QuestionsQuestions (PRESIDENTIAL DECREE NO. 961)
PD No. 961 is known as the “Coconut Industry Code.” Its policy is to promote the rapid integrated development and growth of the coconut and other palm oil industry in all aspects and to ensure that coconut farmers become direct participants in, and beneficiaries of, such development.
PD 961 creates the Philippine Coconut Authority as an independent public corporation. It directly reports to, and is supervised by, the President of the Philippines.
The principal office must be maintained in the Greater Manila Area. The Authority may establish branches and agencies within the Philippines as necessary.
Examples include: (1) formulating and adopting a general development program; (2) implementing a nationwide replanting program using precocious high-yielding hybrid seednuts; (3) distributing hybrid seednuts for free to coconut farmers; (4) conducting genetic/agricultural research for improving productivity; (5) establishing experiment stations for control of coconut diseases/pests and methods of making copra; (6) exploring/expanding domestic and foreign markets; (7) regulating marketing/exportation of copra and by-products by setting standards and inspecting exports; (8) imposing and collecting levies authorized by the Code.
The Authority is prohibited from engaging in commercial/industrial activities, including the commercial production of hybrid coconut seednuts.
The Board has seven (7) members appointed by the President: two representatives of the Government (one is Chairman and the other Vice-Chairman), three recommended by the Philippine Coconut Producers Federation, one recommended by the United Coconut Associations of the Philippines, and one recommended by the owner/operator of the hybrid coconut seednut farm.
At least four members constitute a quorum, and the vote of four members is necessary for adoption of any rules, resolution, or other Board act.
Board members receive a per diem of Two Hundred Pesos (₱200) for each meeting actually attended, but it shall not exceed One Thousand Pesos (₱1,000) during any month for each member. No other allowance or compensation is allowed, except actual travel expenses to and from residences for Board meetings.
It is a levy imposed on every one hundred kilos of copra resecada (or equivalent in other coconut products) delivered to and/or purchased by copra exporters, oil millers, desiccators and other end-users. They pay the levy under rules prescribed by the Authority.
They may be used: (a) to provide subsidies for coconut-based products when national interests require it; (b) to refund wholly or in part premium duty collected on copra sold prior to Feb. 17, 1974; (c) to finance development and operating expenses of the Philippine Coconut Producers Federation including scholarships; and (d) to finance establishment/operation of coconut-related industries and commercial enterprises as described in Section 9.
It is a permanent fund deposited with and administered/utilized by the Philippine National Bank through its subsidiary, the National Investment and Development Corporation (NIDC), subject to P.D. No. 755, for specific purposes such as financing a hybrid seednut farm, purchasing seednuts for distribution, replanting program costs, extension services, and investments benefiting coconut farmers.
The Authority must pay ₱100,000,000.00 as initial funds from the Coconut Consumers Stabilization Fund, and thereafter it must pay at least ₱0.20 per kilogram of copra resecada (or equivalent) out of current collections. If the consumer levy is lifted, a permanent levy of ₱0.20 per kilogram (or equivalent) is automatically imposed.
Collections must be deposited with banking institutions prescribed by P.D. 755. Deposits made with the commercial bank acquired for coconut farmers’ benefit cannot be withdrawn for purposes other than those authorized until the nationwide replanting program is fully implemented/realized. Deposits made with NIDC must first be utilized in the replanting program.
No. PD 961 states that the Coconut Consumers Stabilization Fund and the Coconut Industry Development Fund, and authorized disbursements, are not to be construed as special/fiduciary funds or part of general government funds under P.D. 711; nor as subsidies/donations/levies/government-funded investments/government share under P.D. 898. They are intended to be owned by coconut farmers in private capacities.
The sale or transfer of the hybrid coconut seednuts authorized to be acquired is exempt from the payment of the coconut consumers stabilization levy and any and all taxes and fees of any kind or nature.
A fine of not more than ₱20,000 and imprisonment of not more than five years. If the offender is a corporation/partnership/juridical person, the penalty is imposed on the officers authorizing, permitting, or tolerating the violation. Aliens are deported after serving sentence; for naturalized citizens, certificate of naturalization is cancelled.