We are not against any OFW whom we believe and see as modern-day heroes.

We are
noteworthy of the value of these Balikbayan boxes to OFWs and to their families. But
taking into consideration the present status quo, we are left with the question on WHY
IS IT IMPORTANT FOR US TO SPECIFICALLY TARGET THESE BALIKBAYAN BOXES
FOR THE PREVENTION OF SMUGGLING?
Under EO 206, it provides for the contents of the balikbayan boxes:
These are Personal and household effects including:
a. jewelry,
b. precious stones and other articles of luxury which were formally declared and
listed before departure and identified under oath before the Collector of Customs;
c. personal and household effects including wearing apparel,
d. articles of personal adornment (except luxury items),
e. toilet articles,
f. instruments related to one's profession
g. and analogous personal or household effects
These items shall neither be in commercial quantities nor intended for barter, sale or
hire and that the total dutiable value of which shall not exceed Ten Thousand Pesos
(P10,000.00) or $500. A fifty percent (50%) ad valorem duty across the board shall be
levied and collected in excess of Ten Thousand Pesos (P10,000.00).
These balikbayan boxes are somehow granted a SAFE PASS when it complies with
its requirements, such as the declaration of the items inside and the total dutiable value.
If these comply with such then the Bureau would pass from it as having complied with
law and also bearing in mind the sentimental value of such balikbayan box, we pass
upon the doubt of it having any irregularity.
But how about unscrupulous individuals who use these balikbayan boxes as vessels to
facilitate their schemes of introducing to the Philippines contrabands and imported
products which are under declared or undeclared? These malicious individuals take
advantage of the fragility of these balikbayan boxes by tampering with their value. This
we cannot condone. We want to preserve the integrity of these boxes and at the same
time, protect the legitimate interests of the state in order to mitigate the problems on
smuggling.
Because of the due regard we give to these balikbayan boxes, we oversee that these
can be used against us. The state recognizes the efforts of the OFWs abroad that is
why they are granted privileges, one of which is the balikbayan boxes. We do not want
this privilege to be abused, and as such, we want to necessarily protect it from the evils
of smuggling in order that it may not be used as an escape goat for smugglers.
Having said these, I as the second speaker would discuss to you the different benefits
on inspecting Balikbayan boxes in order to prevent smuggling:

First is that it legitimizes the police power of the state in furtherance of its campaign
against smuggling.
Second, it benefits the state through customs revenue
Third, it benefits small and medium local enterprises against unfair competition.

First is that it legitimizes the police power of the state in furtherance to its
campaign against smuggling.
Under Section 602, of the Tariff and Customs Code, The Bureau of Customs is given
the power to prevent and suppress smuggling and other frauds upon the customs. Also,
under Section 2211 of the same Code, it empowers the officers of the Bureau to open
and examine any box, trunk, envelope or other container when he has reasonable
cause to suspect the presence therein of dutiable or prohibited article introduced into
the Philippines contrary to law. These manifests the intent of the state to primarily
supress smuggling.
Giving life to these provisions is the case of RIETA vs. PEOPLE to which the court ruled
that:
Under the Tariff and Customs Code, a search, seizure and arrest may be made even
without a warrant for purposes of enforcing customs and tariff laws. Without mention of
the need to priorly obtain a judicial warrant, the Code specifically allows customs to
inspect, search and examine trunk, package, box or envelope suspected of holding or
conveying any dutiable or prohibited article introduced into the Philippines contrary to
law.
Having established the jurisdiction of the Bureau, we come into the discussion of
the kind of benefit that the state would get in apprehending or seizing these
contrabands and undeclared or under declared importations in balikbayan boxes.
We take into consideration that the state, as compared to a reasonable and practical
father, in order to meet the needs of his family, will do anything necessary within its
power to sustain the daily living of his children. As such, he would toil and find means to
cater the needs, wants, demands and desires of his beloved children. We can compare
these labor of the father to taxation of dutiable items or the acquisition of customs
revenue.
These customs duties and taxes have two-fold purposes, first is for revenue production
which favors the state, and; second, to regulate the influx of foreign products.
On its first purpose, these balikbayan boxes, which are to pay a cap of $500 is not just
something that they pay for lawful compliance. It also partakes their share in the growth

of the Philippine economy. The BoC is the second biggest contributor to revenue
generation. These customs revenue, from import and export fees, and to the payment of
duty taxes, have a public purpose. We adhere to the concept of benefits-protection
theory, in that it involves the power of the State to demand and receive taxes based on
the reciprocal duties of support and protection between the State and its citizen.
In CIR v Algue, every person who is able must contribute his share in the burden of
running the government. The government for its part is expected to respond in the form
of tangible and intangible benefits intended to improve the lives of the people and
enhance their material and moral values.
Now, imagine that 100 balikbayan boxes containing undeclared goods worth 50K are
smuggled in the Philippines, do you think that its declared $500 value is sufficient to
justify its entry in the Philippines? Also, if these under declared items on Balikbayan
boxes are allowed passage into the state, how would the government compensate its
losses from the fraudulent senders? More than 7million balikbayan boxes enter into the
possession of the Bureau in a single year, imagine how many of these boxes contain
undeclared goods? Imagine how much revenue the state loses. Such is a harsh but a
happening reality. That is why, legitimizing the power of the Bureau in inspecting these
boxes can, in one way, relieve the state from the harms of smuggling by this preventive
measure and second, to give to the state, what is due to it, that is, customs revenue.
Talking about customs revenue, these revenues are applied to different sectors in the
government, the government can provide adequate protection to its citizens against
any internal or external harm that may come to it. Also, some tangible benefits which
can be culled from these revenues, including other revenues from different agencies,
include but are not limited to:
a. Housing projects;
b. Construction of school buildings and facilities;
c. Improvement of the health sector;
d. Increase in jobs;
e. Increase in military benefits, and the like.
These things, although seen by many as small and intangible, can greatly affect our
daily lives. To this end, we do not want to deprive the state of this right.
On its second purpose, in that it regulates the influx of foreign products, we give
regard to the local businesses in the Philippines.
Tariffs and duties are imposed on imports not only to generate revenues for the
government, but also to control the entry of products from abroad and give local goods
some leverage in the market. Trade liberalization has taken place in recent years in part
to discourage smuggling, but some sly traders have instead used the policy and the
sheer massive volume of balikbayan boxes has encouraged to sneak in tons of
undervalued goods. Smuggling therefore deprives traders of free competition.

Example, if one, who has received a balikbayan box containing commercial quantities of
products which were under declared and which were not properly taxed, the receiver
would sell it at a cheaper price compared to a local vendor, one who, paying commercial
and import taxes in good faith, sells the same products, but price it at a much higher
cost. Obviously, consumers would naturally go to the one who sells it at a lower price.
This is a situation that we want to reject. This impairs the chances and opportunities of
small and medium enterprises to gain profit. If we allow the non-opening of these
balikbayan boxes containing smuggled goods, we deprive them of their right against
unfair completion.
In TANADA v ANGARA:
The Constitution takes into account the realities of the outside world as it requires the
pursuit of "a trade policy that serves the general welfare and utilizes all forms and
arrangements of exchange on the basis of equality and reciprocity"; and speaks of
industries "which are competitive in both domestic and foreign markets" as well as of
the protection of "Filipino enterprises against unfair foreign competition and trade
practices."
Also, in FUA v ZAMORA
The key, as in all economies in the world, is to strike a balance between protecting local
businesses and allowing the entry of foreign investments and services.
The control and regulation of trade in the interest of the public welfare is of course an
exercise of the police power of the State. A persons right to property, whether he is a
Filipino citizen or foreign national, cannot be taken from him without due process of law.
Apart from the huge revenue losses involved, smuggling is killing local businesses and
causing great inequality and other effect is that illegally imported goods are steadily
displacing some locally produced goods in the market place. This is adversely affecting
both employment and profit margins in domestic industries.
This is why your honors, we need to inspect these balikbayan boxes in order to protect
the interest of the Filipino businessman.

In ICHONG v HERNANDEZ:
There cannot be no question about the importance of the retailer in the life of the
community. He ministers to the resident's daily needs, food in all its increasing forms,
and the various little gadgets and things needed for home and daily life.

He provides his customers around his store with the rice or corn, the fish, the salt, the
vinegar, the spices needed for the daily cooking. He has clothes to sell, even the needle
and the thread to sew them or darn the clothes that wear out. The retailer, therefore,
from the lowly peddler, the owner of a small sari-sari store, to the operator of a
department store or, a supermarket is so much a part of day-to-day existence.
All of these said, it is beneficial to inspect incoming balikbayan boxes in order to prevent
smuggling on the following contentions:
First is that it legitimizes the police power of the state in furtherance to its
campaign against smuggling.
Second, it benefits the state through customs revenue
Third, it benefits small and medium local enterprises against unfair competition.
I PARTIALLY REST THE AFFIRMATIVES CASE.