Authority and Role of Price Stabilization Corporation (PRISCO)
- Republic Act No. 657 (Cassava Flour Law) authorizes PRISCO to regulate imports of wheat flour.
- PRISCO requires importers to buy cassava flour in proportion to wheat flour imports, not exceeding 30% by weight.
- Importers must sell cassava flour and wheat flour in the same proportions.
Impact of Expiration of Republic Act No. 650
- The expiration of the Import Control Law (RA No. 650) affected PRISCO’s ability to enforce RA No. 657.
Certification Requirements for Wheat Flour Importers
- Importers seeking dollar allocation from the Central Bank for wheat flour imports must secure certification from PRISCO.
- This certification confirms purchase or contract to purchase cassava flour in a prescribed percentage (up to 30%) relative to wheat flour imported.
- Importers cannot sell wheat flour without buyers purchasing the corresponding cassava flour ratio.
Service Fee and Use of Funds by PRISCO
- PRISCO may collect a service fee of 0.5% of the face value of cassava flour certified.
- The fee covers certification, regulation, and supervision expenses.
- Unused funds are allocated to surveys, research, promotion, publicity, and development of the cassava industry.
- No other fees are allowed.
Confidentiality and Transparency Measures
- The Central Bank must provide PRISCO a confidential list of dollar allocations for wheat flour importers.
- This information is confidential and not disclosed publicly or to individual importers.
Penalties for Non-Compliance
- Importers who refuse, avoid, or fail to comply with the cassava flour purchase and sales requirements face penalties under RA No. 657.
Repeal and Modification of Inconsistent Orders
- All conflicting executive orders, administrative orders, and proclamations are repealed or modified to conform with this Order.