Title
PCA Rules on Coconut and Palm Oil Business Registration
Law
Pca Administrative Order No. 02
Decision Date
May 21, 2010
The Philippine Coconut Authority issues Administrative Order No. 002-10 to regulate and promote the coconut and palm oil industry, outlining registration processes, administrative and penal sanctions for violations, and repealing previous provisions.
A

Q&A (PCA ADMINISTRATIVE ORDER NO. 02)

The primary purpose is to create and organize the Philippine Coconut Authority (PCA) to promote the development and growth of the coconut and other palm oil industry to benefit coconut farmers.

Traders are those engaged in the physical buying and/or selling of coconut and/or oil palm products or by-products, including futures trading or sale of contracts representing a physical commodity for a price certain.

Processors are those who transform coconut and oil palm products into other forms of products or by-products through technology, including natural, biological, mechanical, and chemical means.

The Rules cover natural and juridical persons engaged in businesses involving coconut products such as whole nuts, copra, coconut oil, processed products made from coconut raw materials, and oil palm activities including planting, production of planting materials, manufacture of palm oil and derivatives, and processed fiber products.

Yes, any person or entity engaging in business operations involving the enumerated products or activities must first register with the PCA. This applies to principals, agents, central offices, branches, subsidiaries, and other agencies.

Corporations must submit the Registration Certificate from the SEC or CDA, Articles of Incorporation and By-Laws, City/Municipal permit/license, building plan and permit (for manufacturing plants only), feasibility study (for millers, manufacturers, and processors), and FDA License to Operate for processed coconut food products.

Grounds include giving false statements in the registration application or reports, hoarding to manipulate prices, non-reporting or misdeclaration of inventory, non-posting of buying prices, and being found guilty of unfair trade practices such as adulteration, fraudulent designation, admixture, or misbranding.

Violators can be penalized with a fine of up to P20,000 and imprisonment for up to five years pursuant to Presidential Decree No. 1468 and No. 1644. Corporations may have responsible officers penalized, aliens may be deported, and naturalized citizens may have their naturalization certificates cancelled.

Applicants must file a notarized registration form with the PCA Regional Office having jurisdiction over their area. The form must include comprehensive information about the business, manager, capital, location, capacity, and other relevant data. Manufacturers should consult the PCA about location viability before applying.

Yes, registration can be denied if after investigation or upon receipt of derogatory reports, the applicant is found to have violated laws or regulations administered by PCA or other government agencies or committed unfair trade practices.

The Certificate of Registration must be displayed conspicuously throughout the year at the office or plant to serve as proof of compliance and authority to operate under PCA regulations.

Unfair trade practice refers to any false, falsely disparaging, or misleading oral or written statements, visual descriptions, or other representations connected with the sale or offering for sale of products that can deceive or mislead buyers.

Aside from administrative sanctions like cancellation, non-renewal, or suspension of registration, violators may also face penal sanctions including fines, imprisonment, deportation, or loss of naturalization if applicable.


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