Title
NFA Shipping Permit Rule for Rice/Corn Transport
Law
Nfa Letter Circular No. Ao-99-09-001
Decision Date
Sep 9, 1999
The National Food Authority mandates that all shippers of rice and corn transporting 15 metric tons or more by water must secure a shipping permit to monitor stock movements and prevent illegal trading, with penalties for non-compliance including fines and imprisonment.

Law Summary

Requirement for NFA Shipping Permit

  • Any shipment of rice, corn, or their by-products transported by water that meets or exceeds 15 metric tons (300 bags at 50 kg net) requires an NFA Shipping Permit.
  • Shipments of foreign origin require a permit for volumes of 5 metric tons (100 bags at 50 kg net) or more.
  • Applications for the permit must be submitted to the nearest NFA office in triplicate using the prescribed form.
  • The term "water transport" includes vessels, boats, barges, and other watercraft, including ferry vessels carrying trucks loaded with the commodities.

Licensing Requirements for Shippers and Consignees

  • Both shippers and consignees must hold valid NFA licenses as wholesalers or transporters.
  • For imported rice/corn, shippers must be licensed importers with an NFA Import Permit.
  • Non-importer shippers must provide documentary evidence such as invoices and corresponding NFA licenses from the sellers/importers.

Documentation and Compliance at Consignee Level

  • Consignees must present Sales Invoices and appropriate NFA licenses upon receipt of shipments.
  • Failure to produce authentic and valid documents may result in seizure, detention, and eventual confiscation of stocks by NFA or other enforcement agencies.

Packaging and Quality Standards

  • Shipments must comply with Philippine Grain Standards for Rice and Corn (L/C No. AO-97-08-001).
  • Shippers must submit samples of empty sacks (polypropylene or polyethylene) for NFA inspection before issuance of the Shipping Permit.

Issuance and Validity of NFA Shipping Permit

  • The NFA Shipping Permit is valid for 15 calendar days from the date of issue.
  • The permit is issued per shipment/transaction in four copies and signed by regional or provincial NFA authorities or their representatives.
  • Successive shipments by the same shipper may secure permits in advance if shipment details are known.

Reporting Obligations of Consignees

  • Consignees must submit a triplicate report to the NFA Provincial office where goods are unloaded within 24 hours of receipt.

Inspection and Monitoring

  • NFA Provincial Offices may conduct random inspections at warehouses, ports of loading, or ports of discharge.
  • A fee of One Hundred Pesos (P100.00) is required per permit for administrative, inspection, and monitoring costs.

Penalties for Non-compliance

  • Violators face imprisonment of not less than six months to not more than one year, or fines ranging from One Thousand (P1,000.00) to Four Thousand Pesos (P4,000.00), or both, at the court's discretion.
  • Non-compliance does not amount to a higher offense under P.D. 4.
  • Administrative penalties include suspension or cancellation of NFA licenses, with possible issuance of cease and desist orders pending case resolution.
  • In cases involving corporations, partners, or associations, penalties apply to responsible officials such as the President, Directors, Managers, or Managing Partners.

Effectivity and Supersession

  • This regulation supersedes NFA Letter Circular No. A.O. 99-02-001 dated February 9, 1999.
  • It takes effect fifteen (15) days after publication in a newspaper of general circulation and filing with the University of the Philippines Law Center.

Forms and Procedural Details

  • All required forms for application and reporting are available at the nearest NFA office.
  • The shipping process must comply strictly with the documentation and procedural rules to avoid enforcement actions.

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