Law Summary

SECTION 1: Creation of the National Produce Exchange

• Legal Principle: Establishes a public corporation named the National Produce Exchange to facilitate agricultural product marketing in the Philippines.
• Key Definitions:
  • "Corporation": Refers to the National Produce Exchange as a body corporate and politic.
• Important Requirements/Procedures:
  • The corporation will be managed by a Board of Governors, including the Secretary of Agriculture and Commerce.
• Relevant Timeframes: Not applicable.
• Penalties/Liabilities: Not applicable.

• The National Produce Exchange serves as an instrumentality of the Commonwealth of the Philippines.
• The corporation is empowered to establish trading places for agricultural products.

SECTION 2: Functions, Powers, and Duties of the Corporation

• Legal Principle: Outlines the specific functions and powers granted to the National Produce Exchange.
• Key Definitions:
  • "Produce exchanges": Includes both central and subsidiary exchanges for agricultural products.
• Important Requirements/Procedures:
  • Establish a central exchange in Manila and additional exchanges as deemed necessary.
  • Promote cooperative marketing associations.
  • Create rules for transactions, fee structures, and product classifications.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities: Not applicable.

• Establish and maintain produce exchanges across the Philippines.
• Implement uniform grading, inspection systems, and market information dissemination.

SECTION 3: Management Structure

• Legal Principle: Defines the governance structure and appointment procedures for the Board of Governors.
• Key Definitions:
  • "Board of Governors": Comprised of the Secretary of Agriculture and Commerce plus four presidential appointees.
• Important Requirements/Procedures:
  • Governors serve staggered terms of 1 to 4 years, thereafter serving 4-year terms.
  • A quorum consists of three members.
  • Oaths of office are required for appointed Governors and officers.
• Relevant Timeframes: Initial appointments have varying terms; subsequent appointments are for four years.
• Penalties/Liabilities: Removal of Governors by the President.

• The President designates the Chairman of the Board.
• Board members not employed by the government receive a per diem for meeting attendance.

SECTION 4: Requirements for Subsidiary Exchanges

• Legal Principle: Establishes requirements for subsidiary exchanges organized under the corporation.
• Key Definitions:
  • "Subsidiary exchanges": Exchanges set up by the Board of Governors.
• Important Requirements/Procedures:
  • Exchanges must file reports detailing transactions and maintain records for three years.
  • Prohibitions against disseminating false information and market manipulation.
• Relevant Timeframes: Records must be kept for a minimum of three years.
• Penalties/Liabilities: Not applicable.

• Exchanges must adhere to rules set forth by the Board of Governors.
• Detailed transaction records must be available for Board inspection.

SECTION 5: Suspension of Operations

• Legal Principle: Grants the Board of Governors authority to suspend exchanges failing compliance.
• Key Definitions:
  • "Suspension": Temporary halt of operations for non-compliance.
• Important Requirements/Procedures:
  • The Board can act upon showing that an exchange is not following established rules.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities: Not specified.

• The Board has the authority to enforce compliance among exchanges.

SECTION 6: Investigations and Reports

• Legal Principle: Empowers the Board to investigate marketing conditions and disseminate information.
• Key Definitions:
  • "Investigate": To analyze marketing conditions and provide insights on agricultural products.
• Important Requirements/Procedures:
  • The Board shall compile reports for stakeholders on market conditions.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities: Not applicable.

• Investigations will focus on supply, demand, and pricing of agricultural products.
• Regular reports will inform producers and consumers of market conditions.

SECTION 7: Exemption from Sales Tax

• Legal Principle: Provides tax exemptions for certain agricultural transactions.
• Key Definitions:
  • "Merchants' sales tax": A tax applicable to sales of goods.
• Important Requirements/Procedures:
  • Exemption applies unless physical delivery occurs.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities: Not applicable.

• Sales through the exchanges are exempt from sales tax until delivered.

SECTION 8: Penalties for False Reporting

• Legal Principle: Establishes penalties for disseminating false information about agricultural markets.
• Key Definitions:
  • "False reports": Misleading information regarding crop or market conditions.
• Important Requirements/Procedures:
  • Penalties include fines or imprisonment for violations.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities:
  • Fines up to 10,000 pesos or imprisonment for one year, or both.

SECTION 9: Appropriation of Funds

• Legal Principle: Details funding provisions for the operation of the corporation.
• Key Definitions:
  • "Appropriation": Allocation of government funds for specific purposes.
• Important Requirements/Procedures:
  • A sum of 50,000 pesos is allocated for operational expenses.
• Relevant Timeframes: Not specified.
• Penalties/Liabilities: Not applicable.

• Funds will cover salaries, equipment, and incidental expenses related to the corporation's functions.

SECTION 10: Effectivity

• Legal Principle: States the act's commencement.
• Key Definitions:
  • "Effectivity": The date the law becomes enforceable.
• Important Requirements/Procedures:
  • The Act takes effect upon approval.
• Relevant Timeframes: Effective immediately upon approval.
• Penalties/Liabilities: Not applicable.

Key Takeaways

• The National Produce Exchange is established to enhance the marketing of agricultural products in the Philippines.
• A Board of Governors manages the corporation, with responsibilities including setting rules for exchanges and market investigations.
• There are specific penalties for false reporting and provisions for tax exemptions on certain agricultural transactions.
• Funding is allocated for the corporation's establishment and operation, ensuring the enactment of its provisions.