councilor myrna dalodo-ortiz

The 21ST City Council has moved closer to establishing a dedicated Anti-Illicit Trade Task Force and passing a comprehensive ordinance to address the growing problem of illicit and counterfeit cigarettes and e-cigarettes, in what officials describe as a key governance measure aligned with the city’s leadership direction under Mayor Sebastian Duterte.

The proposal was taken up during the second joint hearing of the committees on trade and industry and health, convened following a privilege speech by Councilor Rachel P. Zozobrado, calling for an inquiry into the scale and impact of illicit tobacco products in the city.

“This is about protecting what Davao stands for,” Zozobrado said. “We have built a reputation as a leader in disciplined, smoke-free governance. But that reputation is at risk if illicit products continue to circulate unchecked.”

The hearing was led by Councilor Myrna Dalodo-Ortiz, chair of the committee on trade and industry, alongside Councilor Potpot Villafuerte, chair of the committee on health. It was attended by representatives from key government agencies, including the Bureau of Customs, Bureau of Internal Revenue, National Bureau of Investigation, Philippine Coast Guard, Department of Trade and Industry, and Food and Drug Administration, as well as local offices such as the Vices Regulation Unit and Business Permits Office.

Industry stakeholders, Atty. Mario Zinampan of Japan Tobacco International (JTI) and Jerel Palomata of PMFTC, were also present and shared insights during the hearing.

Zinampan stressed the importance of a coordinated enforcement framework, saying that addressing illicit trade requires sustained collaboration across agencies and sectors. He said that without a stronger case build-up and prosecution, enforcement efforts risk falling short of their intended impact.

During the discussions, stakeholders reiterated key recommendations, including the creation of a multi-agency Anti-Illicit Trade Task Force, which received broad support from council members and participating agencies.

Dalodo-Ortiz emphasized that enforcement must go beyond seizures. “Coordination is critical, but so is follow-through,” she said. “We need to ensure that cases are properly built and prosecuted, not just intercepted.”

They noted that illicit products disproportionately affect vulnerable sectors, particularly youth and low-income communities, due to their accessibility and lower cost.

The council signaled its intent to position Davao as the first local government unit to enact a “truly comprehensive” Anti-Illicit Trade Ordinance, reinforcing its role as a national standard-setter.

The committee on trade, commerce and industry, under the leadership of Dalodo-Ortiz, continues to take a proactive role in addressing the issue of illicit and counterfeit cigarettes and e-cigarettes, as it spearheads sustained legislative efforts anchored on consultation, coordination, and policy development. As part of its ongoing work, the Committee is actively engaging stakeholders, partner agencies, and industry representatives through a series of consultations to ensure that proposed measures are both responsive and enforceable.

The committee has likewise urged all concerned agencies and sectors to formally submit their respective position papers for review and possible adoption, reinforcing its commitment to crafting a comprehensive, evidence-based ordinance. Dalodo-Ortiz emphasized that an inclusive and consultative approach remains central to the Committee’s work, particularly as it leads the discussions under the second joint committee hearing.

The initiative is also seen as part of the city’s broader push to strengthen governance and enforcement under Mayor Sebastian Duterte, whose administration has emphasized discipline, accountability, and institutional coordination.

Zozobrado said the proposed ordinance would close critical gaps between policy and enforcement.

“Davao is respected because Mayor Duterte makes sure that the rules are clear and consistently enforced,” she said. “But we must also ensure that our systems can keep pace with evolving threats like illicit trade. This ordinance is about closing that gap.”