Mandaue okays anti-fake ordinance on first reading

CEBU, Philippines — The Mandaue City Council has approved on first reading a proposed ordinance that seeks to intensify the city's campaign against counterfeit, pirated, and illicit goods by expanding the prohibition to include both physical and online transactions, as well as shipments passing through the city.

The proposed measure, titled the Comprehensive Anti-Illicit Trade and Counterfeit Goods Ordinance, was approved during the council's regular session on Monday, July 27.

Councilor Carlo Fortuna said he pushed for the measure following recent enforcement operations by the Criminal Investigation and Detection Group (CIDG) and the Bureau of Internal Revenue (BIR), which led to the seizure of counterfeit cigarettes and fake food seasonings in Mandaue City.

“Recently naa tay operations sa CIDG and sa BIR sad, nadakpan diri ang mga illegal nga sigarilyo gawas niana naay fake nga Magic Sarap, maong naghimo ta ani nga ordinansa that any form of fake or illegal items nga gibaligya or possess sa Mandaue mahimong silotan,” said Fortuna, adding that retailers, wholesalers, and distributors engaged in these prohibited activities will be held accountable.

Fortuna said the city has also conducted inspections at the Mandaue City Public Market for counterfeit and illicit products.

“Pwera buyag wala ray nakita nga fake items nga gibaligya,” said the councilor.

He added that small and medium enterprises, including sari-sari stores, found selling products without the required permits and proper documentation would also face penalties.

“Kung masakpan, makasohan og duha, national law and local law, tungod ani atong ordinansa,” said Fortuna.

The proposed ordinance states that the proliferation of counterfeit and illicit products not only infringes on intellectual property rights but also harms legitimate businesses, discourages investments, deprives the government of revenue, and endangers public health and safety.

It also recognizes that the growth of e-commerce and social media marketplaces has made it easier for illegal traders to market and distribute counterfeit products online while evading traditional enforcement.

If enacted, the ordinance will prohibit the physical and online sale, lease, rental, production, manufacture, distribution, transfer, use, possession, and commercial trading of illicit, pirated, counterfeit, non-compliant, and fake goods, articles, vapor or tobacco products, and services within Mandaue City's territorial and digital jurisdiction.

The measure also extends coverage to prohibited goods merely passing through the city, authorizing authorities to seize illicit products being transported via local roads, ports, warehouses, sorting centers, and courier hubs.

It further requires third-party courier and logistics companies to cooperate with authorities by implementing customer verification measures, reporting suspicious shipments, and withholding deliveries of suspected illicit goods.

Under the proposal, all businesses issued permits by the city will be prohibited from engaging in or allowing the sale or distribution of counterfeit and illicit goods within their establishments or through their online platforms.

Violations may result in the suspension or revocation of business permits, while repeat offenders could face permanent closure and be barred from operating online businesses within the city.

The ordinance likewise prescribes penalties for violators. Individuals or businesses dealing in counterfeit goods may face imprisonment of up to one year, a fine of ?5,000 for every violation, or both, subject to the court's discretion.

Those found dealing in illicit cigarettes, heated tobacco products, and vapor products may face imprisonment of up to 30 days and a fine of ?1,000 for every pack, bottle, device, or individual unit found in their possession or shipment.

The proposal also holds corporations, partnerships, online platform administrators, and group moderators liable if they knowingly facilitate the sale or distribution of counterfeit products. Courier and logistics companies that repeatedly fail to cooperate with enforcement efforts may likewise face administrative fines and the suspension of their local business permits.

To strengthen enforcement, the ordinance authorizes the city government to coordinate with the Philippine National Police, National Bureau of Investigation, Intellectual Property Office of the Philippines, Bureau of Internal Revenue, Bureau of Customs, Food and Drug Administration, and other concerned agencies in conducting inspections, cyber-audits, investigations, and enforcement operations. — (FREEMAN)