WHEREAS, the present set up in the Bureau of Customs (BOC), where the Prosecution function is being exercised by various offices, units, divisions as well as ad hoc bodies in the said bureau, diminishes the effectivity of the anti-smuggling drive/campaign of the government;

WHEREAS, to ensure success in the anti-smuggling effort of the government, there is need to transfer, consolidate and reorganize the prosecution functions of various divisions, offices and/or units to the Prosecution and Litigation Division (PLD), Legal Service (LS) of toe BOC;

WHEREAS, Section 31, Chapter 10, Title III, Book III of EO 292., otherwise known as the Administrative Code of 1987, expressly grants the President the continuing authority to reorganize the executive branch of the government.

NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order

SECTION 1. Affected Offices. This Order covers the Investigation and Prosecution Division (IPD), Customs Intelligence and Investigation Service (CMS), Internal inquiry and Prosecution Division (IIPD-CIIS), certain offices or units under the Office of the DEPUTY Commissioner for Intelligence and Enforcement Croup, Director of Enforcement and Security Services (ESS), the Prosecution and Litigation Division {PLD), Legal Service (LS) and the Office of the Commissioner (OCOM). Unless otherwise specifically mentioned in this Order no other authority, function or task organic to those above mentioned offices shall be affected.

SEC. 2. Transfer of Functions. The following functions are hereby transferred to the corresponding offices indicated opposite their names:

NAME OF OFFICE/FUNCTIONS	FROM	TO
1. Prosecution Functions	IPD/CIIS
(Criminal/Administrative)	IIPD/CIIS	PLD-LS ESS
2. Review, Evaluation and Processing RRD/LS OCOM of Claims for Rewards Functions

SECTION 3. Operational Provisions. The f6llowing provisions shall be observed to promote the smooth transfer of functions:

1. IIPD/IPD and other Offices/Units. All case folders, files and documents of IIPD/ IPD and of other Offices/Units shall be transferred to the PLD-LS upon proper turn-over thereof. As an initial step, all case folders, files and/or records shall be inventoried, docketed and cataloged before the same are turned-over to the Director, LS.

2. Review and Processing of Reward Claims.

a. The Commissioner of Customs shall issue the corresponding order constituting the Rewards Committee in the OCOM which shall have the following functions:

i. Maintain the Informant's Logbook. The Informant's Logbook is hereby ordered transferred from the CMS to the Committee on Rewards.

ii. Receive Information. The Committee on rewards shall receive and safe-keep all informant's affidavits of information and all other relevant documents required in the processing of reward claims.

iii. Process claims for rewards. The Committee on rewards shall process discuss, deliberate, evaluate and recommend to the Commissioner of Customs all claims for rewards, including the issue of preference, amounts and all issues relative to claims of rewards.

iv. Study and propose measures to automate claims for rewards including the BOC-DOF interface on reward matters.

v. Organize a Secretariat which shall carry on the daily business of the Committee on Rewards.

SECTION 4. Budgetary Requirements. (1) The amount of Php2,000,000.00 is hereby allocated from the funds of the Bureau of Customs as a one-time expense for the inventory, cataloguing and eventual transfer of case folders, files and other documents of the IIPD, IPD and other Offices, units or ad hoc bodies to the PLD-LS.

(2) The amount of PhP5,000,000.00 is hereby allocated from the funds of the Bureau of Customs as initial fund for the establishment of the Committee on Rewards to cover expenses such as but not limited to setting up of office and other costs related thereto including repair of office space, office furniture and furnishings, air-conditioning machines, photocopiers, personal computers, computer peripherals and other equipment; and for the day to day functions of the office such as office supplies and consumables; and for the general expenses of the Committee on rewards such as traveling and other expenses.

Thereafter, such funds as may be necessary for the functions of the Committee shall be included in the annual appropriations of the Bureau of Customs.

SECTION 5. Separability Clause. If any provision of this Executive Order is declared invalid or unconstitutional, the provisions not affected thereby shall continue in force and effect.

SECTION 6. Repeal. All executive orders, rule, regulations and other issuances or parts thereof, which are inconsistent with the provisions of this Order, are hereby revoked or modified accordingly.

SECTION 7. Administrative Sanctions. Failure to follow the directives of this Executive Order within 30 days from effectivity thereof shall subject concerned officials to administrative sanctions pursuant to existing laws, rules and regulations.

SECTION 8. Effectivity Clause. This Order shall take effect fifteen (15) days following its complete publication in a national newspaper of general circulation.

Adopted: 16 May 2008

(SGD.) GLORIA MACAPAGAL-ARROYO

BY THE PRESIDENT:

(SGD.) EDUARDO R. ERMITA
Executive Secretary