Owners of malls and stores who sell or tolerate the sale of contraband and counterfeit products in their establishments must be penalized, according to Rep. Jose Solis of Sorsogon.

In filing House Bill 1033, Solis pointed out that smuggled and pirated goods not only distort prices, but also affect other market force which can contribute to the decline of the economy.

“Piracy and smuggling of products are not only hurting the country’s international image to do business, but also greatly affects local performers and manufacturers, Solis said.

“Mall and store owners and other businessmen who sell contraband are a clear threat to those who rely on legitimate sources of materials, he said.

With the rampant graft and corruption at the Bureau of Customs, the Bureau of Food and Drugs, the Bureau of Internal Revenue and other agencies concerned in the importation of various products, the Philippines is now flooded with all kinds of fake and counterfeit items.

With the proximity of the Christmas season, Solis said it is expected that the country’s malls and stores will again be flooded with imported products, many of them toys and gift items coming from China.

Solis said the piracy problem in the country has reached the level of a “serious organized crime since those involved in this illegal activity appear to be “untouchable.

The Optical Media Board has reported confiscating P30 million worth of fake VCDs, DVDs and CDs being sold in the market, but the agency appears it could not stop the problem.