Further Amending Presidential Decree No. 232, As Amended

Case Overview and Summary

Summary of Presidential Decree No. 582

Objectives:
- Develop and plan an early-breeding and high-yielding hybrid variety of coconut trees capable of producing at least 5 tons of copra per hectare per year.
- Enable the country to compete in the international market of vegetable fats and oils and ensure stable and better incomes for coconut farmers.
- Channel part of the coconut consumers stabilization levy paid by coconut farmers for their direct benefit.

Provisions:
- The Philippine Coconut Authority (PCA) shall:
    o) Formulate and implement a nationwide coconut replanting program using precocious high-yielding hybrid seednuts within the next 5 years. (Section 1)
    p) Distribute, for free, the hybrid coconut seednuts to coconut farmers. (Section 1)

- Creation of the Coconut Industry Development Fund (CIDF):
    - A permanent fund to be deposited with and administered by the Philippine National Bank (PNB) through its subsidiary, the National Investment and Development Corporation (NIDC). (Section 2)
    - Purposes of the CIDF:
        a) Finance the establishment, operation, and maintenance of a hybrid coconut seednut farm to ensure a proper, adequate, and continuous supply of high-yielding hybrid seednuts. (Section 2)
        b) Purchase all seednuts produced by the hybrid coconut seednut farm for free distribution to coconut farmers under the replanting program, with priority given to farmers who have been paying the levy. (Section 2)
        c) Finance the establishment, operation, and maintenance of extension services, model plantations, and other activities to inform coconut farmers about proper replanting methods. (Section 2)

- Initial funding and subsequent contributions to the CIDF:
    - PCA shall pay ₱100,000,000 from its collections of the coconut consumers stabilization levy as the initial fund. (Section 2)
    - PCA shall pay an amount equal to at least ₱0.20 per kilogram of copra resecada or its equivalent from its current collections of the coconut consumers stabilization levy. (Section 2)
    - If the coconut consumers stabilization levy is lifted, a permanent levy of ₱0.20 per kilogram of copra or its equivalent shall be automatically imposed and collected by PCA for the CIDF. (Section 2)
    - PNB is authorized to invest any unutilized portion of the CIDF, and all earnings shall form part of the Fund. (Section 2)

- Exemptions:
    - The sale or transfer of the hybrid coconut seednuts is exempt from the coconut consumers stabilization levy and any taxes and fees. (Section 2)

- Repealing Clause:
    - All laws, executive and administrative orders, rules and regulations inconsistent with the provisions of this Decree are repealed or amended accordingly. (Section 3)

- Effectivity:
    - This Decree shall take effect immediately. (Section 4)