Fishery Industry Development Decree of 1972

Policy, purpose, and national objectives

Section 2 declares State policy to accelerate the integrated development of the fishery resources of the country.
The Government must promote, encourage, and hasten organization, provide assistance, and help integrate activities of persons, associations, cooperatives, and corporations engaged in the industry.
The Government must enable the nation to achieve self-sufficiency in the supply of fish and fishery products.
Section 2 directs that the fishing industry be treated as a Board of Investments pioneer project.
The Government must encourage and promote diversification of export products and markets so the fishery industry contributes positively to national economic growth.
The Government must provide financing, training, extension services, technical assistance, and infrastructures for production, storage, processing, transportation, marketing, and distribution of fish and fishery products.

Key definitions established by the Decree

“Fully developed fishpond” means a clean, leveled area enclosed with dikes at least one foot higher than the highest flood water level in the locality, strong enough to resist water pressure at highest flood tide, and consisting of a nursery pond, a transition pond, a rearing pond, and a water control system. (Section 3(a))
“Fish and Fishery Products” provides that fish includes all fishes and other aquatic animals such as crustaceans, mollusks, and other aquatic animals; fishery products include all products of aquatic living resources in any form. (Section 3(b))
“Refrigerating and cold storage plants” consist of refrigerating machineries housed in a building with cold storage compartments for making ice, freezing, and storing fish and other perishable commodities. (Section 3(c))
“Fishery industry” consists of production, processing, preservation, marketing, and distribution of fish and fishery products. (Section 3(d))
“Commercial fishing” means fishing for commercial purposes in waters of more than seven fathoms deep using fishing boats of more than three gross tons. (Section 3(e))
“Municipal or sustenance fishing” means small scale fishing using boats of three gross tons or less or using gears not requiring the use of boats. (Section 3(f))
“Components of the fishery industry” are fish producers, fish processors, fish traders (wholesalers and retailers), and owners of refrigerating and cold storage plants serving the industry. (Section 3(g))
“Economic family size fishpond” is an area of fishpond that permits sufficient use of family labor and capital to produce income for a modest standard of living (food, clothing, shelter, health, education), including allowance for payment of yearly installments and reserves to absorb income fluctuations. (Section 3(h))
“Commercial scale fishpond production” means production of fish in fully developed fishpond of not less than 500 kilograms per hectare per year. (Section 3(i))

Fishery Industry Development Council powers

Section 4 creates the Fishery Industry Development Council (“Council”) to implement the policy under Section 2.
The Council is composed of: Secretary of Agriculture and Natural Resources (Chairman); Director of Fisheries (Vice-Chairman and Executive Officer); Secretary of National Defense; Governor of the Central Bank of the Philippines; Chairman of the Development Bank of the Philippines; President of the Philippine National Bank; Chairman of the Board of Investments; and a representative each recommended by the largest nation-wide bona fide organizations of fishpond operators and fishing associations, appointed by the President upon recommendation of the Secretary, Department of Agriculture and Natural Resources, for a term of two years.
Within thirty days after approval, the President shall constitute the Council, which meets regularly on the first Monday of each month, and may meet in special meetings convened by the Chairman for urgent matters. (Section 4)
Section 4 requires the Council to adopt rules governing its proceedings and to determine its official location and address.
Section 5 empowers the Council to provide comprehensive policy guidance, create a healthy investment climate, and delineate and coordinate participating agencies’ activities.
Section 5 directs the Council to encourage cost-reducing and quality-improving systems and practices to bring fair returns to producers and reasonable prices for consumers.
Section 5 mandates the Council to promote infrastructure and modernization of the fishing fleet, and to draw guidelines for protecting fish habitats, marine parks, and fishery resources from pollution.
Section 5 requires the Council to draw up a comprehensive financial program with domestic/foreign sources under a priority system and to devise a feasible insurance system meeting industry needs.
Section 5 requires the Council to adopt a Fishery Industry Development Program within ninety days from constitution, implemented by its constituent agencies.
Section 5 provides that the President, in consultation with the Council and the Monetary Board, may enter contracts or agreements necessary or incidental to the Program under Republic Act No. 6142, including contracts on behalf of the industry between the Philippine Government and foreign governments or institutions.

Implementing agencies, transfers, permits, and programs

Section 6 assigns the Department of Agriculture and Natural Resources to direct and coordinate component agencies to accelerate development of the industry.
Section 6 directs the Department to facilitate orderly, systematic, and expeditious transfer of jurisdiction of public lands available for fishpond development to the Bureau of Fisheries upon effectivity of the Decree.
Section 6 declares available for fishpond purposes (and automatically transferred to the Bureau of Fisheries for administration and disposition) public lands including tidal swamps, mangrove and other swamps, marshes, ponds and streams within public lands, including lands left dry during lowest low tide and covered by water during highest tide, when not needed for forestry purposes.
Section 6 requires the Bureau of Fisheries to set aside portions of such public lands for fish propagation, fish sanctuary, conservation, and ecological purposes, and to set aside certain tidal swamps, mangrove and other swamps, marshes, ponds, and streams used by fishery schools and colleges for their use.
The Bureau of Fisheries is the Council’s research, advisory, and executive arm, with primary and direct responsibility for implementing the Program with cooperation and coordination of other participating agencies. (Section 6)

Bureau of Fisheries: rules, close seasons, fees, leases, and permits

The Bureau of Fisheries exercises powers and duties under Republic Act No. 3512 as needed, provided they are not inconsistent with the Decree. (Section 6)
The Bureau must issue or promulgate instructions, orders, rules, and regulations for development, improvement, management, and/or conservation of fish and fishery resources, including establishing close seasons.
Close season and gear operations must be specifically defined for an entire specified territorial waters area or portion thereof, and require Council approval.
Close season and related regulations take effect fifteen (15) days after publication in the Official Gazette and two newspapers of general circulation. (Section 6)
The Bureau prescribes, subject to Council approval, fees for gathering, taking, culturing, and processing fish and other fishery products; permit, license, or concession fees; importation/exportation fees for aquatic products; and other fees for grant of fishery privileges. (Section 6)
The Bureau grants or executes leases, subject to Council approval, that entitle holders to develop definite tracts devoted exclusively for fishpond purposes for fifteen (15) to twenty-five (25) years, renewable for an equal or longer period. (Section 6)
The Bureau grants concession for collecting/gathering marine mollusks and their shells, sponges, seaweeds, and other aquatic products in territorial waters of the Philippines. (Section 6)
The Bureau undertakes a fisheries training program and coordinates with and assists fishery educational institutions for research and instruction, requiring educational institutions to adopt a standard “core” curriculum aimed at training vocational-level fishery technicians. (Section 6)
The Bureau performs powers and functions over fishing vessels of more than three (3) gross tons regarding registration, documentation, inspection, and licensing for fishing operations. (Section 6)
Licenses for vessels of more than three (3) gross tons allow operation only in Philippine waters deeper than seven (7) fathoms, subject to license conditions and rules promulgated by the Director with Council approval. (Section 6)
The Bureau of Fisheries may declare and open and close season for operation of baby trawls in areas seven fathoms deep or less, and may declare open and close seasons for baby trawls using boats of three (3) gross tons or less subject to Council approval and operations in areas four fathoms deep or more. (Section 6)
The Bureau may accept vessels for registration, documentation, and licensing upon inspection and verification that the vessel is seaworthy and fit for operations, despite any law to the contrary. (Section 6)
The Bureau issues permits for importation into and exportation from the Philippines of fish and fishery products, mollusks, crustaceans, and other aquatic animals, including adult, young, fry, or fish eggs, for propagation or other purposes, subject to Council approval; exportation of fry or fish eggs is allowed only after industry requirements are met. (Section 6)
For scientific research and educational purposes, the Bureau issues temporary permits to operate fishing vessels for periods not exceeding six months, based on Council-approved rules and regulations. (Section 6)
The Bureau issues fishermen’s licenses for operations of fishing vessels of more than three (3) gross tons, based on Council-approved rules and regulations. (Section 6)
The Bureau designates, in writing, Deputy Fish Wardens—competent public officials and/or private reputable persons engaged in the industry—with full authority to enforce fishery laws, rules, and regulations and to arrest offenders, subject to qualifications prescribed by the Director and approved by the Council. (Section 6)
The Bureau maintains a system of regularly obtaining and disseminating accurate statistics on fish production, distribution, utilization, fishery resources, and other useful industry information. (Section 6)
The Bureau undertakes applied fisheries research to increase efficiency and effectiveness of production and utilization methods and techniques, including utilization of fertilizers for fishponds. (Section 6)

Fishery districts, refrigerated facilities, and banks’ equity conversion

The Bureau must designate Fishery District boundaries and submit within one (1) year a program for organizing District Fishery Corporations or Cooperatives composed of industry components in each District, which engage in buying, processing, storing, and marketing fish and fishery products. (Section 6)
The Bureau must promote establishment in each District of adequate refrigerating plants for ice making, storage, and quick-freezing, owned preferably by the District Fishery Corporation or Cooperatives. (Section 6)
Refrigerating and cold storage plants belonging to the Bureau must be sold to District corporations/cooperatives under terms and conditions promulgated by the Bureau and subject to Council approval. (Section 6)
Ice-making, cold storage, and quick-freezing facilities may be established by any person, corporation, or cooperatives anywhere in the country without necessity of any Congressional or municipal franchise, notwithstanding laws to the contrary. (Section 6)
The Development Bank of the Philippines may convert its outstanding and collectible loans to fishery industry loans in the District into equity shares of District Fishery Corporations/Cooperatives as loans are paid, with shares sold to the private sector at the Bank’s option in this order of priority: municipal fisheries operator or small fishermen; fish retailers; fishery cooperatives; fishpond operators; and deep-sea fishing operators. (Section 6)

Landing points, inspection for export/import, and fish meal industry

The Bureau must determine and designate fish landing points and require all commercial fishing vessels to land at these designated places. (Section 6)
Fish landing points established prior to the approval of the Decree are deemed authorized fish landing points. (Section 6)
The Bureau conducts and supervises inspection of fish and fishery products for export, imports, and those produced and consumed locally, for quality and compliance with fishery and other pertinent laws. (Section 6)
The Bureau must establish within one (1) year quality grades and standards conforming as much as possible to world standards, subject to Council approval. (Section 6)
The Bureau must promote development of a viable fish meal industry within two (2) years from promulgation of the Decree to maximize utilization of fish and fishery products and complement animal industry development; it must recommend to the Central Bank a gradual reduction of fish meal imports, subject to Council approval. (Section 6)

Bureau organizational strengthening and staffing

Section 6 strengthens the Bureau by creating an Assistant Director for Administration, Information and Regulations and an Assistant Director for Research and Development.
Section 6 creates the following divisions: Administrative Division; Licenses and Protection Division; Fishery Economics and Information Division; Fishery Research Division; Fish Propagation Division; and Technological Division.
Section 6 creates a Planning and Management Staff and other organizational units under the Integrated Reorganization Plan.
The Director staffs these units from qualified personnel as a first priority, and must include proposals for additional necessary personnel in appropriation for the immediate succeeding year. (Section 6)

Finance: Central Bank role, Development Bank loans

Section 6 assigns the Central Bank of the Philippines, through the Monetary Board, as primarily responsible for seeking ways and means of financing all aspects of the Program requirements.
The Central Bank must coordinate policies and activities of banks and financial institutions regarding credit provision to persons, associations, cooperatives, and corporations engaged in the fishery industry. (Section 6)
The Central Bank must grant preferential rates in rediscounting papers involving loans for the fishery industry. (Section 6)
The Central Bank must grant concessionary rates of interest on loans for fishery industry development upon certification by the Director of Fisheries. (Section 6)

Technical training and training funding

Section 7 requires private sector and/or fishery schools and colleges to coordinate with the Bureau of Fisheries and other government agencies on training fishery technicians and volunteers through on-the-job training.
For fishery students, one semester of on-the-job training is a requisite for graduation. (Section 7)
Section 7 sets aside PHP 5,000,000 yearly from the Fishery Industry Development Fund for acquisition of fishing vessels and/or training paraphernalia and for operational expenses for Bureau-conducted training.

Filipino predominance requirement

Section 8 provides that only citizens of the Philippines and associations or corporations with at least sixty percent (60%) of capital owned or controlled by citizens of the Philippines may engage in any business activity relating to the fishery industry.

Role of other government agencies

Section 9 requires all National Government departments, authorities, commissions, bureaus, agencies, offices, government-owned or controlled corporations, and local governments not directly involved as participating agencies of the Program to cooperate with the Council and implementing agencies.
These entities are authorized and directed to extend assistance, technical guidance, and facilities to the Council and implementing agencies, subject only to limits of their respective charters and resources.

Fisheries Industry Development Fund

Section 10 establishes a Fishery Industry Development Fund to finance development of the industry.
The Fund must be held in trust by the Central Bank of the Philippines and constituted from sources set under the Decree. (Section 10)
The Fund is funded by an annual lease rental and/or permit fee per hectare of fishpond, collected based on a schedule prescribed by the Bureau of Fisheries with Council approval. (Section 10)
The Fund is funded by an annual fee for commercial fishing boat license for vessels of more than three (3) gross tons, collected based on a schedule prescribed by the Bureau of Fisheries with Council approval; the fish caught fee under Act No. 4433, as amended, must not be imposed. (Section 10)
Public officials collecting revenues, rentals, charges, duties, and fees under this section must remit monthly collections directly to the Central Bank within fifteen (15) days of every succeeding month. (Section 10)
The Central Bank, as trustee, may invest the Fund, and investment proceeds form part of the Fund. (Section 10)
Section 10 provides that the Council has exclusive prerogative over disposition, allocation, and utilization of the Fund for purposes of the Decree.

Loans to the fishery industry

Section 11 provides that upon approval of the Fishery Industry Development Program, the Development Bank of the Philippines, Philippine National Bank, rural banks, Veterans Bank, and other government-owned or controlled lending or banking institutions shall make available loans to eligible borrowers as allowed by their charters, by-laws, and Central Bank policies. (Section 11)
Section 11 mandates that for medium and long-term lending, these institutions must:
- Grant loans for development of fishponds and acquisition of fishing boats including fishing paraphernalia; and
- Extend loans for production, handling, refrigerating plants and cold storage, processing and marketing; and
- Grant loans to leaseholders of public lands for fishpond development, with lease contract terms longer than the loan repayment period; and
- At the discretion of bank management/lending institutions, grant loans to holders of ordinary fishpond permits who offer additional collaterals; and
- Give preferential loans at concessionary interest rates during a period set by the Council for development of fish and fishery products, except special interest rates granted by GSIS and SSS to their members. (Section 11)
Eligible papers must be given preference in the Central Bank rediscounting policy, and the rediscounting rate must be the lowest preferential rate extended to private banks and the above government lending institutions. (Section 11)
All loans under this Program must be extended under supervised credit as prescribed under Republic Act No. 6390, or under project supervision. (Section 11)

Veterans fishery project funding

Section 12 provides that all projects of veterans and their qualified heirs within the Fishery Industry Development Program must be funded by the Philippine Veterans Bank.
Projects involving family size fishponds must be given priority in financing by the Philippine Veterans Bank.

Disposition and development of public lands

Section 13 provides that public lands already covered by lease agreements prior to effectivity shall not be sold.
Within two (2) years after effectivity, leased areas must be fully developed and producing in commercial scale; any remaining undeveloped portion automatically reverts to the public domain for disposition by the Bureau of Fisheries. (Section 13)
A lessee who fails to develop a remaining portion cannot re-apply for the reverted area or any public land under the Decree. (Section 13)
For public lands available for fishpond development and not yet leased prior to effectivity (including family size fishpond earmarks), leases may be granted only to qualified persons, associations, cooperatives, or corporations subject to these conditions:
- Fifty percent (50%) of the area must be developed and producing in commercial scale within three (3) years, and the remaining portion producing in commercial scale within five (5) years, beginning from lease contract execution; and
- All areas not developed and producing in commercial scale within five (5) years from execution automatically revert for disposition by the Bureau; and
- No portion of the leased area may be subleased. (Section 13)
Fishpond leasehold areas are limited as follows:
- For individuals: maximum of fifty (50) hectares based on productivity, distance to markets, and other technical factors; and
- For corporations: five hundred (500) hectares, with at least twenty-five percent (25%) of equity owned by persons other than members of one extended family.
- Corporations engaged in canning of fish and by-product utilization may lease one thousand (1,000) hectares. (Section 13)
All public lands leased after effectivity are exempt from the annual lease rental under Paragraph A of Section 11 for the first two (2) years from the date of lease execution. (Section 13)

Family size fishponds construction and loans

Section 14 directs the Bureau, subject to Council approval, to identify public lands subdivided into economic family size fishponds to accelerate fishpond development.
The area of each family size fishpond is determined by the Council with due consideration to fertility of the land. (Section 14)
Family size fishponds must be leased only according to these priorities:
- Landless and poor families living in the vicinity, town, and province where fishponds are located;
- Qualified graduates of fisheries schools; and
- Landless veterans.
Persons in these categories with at least one (1) year experience in fishpond operation receive preference. (Section 14)
Beneficiaries must form a seldA, cooperative or association for efficient management of operations.
Each beneficiary must be given a loan equivalent to PHP 5,000.00 per hectare without collateral under a Supervised Credit Scheme under terms and conditions prescribed by the Council. (Section 14)
Section 14 appropriates funding for family size fishpond construction and development:
- PHP 30,000,000 for each of the first two (2) fiscal years after passage; and
- PHP 20,000,000 every year for ten (10) years thereafter. (Section 14)

Fisher welfare, labor rules, and radio permits

Section 16 directs the Bureau to study and propose within the first year after effectivity measures to encourage Filipinos to operate fishing boats in international waters.
Fishing vessels of Philippine registry operating exclusively as fishing vessels in Philippine territorial waters of not less than ten (10) gross tons nor more than five hundred (500) gross tons must carry only one licensed navigator and one licensed engineer regardless of grade or rank.
Fishing vessels must be provided with adequate medical supplies and lifeboats determined by the Bureau of Fisheries; vessels of not less than twenty (20) gross tons must have in employ a registered nurse or a person qualified as a first aider, certified by a government physician. (Section 16)
Fishermen on board fishing vessels engaged in fishing operations are exempt from the Blue Sunday Law.
Membership under the Social Security Act is optional for fishermen but compulsory for other permanently employed employees of the industry. (Section 16)
Total working hours of a fisherman and employee on board a fishing vessel, whether continuous or broken, must not exceed eight (8) hours a day; work beyond that is overtime, and the navigator is responsible for keeping the overtime record. (Section 16)
Employees on fishing vessels capable of operating radio transceivers of not more than three hundred watts (300 watts) may operate such transceivers during fishing operations without prescribed examinations, after authorization by the Radio Control Board.
No franchise is required for radio transceivers of not more than three hundred watts (300 watts); the Radio Control Board must issue a permit to applicants for such transceivers.

Municipal or sustenance fishing financing

Section 17 provides that municipal or sustenance fishermen who are members of a cooperative may avail financing from the Agricultural Guarantee Loan Fund administered by the Central Bank/Rural Banks or from other sources under a supervised credit scheme.
The loan may cover acquisition and/or repair of bancas, engines, and fishing paraphernalia. (Section 17)

Administrative and criminal penalties

Section 18 makes any violation of any rule or regulation promulgated under the Decree, or any fishery law, rules, and regulations punishable by a fine of not more than PHP 5,000 or imprisonment of not more than five (5) years, or both, at the discretion of the Court.
Section 18 empowers the Director of Fisheries to impose an administrative fine of not more than PHP 1,000 or the cancellation of the permit or license (or both) at the Director’s discretion, for violations of rules or regulations promulgated under the Decree by any person, partnership, or corporation.
Section 18 empowers the Director, or duly authorized representatives and law enforcement agents, to impound the fishing vessel or boat, including dynamite and blasting caps and other explosives, tackle, apparel, furniture, and other apparatus used in illegal fishing, pending termination of the criminal case by competent courts.
Section 18 provides that unlawful obstruction or delay of inspection and/or movement of fish and fishery products when authorized under the Decree is punishable by a fine of not more than PHP 2,000 or imprisonment of not more than two (2) years, or both, at the discretion of the Court.

Auditor-general oversight, repeals, and separability

Section 15 makes the Auditor General the ex officio auditor of the Fisheries Industry Development Council and the Bureau of Fisheries.
Section 15 applies Section 584 of the Revised Administrative Code, as amended by Republic Act 2266, to the office of the Auditor General’s representative in the Council and Bureau, with appropriate appropriations paid out of income of the Bureau of Fisheries under automatically appropriated fund receipts and/or other income under the Decree.
Section 19 repeals or modifies all Acts, parts of Acts, executive orders, and regulations inconsistent with the Decree.
Section 20 declares separability: invalidity or unconstitutionality of any clause, sentence, provision, or section (or its application to any person or circumstance) does not affect the other provisions or applications that can still take effect.