QuestionsQuestions (PRESIDENTIAL DECREE NO. 1468)
Its title is the “Revised Coconut Industry Code.” The policy is to promote the rapid integrated development and growth of the coconut and other palm oil industry in all aspects and ensure that coconut farmers become direct participants in, and beneficiaries of, such development and growth.
It is created as an independent public corporation directly reporting to, and supervised by, the President of the Philippines.
It must formulate and implement a nationwide replanting program using precocious high-yielding hybrid seednuts; existing coconut farmers must always be given priority; and it may distribute hybrid coconut seednuts for free to coconut farmers.
In coordination with the hybrid coconut seed farm, it conducts genetic and agricultural researches; it establishes one central experiment station and sub-stations for research on coconut diseases and pests and methods of making copra; and it receives/absorbs existing governmental research stations and facilities related to coconut culture.
It regulates marketing and exportation of copra and by-products by establishing standards for domestic trade and export and conducts inspection of copra intended for export to ensure conformity with standards.
The Authority must devise and prescribe (by rules and regulations) a method for measuring moisture content of copra at its first domestic sale and a scale of deduction based on the percentage of moisture content.
A Coconut Consumers Stabilization Fund Levy is imposed on every 100 kilos of copra rececada (or equivalent in other coconut products) delivered to/purchased by copra exporters, oil millers, dessicators and other end-users. There is also a Coconut Industry Development Fund Levy of at least P0.20 per kilogram of copra or equivalent paid out of current collections, with the permanent levy automatically imposed if the stabilization levy is lifted.
It may provide subsidies for coconut-based products based on the base price of copra (as fixed by the Authority) and product prices (as fixed by the Price Control Council); refund premium duty collected on copra sold prior to Feb. 17, 1974; finance developmental and operating expenses of the Philippine Coconut Producers Federation (including scholarships); finance establishment/operation of coconut-related industries described in the Code; and finance the Coconut Farmers Refund as pooled savings for mutual assistance, protection, and social benefits (e.g., life and accident insurance).
The subsidies may be structured so that when coconut farmers (who in effect shoulder the burden of the levies) own or control oil mills and/or refineries that manufacture coconut-based consumer products, only those mills/refineries are entitled to the subsidy.
It is a permanent fund administered and utilized by the bank acquired for coconut farmers under PD 755. It finances: (1) establishment/operation of a hybrid coconut seednut farm via a contract confirmed for administration; (2) purchase of seednuts for free distribution by the Authority to coconut farmers and for new areas under replanting, with levy-paying farmers prioritized; (3) costs of implementing the replanting program through an approved private non-profit foundation owned by coconut farmers; (4) extension services and model plantations; and (5) investments for the benefit of coconut farmers as provided in the Code.
The sale or transfer of the hybrid coconut seednuts authorized to be acquired is exempt from payment of the Coconut Consumers Stabilization Fund levy and any and all taxes and fees of whatever kind and nature.
No. The Coconut Consumers Stabilization Fund and Coconut Industry Development Fund, and their authorized disbursements, shall not be construed as special/fiduciary funds or as part of the national government general funds under PD 711. They also are not treated as subsidy, donation, levy government-funded investment, or government share under PD 898. However, the President may authorize COA or other officers to audit entities receiving subsidy for coconut-based consumer products and those required to pay the levies.
Although it may require periodic reports for levy collection, it has no power to require disclosure of competitive information and/or trade secrets such as buyers’ identities and the prices at which copra was sold.
A fine of not more than P20,000 and imprisonment of not more than five years. If the offender is a corporation/partnership/juridical person, the penalty is imposed on the officer(s) authorizing, permitting, or tolerating the violation. Aliens, after serving sentence, are deported; naturalized citizens’ certificates of naturalization are cancelled.
The person/entity is liable under the penalty provisions for violations; in addition, the 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) were abolished; their powers/functions transferred to the Philippine Coconut Authority, including appropriations, funding sources, equipment, assets, and necessary personnel. The Authority’s Board must effect the transfer to minimize disruption of ongoing programs.