Question & AnswerQ&A (NFA LETTER CIRCULAR NO. - 93-01)
The legal basis is Presidential Decree No. 4, as amended, which aims to protect public interest and promote general welfare by assuring adequate and continuous supply of rice and corn at reasonable prices.
Engaging in grains business without a valid NFA license is declared illegal and prohibited, subjecting the offender to prosecution and administrative sanctions under the law.
Prima facie evidence of diversion includes unreasonable depletion of stock allocations, selling or lending government stocks without NFA approval, selling beyond maximum quantity allowed, and storing or selling government stocks in unapproved places.
No, mixing or adulterating government stocks with commercial rice is prohibited under this Circular.
No, rebagging or resacking government stocks in commercial sacks is prohibited.
Penalties include prosecution under Section 29 of Presidential Decree No. 4, administrative sanctions like warnings, perpetual disqualification, cancellation of licenses or stock allocations, suspension, or fines ranging from P1,000 to P4,000.
Yes, if a corporation, partnership, or association commits violations, the president, directors, managers, and managing partners are held liable.
No, selling or offering to sell government stocks at prices beyond those authorized by the NFA is prohibited.
Yes, non-display or no display of price tags is one of the prohibited acts.
Accreditation as an NFA outlet is not a right but a privilege granted by the NFA.
No, storing or selling commercial stocks in establishments approved for government stocks is prohibited.
It took effect immediately upon publication in a newspaper of general circulation and filing with the U.P. Law Center.