Creating The Fertilizer And Pesticide Authority And Abolishing The Fertilizer Industry Authority
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Creating The Fertilizer And Pesticide Authority And Abolishing The Fertilizer Industry Authority
Presidential Decree No. 1144
May 30, 1977
Case Overview and Summary
Summary of Presidential Decree No. 1144Creation of the Fertilizer and Pesticide Authority (FPA) (Section 1)
• FPA is created and attached to the Department of Agriculture.
• Its purpose is to ensure adequate supplies of fertilizer and pesticide at reasonable prices, regulate the manufacture and marketing of fertilizer, protect the public from risks of pesticide use, and educate the agricultural sector on the use of these inputs.
Abolition of the Fertilizer Industry Authority (Section 2)
• The Fertilizer Industry Authority is abolished.
• FPA shall assume the appropriations, assets, liabilities, and personnel of the abolished authority within 60 days.
Definitions (Section 3)
• Defines "pesticide", "fertilizer", "other agricultural chemicals", "handlers", "tolerance level", and "imminent hazard".
Board of Directors (Section 4)
• The powers and functions of FPA shall be vested in and exercised by a Board of Directors composed of various government officials.
• The Board shall elect a Vice-Chairman to act as Chairman in case of absence or incapacity of the Chairman.
Organization (Section 5)
• FPA is empowered to determine its organizational structure, including the number, positions, and salaries of its officers and employees.
• The Board shall appoint all officers, establish compensation schemes, and exercise other powers over its personnel.
Powers and Functions (Section 6)
• FPA shall have jurisdiction over all existing handlers of pesticides, fertilizers, and other agricultural chemical inputs.
I. Common to Fertilizers, Pesticides, and other Agricultural Chemicals
• Conduct information campaigns on safe and effective use of these products. (Section 6(I)(1))
• Promote and coordinate research on these products. (Section 6(I)(2))
• Call upon government agencies and private sector for information or assistance. (Section 6(I)(3))
• Promulgate rules and regulations for registration, licensing, renewal, suspension, revocation, or cancellation of handlers, and collect fees. (Section 6(I)(4))
• Establish and impose appropriate penalties on handlers for violations. (Section 6(I)(5))
• Institute proceedings against violators after due notice and hearing. (Section 6(I)(6))
• Delegate privileges, powers, or authority to corporations, cooperatives, associations, or individuals to assist FPA. (Section 6(I)(7))
• Perform any acts necessary to carry out FPA's functions. (Section 6(I)(8))
II. Fertilizers
• Assess fertilizer supply and demand situation. (Section 6(II)(1))
• Establish and enforce sales quotas, production schedules, distribution areas, and other marketing regulations. (Section 6(II)(2))
• Determine and set wholesale and retail prices of fertilizer and fertilizer inputs. (Section 6(II)(3))
• Establish and implement regulations governing import and export of fertilizer and fertilizer inputs, and import/export such items if necessary. (Section 6(II)(4))
• Import fertilizer and fertilizer inputs exempt from customs duties, taxes, and purchase naptha locally free from specific taxes and duty. (Section 6(II)(5))
• Control and regulate marketing companies, prices, terms, mark-ups, distribution channels, promotion, storage, and other marketing factors. (Section 6(II)(6))
• Regulate quality and set new grades of fertilizer. (Section 6(II)(7))
• Control and regulate all aspects of domestic fertilizer production, including utilization of idle capacity and expansion of the industry. (Section 6(II)(8))
• Approve or reject establishment of new fertilizer or fertilizer input plants and expansion or contraction of existing capacities. (Section 6(II)(9))
• Obtain complete access to pertinent information on the operations of the industry, including financial statements, marketing, production, and inventory data. (Section 6(II)(10))
• Control and assist in financing of importation, production, inventory, working capital, and expansion of the industry. (Section 6(II)(11))
• Maintain adequate supply of fertilizers at reasonable prices while maintaining long-term viability of the industry. (Section 6(II)(12))
III. Pesticides and Other Agricultural Chemicals
• Determine specific uses or manners of use for each pesticide or pesticide formulation. (Section 6(III)(1))
• Establish and enforce tolerance levels and good agricultural practices for use of pesticides in raw agricultural commodities. (Section 6(III)(2))
• Restrict or ban the use of any pesticide or formulation in specific areas or periods if it is an imminent hazard, causing damage to crops, fish, livestock, public health, or environment. (Section 6(III)(3))
• Prevent importation of agricultural commodities containing pesticide residues above tolerance levels and regulate exportation of such products. (Section 6(III)(4))
• Inspect establishments and premises of pesticide handlers to ensure compliance with industrial health, safety, and anti-pollution regulations. (Section 6(III)(5))
• Inspect farmers' fields to ensure only recommended pesticides are used in accordance with good agricultural practice. (Section 6(III)(6))
• Require handlers to submit reports on quantity and value of products exported, imported, manufactured, formulated, repacked, stored, delivered, distributed, or sold. (Section 6(III)(7))
• Impose controls such as price ceilings, inventory controls, distribution and transport controls, and tax-free importations in case of extraordinary price increases, severe shortage, or imminent dangers. (Section 6(III)(8))
Power to Issue Rules and Regulations (Section 7)
• FPA is authorized to issue or promulgate rules and regulations to implement and carry out the provisions of this Decree.
Prohibitions Governing Sale and Use of Fertilizers and Pesticides (Section 8)
• It shall be unlawful for any handler or farmer/planter/end-user:
• To engage in production, importation, distribution, storage, and sale in commercial quantities without a license from FPA. (Section 8(a))
• To use any pesticide or pesticide formulation on crops, livestock, and the environment contrary to good agricultural practices. (Section 8(b))
• To deal in unregistered pesticides and/or fertilizers, or those with expired, suspended, or revoked registration. (Section 8(c))
• To adulterate pesticide formulations and fertilizer grades. (Section 8(d))
• To impose simultaneous purchase of pesticide and fertilizer as a condition for purchase. (Section 8(e))
• To mislabel or make claims differing from registration or actual effectiveness. (Section 8(f))
• To violate other rules and regulations promulgated by FPA. (Section 8(g))
Registration and Licensing (Section 9)
• No pesticide, fertilizer, or other agricultural chemical shall be exported, imported, manufactured, formulated, stored, distributed, sold, transported, delivered, or used unless registered with FPA or covered by a provisional permit.
• Separate registrations are required for each active ingredient and formulation (pesticides) or each fertilizer grade.
• No person shall engage in the business of handling these products without a license from FPA.
• FPA may suspend, revoke, or modify the registration after due notice and hearing.
Penalties (Section 10)
• Fertilizer violations:
• Imprisonment of 15 years and 1 day to 20 years and fine equal to value involved to three times such value (but not less than P5,000 nor more than P20,000) if amount involved is more than P50,000.
• Imprisonment of 10 years and 1 day to 15 years and fine equal to value involved to three times such value (but not less than P5,000 nor more than P20,000) if amount involved is P10,000 or less.
• Fine of P5,000 to P10,000 for other violations where amount cannot be determined.
• Maximum fine and imprisonment if falsification of public or commercial document is committed.
• Penalties shall be imposed on guilty officers if violation is committed by a corporation, firm, partnership, cooperative, association, or other entity.
• Pesticide violations:
• Penal servitude of not more than one year or fine of P5,000 to P10,000.
• Penalties shall be imposed on guilty officers if violation is committed by a corporation, firm, partnership, cooperative, association, or other entity.
Appropriation (Section 11)
• P1.2 Million shall be released from the National Treasury in addition to the appropriation for the Fertilizer Industry Authority for Calendar Year 1977.
• For subsequent years, necessary sums shall be included in the General Appropriations Decree.
• FPA may impose fees or receive grants, subsidies, donations, or contributions and retain such funds for its operations.
Life of FPA (Section 12)
• FPA shall constitute itself immediately and continue to exist until abolished by the President of the Philippines.
Separability Clause (Section 13)
• If any provision is held unconstitutional, the validity of other provisions shall not be affected.
Repealing Clause (Section 14)
• All laws, decrees, acts, executive orders, ordinances, rules, and regulations inconsistent with this Decree are repealed, amended, or modified accordingly.
Effectivity (Section 15)
• This Decree shall take effect upon approval.
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Law
Creating The Fertilizer And Pesticide Authority And Abolishing The Fertilizer Industry Authority
Presidential Decree No. 1144
•May 30, 1977
MALACAÑANGM a n i l a
PRESIDENTIAL DECREE No. 1144
CREATING THE FERTILIZER AND PESTICIDE AUTHORITY AND ABOLISHING THE FERTILIZER INDUSTRY AUTHORITY
WHEREAS, it is a Government policy to provide adequate assistance to the agricultural sector in line with national objective of increasing food production;
WHEREAS, fertilizer and pesticides as vital inputs in food production and must be supplied in adequate quantities at reasonable costs.
WHEREAS, improper pesticide usage presents serious risks to users, handlers, and the public in general because of the inherent toxicity of these compounds which are, moreover, potential environmental contaminants;
WHEREAS, there is a need to educate the agricultural sector on the benefits as well as the hazards of pesticide use so that it can utilized pesticides properly to promote human welfare while avoiding dangers to health and environmental pollution;
WHEREAS, the fertilizer and pesticide industries have much in common in terms of clientele, distribution channels, system of application in farmers' fields, and technical supervision by the same farm management technicians under the government's food production program;
WHEREAS, the foregoing considerations...
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