SECTION 5. Parties Liable. – The following person shall be liable for violation(s) of this Act:
a) the manufacturer, exporter or importer of the counterfeit drugs and their agents: Provided, That the agents shall be liable only upon proof of actual or constructive knowledge that the drugs are counterfeit;
b) the seller, distributor, trafficker, broker or donor and their agents, upon proof of actual or constructive knowledge that the drugs sold, distributed, offered or donated are counterfeit drugs;
c) the possessor of counterfeit drugs as provided in Section 4 (b) hereof;
d) the manager, operator or lessee of the laboratory facilities used in the manufacture of counterfeit drugs;
e) the owner, proprietor, administrator or manager of the drugstore, hospital pharmacy or dispensary, laboratory or other outlets or premises where the counterfeit drug is found who induces, causes or allows the commission of any act herein prohibited;
f) the registered pharmacist of the outlet where the counterfeit drug is sold or found who, sells or dispenses such drug to a third party and who has actual or constructive knowledge that said drug is counterfeit; and
g) should the offense be committed by a juridical person, the president, general manager, the managing partner, chief operating officer or the person who directly induces, causes or knowingly allows the commission of the offense shall be penalized.
SECTION 6. Administrative Proceedings. – The Bureau is hereby further authorized to undertake the following administrative actions:
a) upon verified information on the existence of suspected counterfeit drugs in the possession of any manufacturer, seller or distributor, the duly authorized officers of the Bureau or any officer deputized by the Bureau for the purpose shall segregate, seal and, after having obtained a valid search warrant from a competent court, seize such counterfeit drugs and take them into custody: Provided, That in case the suspected counterfeit drugs are found in a private residence, as defined in Section 3 of this Act or in other premises not covered by a valid license to operate issued by the Bureau, the duly authorized officer of the Bureau or deputized officer thereof shall secure a search warrant for the purpose of seizing and taking custody such suspected counterfeit drugs;
b) if, after the appropriate examination of the samples by the Bureau, the seized drugs are determined or found to be counterfeit, the Bureau shall, within fifteen (15) days from their seizure, issue an order directing the preventive closure of the business establishment for a period not exceeding thirty (30) days. Thereafter, administrative proceedings shall be initiated by the Bureau against the parties concerned where they shall have the opportunity to be heard and present evidence on their behalf; and
c) to ensure the effective enforcement of the foregoing, the Bureau may enlist the assistance of the national or local law enforcement agencies.
SECTION 7. Administrative Sanctions. – Upon finding that the drugs examined are counterfeit and the determination of the parties liable therefor, the Bureau shall impose any or all of the following sanctions:
a) permanent closure of the establishment concerned and the revocation of its license to do business;
b) a fine of not less than One hundred thousand pesos (P100,000) but not more than Five hundred thousand pesos (P500,000);
c) upon order of the Court, forfeiture, confiscation, and destruction of products found to be counterfeit and the equipment, instruments, and other articles used in violation of this Act;
d) filling of an appropriate proceedings against the registered pharmacist with the Professional Regulations Commission for cancellation of professional license;
e) filing of criminal charges against the violator(s), which can be instituted independently from the administrative case: Provided, That the dismissal of the criminal case shall not lift the closure order, except when it is a dismissal on the merits or for lack of basis: Provided, further, That the withdrawal of the private criminal complaint shall not be a ground for the dismissal of the administrative proceedings; and
f) permanent disqualification of the person concerned, whether natural or juridical, from owning or operating an establishment engaged in any business activity under the supervision of the Bureau.
SECTION 8. Penalties. – The commission of any of the acts prohibited under Sections 4 and 6 of this Act shall be punished by:
a) imprisonment of not less than six (6) months and one (1) day, but not more than six (6) years for mere possession of counterfeit drugs as provided for in Section 4 (b) hereof; or
b) imprisonment of six (6) years and one (1) day, but not more than ten (10) years or a fine of not less than One hundred thousand pesos (P100,000) but not more than Five hundred thousand pesos (P500,000) or both such imprisonment and fine at the discretion of the court in any other case mentioned in Section 4 hereof; or
c) imprisonment of not less than six (6) months and one (1) day, but not more than two (2) years and four (4) months if the counterfeit drug is intended for animals; or
d) imprisonment of not less than six (6) years and one (1) day, but not more than ten (10) years for any manufacturer, seller or distributor who shall conceal, substitute, dispose or destroy any drug as may have been segregated and sealed by the Bureau, or who shall break, alter or tamper any mark or seal used by the Bureau to identify those segregated drugs as provided for under Section 6 (a) of this Act. Any other person who breaks, alters or tampers any mark or seal used by the Bureau to identify the segregated drugs shall suffer the penalty of not less than six (6) months and one (1) day, but not more than six (6) years imprisonment; or
e) if, as a result of the use of the drug found to be counterfeit, the illness sought to be cured is aggravated or physical injury or suffering results therefrom, a punishment of imprisonment from twelve (12) years to fifteen (15) years and a fine ranging from One hundred thousand pesos (P100,000) to Five hundred thousand pesos (P500,000) shall be meted out; or
f) should a counterfeit drug be the proximate cause of death of a victim, who unknowingly purchased and took a counterfeit drug, the penalty of life imprisonment and a fine of Five hundred thousand pesos (P500,000) to Five million pesos (P5,000,000) shall be imposed.
In case any act prohibited in Section 4 hereof is also punishable under other laws, the offender shall, if warranted by the evidence, be prosecuted under the law prescribing the highest penalty.
SECTION 9. Appropriations. – The amount necessary to carry out the provisions of this Act shall be included in the General Appropriations Act for the year following its enactment and every year thereafter.
SECTION 10. Implementation. – The Bureau of Food and Drugs of the Department of Health is hereby authorized to administer and supervise the implementation of this Act.
SECTION 11. Implementing Rules and Regulations. – Within ninety (90) days from the approval of this Act, the Bureau of Food and Drugs, in consultation with the Department of Health, shall promulgate the rules and regulations implementing the provisions of this Act. The implementing rules and regulations issued pursuant to this section shall take effect thirty (30) days after its publication in two (2) national newspaper of general circulation.
SECTION 12. Separability Clause. – If for any reason, any portion or provision of this Act is subsequently declared unconstitutional or invalid, such declaration shall not nullify the other portions or provisions hereof.
SECTION 13. Repealing Clause. – All laws, decrees, executive or administrative orders, rules or regulations inconsistent with the provisions of this Act are hereby repealed or modified accordingly.
SECTION 14. Effectivity. – This Act shall take effect fifteen (15) days after its publication in at least two (2) national newspaper of general circulation. Approved, September 5, 1996