QuestionsQuestions (Republic Act No. 3018)
RA 3018 covers the culture, milling, warehousing, transporting, exportation, importation, handling, distribution (wholesale or retail), and the acquisition for trade of rice (husked or unhusked) or corn and their by-products. It also includes related activities notwithstanding certain other laws, except for the specific public utility transport proviso.
Any person who is not a Philippine citizen, and any association/partnership/corporation whose capital or capital stock is not wholly owned by Philippine citizens, are prohibited from directly or indirectly engaging in the rice and/or corn industry, except as provided in Section 3.
Yes. The Act provides that public utilities duly licensed and registered in accordance with law may transport corn or rice.
They must register and file under oath a verified statement in quadruplicate with the city or municipal treasurer of their place of residence or principal office, including specified information (names, addresses, nationality of owners/partners/stockholders, assets, investments, principal officials, etc.), and copies must be sent to the provincial treasurer and the Secretary of Finance.
It is for government disclosure and oversight to determine which alien entities are engaged in the industry at the time of effectivity and to set the basis for the limited continuation/“liquidation” allowed under Section 3.
Retail, wholesale, culture, transportation, handling, distribution, or acquisition for trade of rice/corn and by-products: up to two years from the effectivity of the Act. Milling and/or warehousing: up to three years from the effectivity of the Act.
No. The Act states that upon termination of the periods, none of the alien persons or entities shall be allowed and granted a license to engage in the rice and/or corn industry.
It provides that the maximum amount of capital investments of said alien persons or entities shall be pegged to the amount of capital investments required to be declared under Section 2.
No. The Act provides that after the date of approval of RA 3018, no license to engage in the rice and/or corn industry in any field of activity shall be granted to any new alien applicant.
The license to any alien to engage in the rice and/or corn industry is forfeited for any violation of provisions of laws, rules, or regulations issued pursuant thereto on economic control, nationalization, monetary, foreign exchange, taxation, health, weights and measures, labor, and other laws relating to trade, commerce, and industry.
Failure to renew a license for any year within the periods means voluntary retirement and bars renewal thereof.
The Development Bank of the Philippines must set aside a revolving fund of at least PHP 50 million to lend Filipinos at interest not more than 7% per annum for secured loans for milling, processing, warehousing, and marketing. The Philippine National Bank must set aside a similar fund of at least PHP 50 million at interest not more than 6% per annum for cultivation/production (including crop loans) and quedans, also against secured collaterals.
The Central Bank must rediscount the commercial papers covering the loans at the lowest possible rate to ensure the continued availability of financial assistance to the rice and/or corn industry.
FaCoMas and other cooperatives, individual farmers, small landowners, and tenants engaged in production of palay, rice, and/or corn are given priority.
Yes. Producers/planters may organize, and such associations are entitled to credit facilities available under the Act, irrespective of whether there may be an existing FaCoMas or farmers cooperative association in their place of business.
No. It expressly provides that the producers’ associations shall not be entitled to the credit facilities provided for in Republic Act No. 821.
The Act creates the Rice and Corn Board. It administers the provisions of the Act and studies/recommends measures for the improvement and development of the rice and corn industry.
It includes, among others: the Secretary of Commerce and Industry (chairman), Secretary of Agriculture and Natural Resources (vice-chairman), Governor of the Central Bank, President of the PNB, Chairman of the DBP, and representatives of millers/warehousemen, planters/producers, retailers/wholesalers, consumers cooperatives, and labor. Private sector representatives are appointed by the President with consent of the Commission on Appointments.
Imprisonment of not less than 5 years nor more than 10 years, a fine of not less than PHP 5,000 nor more than PHP 10,000, and immediate deportation after service of the sentence. For corporations/associations, certain responsible corporate officers are held liable as principals.