DEVELOP THE SEED INDUSTRY IN THE PHILIPPINES AND CREATE A NATIONAL SEED
INDUSTRY COUNCIL AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of
Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title.
— This Act shall be known as the "Seed Industry Development Act of
SEC. 2. Declaration of
Policy. — It is hereby declared the policy of the State to promote
and accelerate the development of the seed industry and, for this
the Government shall:
and develop the plant genetic resources of the nation;
the organization of all sectors engaged in the industry, integrate all
their activities, and provide assistance to them;
industry as a preferred area of investment;
sector to engage in seed research and development and in mass
and distribution of good quality seeds; and
seed industry protection against unfair competition from imported seeds.
SEC. 3. Definition of Terms.
— When used in this Act, the following terms shall mean as follows:
plant material used of the production of food, forage, fibers,
crops, oil, flowers, grasses, herbs and aquatic plants, including but
limited to meristem, and clonal propagules such as tubers, corms,
and micro-propagated plantlets;
b. "Seed lot"
mean a definite quantity of seeds indemnified by a lot number or other
identification marks, or every portion of the bag or any container, the
contends of which uniformly represent the factors which appear in the
within allowable tolerance;
shall mean a seed directly controlled by the originating, or in certain
cases, the sponsoring plant, breeder or institution and which provide
source for the initial and recurring increase of foundation seeds;
shall mean seed that is a progeny of breeder seeds as to handled as to
maintain a minimum acceptable level of genetic purity and identity;
shall mean the progeny of foundation seeds so handled as to maintain
genetic identity and purity;
shall mean the different components of the chain of activities
by an individual, association, cooperative, corporation or firm,
institutions, public agricultural research institutes in the
processing, testing, handling, grading, storage, distribution, and
of seeds for agricultural production with economic benefits;
shall mean the accurate and prompt analysis of a seed sample based on
prescribed by the Council to determine its quality;
shall mean a system of seed production geared toward maintaining
identity, varietal purity and standards of quality seeds of superior
shall mean a systematic approach to determine, achieve and maintain
standards of seed quality;
mean a quantity of seeds drawn from seed lots in accordance with the
for seed sampling to be promulgated under this Act, properly
labeled, and submitted for seed testing;
any written, printed or graphic presentation in any manner on the seed
container giving information as required in the rules and regulations
under this Act;
shall mean any person, firm, agency, cooperative or corporation engaged
in the processing and/or marketing of seeds;
shall mean any person, natural or juridical, engaged in the production,
processing and/or marketing of seeds;
shall mean the regulation of seed marketing through registration of
merchants/dealers compulsory labeling, and establishment of minimum
of seed quality.
SEC. 4. National Seed Industry
Council. — There is hereby created a National Seed Industry,
referred to as the "Council", to replace the existing Philippine Seed
The Council shall be composed of the following who, except for the
of the private sector shall serve in ex officio capacity.
of Agriculture — Chairman
of Plant Industry — Vice Chairman and Executive Director
Agriculture University of the Philippines at Los Baños, Laguna —
of Plant Breeding — Member
Philippine Council for Agriculture Forestry and Natural Resources
and Development — Member
Rice Research Institute — Member
g. Two (2)
from accredited farmers' organizations
h. One (1)
from the seed industry — Member
The representatives of the sectors
enumerated herein, who shall be nominated by their respective sectors
associations, shall be appointed by the Secretary of Agriculture and
serve for a term of three (3) years. Only citizens of the Philippines
be members of the Council. In case of vacancy the appointed successor
serve only the unexpired portion of the term of his predecessor.
SEC. 5. Duties and Functions.
— The Council shall have the following duties, powers and functions:
that will stimulate plant breeding activities for the development of
genetic resources of the country in accordance with the provisions of
associations, cooperatives and corporations engaged in genetic
conservation, varietal development, production and processing, quality
control, storage, marketing, and distribution of seeds to adopt system
and practices which improve the quality of seeds for distribution to
c. to promote
establishment of infrastructures and other support services in priority
areas geared toward the development of the seed industry;
comprehensive medium and long-term national seed industry development
in order to achieve self-sufficiency in the supply of high quality
e. to grant
subsidiaries and other forms of assistance to seed or plant breeders
develop or are developing outstanding varieties or cultivars;
that will stimulate plant breeding activities; and
g. to promote
and regulations to implement the provisions of this Act.
SEC. 6. Council Meetings.
— The Council shall hold regular quarterly meetings: Provided, That it
may hold special meetings when necessary upon the call of the Chairman
or upon written request of at least three (3) members. The presence of
five (5) members shall constitute a quorum.
The members of the Council
shall not receive any compensation: Provided, That they shall be
to per diems and travel allowances, to be determined by the Council for
every attendance in the meetings.
SEC. 7. Chairman, Duties
and Responsibilities. — The Chairman of the Board shall have the
duties and responsibilities:
the meetings of the Council;
operations and administration of the Council; and
other functions and perform such other duties as may be vested in him
SEC. 8. Executive Director,
Duties and Responsibilities. — The Executive Director shall have
following duties and responsibilities:
and implement the policies, regulations and resolutions issued by the
b. To assist
administration, management and supervision of the functional activities
of the Council;
monitor and evaluate the seed program of the different government
manage the budgetary appropriations and financial disbursements of the
Council Secretariat and maintain official records, files and
of the Council.
SEC. 9. Council Secretariat.
— The Council shall have a Secretariat which shall furnish the
administration, secretarial and other support services to the Council.
The Secretariat shall be under the direction and supervision of the
Director. The personnel of the Secretariat shall be appointed, and
compensation fixed by the Chairman upon the recommendation of the
Director in accordance with Civil Service rules and regulations.
SEC. 10. Technical Secretariat.
— There is hereby created under the Council a technical Secretariat
shall assume the functions of the existing Philippine Seed Board
Working Groups. The heads and the members of the Technical Secretariat
shall be appointed and their compensation and tenure fixed by the
upon the recommendation of the Executive Director.
The Technical Secretariat
shall establish seed standards and formulate systems and procedures for
varietal identification, evaluation, nomination, review and approval
registration, commercial release and discontinuation of crop cultivars
or varieties in the National Agricultural Crop Production and
SEC. 11. National Seed
Quality Control Services. — There shall be a National Seed Quality
Control Services, hereinafter referred to as "Services", which shall be
constituted in the Bureau of Plant Industry. It shall have control and
supervision over filed inspection and control services, and seed
laboratories which shall be established by the Bureau of Plant Industry
in various parts of the country as are necessary to ensure the
of the purposes of this Act. All personnel, funds and equipment of the
existing control services and the field inspection services of the
of Agriculture are hereby transferred to the herein created body.
SEC. 12. Functions of
the National Seed Quality Control Services. — The National Seed
Control Services shall perform the following functions:
and programs on seed quality control services and activities on seed
plant/seed material confirmation and other quality control schemes to
b. sample and
seed analysis and issue the corresponding report of analysis of samples
drawn from locally produced and imported seed within the purview of
of the seed crops, seed storage and processing facilities and other
required for seed/plant material certification and issue the
report of inspection within the purview of this Act;
functions like seed research and seed technology training for its
fees for testing of seeds, inspection of crop fields and facilities and
for issuance of permits and licenses in relation to the activities of
all official seed testing laboratories in the regions and provincial
laboratories and seed certification in all provinces and sub-provinces;
seed testing laboratories; and
functions as the Council may direct.
SEC. 13. Seed Industry Development
Program. — The Council shall adopt within ninety (90) days after it
has been constituted, a Seed Industry Development Program hereinafter
to as the "Program", which shall be implemented by its constituent
centers to be known as the National Seed Network shall be established
the Bureau of Plant Industry and major agricultural colleges and
to produce sufficient quantity of breeder, foundation and registered
of all varieties developed by the government sector;
of Agriculture shall have the overall task of directing and
the activities of its component agencies in accelerating the
of the seed industry;
c. The Bureau
industry shall have the direct responsibility for the production,
regulation of breeder, foundation and registered seeds, and the
of the Program, including but not limited to the management of the
research stations and seed farms, seed testing laboratories, and
services under a self-reliant management scheme;
of the Philippines at Los Baños shall provide leadership in
technology activities related to plant improvement, genetic resources
and in vitro mass production of planting;
Rice Research (PHILRICE) shall develop appropriate rice varieties under
Philippine Conditions and propagate them into breeder, foundation, and
registered seed and extend all necessary technical assistance to ensure
the proper utilization of such seeds on the farm level;
f. The Board
(BOI) shall promulgate necessary rules for the development of the seed
industry as a preferred area of investment; and
of the seed industry shall direct their collective efforts towards an
and more active cooperation and coordination with the government
Farmers' organizations shall take active part in the conservation of
plant genetic resources of the nation.
SEC. 14. Incentives.
— The private sector may avail of the following incentives to develop
local seed industry:
organizations, cooperatives, and corporations, wholly owned by
shall be entitled to technical assistance from the Government,
training in seed technology, and availment of seeds and results of
used in seed processing, sowing, meristem culture, storage and quality
testing by individuals, farmers organizations, cooperatives and
wholly-owned by Filipinos shall be exempted from duties and taxes
their first five (5) years of operation subject to the following
not manufacture domestically in sufficient quantity of comparable
and at reasonable prices;
2. They are
needed and will be used exclusively by the importer in the operation of
Council was obtained prior to the importation;
4. In case
transfers, sells, or disposes of the equipment within five (5) years
acquisition without prior approval of the Council the former shall be
liable with the transferee to pay double the amount of tax exemption
it. The Council may permit transfer, sale or disposition of said
within the said five (5) years if made to another person or entity
similar incentives, or for reason of proven technical obsolescence, or
for purposes of replacement to improve and expand the operations of the
not enjoy a similar incentive under the Omnibus Investments Code of
organized and registered under Republic Act No. 6938 shall be covered
Articles 61, 62, and 63 of the said law pertaining to the tax exemption
privileges of cooperatives; and
development and extension of private Filipino seed producers shall
a two hundred percent (200%) deduction from their gross income for the
first five (5) years of operation in accordance with the rules and
to be promulgated by the Department of Finance within ninety (90) days
from the effectivity of this Act.
SEC. 15. Restrictions. —
The following acts are prohibited:
commercial quantities of species of seeds that are being produced
except seeds difficult to grow under ordinary conditions or when
by the Council;
rare species, varieties, lines and strains of plants from the country
for scientific or international exchange purposes which shall be
by the Council; and
c. Such other
as the Council may deem fit to prohibit.
SEC. 16. Funds of the Council.
— There is hereby created a special account in the general fund to be
as the Seed Fund which shall be obtained from the following sources:
(P5,000,000.00) to be appropriated out of any funds in the National
not otherwise appropriated;
sale of certified seeds and plant materials, including but not limited
to the income derived from the products of research stations and seed
seed processing and testing fees, field inspection fees, seed export
import fees, license fees, fees for the issuance of permits to seed
fines collected for violations of this Act; and
private or government agencies, either domestic or foreign: Provided,
said funds shall be held in trust by the Bureau of Plant Industry:
further, That the allocation, utilization and disposition of such funds
shall be by and under the authority of the Council.
SEC. 17. Appropriations.
— The amount necessary to carry out the provisions of this Act is
authorized to be appropriated in the General Appropriations Act of the
Year following its enactment into law and thereafter.
SEC. 18. Authority to
Search and Condemn Unlawful Seed Lots. — In order to carry out
the provisions of this Act, the Executive Director of the Council is
authorized to search and seize seed lots labeled, identified or
in violation of this Act; Provided, That a search warrant shall first
secured from the proper court and the same shall be served/enforced
the assistance of the Philippine National Police (PNP) of the National
Bureau of Investigation.
Should the seed lots so searched
and seized be found after due hearing, to be suitable for condemnation,
in his judgment, the Executive Director is hereby empowered to issue to
any of his designated representatives an order for condemnation of
seed lots, in which case the same shall be processed, relabeled or
disposed of in such manner as he may deem appropriate: Provided, That
no case shall the Executive Director order such condemnation without
the claimant an opportunity to apply for the release of said seed lot
permission to process it in compliance with this Act, subject to the
of just compensation in the proper case.
SEC. 19. Penal Provisions.
— Any person, firm, or association who shall violate any provision of
Act or the implementing rules and regulations promulgated pursuant to
Act, shall, upon conviction, be punished with a fine of not more than
thousand pesos (P10,000.00) or imprisonment of not more than five (5)
or both, in the discretion of the Court: Provided, That in the case of
a firm or association, the penalty of imprisonment shall be imposed
the officer(s) who knowingly participated, abetted, or consented to the
commission of such punishable acts.
SEC. 20. Rules and Regulations.
— The Council Shall within ninety (90) days from the effectivity of
Act, promulgate the necessary rules and regulations for the enforcement
of the provisions of this Act.
SEC. 21. Repealing Clause.
— All existing laws, rules and regulations or parts thereof
with the provisions of this Act are hereby repealed, superseded or
accordingly: Provided, however, That nothing in this Act shall amend,
to repeal the provisions of Republic act No. 7160, otherwise known as
Local Government Code.
SEC. 22. Separability
Clause. — If any part, section, or provision of this Act shall be
invalid or unconstitutional, the rest of the provisions shall not be
SEC. 23. Effectivity.
— This Act shall take effect fifteen (15) days after its complete
in the Official Gazette or in at least two (2) newspapers of general
Approved: 27 March 1992.