Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1468)
The title of Presidential Decree No. 1468 is the "Revised Coconut Industry Code."
The State's primary 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 that coconut farmers become direct participants and beneficiaries of such development and growth.
The Philippine Coconut Authority (PCA) is created as an independent public corporation to implement and attain the declared national policy.
The PCA has powers including formulating a general development program for the coconut industry; implementing a replanting program using hybrid seednuts; distributing hybrid seednuts to coconut farmers for free; conducting research on coconut productivity and disease control; regulating marketing and exportation of copra; imposing and collecting levies; and entering into contracts necessary to fulfill its objectives.
The Board has seven members: two government representatives (one serving as Chairman), three members recommended by the Philippine Coconut Producers Federation, one member recommended by the United Coconut Association of the Philippines, and one member recommended by the owner/operator of the hybrid coconut seed nut farm.
There are two main levies: the Coconut Consumers Stabilization Fund Levy imposed on copra and coconut products paid by exporters, oil millers, dessicators and end-users; and the Coconut Industry Development Fund Levy, starting with an initial P100 million from the stabilization fund and continuing with a levy of at least 20 centavos per kilo on copra or its equivalent.
The Fund is used to provide subsidies for coconut-based products, refund premium duties on copra, finance development and operating expenses of the Philippine Coconut Producers Federation, finance industries related to coconut, and provide social benefits like insurance to coconut farmers.
Violators may be fined up to P20,000 and imprisoned for up to five years. If the offender is a juridical person, officers responsible are penalized. Aliens found guilty are deported, and naturalized citizens may have their naturalization canceled.
Such products shall be confiscated by the Philippine Coconut Authority, sold, and the proceeds shall form part of the Coconut Consumers Stabilization Fund. The violator shall also face penalties as prescribed in the law.
The Coconut Coordinating Council (CCC), the Philippine Coconut Administration (PHILCOA), and the Philippine Coconut Research Institute (PHILCORIN) were abolished and their powers, functions, appropriations, and some personnel were transferred to the PCA.