Law Summary
Abolition of the Fertilizer Industry Authority (FIA)
- FIA abolished; its assets, liabilities, appropriations, and qualified personnel transferred to FPA within 60 days.
Key Definitions
- "Pesticide": Substances or products intended to control pests, including insecticides, fungicides, herbicides, and related compounds.
- "Fertilizer": Organic or inorganic substances applied to soil to promote plant growth and improve yield or quality.
- "Other Agricultural Chemicals": Chemicals used in agriculture not classified as fertilizers or pesticides.
- "Handlers": Entities involved in the supply chain of fertilizers, pesticides, and agricultural chemicals.
- "Tolerance Level": Maximum pesticide residue allowed in agricultural produce as determined by FPA.
- "Imminent Hazard": Situation where pesticide use poses unreasonable harm to public health or environment.
Board of Directors Composition and Leadership
- Chaired by the Secretary of Agriculture.
- Includes Secretaries of Industry, Finance, Trade; Governor of Central Bank; President of Philippine National Bank; Director of Bureau of Plant Industry; Commissioner of Pollution Control Commission; Administrator of Food & Drug Administration.
- Board elects a Vice-Chairman to act in Chairman's absence.
Organizational Structure and Staffing
- FPA empowered to determine its structure, staff positions, compensation, and disciplinary actions.
- Board appoints all officers including Administrator and Deputy Administrators for Fertilizers and Pesticides.
Powers and Functions of FPA
Common to Fertilizers, Pesticides, and Agricultural Chemicals:
- Conduct information campaigns on safe, effective use.
- Promote and coordinate research with agricultural agencies.
- Call on government and private sector for assistance and information.
- Regulate registration, licensing, renewal, suspension, and cancellation of handlers.
- Impose penalties and institute proceedings for violations.
- Delegate authority to assist agencies and individuals.
- Perform lawful acts necessary to fulfill mission.
Specific to Fertilizers:
- Assess fertilizer supply and demand domestically and globally.
- Set production quotas, sales quotas, distribution areas, prices (wholesale and retail).
- Regulate import/export, including duty-free imports.
- Control marketing companies, quality, and grading of fertilizers.
- Oversee production capacity utilization, approve new plants or expansions.
- Access comprehensive industry operational information.
- Assist financing and maintain industry viability and product supply.
Specific to Pesticides and Other Agricultural Chemicals:
- Determine and enforce specific uses and good agricultural practices.
- Establish tolerance levels for pesticide residues.
- Restrict or ban pesticides posing imminent hazard.
- Inspect handlers’ establishments and compliance with safety and environmental rules.
- Inspect farms for adherence to recommended pesticide use.
- Require reports on activities related to pesticides.
- Control prices, supply, and importation in case of shortages or price surges.
Rulemaking Authority
- Authorized to issue rules and regulations for effective implementation of the Decree.
Prohibited Acts for Handlers and Users
- Operating without FPA license.
- Using pesticides contrary to good agricultural practices.
- Dealing with unregistered or suspended pesticides and fertilizers.
- Adulteration of products.
- Tying sale of fertilizers and pesticides.
- Mislabeling or false claims related to products.
- Violating FPA regulations.
Registration and Licensing Requirements
- Mandatory registration of all pesticides and fertilizers before manufacture, importation, distribution, or use.
- Separate registration required for each active ingredient and formulation.
- Licensing required to engage in handling these products.
- FPA may suspend, revoke, or modify registrations after due process.
Penalties for Violations
Fertilizer-related violations:
- Imprisonment from 10 to 20 years, dependent on amount involved.
- Fines ranging from P5,000 to P20,000, or up to three times the value involved.
- Maximum penalties for falsification related offenses.
- Corporate liability extends to responsible officials.
Pesticide-related violations:
- Imprisonment up to one year or fines between P5,000 and P10,000.
- Liability applies to corporate officials if committed by entities.
Appropriation and Funding
- Initial P1.2 million pesos allocated from National Treasury.
- Annual appropriations included in the General Appropriations Decree.
- FPA may also generate and retain fees, grants, donations for operations.
Duration and Continuity
- FPA takes immediate effect upon creation and continues until abolished by the President.
Separability Clause
- Invalidity of any provision does not affect the validity of the remaining provisions.
Repealing Clause
- Inconsistent laws, decrees, orders, and regulations are repealed or amended accordingly.
Effectivity
- The Decree takes effect immediately upon approval.