AN ACT LIMITING THE RIGHT TO ENGAGE IN THE RICE AND CORN INDUSTRY TO CITIZENS OF THE PHILIPPINES

Case Overview and Summary

Summary of Republic Act No. 3018

Limiting the Rice and Corn Industry to Filipino Citizens
- Prohibits non-Filipino citizens, associations, partnerships, or corporations not wholly owned by Filipinos from engaging in the rice and/or corn industry, except for liquidation purposes. (Section 1)
- Defines "rice and/or corn industry" as the culture, milling, warehousing, transporting, exporting, importing, handling, distribution, or acquisition for trade of rice (husked or unhusked), corn, and their by-products. (Section 1)

Registration and Liquidation Period
- Non-Filipino entities engaged in the rice and/or corn industry must register with the city/municipal treasurer within 60 days of the Act's approval, providing details of ownership, assets, investments, and officials. (Section 2)
- Registered non-Filipino entities are allowed to continue their operations for liquidation purposes:
    - Retail, wholesale, culture, transportation, handling, distribution, or acquisition: 2 years (Section 3a)
    - Milling and/or warehousing: 3 years (Section 3b)
- Capital investments are capped at the declared amount during registration. (Section 3)
- No new licenses will be granted to non-Filipino applicants after the Act's approval. (Section 3)

Loan Funds and Assistance
- The Development Bank of the Philippines shall set aside a revolving loan fund of at least ₱50 million for Filipinos engaged in milling, processing, warehousing, and marketing of rice and/or corn, with interest not exceeding 7% per annum. (Section 4)
- The Philippine National Bank shall set aside a revolving loan fund of at least ₱50 million for Filipinos engaged in cultivation, production, and crop loans for rice and/or corn, with interest not exceeding 6% per annum. (Section 4)
- The Central Bank shall rediscount commercial papers covering these loans at the lowest possible rate. (Section 4)
- Priority shall be given to FaCoMAs, cooperatives, individual farmers, small landowners, and tenants engaged in rice and/or corn production. (Section 4)
- Producers or planters of rice and/or corn can organize associations and access credit facilities from the Development Bank of the Philippines and the Philippine National Bank. (Section 4)

Rice and Corn Board
- Establishes the Rice and Corn Board to administer the Act, study, and recommend measures for the rice and corn industry. (Section 5)
- The Board is composed of government officials and representatives from the private sector, including millers, warehousemen, planters/producers, retailers/wholesalers, consumer cooperatives, and labor. (Section 5)
- The Board shall issue rules and regulations within 30 days of the Act's approval and ensure their wide publicity. (Section 6)

Penalties and Exemptions
- Violations are punishable by 5-10 years imprisonment, a fine of ₱5,000-₱10,000, and deportation for non-Filipino offenders. (Section 7)
- Corporate officers who knowingly permit violations are held liable as principals. (Section 7)
- Filipino citizens acting as dummies are subject to the same penalties, and naturalized citizens may have their citizenship revoked and face deportation. (Section 7)
- Public officers or employees who violate the Act shall be dismissed and disqualified from holding public office. (Section 7)
- The Act shall not impair rights granted to US citizens or entities under existing treaties or agreements with the Philippines. (Section 8)

Appropriation and Effectivity
- ₱500,000 is appropriated for the operation and maintenance of the Rice and Corn Board. (Section 9)
- The Act takes effect on January 1, 1961, except for provisions with specific effectivity dates. (Section 11)