Salt Manufacturers Licensing Rules

Legal basis and policy under RA 8172

Republic Act No. 8172 requires nationwide salt iodization and related purposes, and BFAD Administrative Order No. 14, s. 1999 is promulgated in support of RA 8172.
Section 4 of RA 8172 defines a salt manufacturer as one who produces, imports, trades in and distributes salt.
BFAD Administrative Order No. 14, s. 1999 governs the licensing of salt manufacturers for quality assurance and compliance with iodization and safety standards implemented through licensing.

Covered salt manufacturers and categories

Salt manufacturers are classified by production/import/trade/distribution volume per year.
A large manufacturer/producer is one who produces, imports, trades in or distributes salt exceeding two thousand metric tons (2000 MT) per year.
A medium manufacturer/producer is one who produces, imports, trades in or distributes salt ranging from more than three hundred metric tons (300 MT) to not more than two thousand metric tons (2000 MT) per year.
A small manufacturer/producer is one who produces, imports, trades in or distributes salt ranging from more than two metric tons (2 MT) to three hundred metric tons (300 MT) per year.
A subsistence producer/manufacturer is one who produces, trades in or distributes salt not exceeding two metric tons (2MT) of salt per year.

Scope of licensing and who must apply

Any person desiring to produce, trade, import, distribute salt must file an application with BFAD to obtain a license to operate (LTO).
Entities applying for an LTO as salt manufacturer (producer/trader/importer/distributor) must demonstrate capacity to perform adequate operations in a manner that assures the quality of salt.
Importers must comply with additional documentary requirements for supplier/importer arrangements and, where applicable, importer–local distributor arrangements.

Licensing to operate: application requirements

An application to produce, trade, import, or distribute salt must be filed with BFAD and supported by required documents.
The application must use an Application Form/Standard Petition Form that includes the name, age, address, citizenship and a passport size picture of the applicant.
The applicant must submit proof of establishment registration, consisting of authenticated copies of the applicable permits/certificates:
- A Mayor’s Permit issued by the Municipal Officer where the salt establishment is located (authenticated photocopy).
- For single proprietorship: a Certificate of Business name Registration issued by the Bureau of Domestic Trade (BTI) of the Department of Trade and Industry (authenticated photocopy).
- For partnership and corporation: a Certificate of Registration and Article of Incorporation issued by the Securities and Exchange Commission (SEC).
The applicant must submit:
- A copy of warehouse address with location map.
- A floor plan of the manufacturing plant with dimension in meters.
- The type of salt to be manufactured/processed/distributed, including brand names.
- A Certificate of Analysis of finished product in accordance with prescribed standard.
For importers, the applicant must submit notarized documents indicating terms of agreement:
- Terms between supplier and importer, or
- If the importer is not the local distributor, terms between importer and local distributor.
The applicant must submit an affidavit of understanding stating that the applicant will:
- Change the establishment’s name if there is already a valid registered name similar to it.
- Display the duly approved LTO in a conspicuous place within the establishment.
- Notify BFAD in case of any change.
The application must include a contingency plan or procedure for a systematic, effective and prompt recall when the product is found violative and is ordered recalled from the market by BFAD.

Licensing to operate: capability standards and review

Applicants must conform to minimum standards that assure the quality of salt, with Salt Standards provided as Annex 1.
BFAD may require other additional documentation or evidence during evaluation to satisfactorily ascertain the applicant’s capability to manufacture quality salt.

Renewal of license to operate

Every LTO applies for the following validities by category (initial and subsequent periods):
- Initial Period (Initial Application): 2 (two) years.
- Subsequent Period (Renewal Application): 2 (two) years.
Renewal must be filed at least one month prior to the expiration of the LTO.
Renewal requires compliance with the set standards and requirements.
Failure to comply with BFAD requirements and standards is the basis for non-renewal of LTO.

Administrative sanctions and revocation

Salt manufacturers that fail to register/apply for an LTO are not allowed to distribute, trade or sell their salt in the market/food industry.
BFAD revokes an LTO on the following grounds:
- Non-compliance to BFAD requirements and standards.
- Misrepresentation of any material fact in the application/petition form and in any documentation used as a basis for issuing the LTO.
- Any deficiency in Good manufacturing practice likely to result in contamination of raw materials and finished product, including:
  - Improperly stored litter, waste, refuse that may be a breeding place or harborage for rodents and insects.
  - Excessively dusty roads/areas that may constitute a source of contamination where salt is exposed.
  - Inadequately drained areas contributing to salt seepage that provide a breeding place for insects or pathogenic micro-organisms.
A salt manufacturer whose LTO was revoked may not apply for an LTO within 5 years after the revocation.

Schedule of fees

A filing fee of PHP 50.00 is required upon submission of complete documents.
The LTO fee is set for a term of 1 year, as follows:
- For Local salt manufacturers:
  - PHP 1,000.00 for large and medium manufacturer.
  - PHP 500.00 for small manufacturer.
  - PHP 200.00 for subsistence manufacturer.
- For salt importers: PHP 1,000.00.

Salt standards used for licensing

The salt’s purity requirements include the following maximums and minimums:
- Moisture max.
  - 40% for refines salt.
  - 7% for unrefined salt.
- NaCl min. on a dry basis: 97%.
- Calcium and magnesium max.: 2%.
- Water insolubles max.: 0.2%.
- Heavy metal contaminants max:
  - Arsenic as As: 0.5 mg/kg.
  - Cadmium as Cd: 0.5 mg/kg.
  - Lead as Pb: 2.0 mg/kg.
  - Mercury as Hg: 0.1 mg/kg.
Salt may contain natural secondary products present in varying amounts depending on origin and methods of production, composed mainly of calcium, potassium, and magnesium chlorides.
Iodine levels must meet the following ranges by production and retail conditions:
- Locally Produced Salt
  - Production Site: 70–150 mg/kg for bulk (>2kg) and 60–100 mg/kg for production site retail site bulk? (as stated by the ranges applied in the schedule)
  - Retail Site: >50 mg/kg for bulk (>2kg) and >40 mg/kg for retail (<2kg).
- Imported Salt
  - Production site: 7C–150 mg/kg for bulk (>2kg) and 60–100 mg/kg for retail (<2kg).