QuestionsQuestions (PRESIDENTIAL DECREE NO. 1468)
It is titled the “Revised Coconut Industry Code.” The State policy is to promote the rapid integrated development and growth of the coconut and other palm oil industry in all its aspects and to ensure coconut farmers become direct participants in, and beneficiaries of, such development and growth.
The Philippine Coconut Authority (Authority), an independent public corporation, is created. It directly reports to and is supervised by the President of the Philippines.
Its principal office is maintained in the Greater Manila Area. It may establish branches and agencies within the Philippines as necessary.
Examples include: formulating and adopting a general development program; implementing a nationwide replanting program; distributing hybrid seednuts for free to coconut farmers; conducting genetic/agricultural research; establishing and maintaining experiment stations for pest/disease control and copra-making methods; regulating marketing/exportation of copra by setting standards and conducting inspection; imposing/collecting levies; and enforcing compliance through subpoena powers, search/seizure of unlawfully possessed subsidized products, and other enforcement powers.
The Authority is expressly prohibited from engaging in commercial/industrial activities, including commercial production of hybrid coconut seednuts.
The Board has seven (7) members appointed by the President: 2 Government representatives (Chairman and Vice-Chairman), 3 recommended by the Philippine Coconut Producers Federation, 1 recommended by the United Coconut Association of the Philippines, and 1 recommended by the owner/operator of the hybrid seednut farm. Quorum is at least four members, and four votes are necessary for adoption of any rule/resolution/decision or other act of the Board.
The Authority may impose a levy on every 100 kilos of copra rececada or its equivalent in other coconut products delivered to, purchased by, copra exporters, oil millers, dessicators and other end-users. The levy is paid by those entities under rules of the Authority. Until otherwise prescribed, the current levy is continued.
Collections are used for: providing subsidies for coconut-based products (based on base price of copra and prices fixed by the Price Control Council), with a limitation on eligibility when coconut farmers own/control oil mills/refineries; refund of premium duty collected on copra sold prior to Feb. 17, 1974; financing developmental/operating expenses of the Philippine Coconut Producers Federation (including scholarships); financing establishment/operation of coconut-related industries and commercial enterprises described in Section 9; and funding the Coconut Farmers Refund (pooled savings for mutual assistance, protection, relief, e.g., life and accident insurance).
It is a permanent fund administered and utilized by the bank acquired for the benefit of coconut farmers under PD 755. It finances activities such as establishing/operating hybrid seednut farm, buying seednuts for free distribution and replanting, defraying costs of replanting implementation through an approved private non-profit foundation owned by coconut farmers, extension services/model plantations, and other investments for the benefit of coconut farmers.
The Authority must pay P100,000,000.00 out of the Coconut Consumers Stabilization Fund as initial funds. Thereafter it must pay at least P0.20 per kilogram of copra rececada (or its equivalent) out of current collections. If the consumers stabilization levy is lifted, a permanent levy of P0.20 per kilogram (or equivalent) automatically applies.
Sales or transfer of the hybrid coconut seednuts acquired are declared exempt from the payment of the Coconut Consumers Stabilization levy and any and all taxes and fees of whatever kind and nature.
No. The funds and authorized disbursements are not to be construed as special/fiduciary funds or as part of the general funds of the national government (within PD 711), nor as subsidy/donation/levy government-funded investment/government share (within PD 898). The intent is that they belong to coconut farmers in their private capacities.
The Authority may issue subpoenas and summon witnesses; impose punishment for contempt in appropriate cases; authorize officers to enter houses/buildings/places where subsidized products are stored upon reasonable grounds; seize products unlawfully possessed or kept; and stop/search vehicles when there are reasonable grounds to believe they unlawfully carry subsidized products.
A fine of not more than P20,000.00 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/tolerating the violation. Aliens, after serving sentence, are to be immediately deported, and for naturalized citizens, the certificate of naturalization is cancelled.
The offender is liable to the penalty prescribed in the general penalties section (fine and imprisonment). In addition, unlawfully possessed or removed products shall be confiscated and sold by the Authority, with proceeds forming part of the Coconut Consumers Stabilization Fund.
The Coconut Coordinating Council (CCC), Philippine Coconut Administration (PHILCOA), and Philippine Coconut Research Institute (PHILCORIN) are abolished. Their powers/functions and appropriations/funding/equipment/assets are transferred to the Philippine Coconut Authority. Personnel are transferred with protection of rights under reorganization rules, and the Board ensures least disruption. Certain boards and councils cease upon effectivity, with Authority assuming their functions.