THE ANTI-CATTLE RUSTLING LAW OF 1974

WHEREAS, large cattle are indispensable to the livelihood and economic growth of our people,
particularly the agricultural workers, because such large cattle are the work animals of our farmers
and the source of fresh meat and dairy products for our people, and provide raw material for our
tanning and canning industries;

WHEREAS, reports from the law-enforcement agencies reveal that there is a resurgence of thievery
of large cattle, commonly known as "cattle rustling", especially in the rural areas, thereby directly
prejudicing the livelihood of the agricultural workers and adversely affecting our food production
program for self-sufficiency in rice, corn and other staple crops, as well as in fresh meat;

WHEREAS, there is an urgent need to protect large cattle raising industry and small time large cattle
owners and raisers from the nefarious activities of lawless elements in order to encourage our
hardworking cattle raisers and farmers to raise more cattle and concentrate in their agricultural works,
thus increasing our source of meat and dairy products as well as agricultural production and allied
industries which depend on the cattle raising industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by

virtue of the powers vested in me by the Constitution and pursuant to Proclamations No. 1081, dated
September 21, 1972 and No. 1104, dated January 17, 1973 and General Order No. 1 dated
September 22, 1972, do hereby order and decree as part of the law of the land, the following:

Section 1. Title. This Decree shall be known as the "Anti-Cattle Rustling Law of 1974."

Section 2. Definition of terms. The following terms shall mean and be understood to be as herein
defined:
 a. Large cattle as herein used shall include the cow, carabao, horse, mule, ass, or other
domesticated member of the bovine family.
b. Owner/raiser shall include the herdsman, caretaker, employee or tenant of any firm or
entity engaged in the raising of large cattle or other persons in lawful possession of such large
cattle.
c. Cattle rustling is the taking away by any means, method or scheme, without the consent of
the owner/raiser, of any of the above-mentioned animals whether or not for profit or gain, or
whether committed with or without violence against or intimidation of any person or force
upon things. It includes the killing of large cattle, or taking its meat or hide without the consent
of the owner/raiser.

Section 3. Duty of owner/raiser to register. The owner/raiser shall, before the large cattle belonging to
him shall attain the age of six months, register the same with the office of the city/municipal treasurer
where such large cattle are raised. The city/municipality concerned may impose and collect the fees
authorized by existing laws for such registration and the issuance of a certificate of ownership to the
owner/raiser.

Section 4. Duty of city/municipal treasurers and other concerned public officers and employees. All
public officials and employees concerned with the registration of large cattle are required to observe
strict adherence with pertinent provisions of Chapter 22, Section 511 to 534, of the Revised
Administrative Code, except insofar as they may be inconsistent with the provisions of this Decree.

Section 5. Permit to buy and sell large cattle. No person, partnership, association, corporation or
entity shall engage in the business of buy and sell of large cattle without first securing a permit for the
said purpose from the Provincial Commander of the province where it shall conduct such business
and the city/municipal treasurer of the place of residence of such person, partnership, association,
corporation or entity. The permit shall only be valid in such province.

Section 6. Clearance for shipment of large cattle. Any person, partnership, association, corporation or
entity desiring to ship or transport large cattle, its hides, or meat, from one province to another shall
secure a permit for such purpose from the Provincial Commander of the province where the large
cattle is registered. Before issuance of the permit herein prescribed, the Provincial Commander shall
require the submission of the certificate of ownership as prescribed in Section 3 hereof, a certification
from the Provincial Veterinarian to the effect that such large cattle, hides or meat are free from any
disease; and such other documents or records as may be necessary. Shipment of large cattle, its
hides or meat from one city/municipality to another within the same province may be done upon
securing permit from the city/municipal treasurer of the place of origin.

Section 7. Presumption of cattle rustling. Every person having in his possession, control or custody of
large cattle shall, upon demand by competent authorities, exhibit the documents prescribed in the
preceding sections. Failure to exhibit the required documents shall be prima facie evidence that the
large cattle in his possession, control or custody are the fruits of the crime of cattle rustling.

Section 8. Penal provisions. Any person convicted of cattle rustling as herein defined shall,
irrespective of the value of the large cattle involved, be punished by prision mayor in its maximum
period to reclusion temporal in its medium period if the offense is committed without violence against
or intimidation of persons or force upon things. If the offense is committed with violence against or
intimidation of persons or force upon things, the penalty of reclusion temporal in its maximum period
to reclusion perpetua shall be imposed. If a person is seriously injured or killed as a result or on the
occasion of the commission of cattle rustling, the penalty of reclusion perpetua to death shall be
imposed.

When the offender is a government official or employee, he shall, in addition to the foregoing penalty,
be disqualified from voting or being voted upon in any election/referendum and from holding any
public office or employment.

When the offender is an alien, he shall be deported immediately upon the completion of the service of
his sentence without further proceedings.

Section 9. Rules and Regulations to be promulgated by the Chief of Constabulary. The chief of
Constabulary shall promulgate the rules and regulations for the effective implementation of this
Decree.

Section 10. Repealing clause. The provisions of Articles 309 and 310 of Act No. 3815, otherwise
known as the Revised Penal Code, as amended, all laws, decrees, orders, instructions, rules and
regulations which are inconsistent with this Decree are hereby repealed or modified accordingly.
Section 11. Effectivity. This Decree shall take effect upon approval.

Done in the City of Manila, this 8th day of August, in the year of Our Lord, nineteen hundred and
seventy-four.

PRESIDENTIAL DECREE No. 401 March 1, 1974

PENALIZING THE UNAUTHORIZED INSTALLATION OF WATER, ELECTRICAL OR TELEPHONE

CONNECTIONS, THE USE OF TAMPERED WATER OR ELECTRICAL METERS, AND OTHER
ACTS

WHEREAS, a paramount objective of Proclamation No. 1081 dated September 21, 1972, is to bring
about the formation of a New Society infused with a profound sense of discipline and order;

WHEREAS, the foregoing objective is being thwarted by rampant illegal installation of water, electrical
and telephone connection, use of tampered water and electrical meters, jumpers and other devices to
steal water or electricity, at times with the connivance of some employees and/or officers of the
Metropolitan Waterworks and Sewerage System, the Manila Electric Company or the Philippine Long
Distance Telephone Company, as the case may be, and the pilferage of water and electric meters as
well as water, electric and telephone meters; and

WHEREAS, there is an urgent need for putting an end to these illegal activities because they not only
run counter to the aforementioned objective of Proclamation No. 1081 but also prejudice the
economic well-being of both the companies concerned and the consuming public;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order
No. 1 dated September 22, 1972, as amended, do hereby order and decree that any person who
installs any water, electrical or telephone connection without previous authority from the Metropolitan
Waterworks and Sewerage System, the Manila Electric Company or the Philippine Long Distance
Telephone Company, as the case may be; tampers and/or uses tampered water or electrical meters or
jumpers or other devices whereby water or electricity is stolen; steals or pilfers water and/or electric
meters or water, electric and/or telephone wires; knowingly possesses stolen or pilfered water and/or
electrical meters as well as stolen or pilfered water, electrical and/or telephone wires, shall, upon
conviction, be punished by prision correccional in its minimum period or a fine ranging from two
thousand to six thousand pesos, or both. If the violation is committed with the connivance or
permission of an employee or officer of the Metropolitan Waterworks and Sewerage System, or the
Manila Electric Company, or the Philippine Long Distance Telephone Company, such employee or
officer shall, upon conviction, be punished by a penalty one degree lower than prision correccional in
its minimum period and forthwith be dismissed and perpetually disqualified from employment in any
public or private utility or service company.

Done in the City of Manila, this 1st day of March in the year of Our Lord, nineteen hundred and
seventy-four.

Republic Act No. 7832 December 8, 1994

AN ACT PENALIZING THE PILFERAGE OF ELECTRICITY AND THEFT OF ELECTRIC POWER

TRANSMISSION LINES/MATERIALS, RATIONALIZING SYSTEM LOSSES BY PHASING OUT
PILFERAGE LOSSES AS A COMPONENT THEREOF, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled::

Section 1. Short Title. - This Act shall be referred to as the "Anti-electricity and Electric Transmission
Lines/Materials Pilferage Act of 1994."

Section 2. Illegal Use of Electricity. - It is hereby declared unlawful for any person, whether natural or
juridical, public or private, to:
 (a) Tap, make or cause to be made any connection with overhead lines, service drops, or
other electric service wires, without previous authority or consent of the private electric utility
or rural electric cooperative concerned;1awphil@alf
(b) Tap, make or cause to be made any connection to the existing electric service facilities of
any duly registered consumer without the latter's or the electric utility's consent or authority;
(c) Tamper, install or use a tampered electrical meter, jumper, current reversing transformer,
shorting or shunting wire, loop connection or any other device which interferes with the proper
or accurate registry or metering of electric current or otherwise results in its diversion in a
manner whereby electricity is stolen or wasted;
(d) Damage or destroy an electric meter, equipment, wire or conduit or allow any of them to
be so damaged or destroyed as to interfere with the proper or accurate metering of electric
current; and
(e) Knowingly use or receive the direct benefit of electric service obtained through any of the
acts mentioned in subsections (a), (b), (c), and (d) above.1awphil@alf

Section 3. Theft of Electric Power Transmission Lines and Materials. - (a) It is hereby declared
unlawful for any person to:

(1) Cut, saw, slice, separate, split, severe, smelt, or remove any electric power
transmission line/material or meter from a tower, pole, or any other installation or
place of installation or any other place or site where it may be rightfully or lawfully
stored, deposited, kept, stocked, inventoried, situated or located, without the consent
of the owner, whether or not the act is done for profit or gain;
(2) Take, carry away or remove or transfer, with or without the use of a motor vehicle
or other means of conveyance, any electric power transmission line/material or meter
from a tower, pole, any other installation or place of installation, or any place or site
where it may be rightfully or lawfully stored, deposited, kept, stocked, inventoried,
situated or located without the consent of the owner, whether or not the act is done
for profit or gain;
(3) Store, possess or otherwise keep in his premises, custody or control, any electric
power transmission line/material or meter without the consent of the owner, whether
or not the act is done for profit or gain; and
(4) Load, carry, ship or move from one place to another, whether by land, air or sea,
any electrical power transmission line/material, whether or not the act is done for
profit or gain, without first securing a clearance/permit for the said purpose from its
owner or the National Power Corporation (NPC) or its regional office concerned, as
the case may be.

(b) For purposes of this section, "electrical power transmission line/material" refers to electric
power transmission steel towers, woodpoles, cables, wires, insulators, line hardwares,
electrical conductors and other related items with a minimum voltage of sixty-nine kilovolts (69
kv), such as the following:

(1) Steel transmission line towers made of galvanized steel angular members and
plates or creosoted and/or lannelized woodpoles/ concrete poles and designed to
carry and support the conductors;
(2) Aluminum conductor steel reinforced (ACSR) in excess of one hundred (100)
MCM;
(3) Overhead ground wires made of 7 strands of galvanized steel wires, 3.08
millimeters in diameter and designed to protect the electrical conductors from
lightning strikes;
(4) Insulators made of porcelain or glass shell and designed to insulate the electrical
conductors from steel towers or woodpoles; and
(5) Various transmission line hardwares and materials made of aluminum alloy or
malleable steel and designed to interconnect the towers, conductors, ground wires,
and insulators mentioned in subparagraphs (1), (2), (3), and (4) above for the safe
and reliable operation of the transmission lines.1awphil

Section 4. Prima Facie Evidence. - (a) The presence of any of the following circumstances shall
constitute prima facie evidence of illegal use of electricity, as defined in this Act, by the person
benefitted thereby, and shall be the basis for: (1) the immediate disconnection by the electric utility to
such person after due notice, (2) the holding of a preliminary investigation by the prosecutor and the
subsequent filing in court of the pertinent information, and (3) the lifting of any temporary restraining
order or injunction which may have been issued against a private electric utility or rural electric
cooperative:
 (i) The presence of a bored hole on the glass cover of the electric meter, or at the
back or any other part of said meter;
(ii) The presence inside the electric meter of salt, sugar and other elements that could
result in the inaccurate registration of the meter's internal parts to prevent its accurate
registration of consumption of electricity;
(iii) The existence of any wiring connection which affects the normal operation or
registration of the electric meter;
(iv) The presence of a tampered, broken, or fake seal on the meter, or mutilated,
altered or tampered meter recording chart or graph, or computerized chart, graph, or
log;
(v) The presence in any part of the building or its premises which is subject to the
control of the consumer or on the electric meter, of a current reversing transformer,
jumper, shorting and/or shunting wire, and/or loop connection or any other similar
device;
(vi) The mutilation, alteration, reconnection, disconnection, bypassing or tampering of
instruments, transformers, and accessories;
(vii) The destruction of, or attempt to destroy, any integral accessory of the metering
device box which encases an electric meter, or its metering accessories; and
(viii) The acceptance of money and/or other valuable consideration by any officer of
employee of the electric utility concerned or the making of such an offer to any such
officer or employee for not reporting the presence of any of the circumstances
enumerated in subparagraphs (i), (ii), (iii), (iv), (v), (vi), or (vii) hereof: Provided,
however, That the discovery of any of the foregoing circumstances, in order to
constitute prima facie evidence, must be personally witnessed and attested to by an
officer of the law or a duly authorized representative of the Energy Regulatory Board
(ERB).

(b) The possession or custody of electric power transmission line/material by any person,
natural or juridical, not engaged in the transformation, transmission or distribution of electric
power, or in the manufacture of such electric power transmission line/material shall be prima
facie evidence that such line/material is the fruit of the offense defined in Section 3 hereof and
therefore such line/material may be confiscated from the person in possession, control or
custody thereof.

Section 5. Incentives. - An incentive scheme by way of a monetary reward in the minimum amount of
Five thousand pesos (P5,000) shall be given to any person who shall report to the NPC or police
authorities any act which may constitute a violation of Section 3 hereof. The Department of Energy
(DOE), in consultation with the NPC, shall issue the necessary guidelines for the proper
implementation of this incentive scheme within thirty (30) days from the effectivity of this Act.

Section 6. Disconnection of Electric Service. - The private electric utility or rural electric cooperative
concerned shall have the right and authority to disconnect immediately the electric service after
serving a written notice or warning to that effect, without the need of a court or administrative order,
and deny restoration of the same, when the owner of the house or establishment concerned or
someone acting in his behalf shall have been caught en flagrante delicto doing any of the acts
enumerated in Section 4(a) hereof, or when any of the circumstances so enumerated shall have been
discovered for the second time: Provided, That in the second case, a written notice or warning shall
have been issued upon the first discovery: Provided, further, That the electric service shall not be
immediately disconnected or shall be immediately restored upon the deposit of the amount
representing the differential billing by the person denied the service, with the private electric utility or
rural electric cooperative concerned or with the competent court, as the case may be: Provided,
furthermore, That if the court finds that illegal use of electricity has not been committed by the same
person, the amount deposited shall be credited against future billings, with legal interest thereon
chargeable against the private utility or rural electric cooperative, and the utility or cooperative shall be
made to immediately pay such person double the value of the payment or deposit with legal interest,
which amount shall likewise be creditable against immediate future billings, without prejudice to any
criminal, civil or administrative action that such person may be entitled to file under existing laws, rules
and regulations: Provided, finally, That if the court finds the same person guilty of such illegal use of
electricity, he shall, upon final judgment, be made to pay the electric utility or rural electric cooperative
concerned double the value of the estimated electricity illegally used which is referred to in this
section as differential billing.

For purposes of this Act, "differential billing" shall refer to the amount to be charged to the person
concerned for the unbilled electricity illegally consumed by him as determined through the use of
methodologies which utilize, among others, as basis for determining the amount of monthly electric
consumption in kilowatt-hours to be billed, either: (a) the highest recorded monthly consumption within
the five-year billing period preceding the time of the discovery, (b) the estimated monthly consumption
as per the report of load inspection conducted during the time of discovery, (c) the higher consumption
between the average consumptions before or after the highest drastic drop in consumption within the
five-year billing period preceding the discovery, (d) the highest recorded monthly consumption within
four (4) months after the time of discovery, or (e) the result of the ERB test during the time of
discovery and, as basis for determining the period to be recovered by the differential billing either: (1)
the time when the electric service of the person concerned recorded an abrupt or abnormal drop in
consumption, or (2) when there was a change in his service connection such as a change of meter,
change of seal or reconnection, or in the absence thereof, a maximum of sixty (60) billing months up
to the time of discovery: Provided, however, That such period shall, in no case, be less than one (1)
year preceding the date of discovery of the illegal use of electricity.

Section 7. Penalties. - (a) Violation of Section 2. - The penalty of prision mayor or a fine ranging from
Ten thousand pesos (P10,000) to Twenty thousand pesos (P20,000) or both, at the discretion of the
court, shall be imposed on any person found guilty of violating Section 2 hereof.
(b) Violation of Section 3. - The penalty of reclusion temporal or a fine ranging from Fifty
thousand pesos (P50,000) to One hundred thousand pesos (P100,000) or both at the
discretion of the court, shall be imposed on any person found guilty of violating Section 3
hereof.
(c) Provision common to violations of Section 2 and Section 3 hereof. - If the offense is
committed by, or in connivance with, an officer or employee of the power company, private
electric utility or rural electric cooperative concerned, such officer or employee shall, upon
conviction, be punished with a penalty one (1) degree higher than the penalty provided
herein, and forthwith be dismissed and perpetually disqualified from employment in any public
or private utility or service company and from holding any public office.

If, in committing any of the acts enumerated in Section 4 hereof, any of the other acts as enumerated
is also committed, then the penalty next higher in degree as provided herein shall be imposed.

If the offense is committed by, or in connivance with an officer or employee of the electric utility
concerned, such officer or employee shall, upon conviction, be punished with a penalty one (1)
degree higher than the penalty provided herein, and forthwith be dismissed and perpetually
disqualified from employment in any public or private utility or service company. Likewise, the electric
utility concerned which shall have knowingly permitted or having knowledge of its commission shall
have failed to prevent the same, or was otherwise guilty of negligence in connection with the
commission thereof, shall be made to pay a fine not exceeding triple the amount of the 'differential
billing' subject to the discretion of the courts.

If the violation is committed by a partnership, firm, corporation, association or any other legal entity,
including a government-owned or -controlled corporation, the penalty shall be imposed on the
president, manager and each of the officers thereof who shall have knowingly permitted, failed to
prevent or was otherwise responsible for the commission of the offense.

Section 8. Authority to Impose Violation of Contract Surcharges. - A private electric utility or rural
electric cooperative may impose surcharges, in addition to the value of the electricity pilfered, on the
bills of any consumer apprehended for tampering with his electric meter/metering facility installed on
his premises, as well as other violations of contract like direct connection, use of jumper, and other
means of illicit usage of electricity found installed in the premises of the consumer. The surcharge for
the violation of contract shall be collected from and paid by the consumer concerned as follows:

(a) First apprehension. - Twenty five percent (25%) of the current bill as surcharge;
(b) Second apprehension. - Fifty percent (50%) of the current bill as surcharge; and
(c) Third and subsequent apprehensions. - One hundred percent (100%) of the current bill as
surcharge.

The private electric utility or rural electric cooperative is authorized to discontinue the electric service
in case the consumer is in arrears in the payment of the above imposed surcharges.
The term 'apprehension' as used herein shall be understood to mean the discovery of the presence of
any of the circumstances enumerated in Section 4 hereof in the establishment or outfit of the
consumer concerned.

Section 9. Restriction on the Issuance of Restraining Orders or Writs of Injunction. - No writ of

injunction or restraining order shall be used by any court against any private electric utility or rural
electric cooperative exercising the right and authority to disconnect electric service as provided in this
Act, unless there is prima facie evidence that the disconnection was made with evident bad faith or
grave abuse of authority.
If, notwithstanding the provisions of this section, a court issues an injunction or restraining order, such
injunction or restraining order shall be effective only upon the filing of a bond with the court, which
shall be in the form of cash or cashier's check equivalent to the "differential billing," penalties and
other charges, or to the total value of the subject matter of the action: Provided, however, That such
injunction or restraining order shall automatically be refused or, if granted, shall be dissolved upon
filing by the public utility of a counterbond similar in form and amount as that above required:
Provided, finally, That whenever such injunction is granted, the court issuing it shall, within ten (10)
days from its issuance, submit a report to the Supreme Court setting forth in detail the grounds or
reason for its order.

Section 10. Rationalization of System Losses by Phasing out Pilferage Losses as a Component
Thereof . - There is hereby established a cap on the recoverable rate of system losses as follows:

(a) For private electric utilities:

(i) Fourteen and a half percent (14 1/2%) at the end of the first year following the
effectivity of this Act;
(ii) Thirteen and one-fourth percent (13 1/4%) at the end of the second year following
the effectivity of this Act;
(iii) Eleven and three-fourths (11 3/4%) at the end of the third year following the
effectivity of this Act; and
(iv) Nine and a half-percent (9 1/2%) at the end of the fourth year following the
effectivity of this Act.

Provided, That the ERB is hereby authorized to determine at the end of the fourth year
following the effectivity of this Act, and as often as necessary taking into account the viability
of private electric utilities and the interest of the consumers, whether the caps herein or
theretofore established shall be reduced further which shall, in no case, be lower than nine
percent (9%) and accordingly fix the date of the effectivity of the new caps: Provided, further,
That in the calculation of the system loss, power sold by the NPC or any other entity that
supplies power directly to a consumer and not through the distribution system of the private
electric utility shall not be counted even if the billing for the said power used is through the
private electric utility.

The term "power sold by NPC or any other entity that supplies power directly to a consumer"
as used in the preceding paragraph shall for purposes of this section be deemed to be a sale
directly to the consumer if: (1) the point of metering by the NPC or any other utility is less than
one thousand (1,000) meters from the consumer, or (2) the consumer's electric consumption
is three percent (3%) or more of the total load consumption of all the customers of the utility,
or (3) there is no other consumer connected to the distribution line of the utility which
connects to the NPC or any other utility point of metering to the consumer meter.

(b) For rural electric cooperatives:

(i) Twenty-two percent (22%) at the end of the first year following the effectivity of this
Act;
(ii) Twenty percent (20%) at the end of the second year following the effectivity of this
Act;
(iii) Eighteen percent (18%) at the end of the third year following the effectivity of this
Act;
(iv) Sixteen percent (16%) at the end at the fourth year following the effectivity of this
Act; and
(v) Fourteen percent (14%) at the end of the fifth year following the effectivity of this
Act.

Provided, That the ERB is hereby authorized to determine at the end of the fifth year following
the effectivity of this Act, and as often as is necessary, taking into account the viability of rural
electric cooperatives and the interest of the consumers, whether the caps herein or
theretofore established shall be reduced further which shall, in no case, be lower than nine
percent (9%) and accordingly fix the date of the effectivity of the new caps.
Provided, finally, That in any case nothing in this Act shall impair the authority of the ERB to
reduce or phase out technical or design losses as a component of system losses.

Section 11. Area of Coverage. - The caps provided in Section 10 of this Act shall apply only to the
area of coverage of private electric utilities and rural electric cooperatives as of the date of the
effectivity of this Act.
The permissible levels of recovery for system losses in areas of coverage that may be added on by
either a private electric utility or a rural electric cooperative shall be determined by the ERB.

Section 12. Recovery of Pilferage Losses. - Any private electric utility or rural electric cooperative
which recovers any amount of pilferage losses shall, within thirty (30) days from said recovery, report
in writing and under oath to the ERB: (a) the fact of recovery, (b) the date thereof; (c) the name of the
consumer concerned, (d) the amount recovered, (e) the amount of pilferage loss claimed, (f) the
explanation for the failure to recover the whole amount claimed, and (g) such other particulars as may
be required by the ERB. If there is a case pending in court for the recovery of a pilferage loss, no
private electric utility or rural electric cooperative shall accept payment from the consumer unless so
provided in a compromise agreement duly executed by the parties and approved by the court.

Section 13. Information Dissemination. - The private electric utilities, the rural electric cooperatives,
the NPC, and the National Electrification Administration (NEA) shall, in cooperation with each other,
undertake a vigorous campaign to inform their consumers of the provisions of this Act especially
Sections 2, 3, 4, 5, 6, 7, and 8 hereof, within sixty (60) days from the effectivity of this Act and at least
once a year thereafter, and to incorporate a faithful condensation of said provisions in the contracts
with new consumers.

Section 14. Rules and Regulations. - The ERB shall, within thirty (30) working days after the conduct
of due hearings which must commence within thirty (30) working days upon the effectivity of this Act,
issue the rules and regulations as may be necessary to ensure the efficient and effective
implementation of the provisions of this Act, to include but not limited to, the development of
methodologies for computing the amount of electricity illegally used and the amount of payment or
deposit contemplated in Section 7 hereof, as a result of the presence of the prima facie evidence
discovered.

The ERB shall, within the same period, also issue rules and regulations on the submission of the
reports required under Section 12 hereof and the procedure for the distribution to or crediting of
consumers for recovered pilferage losses.

Section 15. Separability Clause. - Any portion or provision of this Act which may be declared
unconstitutional or invalid shall not have the effect of nullifying other portions or provisions hereof.
Section 16. Repealing Clauses. - The provisions in Presidential Decree No. 401, as amended by
Batas Pambansa Blg. 876, penalizing the unauthorized installation of electrical connections,
tampering and/or knowing use of tampered electrical meters or other devices, and the theft of
electricity are hereby expressly repealed. All other laws, ordinances, rules, regulations, and other
issuances or parts thereof, which are inconsistent with this Act, are hereby repealed or modified
accordingly.

Section 17. Effectivity Clause. - This Act shall take effect thirty (30) days after its publication in the
Official Gazette or in any two (2) national newspapers of general circulation.

Approved: December 8, 1994lawphi1

REPUBLIC ACT NO. 8041

AN ACT TO ADDRESS THE NATIONAL WATER CRISIS AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

SECTION 1. Short Title. _ This Act shall be known as the "National Water Crisis Act of 1995."

SEC. 2. Declaration of Policy. _ It is hereby declared the policy of the State to adopt urgent and
effective measures to address the nationwide water crisis which adversely affects the health and well-
being of the population, food production and industrialization process. Pursuant thereto the
government shall address the issues relevant to the water crisis including, but not limited to, supply,
distribution, finance, privatization of state-run water facilities, the protection and conservation of
watersheds and the waste and pilferage of water, including the serious matter of graft and corruption
in all the water agencies.

SEC. 3. Organization of Joint Executive-Legislative Water Crisis Commission. _ Within thirty (30) days
after the effectivity of this Act, there shall be organized a Joint Executive-Legislative Water Crisis
Commission. The Commission shall be chaired by the Executive Secretary, with the secretaries of the
Department of Public Works and Highways and the Department of Environment and Natural
Resources, and the chairmen of the appropriate Senate and House committees, as designated by the
leaders of both Houses of Congress, as well as a representative of the minority from each House, as
members. There shall be a technical staff constituted by representatives of the National Water
Resources Board (NWRB), 165 2 the Metropolitan Waterworks and Sewerage System (MWSS), the
Local Water Utilities Administration (LWUA), the appropriate committees of the Senate and the House,
and the certified workers' union in the affected water institutions.

SEC. 4. Purposes and Objectives. _ The Commission shall have the following purposes and
objectives:
(a) To undertake nationwide consultations on the water crisis and in-depth and detailed study and
review of the entire water supply and distribution structure;
(b) To enhance and facilitate cooperation and coordination between Congress and the executive
department in formulating and implementing the government's water crisis management policy and
strategy;
(c) To recommend measures that will ensure continuous and effective monitoring of the entire water
supply and distribution system of the country; and
(d) To conduct continuing studies and researches on policy options, strategies and approaches to the
water crisis including experiences of other countries similarly situated, and to recommend such
remedial and legislative measures as may be required to address the problem.

SEC. 5. Powers and Functions. _ To carry out the aforementioned purposes and objectives, the
Commission is hereby authorized:
(a) To secure from any department, bureau, office, agency or instrumentality of the government such
assistance as may be needed, such as technical information, the preparation and production of
reports, and the submission of recommendations or plans, as it may require;
(b) To designate by resolution the watershed areas in which developmental undertakings are to be
suspended; and
(c) Generally, to exercise all the powers necessary, relevant and incidental to attain the purposes and
objectives for which it is organized.

SEC. 6. Negotiated Contracts. _ For projects to be implemented under Build-Operate-Transfer (BOT)

and/or related schemes, the President of the Republic may, for a period of one (1) year after the
effectivity of this Act, enter into negotiated contracts for the financing, construction, repair,
rehabilitation, improvement and operation of water facilities and projects related to increasing water
supply, its treatment and its distribution to industrial and household consumers: Provided, That there
is no government financing or financing guarantee for the contracts, except for the acquisition of right-
of-way. The contracts shall be awarded only to contractors with proven competence and experience in
similar projects, competent key personnel, efficient and reliable equipment, and sound financial
capacity.

SEC. 7. Reorganization of the Metropolitan Waterworks and Sewerage System (MWSS) and the
Local Waterworks and Utilities Administration (LWUA). _ Within six (6) months from the approval of
this Act, the President of the Republic is hereby empowered to revamp the executive leadership and
reorganize the MWSS and the LWUA, including the privatization of any or all segments of these
agencies, operations or facilities if necessary, to make them more effective and innovative to address
the looming water crisis. For this purpose, the President may abolish or create offices, transfer
functions, equipment, properties, records and personnel; institute drastic cost-cutting and other
related measures to carry out the said objectives.

Moreover, in the implementation of this provision, the prescriptions of Republic Act No. 7430,
otherwise known as the "Attrition Law," shall not apply. Nothing in this section shall result in the
diminution of the present salaries and benefits of the personnel of the MWSS and the LWUA:
Provided, That any official or employee of the said agencies who may be phased out by reason of the
reorganization authorized herein shall be entitled to such benefits as may determined by existing
laws. 4 The President may upgrade the compensation of the personnel of the MWSS and the LWUA
at rates commensurate to the improved and efficient revenue collection of the two agencies as
determined by the Board of Trustees and the same shall be exempted from the provisions of Republic
Act No. 6750, otherwise known as the "Salary Standardization Law," to take effect upon a reduction of
non-revenue water to forty percent (40%) and upon approval by the respective board of trustees of
the MWSS and the LWUA of their budgets.

SEC. 8. Anti-Pilferage. _ It is hereby declared unlawful for any person to:

(a) Destroy, damage or interfere with any canal, raceway, ditch, lock, pier, inlet, crib, bulkhead, dam,
gate, service, reservoir, aqueduct, water mains, water distribution pipes, conduit, pipes, wire
benchmark, monument, or other works, appliance, machinery, buildings, or property of any water
utility entity, whether public or private;
(b) Do any malicious act which shall injuriously affect the quantity or quality of the water or sewage
flow of any waterworks and/or sewerage system, or the supply, conveyance, measurement, or
regulation thereof, including the prevention of, or interference with any authorized person engaged in
the discharge of duties connected therewith;
(c) Prevent, obstruct, and interfere with the survey, works, and construction of access road and water
mains and distribution network and any related works of the utility entity;
(d) Tap, make, or cause to be made any connection with water lines without prior authority or consent
from the water utility concerned;
(e) Tamper, install or use tampered water meters, sticks, magnets, reversing water meters, shortening
of vane wheels and other devices to steal water or interfere with accurate registry or metering of water
usage, or otherwise result in its diversion in a manner whereby water is stolen or wasted;
(f) Use or receive the direct benefit of water service with knowledge that diversion, tampering, or
illegal connection existed at the time of that use, or that the use or receipt was otherwise without the
authorization of the water utility;
(g) Steal or pilfer water meters, main lines, pipes and related or ancillary facilities;
(h) Steal water for profit or resale;
(i) Knowingly possess stolen or tampered water meters; and
(j) Knowingly or willfully allow the occurrence of any of the above.

SEC. 9. Prima Facie Evidence. _ The presence of any of the following circumstances shall constitute
prima facie evidence of theft, pilferage, or of any unlawful acts enumerated in Section 8 hereof:

(a) The existence of illegal or unauthorized tapping to the water main or distribution pipe;
(b) The existence of any illegal connection such as a reversed meter, shortened vane wheel, bypass
or other connections which adversely affect the registration of the water meter;
(c) The presence of a bored hole in the glass cover of the water meter, or at the back of or any part of
the meter including the vertical vane;
(d) The presence of tampered, or fake seals on the meters. Inspection of tampered water meters shall
be done in the presence of the registered water consumer;
(e) The presence of a reversed meter in the premises, insertion of rod, wire, or stick in the meter, filed
or shortened vane wheel, removal or altering of any part of the meter mechanism, use of magnet and
any similar illegal devices which interfere with the meter registration;
(f) Destruction of the meter protection and other metering accessories; or
(g) Abnormal imprints, traces or marks found in the meter assembly. The prima facie shall not apply to
tenants who have occupied the house or dwelling for ninety (90) days or less.

SEC. 10. Special Aggravating Circumstances. _ The following shall be considered as aggravating:
(a) When the violation is committed in conspiracy with at least another person, both of whom shall be
considered as principals;
(b) When the offense is committed by, or in connivance with, private plumber, officer or employee of
the water utility concerned, who shall all be considered as principals; or
(c) When the violation is coupled with the sale from a source which is illegal, or unregistered, or
unauthorized, or a source with a tampered meter.

SEC. 11. Penalties. _ The water utility concerned shall have the right and authority to disconnect the
water services, five (5) days after service of written notice to that effect, except on Sundays and
holidays, without need of a court or administrative order, and deny restoration of the same, when a
prima facie evidence of theft or pilferage shall have been established in accordance with Section 8
hereof: Provided, That a notice shall have been issued even upon discovery for the first time of the
presence of any of the circumstances herein enumerated: Provided, further, That the water service
shall not be disconnected or shall be immediately restored upon deposit, by the person concerned, of
the difference in the billing made by the water utility concerned: Provided, finally, That the deposit
shall be credited against future billings, with legal interest thereon where the alleged theft, pilferage or
current diversion has not been committed, without prejudice to being indemnified for damages in
accordance with the Civil Code and other existing laws. 7 A written notice of seventy-two (72) hours is
necessary to effect water service disconnection upon the discovery for the second time of any of the
circumstances enumerated in Section 8 hereof. Any person who shall violate Section 8 hereof shall be
punished by imprisonment of six (6) months to two (2) years and a fine not exceeding double the
amount of the value of the water stolen or the value of the damaged facilities: Provided, however, That
if the offender is assisted in the commission of the crime by a plumber, officer or employee of the
water utility concerned, the said employee, officer or plumber shall be punished by imprisonment of
two (2) years to six (6) years: Provided, further, That if the water is stolen for profit or resale, the
offender shall be punished imprisonment from six (6) to twelve (12) years. If the offender is a juridical
person, the penalty shall be imposed on the chairman, president, general manager, administrator, and
the officers thereof who shall have knowingly permitted, or are otherwise responsible for the
commission of the offense.

SEC. 12. Issuance of Guidelines, Implementing Rules and Regulations. _ Within one (1) month from
its organization, the Commission shall cause the issuance of guidelines, implementing rules and
regulations necessary to carry out the provisions of this Act.

SEC. 13. Commission's Report. _ The Commission shall submit a quarterly report to the President
and to Congress on the implementation of this Act.

SEC. 14. Sunset Clause. _ The Joint Executive-Legislative Water Crisis Commission shall complete
its report and submit its recommendation to the President and to Congress within a period of six (6)
months after its formal organization. After such period, it shall cease functus officio.

SEC. 15. Separability Clause. _ If, for any reason, any provision of this Act is declared
unconstitutional or invalid, other parts or provisions hereof which are not affected thereby shall
continue to be in full force and effect. 8

SEC. 16. Repealing Clause. _ All laws, decrees, orders, rules, and regulations, or portions thereof,
inconsistent with this Act are hereby repealed or modified accordingly.

SEC. 17. Effectivity Clause. _ This Act shall take effect fifteen (15) days following its publication in at
least two (2) national newspapers of general circulation or in the Official Gazette.

Approved, June 7, 1995.

Republic Act No. 8550 February 25, 1998

AN ACT PROVIDING FOR THE DEVELOPMENT, MANAGEMENT AND CONSERVATION OF THE

FISHERIES AND AQUATIC RESOURCES, INTEGRATING ALL LAWS PERTINENT THERETO, AND
FOR OTHER PURPOSES

CHAPTER VI
Prohibitions and Penalties

Section 86. Unauthorized Fishing or Engaging in Other Unauthorized Fisheries Activities. - No person
shall exploit, occupy, produce, breed, culture, capture or gather fish, fry or fingerlings of any fishery
species or fishery products, or engage in any fishery activity in Philippine waters without a license,
lease or permit.

Discovery of any person in an area where he has no permit or registration papers for a fishing vessel
shall constitute a prima facie presumption that the person and/or vessel is engaged in unauthorized
fishing: Provided, That fishing for daily food sustenance or for leisure which is not for commercial,
occupation or livelihood purposes may be allowed.
It shall be unlawful for any commercial fishing vessel to fish in bays and in such other fishery
management areas which may hereinafter be declared as over-exploited.

Any commercial fishing boat captain or the three (3) highest officers of the boat who commit any of
the above prohibited acts upon conviction shall be punished by a fine equivalent to the value of catch
or Ten thousand pesos (P10,000.00) whichever is higher, and imprisonment of six (6) months,
confiscation of catch and fishing gears, and automatic revocation of license.

It shall be unlawful for any person not listed in the registry of municipal fisherfolk to engage in any
commercial fishing activity in municipal waters. Any municipal fisherfolk who commits such violation
shall be punished by confiscation of catch and a fine of Five hundred pesos (500.00).

REPUBLIC ACT NO. 10654

AN ACT TO PREVENT, DETER AND ELIMINATE ILLEGAL, UNREPORTED AND UNREGULATED

FISHING, AMENDING REPUBLIC ACT NO. 8550, OTHERWISE KNOWN AS "THE PHILIPPINE
FISHERIES CODE OF 1998," AND FOR OTHER PURPOSES

Section 17. Chapter VI of Republic Act No. 8550 is hereby repealed and replaced with a new Chapter
VI to read as follows:
 "CHAPTER VI
PROHIBITIONS AND PENALTIES

Section 86. Unauthorized Fishing. (a) It shall be unlawful for any person to capture or gather or to
cause the capture or gathering of fish, fry or fingerlings of any fishery species or fishery products
without license or permit from the Department or LGU.

Except in cases specified under this Code, it shall also be unlawful for any commercial fishing vessel
to fish in municipal waters.

The discovery of any person in possession of a fishing gear or operating a fishing vessel in a fishing
area where he has no license or permit shall constitute & prima facie presumption that the person is
engaged in unauthorized fishing: Provided, That fishing for daily food sustenance or for leisure which
is not for commercial, occupation or livelihood purposes may be allowed.

Upon a summary finding of administrative liability, the boat captain and the three (3) highest officers of
the commercial fishing vessel and the owner or operator who violate this provision shall be penalized
with confiscation of catch and gear, and an administrative fine of five (5) times the value of the catch
or the amount indicated below, whichever is higher:

(1) Fifty thousand pesos (P50,000.00) to One hundred thousand pesos

(P100,000.00) for small-scale commercial fishing;
(2) One hundred fifty thousand pesos (P150,000.00) to Five hundred thousand pesos
(P500,000.00) for medium-scale commercial fishing; and
(3) One million pesos (P1,000,000.00) to Five million pesos (P5,000,000.00) for
large-scale commercial fishing.
Upon conviction by a court of law, the boat captain and the three (3) highest officers
of the commercial fishing vessel shall suffer the penalty of imprisonment of six (6)
months and confiscation of catch and gear and twice the amount of the administrative
fine.
(b) It shall be unlawful for any person not listed in the registry of municipal fisherfolk
to engage in any commercial fishing activity in municipal waters.

Upon a summary finding of administrative liability, the offender of this provision shall be punished with
an administrative fine equivalent to twice the value of catch or Five thousand pesos (P5,000.00),
whichever is higher, and confiscation of the catch and fishing gear: Provided, That if the offender fails
to pay the fine, he shall render community service.

Section 87. Engaging in Unauthorized Fisheries Activities. It shall be unlawful for any person to
exploit, occupy, produce, breed or culture fish, fry or fingerlings of any fishery species or fishery
products or construct and operate fish corrals, fish traps, fish pens and fish cages or fishponds without
a license, lease or permit.

The discovery of any person engaging in any of the above activities without a lease, license or permit
shall constitute & prima facie presumption that the person is engaged in unauthorized fisheries
activity.

Upon a summary finding of administrative liability, the offender shall be penalized with an
administrative fine of Five hundred thousand pesos (P500,000.00) to One million pesos
(P1,000,000.00), the dismantling or removal of the structure at the expense of the offender, the
rehabilitation of the area affected by the activity and confiscation of stocks.

Upon conviction by a court of law, the offender shall suffer the penalty of imprisonment of six (6)
months, a fine equivalent to twice the amount of the administrative fine, the dismantling or removal of
the structure at the expense of the offender, the rehabilitation of the area affected by the activity and
confiscation of stocks.

Section 88. Failure to Secure Fishing Permit Prior to Engaging in Distant Water Fishing. (a) It shall
be unlawful for any person to fish in the high seas, in the territorial seas, archipelagic waters, and
Exclusive Economic Zones of other states using a Philippine flagged fishing vessel without first
securing a fishing permit from the Department and authorization from the coastal state.

The discovery of any person in possession of a fishing gear or operating a fishing

vessel in the abovementioned areas without a fishing permit from the Department or
 authorization from the coastal state shall constitute a prima facie presumption that the
person is in violation of this provision.
(b) It shall be unlawful for an owner or operator, and the three (3) highest officers, of a
commercial fishing vessel to commit acts that are in contravention of the terms and
conditions stated in the fishing permit or as may be promulgated by the Department.
Upon a summary finding of administrative liability, the owner, operator, and the three
(3) highest officers of the commercial fishing vessel who violate this section, shall be
punished with confiscation of the catch and gear and an administrative fine equivalent
to five (5) times the value of the catch or the amount indicated below, whichever is
higher:
(1) Two million pesos (P2,000,000.00) to Nine million pesos (P9,000,000.00)
for small-scale commercial fishing;
(2) Ten million pesos (P10,000,000.00) to Fifteen million pesos
(P15,000,000.00) for medium-scale commercial fishing; and
(3) Sixteen million pesos (P16,000,000.00) to Twenty million pesos
(P20,000,000.00) for large-scale commercial fishing vessels less than seven
hundred fifty (750) gross tons, and Twenty-five million pesos
(P25,000,000.00) to Forty-five million pesos (P45,000,000.00) for large-scale
commercial fishing vessels seven hundred fifty (750) gross tons or more.
Upon conviction by a court of law, the three (3) highest officers of the commercial
fishing vessel shall suffer the penalty of imprisonment of six (6) months and a fine
equivalent to twice the amount of the administrative fine, and confiscation of catch
and gear.

Section 89. Unreported Fishing. It shall be unlawful for any person to engage in unreported fishing
or to fail to comply with the reportorial requirements in Section 38 of this Code.

Upon a summary finding of administrative liability, the owner or operator of the municipal or
commercial fishing vessel and the three (3) highest officers of the commercial fishing vessel who
commit unreported fishing within waters of national jurisdiction shall be punished by an administrative
fine equivalent to the value of the catch or the amount indicated below, whichever is higher:
(1) Five thousand pesos (P5,000.00) for municipal fishing: Provided, That if the
offender fails to pay the fine, he shall render community service;
(2) One hundred thousand pesos (P100,000.00) for small-scale commercial fishing;
(3) Two hundred thousand pesos (P200,000.00) for medium-scale commercial
fishing; and
(4) Five hundred thousand pesos (P500,000.00) for large-scale commercial fishing.

In case of unreported fishing committed in waters beyond national jurisdiction, the owner, operator,
and the three (3) highest officers of the commercial fishing vessel shall be penalized with an
administrative fine equivalent to five (5) times the value of the catch or the amount indicated below,
whichever is higher:
(1) Two million pesos (P2,000,000.00) to Nine million pesos (P9,000,000.00) for
small-scale commercial fishing;
(2) Ten million pesos (P10,000,000.00) to Fifteen million pesos (P15,000,000.00) for
medium-scale commercial fishing; and
(3) Sixteen million pesos (P16,000,000.00) to Twenty million pesos (P20,000,000.00)
for large-scale commercial fishing vessels less than seven hundred fifty (750) gross
tons, and Twenty-five million pesos (P25,000,000.00) to Forty-five million pesos
(P45,000,000.00) for large-scale commercial fishing vessels seven hundred fifty (750)
gross tons or more.

Upon conviction by a court of law, the three (3) highest officers of the commercial fishing vessel shall
suffer the penalty of imprisonment of six (6) months and a fine equivalent to twice the amount of the
administrative fine, and confiscation of catch and gear.

Section 90. Unregulated Fishing. It shall be unlawful for any person to engage in unregulated fishing
in waters within and beyond national jurisdiction.

Upon a summary finding of administrative liability, the owner, operator, of the municipal or commercial
fishing vessel and the three (3) highest officers of the commercial fishing vessel who commit
unregulated fishing within waters of national jurisdiction shall be punished by confiscation of catch and
gear and an administrative fine equivalent to the value of the catch or amount indicated below,
whichever is higher:
(1) Five thousand pesos (P5,000.00)) for municipal fishing: Provided, That if the
offender fails to pay the fine, he shall render community service;
 (2) One hundred thousand pesos (P100,000.00) for small-scale commercial fishing;
(3) Two hundred thousand pesos (P200,000.00) for medium-scale commercial
fishing; and
(4) Five hundred thousand pesos (P500,000.00) for large-scale commercial fishing.

In case of unregulated fishing committed in waters beyond national jurisdiction, the owner, operator,
and the three (3) highest officers of the commercial fishing vessel shall be penalized with confiscation
of catch and gear, and an administrative fine equivalent to five (5) times the value of the catch or the
amount indicated below, whichever is higher:
(1) Two million pesos (P2,000,000.00) to Nine million pesos (P9,000,000.00) for
small-scale commercial fishing;
(2) Ten million pesos (P10,000,000.00) to Fifteen million pesos (P15,000,000.00) for
medium-scale commercial fishing; and
(3) Sixteen million pesos (P16,000,000.00) to Twenty million pesos (P20,000,000.00)
for large-scale commercial fishing vessels less than seven hundred fifty (750) gross
tons, and Twenty-five million pesos (P25,000,000.00) to Forty-five million pesos
(P45;000,000.00) for large-scale commercial fishing vessels seven hundred fifty (750)
gross tons or more.

Upon conviction by a court of law, the three (3) highest officers of the commercial fishing vessel shall
suffer the penalty of imprisonment of six (6) months and a fine equivalent to twice the amount of the
administrative fines, confiscation of catch and gear.

PRESIDENTIAL DECREE No. 330

PENALIZING TIMBER SMUGGLING OR ILLEGAL CUTTING OF LOGS FROM PUBLIC FORESTS

AND FOREST RESERVES AS QUALIFIED THEFT

WHEREAS, public forests and forest reserves are important natural resources of the country which
must be preserved and conserved for future generations;

WHEREAS, public forest and forest reserves are the vital source of logs and other wood products so
essential to the national economy as principal dollar earner of the country;

WHEREAS, it is the solemn duty of every citizen to protect public forest and forest reserves from
indiscriminate logging, senseless denudation and wanton destruction to the detriment of the present
and future generations;

WHEREAS, there is need to discourage further forest destruction and denudation in order to conserve
the remaining public forest and forest reserves for the patrimony of the country;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the

powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the
Philippines, and pursuant to Proclamation No. 1081 dated September 21, 1972, and General Order
No. 1 dated September 22, 1972, do hereby order and decree:

Section 1. Any person, whether natural or juridical, who directly or indirectly cuts, gathers, removes, or
smuggles timber, or other forest products, either from any of the public forest, forest reserves and
other kinds of public forests, whether under license or lease, or from any privately owned forest lands
in violation of existing laws, rules and regulation shall be guilty of the crime of qualified theft as
defined and penalized under Articles 308, 309 and 310 of the Revised Penal Code; Provided, That if
the offender is a corporation, firm, partnership or association, the penalty shall be imposed upon the
guilty officer or officers, as the case may be, of the corporation, firm, partnership or association, and if
such guilty officer or officers are aliens, in addition to the penalty herein prescribed, he or they shall be
deported without further proceedings on the part of the Commissioned of Immigration and
Deportation. cd i

Section 2. All laws, rules and regulations inconsistent herewith are hereby repealed or modified
accordingly.

Section 3. This decree shall take effect immediately after publication in the Official Gazette or in a
newspaper of general circulation in the country.

Done in the City of Manila, this 8th day of November, in the year of Our Lord, nineteen hundred and
seventy-three.

PD 705, SECTION 68

CHAPTER IV
CRIMINAL OFFENSES AND PENALTIES

Section 68. Cutting, gathering and/or collecting timber or other products without license. Any person
who shall cut, gather, collect, or remove timber or other forest products from any forest land, or timber
from alienable and disposable public lands, or from private lands, without any authority under a
license agreement, lease, license or permit, shall be guilty of qualified theft as defined and punished
under Articles 309 and 310 of the Revised Penal Code; Provided, That in the case of partnership,
association or corporation, the officers who ordered the cutting, gathering or collecting shall be liable,
and if such officers are aliens, they shall, in addition to the penalty, be deported without further
proceedings on the part of the Commission on Immigration and Deportation.

The Court shall further order the confiscation in favor of the government of the timber or forest
products to cut, gathered, collected or removed, and the machinery, equipment, implements and tools
used therein, and the forfeiture of his improvements in the area.

The same penalty plus cancellation of his license agreement, lease, license or permit and perpetual
disqualification from acquiring any such privilege shall be imposed upon any licensee, lessee, or
permittee who cuts timber from the licensed or leased area of another, without prejudice to whatever
civil action the latter may bring against the offender.

PRESIDENTIAL DECREE No. 1612

ANTI-FENCING LAW OF 1979

WHEREAS, reports from law enforcement agencies reveal that there is rampant robbery and thievery
of government and private properties;

WHEREAS, such robbery and thievery have become profitable on the part of the lawless elements
because of the existence of ready buyers, commonly known as fence, of stolen properties;lawphil.net
WHEREAS, under existing law, a fence can be prosecuted only as an accessory after the fact and
punished lightly;

WHEREAS, is imperative to impose heavy penalties on persons who profit by the effects of the crimes
of robbery and theft.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines by virtue of the

powers vested in me by the Constitution, do hereby order and decree as part of the law of the land the
following:

Section 1. Title. This decree shall be known as the Anti-Fencing Law.

Section 2. Definition of Terms. The following terms shall mean as follows:

(a) "Fencing" is the act of any person who, with intent to gain for himself or for another, shall
buy, receive, possess, keep, acquire, conceal, sell or dispose of, or shall buy and sell, or in
any other manner deal in any article, item, object or anything of value which he knows, or
should be known to him, to have been derived from the proceeds of the crime of robbery or
theft.

(b) "Fence" includes any person, firm, association corporation or partnership or other
organization who/which commits the act of fencing.

Section 3. Penalties. Any person guilty of fencing shall be punished as hereunder indicated:

(a) The penalty of prision mayor, if the value of the property involved is more than 12,000
pesos but not exceeding 22,000 pesos; if the value of such property exceeds the latter sum,
the penalty provided in this paragraph shall be imposed in its maximum period, adding one
year for each additional 10,000 pesos; but the total penalty which may be imposed shall not
exceed twenty years. In such cases, the penalty shall be termed reclusion temporal and the
accessory penalty pertaining thereto provided in the Revised Penal Code shall also be
imposed.

(b) The penalty of prision correccional in its medium and maximum periods, if the value of the
property robbed or stolen is more than 6,000 pesos but not exceeding 12,000 pesos.

(c) The penalty of prision correccional in its minimum and medium periods, if the value of the
property involved is more than 200 pesos but not exceeding 6,000 pesos.

(d) The penalty of arresto mayor in its medium period to prision correccional in its minimum
period, if the value of the property involved is over 50 pesos but not exceeding 200 pesos.

(e) The penalty of arresto mayor in its medium period if such value is over five (5) pesos but
not exceeding 50 pesos.

(f) The penalty of arresto mayor in its minimum period if such value does not exceed 5 pesos.

Section 4. Liability of Officials of Juridical Persons. If the fence is a partnership, firm, corporation or
association, the president or the manager or any officer thereof who knows or should have known the
commission of the offense shall be liable.

Section 5. Presumption of Fencing. Mere possession of any good, article, item, object, or anything of
value which has been the subject of robbery or thievery shall be prima facie evidence of fencing.
Section 6. Clearance/Permit to Sell/Used Second Hand Articles. For purposes of this Act, all stores,
establishments or entities dealing in the buy and sell of any good, article item, object of anything of
value obtained from an unlicensed dealer or supplier thereof, shall 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 such store, establishment or entity is located. The Chief of
Constabulary/Director General, Integrated National Police shall promulgate such rules and regulations
to carry out the provisions of this section. Any person who fails to secure the clearance or permit
required by this section or who violates any of the provisions of the rules and regulations promulgated
thereunder shall upon conviction be punished as a fence. lawphi1.net

Section 7. Repealing Clause. All laws or parts thereof, which are inconsistent with the provisions of
this Decree are hereby repealed or modified accordingly.

Section 8. Effectivity. This Decree shall take effect upon approval.

Done in the City of Manila, this 2nd day of March, in the year of Our Lord, nineteen hundred and
seventy-nine.

RULES AND REGULATIONS TO CARRY OUT THE PROVISIONS OF SECTION 6 OF

PRESIDENTIAL DECREE NO. 1612, KNOWN AS THE ANTI-FENCING LAW.

Pursuant to Section 6 of Presidential Decree No. 1612, known as the Anti-Fencing Law, the following
rules and regulations are hereby promulgated to govern the issuance of clearances/permits to sell
used secondhand articles obtained from an unlicensed dealer or supplier thereof:

I. Definition of Terms

1. "Used secondhand article" shall refer to any goods, article, item, object or anything of value
obtained from an unlicensed dealer or supplier, regardless of whether the same has actually
or in fact been used.

2. "Unlicensed dealer/supplier" shall refer to any persons, partnership, firm, corporation,

association or any other entity or establishment not licensed by the government to engage in
the business of dealing in or of supplying the articles defined in the preceding paragraph.

3. "Store", "establishment" or "entity" shall be construed to include any individual dealing in

the buying and selling used secondhand articles, as defined in paragraph hereof.

4. "Buy and Sell" refer to the transaction whereby one purchases used secondhand articles
for the purpose of resale to third persons.

5. "Station Commander" shall refer to the Station Commander of the Integrated National
Police within the territorial limits of the town or city district where the store, establishment or
entity dealing in the buying and selling of used secondhand articles is located.

II. Duty to Procure Clearance or Permit

1. No person shall sell or offer to sell to the public any used secondhand article as defined
herein without first securing a clearance or permit for the purpose from the proper Station
Commander of the Integrated National Police.

2. If the person seeking the clearance or permit is a partnership, firm, corporation, or

association or group of individuals, the clearance or permit shall be obtained by or in the
name of the president, manager or other responsible officer-in-charge thereof.
 3. If a store, firm, corporation, partnership, association or other establishment or entity has a
branch or subsidiary and the used secondhand article is acquired by such branch or
subsidiary for sale to the public, the said branch or subsidiary shall secure the required
clearance or permit.

4. Any goods, article, item, or object or anything of value acquired from any source for which
no receipt or equivalent document evidencing the legality of its acquisition could be presented
by the present possessor or holder thereof, or the covering receipt, or equivalent document,
of which is fake, falsified or irregularly obtained, shall be presumed as having been acquired
from an unlicensed dealer or supplier and the possessor or holder thereof must secure the
required clearance or permit before the same can be sold or offered for sale to the public.

III. Procedure for Procurement of Clearances or Permits

1. The Station Commanders concerned shall require the owner of a store or the president,
manager or responsible officer-in-charge of a firm, establishment or other entity located within
their respective jurisdictions and in possession of or having in stock used secondhand articles
as defined herein, to submit an initial affidavit within thirty (30) days from receipt of notice for
the purpose thereof and subsequent affidavits once every fifteen (15) days within five (5) days
after the period covered, which shall contain:

(a) A complete inventory of such articles acquired daily from whatever source and the
names and addresses of the persons from whom such articles were acquired.

(b) A full list of articles to be sold or offered for sale as well as the place where the
date when the sale or offer for sale shall commence.

(c) The place where the articles are presently deposited or kept in stock.

The Station Commander may, at his discretion when the circumstances of each case warrant,
require that the affidavit submitted be accompanied by other documents showing proof of
legitimacy of the acquisition of the articles.

2. A party required to secure a clearance or permit under these rules and regulations shall file
an application therefor with the Station Commander concerned. The application shall state:

(a) The name, address and other pertinent circumstances of the persons, in case of
an individual or, in the case of a firm, corporation, association, partnership or other
entity, the name, address and other pertinent circumstances of the president,
manager or officer-in-charge.

(b) The article to be sold or offered for sale to the public and the name and address of
the unlicensed dealer or supplier from whom such article was acquired.

In support of the application, there shall be attached to it the corresponding receipt or other
equivalent document to show proof of the legitimacy of acquisition of the article.

3. The Station Commander shall examine the documents attached to the application and may
require the presentation of other additional documents, if necessary, to show satisfactory
proof of the legitimacy of acquisition of the article, subject to the following conditions:

(a) If the legitimacy of acquisition of any article from an unlicensed source cannot be
satisfactorily established by the documents presented, the Station Commander shall,
upon approval of the INP Superintendent in the district and at the expense of the
party seeking the clearance/permit, cause the publication of a notice in a newspaper
of general circulation for two (2) successive days enumerating therein the articles
acquired from an unlicensed dealer or supplier, the names and addresses of the
 persons from whom they were acquired and shall state that such articles are to be
sold or offered for sale to the public at the address of the store, establishment or
other entity seeking the clearance/permit. In places where no newspapers are in
general circulation, the party seeking the clearance or permit shall, instead, post a
notice daily for one week on the bulletin board of the municipal building of the town
where the store, firm, establishment or entity concerned is located or, in the case of
an individual, where the articles in his possession are to be sold or offered for sale.

(b) If after 15 days, upon expiration of the period of publication or of the notice
referred to in the preceding paragraph, no claim is made with respect to any of the
articles enumerated in the notice, the Station Commander shall issue the clearance
or permit sought.

(c) If, before expiration of the same period for publication of the notice or its posting, it
shall appear that any of the articles in question is stolen property, the Station
Commander shall hold the article in restraint as evidence in any appropriate case to
be filed. Articles held in restraint shall be kept and disposed of as the circumstances
of each case permit, taking into account all considerations of right and justice in the
case. In any case where any article is held in restraint, it shall be the duty of the
Station Commander concerned to advise/notify the Commission on Audit of the case
and comply with such procedure as may be proper under applicable existing laws,
rules and regulations.

4. The Station Commander concerned shall, within seventy-two (72) hours from receipt of the
application, act thereon by either issuing the clearance/permit requested or denying the same.
Denial of an application shall be in writing and shall state in brief the reason/s therefor.

5. The application, clearance/permit or the denial thereof, including such other documents as
may be pertinent in the implementation of Section 6 of P.D. No. 1612 shall be in the forms
prescribed in Annexes "A", "B", "C", "D", and "E" hereof, which are made integral parts of
these rules and regulations.

6. For the issuance of clearances/permit required under Section 6 of P.D. No. 1612, no fee
shall be charged.

IV. Appeals

Any party aggrieved by the action taken by the Station Commander may elevate the decision taken in
the case to the proper INP District Superintendent and, if he is still dissatisfied therewith may take the
same on appeal to the INP Director. The decision of the INP Director may also be appealed to the INP
Director-General whose decision may likewise be appealed to the Minister of National Defense. The
decision of the Minister of National Defense on the case shall be final. The appeal against the
decision taken by a Commander lower than the INP Director-General should be filed to the next
higher Commander within ten (10) days from receipt of notice of the decision. The decision of the INP
Director-General should be appealed within fifteen (15) days from receipt of notice of the decision.

V. Penalties

1. Any person who fails to secure the clearance or permit required by Section 6 of P.D. 1612
or who violates any of the provisions of these rules and regulations shall upon conviction be
punished as a fence.
 2. The INP Director-General shall recommend to the proper authority the cancellation of the
business license of the erring individual, store, establishment or the entity concerned.

3. Articles obtained from unlicensed sources for sale or offered for sale without prior
compliance with the provisions of Section 6 of P.D. No. 1612 and with these rules and
regulations shall be held in restraint until satisfactory evidence or legitimacy of acquisition has
been established.

4. Articles for which no satisfactory evidence of legitimacy of acquisition is established and

which are found to be stolen property shall likewise be held under restraint and shall,
furthermore, be subject to confiscation as evidence in the appropriate case to be filed. If, upon
termination of the case, the same is not claimed by their legitimate owners, the article/s shall
be forfeited in favor of the government and made subject to disposition as the circumstances
warrant in accordance with applicable existing laws, rules and regulations. The Commission
on Audit shall, in all cases, be notified.

5. Any personnel of the Integrated National Police found violating the provisions of Section 6
of P.D. No. 1612 or any of its implementing rules and regulations or who, in any manner
whatsoever, connives with or through his negligence or inaction makes possible the
commission of such violations by any party required to comply with the law and its
implementing rules and regulations, shall be prosecuted criminally without prejudice to the
imposition of administrative penalties.

VI. Visitorial Power

It shall be the duty of the owner of the store or of the president, manager or responsible officer-in-
charge of any firm, establishment or other entity or of an individual having in his premises articles to
be sold or offered for sale to the public to allow the Station Commander or his authorized
representative to exercise visitorial powers. For this purpose, however, the power to conduct
visitations shall be exercise only during office or business hours and upon authority in writing from and
by the INP Superintendent in the district and for the sole purpose of determining whether articles are
kept in possession or stock contrary to the intents of Section 6 of P.D. No. 1612 and of these rules
and regulations.

VII. Other Duties Imposed Upon Station Commanders and INP District Superintendent and Directors
Following Action on Applications for Clearances or Permits

1. At the end of each month, it shall be the duty of the Station Commander concerned to:

(a) Make and maintain a file in his office of all clearances/permit issued by him.

(b) Submit a full report to the INP District Superintendent on the number of
applications for clearances or permits processed by his office, indicating therein the
number of clearances/permits issued and the number of applications denied. The
report shall state the reasons for denial of an application and the corresponding
follow-up actions taken and shall be accompanied by an inventory of the articles to be
sold or offered for sale in his jurisdiction.

2. The INP District Superintendent shall, on the basis of the reports submitted by the Station
Commander, in turn submit quarterly reports to the appropriate INP Director containing a
consolidation of the information stated in the reports of Station Commanders in his
jurisdiction.

3. Reports from INP District Superintendent shall serve as basis for a consolidated report to
be submitted semi-annually by INP Directors to the Director-General, Integrated National
Police.
 4. In all cases, reports emanating from the different levels of the Integrated National Police
shall be accompanied with full and accurate inventories of the articles acquired from
unlicensed dealers or suppliers and proposed to be sold or offered for sale in the jurisdictions
covered by the report.

These implementing rules and regulations, having been published in a newspaper of national
circulation, shall take effect on June 15, 1979.