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This page features the full text of
Republic Act No. 7884
National
Dairy Development Act of 1995
AN
ACT CREATING THE NATIONAL DAIRY AUTHORITY TO ACCELERATE THE DEVELOPMENT
OF THE DAIRY INDUSTRY IN THE PHILIPPINES, PROVIDING FOR A DAIRY
DEVELOPMENT
FUND, AND FOR OTHER PURPOSES.
REPUBLIC
ACT NO. 7884
AN
ACT CREATING THE NATIONAL DAIRY AUTHORITY TO ACCELERATE THE DEVELOPMENT
OF THE DAIRY INDUSTRY IN THE PHILIPPINES, PROVIDING FOR A DAIRY
DEVELOPMENT
FUND, AND FOR OTHER PURPOSES.
Section
1. Title. — This Act shall be
known as the "National Dairy Development Act of 1995".
chanrobles virtuallaw libraryred
Sec.
2. Declaration of Policy. — It
is hereby declared the policy of the State to strive for national
self-sufficiency
in milk and dairy products as a vital feature in the attainment of a
self-reliant
and independent Philippine economy in the provision of proper nutrition
and the generation of more employment opportunities for the
people. It
is also the policy of the State to recognize the primary role of the
private
sector in research, training, production, processing, and marketing,
and
to provide incentives to those undertaking these activities, with
government
limiting itself to policy-making, facilitation and regulation.chan
robles virtual law library
Towards
this end, the State shall create an agency tasked to help the private
sector
accelerate the development and growth of the Philippine dairy industry
under the spirit of cooperativism in all stages of dairy production,
processing,
distribution, marketing, and other dairy-related activities, in such a
way that market viability of livestock and dairy products shall be
ensured,
focusing on developing breeds adapted to Philippine conditions.Likewise,
the State shall help establish marketing networks and outlets,
especially
among and between processors and end-users, which may include the
integration
of local milk production with existing industrial milk plants geared
towards
the sufficient production of local milk for the needs of the people.
Sec.
3. Objectives. — The objectives
of this Act are as follows:
(a) To
promote and provide direction for the accelerated development of the
Philippine
dairy industry, consistent with the provisions of this Act;
chanrobles virtuallaw libraryred(b) To
give support and assistance in the production, processing and marketing
activities of all those engaged in the business of producing milk and
other
dairy products particularly rural based small dairy farmers through the
provision of necessary support systems;
(c) To
encourage and promote the active participation of farm families, rural
cooperatives and the private sector recognizing them as principal
agents
in the development of the Philippine dairy industry;
(d) To
ensure an adequate supply of milk and dairy products at affordable
prices;
(e) To
improve livelihood opportunities and thereby increase income level
through
dairying;
(f) To
enhance children's and pregnant and nursing mothers' nutritional intake
through the promotion of locally produced milk and milk products.
(g) To
develop and disseminate appropriate smallholder-based dairy technology;
(h) To
improve milk production from existing stock and systematically program
the build-up of productive milking herd; and
(i) To
conserve foreign exchange by supporting local milk production.
Sec.
4. The National Dairy Authority.
— To achieve the objectives of this Act, there is hereby created a
National
Dairy Authority (NDA), hereafter referred to as the "Authority", which
shall, for the purpose of policy and program coordination, be attached
to the Department of Agriculture.
chanrobles virtuallaw libraryred
The
Authority shall be the central policy determining and directing body
tasked
to ensure the accelerated development of the Philippine dairy industry,
in accordance with the policies and objectives set forth in this Act.
Sec.
5. The Dairy Industry Board.
— The National Dairy Authority shall be governed by a Dairy Industry
Board,
hereafter referred to as the "Board", to be composed of the following:
(a) The
Secretary of Agriculture, a chairperson;chanrobles virtuallaw libraryred(b) The
NDA Administrator, as an ex officio member;
(c) The
Secretary of Trade and Industry, as member;
(d) The
Secretary of Health, as member;chan
robles virtual law library
(e) The
Secretary of Education, Culture and Sports, as member;
(f) The
Secretary of Science and Technology, as member;
(g) The
Secretary of Agrarian Reform, as member;
(h) The
Director of the Dairy Training and Research Institute, as member;
and
(i) Four
(4) other members who shall be appointed by the President of the
Philippines
upon the recommendation of the chairperson: Provided, That one
(1)
shall come from the dairy cooperatives and/or national dairy
federation,
with one representative each from Luzon, Visayas and Mindanao: Provided,
further, That they will hold office for a period of three (3)
years
from the date of their respective appointments without reappointment; Provided,
finally, That any member appointed to a vacancy shall serve only
for
the unexpired term of the member whom he succeeds.
Sec.
6. Powers and Functions of the
National Dairy Authority. — The National Dairy Authority shall have the
following powers and functions:chanroblesvirtualawlibrary
(a) To
formulate and execute dairy programs that will generate a national
impact
on rural as well as urban nutrition levels and incomes;chanrobles virtuallaw libraryred(b) To
assist in the purchase, importation, propagation, storage, distribution
and sale of dairy equipment and engineering supplies and such other
inputs
as may be needed by the dairy industry;
(c) To
encourage the integration of dairy production and local milk and the
distribution
of dairy products into various rural livelihood and nutrition programs;
(d) To
assume control and supervision over all dairy-related government agency
personnel and programs, including the Bureau of Animal Industry's Dairy
Division, the Livestock Development Council's Dairy Division, the
Philippine
Dairy Corporation, Livelihood Corporation's Laguna Processing Center
and
other dairy related government agencies, division, councils subject to
the guidelines prescribed by the Civil Service Commission;
(e) To
borrow, raise or obtain funds; to issue bonds and other instruments of
indebtedness; or to enter into any financial or credit arrangement in
order
to support or carry out its objectives and purposes, subject to
pertinent
laws governing public debts and expenditures;
(f) To
receive grants, subsidies, donations or contributions from
corporations,
thrusts, foundations, associations and other sources from any private
or
government office, agency or corporation in the Philippines or abroad;
(g) To
establish, maintain or operate field units or offices in various parts
of the country in order to utilize the objectives of this Act;
(h) To
help design and implement a credit system that will finance dairy
farmers
and dairy cooperatives or associations;
(i) To
charge reasonable fees for services rendered for the attainment of the
objectives of this Act;
(j) To
promulgate rules and regulations to carry out the provisions and policy
objectives of this Act; and
(k) To
adopt, alter and use a corporate seal; to sue and be sued; and
otherwise
to do and perform all acts or exercise all powers as may be necessary
or
incidental to carry out the objectives of this Act.
Sec.
7. Meeting of the Board. — The
Board shall convene in a regular monthly meeting and shall hold special
meetings when necessary. The
presence of at least seven (7) members of the Board shall constitute a
quorum and the vote of a majority of those present shall be sufficient
to transact business during any meeting: Provided, That the
department
secretaries can be represented on a permanent basis by their respective
undersecretaries or assistant secretaries who will have full voting
power
and shall be considered in the determination of quorum: Provided,
finally,
That
the chairperson shall not vote except in case of a tie.
chanrobles virtuallaw libraryred
Sec.
8. Allowance of the Board Members.
— The chairperson and members of the Board shall be entitled to per
diems
and other allowable emoluments as may be fixed by the Board for every
meeting
actually attended, subject to existing laws, rules and regulations
which,
in no case, shall exceed four thousand pesos (P4,000.00) per month: Provided,
however, That the transportation expenses for representatives from
far places will be reimbursed: Provided, finally, That the
Administrator
of the Authority, as an ex-officio member of the Board, shall
receive
only the remuneration and allowances which shall be provided by the
Board
for the said position.chan
robles virtual law library
Whenever
the exigencies of the service demand, and the Board, for any valid
reason,
cannot be convened to a meeting, the Administrator, in coordination
with
the Board Secretary, is hereby authorized to submit any matter for
resolution
by memorandum and the concurrence of a majority of the Board members
and/or
alternates constituting a quorum shall be considered sufficient for the
approval thereof.
Sec.
9. Management of the Authority.
— There shall be a full time Administrator who shall manage the
operations
of the Authority, to be assisted by a Deputy Administrator. Both the
Administrator
and the Deputy Administrator shall be appointed by the President of the
Philippines.
The
Administrator shall be a citizen of the Philippines; at least
thirty-five
(35) years of age on the date of his appointment; of good moral
character;
with recognized executive ability and competence; and preferably
well-versed
in the various aspects of the dairy industry.
The
salary and allowances of the Administrator and Deputy Administrator
shall
be in accordance with the provisions of R.A. 6758 or "The Salary
Standardization
Act of 1989".
Sec.
10. Powers and Functions of the
Administrator. — Subject to the control and supervision of the Board,
the
Administrator shall have the following powers and functions:
(a) Submit
policy recommendations and proposed measures necessary to carry out the
objectives and functions of the Authority, for the consideration of the
Board;chanrobles virtuallaw libraryred(b) Recommend
to the Board, for approval, an organizational structure, and plantilla
of personnel of the Authority, in accordance with existing laws, rules
and regulations;
(c) Execute,
administer and implement policies and measures approved by the Board;
(d) Submit
to the Board, in line with the national budget cycle, an annual budget
and such supplemental budget as may be necessary for its consideration
and approval;
(e) Represent
the Authority in all its dealings with other persons, entities,
agencies,
and institutions whether public or private, domestic or foreign,
subject
to the limitations and conditions herein provided;chan
robles virtual law library
(f) Appoint,
subject to the confirmation of the Board, and discipline or remove for
cause in accordance with the civil service law, rules and regulations,
the officers and personnel of the Authority; and
(g) Perform
such other duties which may be assigned to him by the Board or by the
Secretary
of the Department of Agriculture.
Sec.
11. Dairy Cooperative and Farmers'
Organizations. — The Authority shall help organize small producers and
processors of milk into cooperatives or other forms of organizations to
achieve the purposes of this Act including the following:chanroblesvirtualawlibrary
(a) To
facilitate collective arrangements that will enable cooperatives to
acquire
dairy animals, feeds, veterinary and other supplies, materials,
equipment,
services of all kinds and other dairy inputs under favorable terms;
(b) To
provide a forum for the members of cooperatives to discuss common
problems
affecting production, marketing and the cooperatives' relationships
with
the Authority;(c) To
help design credit systems that will provide loans, grants and such
services
as may be required, to dairy cooperatives and duly accredited people's
organizations;
(d) To
assist cooperatives in developing market channels and in negotiations
for
bulk outlets of milk output;
The
authority shall support the formation of a Dairy Cooperatives
Federation
among dairy cooperatives as a channel of its coordinative function in
the
industry.
chanrobles virtuallaw libraryred
Sec.
12. National Dairy Campaign.
— The Authority shall promote a nationwide campaign to boost support
for
the realization of the objectives of this Act. It shall encourage the
participation
of women's groups in dairy and dairy-related projects including dairy
animal
health care, village nutrition schemes, community-based processing, and
marketing of milk and dairy products.
Sec.
13. Priority Projects. — Immediately
after the approval of this Act, the Authority, in coordination with
other
related agencies, shall undertake vigorously the following:
(a) Educational
programs for dairy farmers and dairy cooperatives including, but not
limited
to, the conduct of seminars, workshops, assemblies and others;chan
robles virtual law librarychanrobles virtuallaw libraryred(b) Training
programs including, but not limited to, courses in animal husbandry,
feed
technology, dairy cooperatives management and other related aspects of
dairying;
(c) Dairy
research and development including but not limited to, breeds and
breeding,
herd improvement, indigenous and agriwaste feed sourcing, product
development,
herbal veterinary drugs and biologics, dairy facilities fabrication,
and
others;
(d) Establishment
of support services to dairy farmers and cooperatives in the
acquisition
of basic supplies and inputs for animal health and nutrition; and
(e) Boost
the number and quality of local animal stocks through applied
technology.
Sec.
14. Dairy Development Fund. —
To implement Section 13 of this Act, there is hereby created a Dairy
Development
Fund which shall be used exclusively for the above-mentioned programs
in
the amount of Two hundred million pesos (P200,000,000) from the funds
in
the National Treasury not otherwise appropriated. Annually thereafter,
the amount of not less than One hundred forty million pesos
(P140,000,000)
shall be provided to augment the fund in the General Appropriations
Act.chanrobles virtual law library
chanrobles virtuallaw libraryred
Sec.
15. Government Agency Support.
— The Authority shall coordinate closely with other government agencies
in the establishment of support services for the dairy industry,
including,
among others, needed infrastructure, and the setting of tariff rates to
countervail subsidized imports.
Sec.
16. Nutrition Programs. — The
government's nutrition programs requiring milk and dairy products shall
be sourced from small farmers and dairy cooperatives in coordination
with
the Authority.
Sec.
17. Supply and Distribution.
— The Authority shall monitor the importation, manufacture, supply and
distribution of dairy products and raw materials for the manufacture or
processing of milk and dairy products, as well as the importation and
exportation
of dairy animals, if the needs of the industry require, it shall, after
public hearing and after consultations with the National Economic and
Development
Authority, the Department of Trade and Industry, the Department of
Finance,
and the representatives of the dairy cooperatives and the commercial
sector,
set guidelines for the importation, exportation and pricing of dairy
animals,
raw materials and other products necessary for the manufacture or
processing
of milk and dairy products: Provided, That within a period of
three
(3) years from the effectivity of this Act, the dairy cooperatives and
the commercial sector shall, subject to quality and price
considerations,
mutually agree upon a volume of local milk production to be absorbed by
the commercial sector.
If
at the end of the three-year period, the parties mentioned above have
not
come to a mutual agreement, the commercial sector shall absorb a fixed
portion of the local milk supply to be determined by the Authority.
Processors
who purchase locally produced milk from dairy cooperatives in excess of
the volume prescribed by the Authority shall be accorded tax credits
equivalent
to ten (10%) percent of the value of the excess volume purchased.
Sec.
18. Exemption from Taxes and
Duties. — The authority shall be exempt from the payment of customs
duties
and taxes on the importation of dairy animals, veterinary and other
supplies,
other farm inputs, dairy equipment and machineries, including its spare
parts, for distribution to dairy cooperatives subject to the following
conditions:
(1) That
said equipment and machineries, including its spare parts are not
manufactured
domestically in sufficient quantity, of comparable quality and
reasonable
prices;chanrobles virtuallaw libraryred(2) That
it shall be actually, directly and exclusively used by the dairy
cooperatives
in the manufacture of its products;
(3) That
it shall not be disposed within three (3) years from acquisition,
without
prior approval of the Authority; and
(4) If
it will be subsequently sold, transferred or exchanged in the
Philippines
to non-exempt persons or entities, the purchasers or recipients shall
be
considered the importers thereof, and shall be liable for the customs
duties
and internal revenue taxes due on such importations. The customs duties
and internal revenue taxes due on such articles shall constitute a lien
on the article itself, superior to all other charges or liens,
irrespective
of the possessors thereof.
Any
donation, contribution, bequest, subsidy or financial aid which may be
made to the Authority shall constitute as allowable deduction from the
income of the donor for income tax purposes and shall be exempt from
donor's
tax, subject to such conditions as provided under the National Internal
Revenue Code, as amended.chan
robles virtual law library
chanrobles virtuallaw libraryred
Small
farmers and small farmers' dairy cooperatives shall be exempt from all
taxes on proceeds from sale of raw milk and milk products.
Milk
processors shall enjoy a presumptive input tax credit of four percent
(4%)
of the value of their gross purchases from small farmers and small
farmers'
dairy cooperatives.
Sec.
19. Credit Facilities. — The
Bangko Sentral ng Pilipinas shall adopt such monetary and
re-discounting
policies as may be designed to encourage rural banks, savings and loan
associations, commercial banks and other credit institutions to meet
the
financing and credit needs essential to achieve the objectives of this
Act.
In
addition, the Philippine National Bank, the Land Bank of the
Philippines
and the Development Bank of the Philippines shall design and establish
special lending programs at affordable terms for small dairy farmers
and
dairy cooperatives.
Sec.
20. Auditor. — The authority
shall have an auditor and complementary personnel who shall be
appointed
by the Commission on Audit in accordance with the civil service law,
rules
and regulations. The salaries
of the auditor and the audit staff shall be determined and paid by the
Commission on Audit.
Sec.
21. Transitory Provision. — The
Philippine Dairy Corporation is hereby abolished. The
dairy functions of the Livestock Development Council, the Dairy
Division
of the Bureau of Animal Industry and the Livelihood Corporation's
Laguna
Processing Center are hereby transferred to the Authority.
The
personnel, assets, funds held, grants, subsidies and records of the
abolished
agencies, as well as those of the Livestock Development Council, the
Dairy
Division of the Bureau of Animal Industry and the Laguna Processing
Center
are hereby transferred to the Authority.
The
Secretary of Agriculture shall designate an officer-in-charge pending
the
appointment of the administrator by the President of the Philippines.
Incumbent
officials and employees of the affected offices shall continue to
exercise
their respective functions, duties and responsibilities, with the
corresponding
benefits and privileges unless and until otherwise ordered by the Board.
The
new position structure and staffing pattern of the Authority shall be
approved
and prescribed by the Board within ninety (90) days from the
effectivity
of this Act within guidelines set by existing civil service and other
laws,
rules and regulations on the matter. Those
separated from the service shall receive the retirement benefits to
which
they may be entitled under existing laws, rules and regulations.
Otherwise,
they shall be paid the equivalent of one (1) month's salary for every
year
of service or a fraction thereof, computed on the basis of the highest
salary received, but in no case shall such exceed the equivalent of
twelve
(12) months' salary.
Sec.
22. Penalty Clause. — Any person
or entity found guilty of violating any provision of this Act, shall be
sentenced to an imprisonment of not more than six (6) months or a fine
of not more than Twenty thousand pesos (P20,000.00) or both upon the
discretion
of the Court.
Sec.
23. Promulgation of Rules and
Regulations. — The Department of Agriculture, in coordination with the
member agencies and the private sector representatives of the Dairy
Industry
Board shall prepare and issue the rules and regulations implementing
this
Act within six (6) months from the date of its effectivity.
In
addition, the Secretary of the Department of Agriculture (DA) shall
report
to both Houses of Congress on the status of the promulgation of the
rules
and regulations within ninety (90) days from the date of the
effectivity
of this Act.chan
robles virtual law library
Sec.
24. Appropriations. — The appropriations
of agencies, division, council and corporation, merged, abolished or
transferred
pursuant to this Act shall be turned over to the Authority. Thereafter,
such sums as may be necessary for its continued operation and
maintenance
shall be included in the annual General Appropriations Act.
Sec.
25. Repealing Clause. — All laws,
decrees, executive orders, rules and regulations or parts thereof which
are inconsistent with this Act are hereby repealed or modified
accordingly.
Sec.
26. Separability Clause. — If
any provision of this Act is declared unconstitutional or invalid,
other
provisions thereof which are not affected thereby shall continue in
full
force and effect.
Sec.
27. Effectivity. — This Act shall
take effect after fifteen (15) days following its publication in the
Official
Gazette or in any newspaper of general circulation.
Approved:
February
20, 1995
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