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PRESIDENTIAL DECREE NO. 194
PRESIDENTIAL DECREE NO. 194
- AUTHORIZING ALIENS, AS WELL AS ASSOCIATIONS, CORPORATIONS OR
PARTNERSHIPS OWNED IN WHOLE OR IN PART BY FOREIGNERS TO ENGAGE IN THE
RICE AND CORN INDUSTRY, AND FOR OTHER PURPOSES
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WHEREAS,
Republic Act No. 3018 was enacted into law in 1960 to nationalize the
rice and corn industry;chanroblesvirtualawlibrary
WHEREAS, after thirteen (13) years of operation, the law has a great
extent succeeded in transferring the rice and corn industry in all its
aspects to Filipinos and Filipino-owned entities;chanroblesvirtualawlibrary
WHEREAS, the existing law has created artificial restraints in the
national effort to develop the rice and corn industry;chanroblesvirtualawlibrary
WHEREAS, it is imperative to lift the prohibition especially in cases
where grains, including rice and corn and/or by-products thereof, are
used for direct consumption or as raw materials in the manufacture or
processing of their finished products;chanroblesvirtualawlibrary
WHEREAS, there is need to encourage foreign investments on a large
scale to develop virgin lands for rice and corn;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President 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 order and
decree:cralaw:red
Section 1. An alien, association, partnership or
corporation, owned in whole or in part by foreigners, may engage in the
rice and/or corn industry. chanroblesvirtualawlibrary
Section 2. As used in this Decree, the term "rice
and/or corn industry" shall include the following activities:cralaw:red
a. Acquiring by barter, purchase or otherwise, rice
and corn and/or the by-products thereof, to the extent of their raw
material requirements when these are used as raw materials in the
manufacture or processing of their finished products.
b. Engaging in the culture, production, milling,
processing and trading, except retailing, of rice and corn; Provided,
That the designation of the area in the culture and production, as well
as the trading of the produce in the domestic or foreign markets, shall
be under the direction and control of the National Grains
Authority. chanroblesvirtualawlibrary
Section 3. The National Grains Authority may
authorize the alien or business organization mentioned in Section 1
hereof to engage in the rice and/or corn industry, subject to the
following conditions:cralaw:red
a. The National Grains Authority shall certify that
there is an urgent need for foreign investment in the undertaking and
that the same will not pose a clear and present danger of promoting
monopolies or combination in restrain of trade.
b. The alien, association, corporation or partnership
shall have the necessary financial capability and technical competence.
c. The alien, association, corporation or partnership
shall submit a development plan acceptable to the National Grains
Authority.
Section 4. A minimum total investment in the
undertaking shall be established from time to time by the National
Grains Authority. chanroblesvirtualawlibrary
Section 5. In connection with the foreign equity
participation, at least 60% thereof shall be transferred to Filipino
citizens over a period to be established by the National Grains
Authority at the time of approval of its authority to engage in the
industry, or phase out its operation within the same period.
Section 6. The alien, association, corporation or
partnership shall register with the Securities and Exchange Commission
and the Board of Investments.
Section 7. The National Grains Authority shall impose
such other reasonable conditions as may be deemed necessary.
Section 8. The National Grains Authority in
coordination with the Department of Agriculture and Natural Resources
and other offices concerned shall issue such rules and regulations as
may be necessary to the implementation of the provisions of this
Decree. chanroblesvirtualawlibrary
Section 9. Any violation of this Decree or of the
rules or regulations issued pursuant thereto shall be punished with a
fine of not less than ten thousand pesos and not more than twenty-five
thousand pesos and imprisoned of not less than five years and not more
than ten years. If the violation is committed by a corporation or
association, the penalty shall be imposed upon the president, director
or directors, manager, managing partner, or other official thereof
responsible for such violation. Any alien violating or responsible for
the violation of this Act shall, upon completion of the service of
sentence, be deported without any further proceedings on the part of
the Deportation Board. Any government official or employee who’s, abets
or connives with any person in violating this Act shall, in addition to
the penalty which may be imposed upon him as a principal, be
perpetually disqualified from holding any public office. chanroblesvirtualawlibrary
Section 10. All laws, executive orders and
regulations inconsistent with the provisions of this Decree are hereby
repealed.
Section 11. This Decree shall take effect upon its
approval.
Done in the City of Manila,
this 17th day of May, in the year of Our Lord, nineteen hundred and
seventy-three.
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