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PRESIDENTIAL DECREE NO. 135
PRESIDENTIAL DECREE NO. 135 -
CREATING THE FERTILIZER INDUSTRY AUTHORITY
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WHEREAS, fertilizer is a vital input to
food production and must therefore be supplied in adequate quantities
at the lowest possible cost; chanroblesvirtualawlibrary
WHEREAS, world fertilizer prices have increased drastically in recent
months;chanroblesvirtualawlibrary
WHEREAS, the domestic fertilizer market has elements of disorganization
leading to higher distribution costs;chanroblesvirtualawlibrary
WHEREAS, there is a need to insure the viability of the fertilizer
industry in which the government has substantial financial interests;chanroblesvirtualawlibrary
WHEREAS, the national interest demands the maximum production
utilization of all installed fertilizer production capacity in the
country and the rationalization of all fertilizer importations of the
industry; chanroblesvirtualawlibrary
WHEREAS, the objectives for the fertilizer industry can be most
expeditiously accomplished through greater government participation and
control through a centralized government authority;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and
pursuant to Proclamation No. 1081, dated September 21, 1972, and
General Order No. 1, dated September 22, 1972, as amended, do hereby
create the Fertilizer Industry Authority to regulate, control and
develop the fertilizer industry in the Philippines with the end in view
of assuring the agricultural sector of adequate fertilizer supply at
the lowest possible cost.
Section 1. The Fertilizer Industry Authority, which
shall have jurisdiction over all existing and potential manufacturers
and suppliers of fertilizer and fertilizer inputs, shall have the
following functions: chanroblesvirtualawlibrary
1. To control and regulate the prices, terms
mark-ups, distribution channels, promotion, storage and other marketing
factors in the domestic fertilizer market;chanroblesvirtualawlibrary
2. To establish and implement regulations governing
the import and export of fertilizer inputs, and when necessary, to
itself and/or export such items;chanroblesvirtualawlibrary
3. To control and regulate all aspects of domestic
fertilizer production, including the utilization of idle capacity and
orderly expansion of the industry;chanroblesvirtualawlibrary
4. To control and assist in the financing of the
importation of fertilizer and fertilizer inputs, of production of
inventory and working capital, and of the expansion of the industry;chanroblesvirtualawlibrary
5. To do all such things as may be necessary to
maintain an adequate supply of fertilizers to the domestic market at
reasonable prices while maintaining the long-term viability of the
industry.
Section 2. The Fertilizer Industry Authority shall be
composed of the following officials or their representatives:cralaw:red
1. Secretary of Agriculture and Natural Resources,
Chairman.
2. Secretary of Finance, Member
3. Chairman, Board of Investments, Member
4. Governor, Central Bank, Member
5. President, Philippine National Bank, Member
The Authority is empowered to create the position of Executive Director
and other subordinate officials as may be required. All managerial and
technical positions shall be specifically exempt from WAPCO and Civil
Service requirements.
The Authority shall be supported by a Secretariat to be supplied
initially by the Department of Agriculture and Natural Resources until
such time as the Authority can create its own staff. chanroblesvirtualawlibrary
Section 3. The Fertilizer Industry Authority shall
have the following powers:cralaw:red
1. To make a continuous assessment of the fertilizer
supply and demand situation, both domestic and worldwide;chanroblesvirtualawlibrary
2. To establish and enforce sales quotas, production
schedules, distribution areas and such other marketing regulations as
may be necessary to assure market stability and viable operations in
the industry;chanroblesvirtualawlibrary
3. To determine and set the volumes and prices, both
wholesale and retail, of fertilizer and fertilizer inputs;chanroblesvirtualawlibrary
4. To negotiate and enter into contracts for all
imports and exports of fertilizer and fertilizer inputs;chanroblesvirtualawlibrary
5. To import fertilizer and fertilizer inputs exempt
from customs duties, compensating and sales taxes and all other taxes
for a period of two years from date hereof, unless earlier terminated
or later extended by the President, and to sell or convey such
fertilizer or fertilizer input to any individual association,
partnership, or corporation likewise exempt from the payment of customs
duties and all other taxes.
6. To control and regulate all marketing companies,
whether importer, indentor, wholesaler or retailer;chanroblesvirtualawlibrary
7. To regulate and control quality of the different
grades of fertilizer and to set new grades when necessary;chanroblesvirtualawlibrary
8. To compel the utilization of unused or
underutilized capacities of fertilizer companies and to direct any
improvements, modifications or repairs as may be necessary to
accomplish this;chanroblesvirtualawlibrary
9. To approve or to reject the establishment of new
fertilizer or fertilizer input plants and the expansion or contracting
of existing capacities;chanroblesvirtualawlibrary
10. To promote and coordinate all fertilizer research;chanroblesvirtualawlibrary
11. To obtain complete access to all pertinent
information on the operations of the industry, including audited and/or
unaudited financial statements, marketing, production, and inventory
data;chanroblesvirtualawlibrary
12. To call upon anyone in the fertilizer industry or
in industries related to the fertilizer industry or any other
government agency to assist the Authority in carrying out its functions;chanroblesvirtualawlibrary
13. To establish and impose appropriate penalties on
the fertilizer manufacturers, distributors, dealers, wholesalers,
retailers and raw-materials suppliers for violations of any rule,
quota, or guideline established by the Authority; and chanroblesvirtualawlibrary
14. To do any and all acts not contrary to law or
existing decrees and regulations as may be necessary to carry out the
functions of the Authority;chanroblesvirtualawlibrary
Section 4. The Fertilizer Industry Authority may
delegate such selected privileges, powers, or authority as may be
allowed by law to corporations, cooperatives, associations, or
individuals as may presently exist or be organized to assist the
Authority in carrying out its functions.
Section 5. The Fertilizer Industry Authority shall
constitute itself immediately and shall exist for five (5) years from
the date of this Decree, unless earlier abolished by the President of
the Philippines.
Section 6. This Decree shall take effect immediately.
Done in the City of Manila,
this 22nd day of February, in the year of Our Lord, nineteen hundred
and seventy-three.
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