WHEREAS, it
is the declared policy of the State to promote the integrated growth
and development of the grains industry so as to provide adequate and
continuous food supply to the nation and contribute to the national
economy;chanroblesvirtualawlibrary
WHEREAS, to carry out and implement the foregoing policy, Presidential
Decree No. 4 dated September 26, 1972 was promulgated making the "Act
to Develop the Rice and Corn Industry, Created the National Grains
Authority and Provide Funds Therefor" otherwise known as the National
Grains Industry Development Act, as part of the law of the land;chanroblesvirtualawlibrary
WHEREAS, it becomes necessary to adopt various measures calculated to
promote zeal and enthusiasm in the production of rice, corn and other
grains in order to attain self-sufficiency in such grains, hasten
development of virgin and undeveloped lands and to provide more
opportunities to small farmers towards their economic well-being; chanroblesvirtualawlibrary
WHEREAS, the Authority is being hampered by various technicalities and
otherwise operational hindrances that diminish the impact of its
campaign, and thereby undermine its efforts, to purge the industry of
unscrupulous elements;chanroblesvirtualawlibrary
WHEREAS, recent development and continuing scientific and technological
studies on grains production, processing and marketing have revealed
that the foregoing policy will be best attained and thereby facilitate
a truly integrated development, planning, programming and
implementation by vesting the Authority with supplementary
responsibilities and powers and by amending certain provisions of said
Act.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers in me vested 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 adopt and make as part of the law of the land the amendments to
the aforesaid National Grains Industry Development Act stated hereunder;chanroblesvirtualawlibrary
Section 1. The heading and introductory paragraph to
the aforementioned Act is hereby amended to read as follows:cralaw:red
"Proclaiming the creation of the National Grains Authority and
providing funds therefor.
"Pursuant to Proclamation No. 1081, dated September 21, 1972, I,
FERDINAND E. MARCOS, President of the Republic of the Philippines and
Commander-in-Chief of all the Armed Forces, by virtue of the powers
vested in me by the Constitution of the Republic of the Philippines do
hereby declare as a law of the land, the creation of the National
Grains Authority which shall be under the Office of the President. The
provisions of this Decree are contained herein below."
Section 2. Section 1 is hereby amended to read as
follows:cralaw:red
"Sec. 1. Title of the Act. — This law shall be known
as the National Grains Authority Act."
Section 3. Section 2 is hereby amended to read as
follows:cralaw:red
"Sec. 2. Declaration of Policy. — It shall be the
policy of the State to promote the integrated growth and development of
the grains industry (rice, corn, wheat, and other grains and their
substitutes such as but not limited to mongo, soybeans and cassava) so
that it can adequately function as in institution conscious of its
social responsibilities and capable of providing adequate and
continuous food supply to the nation and of contributing of its proper
share to national economy."
Section 4. Section 3, paragraph, (b) and (f) are
hereby amended to read as follows:cralaw:red
"Sec. 3. Policy, Goals and Objectives. —chanroblesvirtualawlibrary
xxx
xxx
xxx
b) Provide comprehensive guidance for the
development of the industry in all its aspects, delineating and
coordinating the respective roles of both government and private
sectors and their respective components and earmarking adequate
financing from credit and other resources to support the program;
Provided, however, That credit and other resources contemplated in this
Act for the development of the grains industry shall be complementary
and supplementary to those earmarked under existing laws."
f) Adopt all other measures for the grains industry
as may be necessary to achieve the foregoing policy."
Section 5. Section 4 is hereby amended to read as
follows:cralaw:red
"Sec. 4. Policy Implementation. — To execute the
foregoing policy, there is hereby created a body corporate with
regulatory and supervisory powers to be known as the National Grains
Authority, hereinafter simply referred to as the Authority, which shall
be governed by a Board of Directors, known as the National Grains
Authority Council, hereinafter referred to as the Council. The powers
and functions of the Authority shall be vested in the Council which
shall have overall responsibility for formulating and coordinating a
comprehensive program for the development of the grains industry. The
Council shall be composed of the following:cralaw:red
Chairman:
Secretary of Agriculture
Members:
The Administrator, National Grains Authority
The Governor, Central Bank of the Philippines
The President of the Philippine National Bank
The Chairman of the Development Bank of the
Philippines
Representative of the Office of the President
The Secretary of the Department of Trade
The Secretary of the Department of Industry
A Representative from the consuming sector
In the absence of the Chairman, the Administrator of the National
Grains Authority shall act as the Chairman of the Council.
Within thirty days from the approval of this degree, the President of
the Philippines shall constitute the Council.
The representative of the consuming sector shall not be less than
thirty-five years of age, with sufficient education of proven honesty,
integrity and recognized competence. He shall be appointed by the
President of the Philippines to hold office for a term of four years
unless sooner removed for cause or until his successor shall have been
appointed and qualified.
The Council shall meet regularly at least once a month on any date to
be determined by the Chairman: Provided, That the Chairman may convene
special meetings to discuss any urgent matters needing immediate
resolutions. The Council members shall be entitled to per diem of
P400.00 for each meeting actually attended by them and other
remuneration as may be determined by the Council.
If for any reason a member of the Council, who is a public official, is
unable to attend a meeting, he shall be represented therein by the next
ranking official or officer of the Office, Agency or organization he
represents. chanroblesvirtualawlibrary
The Council shall adopt rules and regulations to govern its
proceedings, call on any government agency or institution for
assistance or support, and determine its official location and address.
*Section 5. Section 5, subsection (b), paragraph (i)
is hereby amended to read as follows:cralaw:red
"(i) Determine the floor price for the grain crop
which shall assure the farmer or producer a fair return on his
investment; Provided, That the floor price for the grain crop of any
season shall be the total sum of the season's anticipated cost of
production per cavan, plus reasonable mark-up, as determined by the
Council; Provided, Further, That whatever agricultural minimum wage may
be specified by law shall be included in the computation of the
anticipated production cost even for work performed by operators and/or
owners of farms; Provided, Further, That the retail prices for milled
rice, corn, grits, sorghum and other grains and their substitutes and
their by-products/end products shall not be more than the prices set
for these items by the Council; Provided, Further, That price ceilings
shall be adjusted in direct relation to significant changes in the
Consumer Price Index (CPI) periodically prepared by the Central Bank of
the Philippines; Provided, Further, That the Authority shall give
preference to producers cooperatives in the procurement of grains so as
to promote the development of cooperatives and other farmer's
associations such as but not limited to Area Marketing Cooperatives,
Samahang Nayons, selda, etc., in the country; Provided, Furthermore,
That the price support shall cover only such quantity of palay, corn or
other grains as was actually produced by the farmer in his own farm;
and Provided, Finally, That the Authority may, upon authorization by
the Office of the President, incur subsidies to be borne by the
National Government in the implementation of the floor and ceiling
prices for rice and corn and other grains and their substitutes and/or
their by-products/end-products; chanroblesvirtualawlibrary
Section 6. Section 6 as amended by P.D. No. 699 is
hereby further amended to read as follows:cralaw:red
"Sec. 6. Administration — Powers, Organization,
Management and Exemptions. — The Powers, organization, management and
exemptions of the Authority shall be as follows:cralaw:red
a) Powers — In order to effectively carry out its
functions and responsibilities provided in this Act, the Authority
shall have the following powers:cralaw:red
(i) To institute the negotiable warehouse receipt or
quedan system in palay, corn and other grains not later than two (2)
years after the approval of this Act. Pending the institution of said
quedan system however, the Authority shall implement the price support
by procuring grains at the announced floor price in such quantities and
in such places as may be necessary: Provided, That no such grains shall
be procured unless they are stored in a bonded warehouse under a bond
of not less than thirty-three and one-third (33 1/3) per centum of the
value of the stocks of said grains; Provided, However, That in areas
where there are no bonded warehouses or adequate space in bonded
warehouses, the Authority shall start to purchase grains at the
beginning of every harvest and for this purpose shall send its men and
facilities to the places of harvest where the farmers can directly sell
their harvested grains; Provided, Further, That the Authority shall
take measures to expedite the establishment of bonded warehouses in
areas where they are needed but do not exist; Provided, Finally, That
such stocks shall be fully insured against loss due to fire. chanroblesvirtualawlibrary
(ii) To maintain and manage a national buffer stock
the quantity and locations of which shall be determined by the
Authority.
(iii) To own, lease, operate or otherwise hold
lands, buildings, equipment and such other immovable properties, as may
be necessary to carry out its functions. (As amended by P. D. No. 699)
(iv) To enter into, make, perform and carry out
contracts of every class and description necessary or incidental to the
realization of its functions with other person, firm or corporation,
private or public, including loans or borrowing by the Authority from
domestic or foreign sources, or initiate contracts and/or agreement in
behalf of the industry between the Philippine Government and any
foreign government or institution;chanroblesvirtualawlibrary
(v) To oversee and enforce the provisions of
Republic Act Numbered Three Thousand Eighteen;chanroblesvirtualawlibrary
(vi) To inspect palay, rice, corn, corngrits and
other grains and their substitutes and/or the by-products/end-products
stored by any person, partnerships, corporation or association, for
purposes of taking inventory and record of such commodities, and to
enter the premises thereof by the use of reasonable means;chanroblesvirtualawlibrary
(vii) To order the seizure, whenever there is
cornering, or boarding, as may be defined by the Authority of rice
and/or other grains and their substitutes and/or the by-products
thereof, including facilities and equipments used in said cornering of
hoarding, or whenever there is scarcity of supply of such commodity in
the consumer market and/or an unwarranted increase in the price
thereof, of the hoarded commodity and its public sale in such quantity
as may be needed to stabilize the supply in the area of scarcity and
restore prices to normal levels; chanroblesvirtualawlibrary
(viii) To establish and enforce standards in
grading, sampling and inspection, test and analysis, specification,
nomenclature, units of measurement, code of practice and packaging,
conservation and transport for grains and their substitutes and/or
their by-products/end-products and to effect a transition of standards
in measurement of grains from volume to weight, and in metric-system;chanroblesvirtualawlibrary
(ix) To coordinate the activities of all government
agencies engaged in the study, research and promotion of measures
designated to enhance the integrated growth and development of the
grains industry; and to improve the processing and marketing standards
of rice, corn and other grains, such as methods of drying, handling,
hauling, storage, milling, packaging, distributing and shipping these
grains and their by-products;chanroblesvirtualawlibrary
(x) To call upon and/or deputize any official of
such government agencies as my be necessary to assist the Authority in
carrying out its functions;chanroblesvirtualawlibrary
(xi) To register, license and supervise warehouses,
whether bonded or not, and mills; and to prescribe, impose and collect
fees, charges, and/or surcharges in licensing and regulating warehouses
and mills;chanroblesvirtualawlibrary
(xii) To establish rules and regulations governing
the importation of rice, corn and other grains and their substitutes
and/or by-products/end products and to license, impose and collect fees
and charges for said importation for the purpose of equalizing the
selling price and such imported grains and their substitutes and/or
their by-products/end products with the normal prevailing domestic
prices. chanroblesvirtualawlibrary
In the exercise of this power, the Council after consultation with the
Office of the President shall first certify to a shortage of grains
and/or their substitutes that may occur as a result of a short-fall in
production, a critical demand-supply gap, a state of calamity or other
verified reasons that may warrant the need for importation. The
Authority shall undertake the direct importations of grains and/or
their substitutes or it may allocate import quotas among certified and
licensed importers and the distribution thereof through cooperatives
and other marketing channels, at prices to be determined by the Council
regardless of existing floor prices and the subsidy thereof, if any,
shall be borne by the National Government.
(xiii) To establish rules and regulations governing
the export of rice, corn and other grains and/or their substitutes and
their by-products/end products, and to collect fees and charges for
such exportation at rates to be determined by the Council;chanroblesvirtualawlibrary
In the exercise of this power, the Authority shall direct undertake the
exportation of rice, corn and other grains and/or their substitutes
and/or by- products/end products whenever there is an excess production
and/or supply, or it may allocate export quotas among certified and
licensed exporters; Provided, however, That the Council shall first
certify to such excess production and/or supply after proper
consultation with the Office of the President.
(xiv) To register, license and supervise persons,
natural or judicial, who shall engage or are engaging in the business
of providing goods and services in support of the different activities
involved in the production, processing, transporting, marketing and
trading of grains and/or their substitutes and to prescribe, impose and
collect fees, charges and/or surcharges in licensing and regulating the
operations of such persons;chanroblesvirtualawlibrary
(xv) To register, license and supervise persons,
natural or judicial, engaged in the wholesale and/or retail business of
rice, corn, other grains and their substitutes and/or their
by-products/end-products and to impose and collect fees to be
determined by the Council;chanroblesvirtualawlibrary
(xvi) To register, license and supervise persons,
natural or judicial, engaged in the processing or manufacture of goods
where rice or corn or other grains and/or their substitutes are used as
ingredients in the manufacture of starch, oil and animal feeds and/or
other similar commodities and/or their by-products/end-products in
which case it shall impose the nominal fees to be determined by the
Council;chanroblesvirtualawlibrary
(xvii) To provide for the enforcement of the
provisions of this Decree or any Letter of Instruction, General Orders
or Rules and Regulations issued or which may hereafter be issued
pursuant thereto, or any other Decree, Letter of Instructions, General
Order, the implementation and enforcement of which is vested with the
Authority, and for violation thereto, to authorize the Administrator or
his duly authorized representatives to impose administrative fines and
penalties, to conduct investigations and to require by subpoena and/or
subpoena duces tecum the attendance and testimony of witnesses, the
production of books, papers, documents, exhibits, records, evidence; to
administer oath by himself or his duly authorized representative, and
to make arrests. Any case of contumacy shall be dealt with in
accordance with the provisions of Section five hundred eighty of the
Revised Administrative Code. Any fine imposed and collected under the
paragraph shall form part of the Authority's corporate funds:cralaw:red
(xviii) Whenever the Authority determines that to
accomplish its production, processing marketing and other incidental
functions, it is necessary to contract indebtedness, it shall be a
resolution, stating the purpose for which the indebtedness is to be
incurred and citing the project study designed for the purpose, so
declare and authorize the Authority's execution, or issuance of, and
establish the terms and conditions to be contained in such bonds, loan
agreements, other evidences of indebtedness necessary thereof, such
resolution shall become valid and effective upon approval by the
President of the Philippines and prior recommendation of the Secretary
of Finance.
With respect to domestic indebtedness to be incurred by the Authority,
the bonds or other evidences of indebtedness issued for the purpose
shall contain such terms, conditions, privileges, exemptions and
guarantees as are specified below. chanroblesvirtualawlibrary
(1) Such bonds or other evidences of indebtedness)
shall be registered from and transferable at the Central Bank of the
Philippines; b) shall not be sold at less than par; c) shall be payable
ten years or more from date of issue, as may be determined by the
Secretary of Finance before their issuance, but shall be redeemable,
upon the election of the Council, after five years from such date of
issue; and d) shall bear interest at an annual rate to be determined
before their issuance by the Secretary of Finance. The interest may be
payable quarterly, semi-annually or annually, as determined by the
Secretary of Finance in consultation with the Monetary Board of the
Central Bank of the Philippines before date of issuance, and both the
principal and interest shall be payable in legal tender of the
Philippines.
(2) The bonds or other evidences of indebtedness
shall be exempt from the payment of all taxes by the Republic of the
Philippines, or by any authority, branch, division or political
sub-division thereof, which fact shall be stated upon their faces; and
by virtue of this Decree are hereby made securities in which all public
offices, political sub-divisions, commercial banks, insurance companies
and associations, investment houses, financing companies, savings banks
and savings institution, including saving and loan associations,
executors, administrators, guardians, trustees and fiduciaries in the
Philippines may properly and legally invest their own funds or the
funds within their control, and the same shall be receivable as
collateral in any transaction with the government, its agencies, and
instrumentalities, including government-owned or controlled
corporations and government banking and financial institutions in which
such collateral is required. Said instruments may be made payable both
as to principal and interest in Philippine currency or any readily
convertible currency;chanroblesvirtualawlibrary
(3) A sinking fund shall be established by the
National Grains Authority in such manner that the total annual
contribution thereto, accrued at such rate of interest as may be
determined by the Secretary of Finance in consultation with the
Monetary Board, shall be sufficient to redeem at maturity the bonds
issued under this subsection. The sinking fund shall be under the
custody of the Central Bank of the Philippines, which shall invest the
same, subject to the approval of the council and the Secretary of
Finance in consultation with the Monetary Board: Provided, that the
proceeds thereof shall accrue to the Authority;chanroblesvirtualawlibrary
(4) The Republic of the Philippines hereby
guarantees the payment by the Authority of both the principal and the
interests of the bonds or other evidences of indebtedness and shall pay
such principal and interest in case the Authority fails to do so; and
there are hereby appropriated out of the general funds in the National
Treasury not otherwise appropriated the sums necessary to make the
payments so guaranteed; Provided, That the sums so paid by the Republic
of the Philippines shall be refunded by the Authority; and Provided,
That the Authority, to assure such refunding, shall establish reserves
or sinking funds and comply with such other restrictions and conditions
as the Secretary of Finance may prescribe and establish for that
purpose.
With respect to foreign indebtedness to be incurred by the Authority,
such may be contracted, in the forms of loans, credits convertible
foreign currencies, or other forms of indebtedness, from foreign
governments or any international financial institution or fund sources,
including foreign private lenders, the total outstanding amount of such
indebtedness, exclusive of interest, shall not exceed five hundred
million United States dollars (US$ 500M) or the equivalent thereof in
other currencies. The President of the Philippines, by himself or
through his duly authorized representative, is hereby authorized to
negotiate and to so contract with foreign governments or any
international financial institution or fund source in the name and on
behalf of the Authority; and is further authorized to guarantee,
absolutely and unconditionally, as primary obligor and not merely as a
surety, in the name and on behalf of the Republic of the Philippines,
the repayment of any indebtedness thereby contracted and the payment
thereon of any due interest charge, up to the limited amount authorized
by the foregoing, which shall be over and above the amounts which the
President is authorized to guarantee under Republic Act No. 6124, and
also to guarantee the performance of all or any of the obligations
undertaken by the Authority in the territory of the Republic of the
Philippines pursuant to loan agreements entered into pursuant to this
paragraph. Any indebtedness contracted under this paragraph and the
payment of the principal thereof and of any interest or other charges
thereon, as well as the importation of machinery, equipment, materials,
supplies and services by the Authority, paid from the proceeds of any
such contracted indebtedness, shall also be exempt from all direct and
indirect taxes, fees, imposts, other charges and restrictions,
including import restrictions, by the Republic of the Philippines, or
by any authority, branch, division or political subdivision thereof.
Investment in bonds, promissory notes, debentures and other evidences
of indebtedness of the Authority acquired by financial institutions,
subject to the provisions of Republic Act No. 6389, as amended
including its implementing regulations, shall be considered sufficient
compliance with the requirements of said Act and its implementing
regulations.
All funds so acquired and realized by virtue of this power to contract
indebtedness. Interests and other income incidental thereto and income
from other operations, projects or activities of the Authority shall be
administered by it except such other funds the administration of which
is specifically provided for by other provisions of Presidential Decree
No. 4. (As amended by P.D. No. 699)
(xix) To purchase, lease or otherwise acquire lands,
whether public or private, for the cultivation and production of rice,
corn and other grains;chanroblesvirtualawlibrary
In the exercise of this power, the Authority shall have the authority
to engage and retain any person, firm or corporation, private or
public, to render technical services in the development, cultivation or
operations of such lands as it may have acquired by purchase, lease, or
other means. Moreover, the Authority shall have also the power to
effect the advance payment of the stipulated fees. (As amended by P.D.
No. 699)
(xx) To sell, lease, mortgage, pledge or otherwise
dispose of the property, assets or undertaking of the authority or any
part thereof as the Authority may deem fit. (As amended by P.D. No. 699)
(xxi) To adopt, alter, and use a corporate seal
which shall be judicially noticed, to sue and be sued; and otherwise to
do and perform any and all acts, and to exercise any and all powers as
may be necessary to carry into effect the provisions of this Act or as
are essential to the proper conduct of its operations. (As amended by
P.D. No. 699)
(xxii) In order to immediately implement the
programs envisioned in this Decree, an initial sum of ten million pesos
(P10,000,000,000) is hereby set aside from the Authority's corporate
funds and for this purpose, the Administrator is hereby authorized to
dispose the said amount as he may deem fit, subject to the usual
accounting and auditing requirements. (As amended by P.D. No.
699) chanroblesvirtualawlibrary
(xxiii) To promulgate such rules and regulations as
may be necessary to carry out the provisions of this Act. Such rules
and regulations shall take effect fifteen (15) days following their
publication once in at least one daily newspaper of national
circulation.
(xxiv) To invest its funds or other assets in such
undertaking as it may deem wise necessary such as but not limited to
investment in any and all kinds of securities, stocks, bonds and other
secured collaterals;chanroblesvirtualawlibrary
(xxv) To create and establish subsidiary
corporations to undertake the related and integrated business
operations of the Authority;chanroblesvirtualawlibrary
(b) Organization. — The Authority shall be governed
by a Council which shall create and administer, through, an
Administrator as hereinafter provided, the necessary staff and line
units of the Authority, whose personnel shall be exempt from the rules
and regulations of the Office of Compensation and Position
Classification and whose compensation shall be fixed by the Council.
(c) Management. — The Management of the Authority
shall be vested in an Administrator who shall be appointed by the
President of the Philippines within sixty (60) days from approval of
this Act, and who shall direct and manage the affairs of the Authority,
subject to the supervision of the Council. The Administrator shall hold
office for a term of six (6) years, except when earlier removed for
cause, or until his successor shall have been appointed and
qualified. chanroblesvirtualawlibrary
There shall be two Deputy Administrators, appointed by the Council, who
shall assist the Administrator in the performance of his functions. The
Deputy Administrators shall be persons of recognized competence and
experience in the production, processing, marketing and trading aspects
of grains. Either one of the Deputy Administrators upon designation by
the Administrator, shall perform the duties and exercise the powers and
functions of the Administrators in the absence of the latter.
There shall also be Assistant Administrators as the Administrator may
deem necessary to assist him in the performance of his functions to
supervise and cover functional areas as the Administrator may determine
with the consent of the Council.
The Administrator shall appoint, remove, suspend or otherwise
discipline, with the confirmation of the Council, other officers and
employees as may be assigned and delegated to him by the Council.
The Administrator and the Deputy Administrator shall be natural-born
citizens of the Philippines, not less than thirty-five (35) years of
age, of proven honesty and integrity and of recognized managerial
competence.
The Assistant Administrators shall be natural-born citizens of the
Philippines, not less than thirty (30) years of age, of proven honesty
and of recognized managerial competence.
The Administrator shall receive a compensation to be determined by the
Council but not less than ninety thousand (P90,000.00) pesos per annum.
The Deputy Administrators shall receive a salary to be determined by
the Council but not less than sixty thousand (P60,000.00) pesos per
annum. The Assistant Administrators shall each receive a salary to be
determined by the Council but not less than forty-eight thousand
(P48,000.00) pesos per annum. chanroblesvirtualawlibrary
(d) Exemptions. — In furtherance to the effective
implementation of the policy enunciated in this decree, the Authority
is hereby declared exempt:cralaw:red
i. From payment of all taxes, duties, fees, imposts,
charges, costs and restrictions to the Republic of the Philippines, its
provinces, cities, municipalities, including the taxes, duties, fees,
imposts and other charges provided for under the Tariff and Customs
Code of the Philippines, R.A. No. 1937, as amended by Presidential
Decree No. 34, dated October 27, 1972, and Presidential Decree No. 69,
dated November 24, 1972, and all filing, docket, and service fees,
bonds and other charges or costs in any court or administrative
proceedings in which the Authority may be a party.
ii. From all income taxes, franchise taxes and
realty taxes to be paid to the National Government, its provinces,
cities, municipalities and other government agencies and
instrumentalities; and
iii. From all duties, arrastre fees in so far as the
government's share is concerned, including all charges and fees imposed
under Presidential Decree No. 857 compensating taxes and advance sales
taxes, wharfage fees and tonnage dues on import/export of goods
required for its operations and projects.
All documents or contracts executed by or in favor of the Authority
shall also be exempt from the payment of documentary and science stamp
taxes and registration fees: Provided, however, that this exemption
shall not apply to taxes and assessments payable by persons or entities
transacting business with the Authority.
The Authority shall likewise be exempt from the coverage of
Presidential Decree No. 711.
Section 7. Section 7 is hereby amended to read as
follows:cralaw:red
"Sec. 7. Development and Stabilization Fund. — There
is hereby established the National Grains Authority Development and
Stabilization Fund, herein referred to as the "Fund", for the purpose
of financing the growth and development of the industry and the
stabilization of the domestic market in grains, to be administered in
trust by the Authority, and derived in the manner herein below cited
from the following sources:cralaw:red
(a) An additional tax on rice and corn mills as
provided in Section ten of this Act;chanroblesvirtualawlibrary
(b) Stabilization fees which shall be collected from
the warehouseman by the Authority on all grains covered by negotiable
warehouse receipts or quedans at the rate of ten centavos (P0.10) per
cavan of fifty kilograms of grain per month but not to exceed fifty
centavos (P0.50) per year;chanroblesvirtualawlibrary
(c) A surtax on corporation as provided in Section
eight of this Act;chanroblesvirtualawlibrary
(d) Such borrowing as may be obtained from PL 480,
international institutions and other outside foreign agencies; chanroblesvirtualawlibrary
(e) Such funds, profits, cash and stocks of the Rice
and Corn Administration (RCA) as will be turned over to the Authority;chanroblesvirtualawlibrary
(f) Fees for licensing bonded warehouses at rates
which shall be determined by the Council and collected by the Authority
per cubic meter bonded capacity;chanroblesvirtualawlibrary
(g) Fees, charges and/or surcharges hereby imposed
in the issuance of license for importation of rice and corn and other
grains and their substitutes, to be collected by the Council: Provided,
That the rate of any surcharge to equalize the wholesale price of
imported grain and/or their substitutes with the prevailing selling
price of the equivalent commercial grain in the domestic market shall
be as determined by the Council under subparagraph (xii) of section six
of this Act; and
(h) A tax on the sale, exchange or transfer of real
property as provided in Section Nine of this Act.
The taxes, fees, charges, surcharges and other levies aforestated in
this section, including surcharges and penalties, if any, shall be
turned over to the Authority to form part of the Fund. For this
purpose, the agencies charged with the collection thereof shall remit
their monthly collection to the Authority for the account of the Fund
within fifteen (15) days of every succeeding month; Provided, however,
That said taxes, fees, charges, surcharges and levies as provided for
in this section shall take effect upon instruction of the President to
the Council. Failure or refusal by any person to turn over or remit the
collections within the period mentioned in this section shall be
treated as a serious offense punishable under section twenty-nine of
this Act.
In order to enhance the usefulness of the Fund, the Authority is hereby
authorized to invest the resources thereof and the proceeds or
increments arising out of such investments shall form part of the Fund.
The Fund shall be utilized by the Authority for funding the
requirements of the development of the grains industry starting with
the production of grains, development of post-harvest technology and
the stabilization of supply and prices, including the following:cralaw:red
a) Procurement of palay, rice, corn and other grains
and/or their substitutes in such quantities and places as may be
necessary to stabilize the supply and price thereof;chanroblesvirtualawlibrary
b) Implementation of price support programs for
palay, corn and other grains and/or their substitutes;chanroblesvirtualawlibrary
The disposition, allocation and utilization of this portion of the Fund
for the purpose envisioned in this Act shall be the exclusive
prerogative of the Council.
Section 8. Section 14, second paragraph, is hereby
amended to read as follows:cralaw:red
"Sec. 14. Warehouse Receipts. — A negotiable
warehouse receipt for rice or corn or other grains shall be printed,
serially numbered, on security notepaper, in specific quantity in
denominations of 5, 10, 20, 50 or 100 cavans, contain the name and
business address of the warehouseman, the variety, classification,
moisture content and quality of the grain deposited, the warranties of
the warehouseman prescribed by existing laws, and the charges and
authorized liens on the stocks in deposit.
Section 9. Section 20, 1st paragraph is hereby
amended to read as follows:cralaw:red
"Sec. 20. Collateral Acceptable for Loans. — For
purposes of this Act, loans shall be granted with any or a combination
of the following collaterals, namely: (1) real estate property, if
available; (2) chattel mortgage on standing crops and/or existing
livestock or poultry; (3) stored crops in bonded warehouse; (4) the
guarantee of two co-maker acceptable to the bank: Provided, That in
case a farmer is a member of a group or "selda", the cooperative or
"selda" may act as co-maker: and Provided, Further, That in the case of
multi-purpose cooperatives no co-maker shall be required; (5) leasehold
rights arising from leasehold contracts, subject to the following
conditions:cralaw:red
xxx
xxx
xxx
Section 10. The entire provisions of Section 11 is
hereby deleted.
Section 11. Section 25 is hereby amended to read as
follows:cralaw:red
"Sec. 25. Funding of the Authority. — There is hereby
appropriated, out of the funds of the National Treasury not otherwise
appropriated, the sum of fifteen million pesos for the expenditure of
the National Grains Authority: Provided, That for the succeeding five
calendar years following the approval of this Act, the Authority shall
submit to the President of the Philippines a budget of its expenditures
for consideration and inclusion in the annual General Appropriation
Act. Provided, Further, That pending the issuance of instructions from
the President to the Council for the implementation of Sections 7, 8, 9
and 10 of this Act, the Authority shall continue to submit to the
President of the Philippines a budget of its expenditures for
consideration and inclusion in the annual General Appropriations Act;
Provided, Finally, That five years after the implementation of such
instructions the Authority shall derive its funds from sources provided
by the industry. The proceeds of all other collections made the
Authority from levies, fees, charges or surcharges authorized in this
Act but not specifically mentioned in Section 7 hereof shall be
retained and used by the Authority as a source of funds to finance its
annual budgetary requirements. chanroblesvirtualawlibrary
Section 12. Section 26-A is hereby inserted as a new
provision between 26 and Section 27 and incorporated to read as follows:cralaw:red
"Sec. 26-A. The National Grains Authority, successor
of the properties, assets, records and unexpended appropriations of the
Rice and Corn Administration, is hereby authorized to initiate and/or
continue the prosecution of all criminal and civil cases now pending or
to be filed, based on past transactions of the Rice and Corn
Administration, notwithstanding the latter's abolition. Pursuant to the
provisions of the next preceding paragraph on the settlement by the
National Government of the outstanding obligations of the Rice and Corn
Administration, the liabilities of the Rice and Corn Administration are
not transferred to the National Grains Authority and the latter agency:
Provided, however, that where the National Grains Authority initiates
or pursues any cause of action for the recovery of assets and
properties of the Rice and Corn Administration the adverse party may
offset and assert against the National Grains Authority any valid claim
arising from obligations and liabilities of the Rice and Corn
Administration but not exceeding the amount recovered by or awarded to
the National Grains Authority from that adverse party." chanroblesvirtualawlibrary
Section 13. Section 29, paragraph (b) and (c) are
hereby amended to read as follows:cralaw:red
"Sec. 29. Offenses and Penalties. — Notwithstanding
the provisions of any law or regulations to the contrary, and for
purposes of carrying out the provisions of this Act, the following acts
or omissions are hereby considered as serious, less serious and light
offenses and corresponding penalties therefor are herein prescribed:cralaw:red
(b) Less Serious Offenses — Any of the following
acts or omissions shall constitute a less serious offense;chanroblesvirtualawlibrary
(1) Connivance in the concealment of a stock
shortage in a grains warehouse; chanroblesvirtualawlibrary
(2) Knowingly submitting any report containing false
information or data;chanroblesvirtualawlibrary
(3) Misrepresentation in connection with any
application for license to do business as grains warehouseman, miller,
exporter or importer or trade, manufacture or processor;chanroblesvirtualawlibrary
(4) Failure or refusal of a warehouseman to allow
the inspection or examination of this grains stock to conceal
shortages, or to misrepresent the quantity or quality of his grains
stocks, including the impending of such inspection and examination by
abandonment, absence or otherwise;chanroblesvirtualawlibrary
(5) Failure of refusal of any government bank or
financial institution, without any lawful excuse, to grant a loan
applied for by a qualified farmer who meets the conditions for the
loan; chanroblesvirtualawlibrary
(6) Engaging in the business of grains threshing,
shelling, warehousing, milling, exporting, importing, trading, growing
and selling of certified seed, manufacturing or processing without a
valid license.
The offender shall, upon conviction, be punished by imprisonment of not
less than six (6) months and one day nor more than four (4) years, or
by fine of not less than four thousand pesos (P4,000.00) nor more than
eight thousand pesos (P8,000.00) or both such fine and imprisonment, at
the discretion of the court.
(c) Light Offenses. — Any of the following acts or
omissions shall constitute a light offense:cralaw:red
(1) Issuance by a warehouseman of warehouse receipts
showing an aggregate quantity of grains stock in excess of the quantity
permissible in his bond coverage:cralaw:red
(2) Issuance by a warehouseman of warehouse Receipts
showing an aggregate quantity of grain stocks not covered by fire
insurance at full value as required by this Act;chanroblesvirtualawlibrary
(3) Failure or refusal to give information required
by the Authority, provided such failure or refusal does not constitute
a higher offense as hereinabove provided;chanroblesvirtualawlibrary
(4) Non-compliance with the rules, regulations,
decisions, orders, circulars or directives lawfully issued by the
Authority, provided non-compliance does not constitute a higher offense
as hereinabove provided; chanroblesvirtualawlibrary
(5) Fraudulent misrepresentation by the applicant
in, or by any other person in connection with, an application for a
production loan;chanroblesvirtualawlibrary
(6) Selling or offering to sell to the Authority by
any person of palay or corn or other grains other than that directly
produced by him as farmer or shared by him as tenant or landlord,
knowingly buying such grains by any Authority personnel for the
Authority: connivance by any person in the selling or buying of such
grains;chanroblesvirtualawlibrary
(7) Any other violation of the provisions of this
Act for which no specific penalty is prescribed and which is not
punished under any other existing law.
The offender shall, upon conviction, be punished by imprisonment of not
less than one month nor more than six (6) months, or by a fine of not
less than one thousand pesos nor more than four thousand pesos, or both
such fine and imprisonment at the discretion of the court.
Section 14. Section 30-A is hereby inserted as a new
provision between Section 30 and 31 and incorporated to read as follows:cralaw:red
"Sec. 30-A. Separability Clause. — If any part,
section or provision of this Act be held invalid or unconstitutional,
no other part, section or provision thereof shall be affected thereby.
APPROVED in the City of Manila,
this 11th day of June, in the year of Our Lord, nineteen hundred and
seventy-eight.
* Copied verbatim from documents obtained directly
from Central Book Supply, Inc. (duplicity of Section 5)
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