Restriction on Rice and Corn Industry to Filipinos

Scope and coverage definition

Section 1 covers “any person” and “any association, partnership or corporation” within the rice and/or corn industry limits based on citizenship and ownership requirements.
Section 1 covers all stages named in the definition: culture, milling, warehousing, transport, exportation, importation, handling, and distribution (wholesale or retail), plus acquisition for trade of rice/corn and by-products.
Section 1 recognizes a lawful exception for transporting by properly licensed public utilities.

Transitional registration within sixty days

Section 2 requires that within sixty days from approval of the Act, all non-citizens, and all associations/partnerships/corporations not wholly Filipino-owned, engaged and duly licensed in the rice and/or corn industry as of approval must register and file.
Section 2 requires filing with the city or municipal treasurer of the place where the entity resides or has its principal office, a verified statement in quadruplicate.
Section 2 requires the verified statement to contain: names, addresses, and nationality of owners/partners/stockholders; amount of assets; nature and amount of investments; names of principal officials; and other related matters as may be prescribed by the Secretary of Finance.
Section 2 requires that copies of the statement be sent to the provincial treasurer and the Secretary of Finance.

Limited continued operations for aliens

Section 3 allows alien persons/entities that complied with Section 2 to continue only for liquidation purposes, upon application, within specific time limits.
Section 3(a) allows retail, wholesale, culture, transportation, handling, distribution, or acquisition for trade of rice and/or corn and by-products to continue for two years from the date of effectivity of the Act.
Section 3(b) allows milling and/or warehousing to continue for three years from the date of effectivity of the Act.
Section 3 provides that after the termination of the above periods, none of the alien persons/entities shall be allowed and granted a license to engage in the rice and/or corn industry.
Section 3 pegs the maximum amount of capital investments of the alien persons/entities to the amount of capital investments required to be declared under Section 2.
Section 3 prohibits after the date of approval of the Act the granting of any license to any new alien applicant in any field of activity in the rice and/or corn industry.
Section 3 requires forfeiture of the license of an alien for any violation of any laws, rules, or regulations issued pursuant to laws on economic control, nationalization, monetary, foreign exchange, taxation, health, weights and measures, labor, and other laws relating to trade, commerce, and industry.

Licensing renewal bars as voluntary retirement

Section 3 provides that failure of an alien to renew a license for any year within the periods above-provided means voluntary retirement.
Section 3 provides that such failure bars renewal thereafter.

Credit support for Filipinos

Section 4 directs the Development Bank of the Philippines to set aside an adequate revolving fund for loans of at least fifty million pesos for Filipinos, with interest of not more than seven per cent per annum, against secured collaterals for milling, processing, warehousing, and marketing of rice and/or corn.
Section 4 allows rice mills or warehouses, after evaluation by lending banks, to be included and allowed as collateral for corresponding loans to Filipinos who wish to construct or purchase rice mills or warehouses.
Section 4 requires the Philippine National Bank to set aside a similar adequate revolving loan fund of at least fifty million pesos for cultivation and production (including crop loans) and quedans for Filipinos, with interest of not more than six per cent per annum, against secured collaterals.
Section 4 requires the Central Bank to rediscount commercial papers covering the loans at the lowest possible rate to maintain financial assistance to the rice and/or corn industry.
Section 4 mandates priority in the grant of such loans for FaCoMas and other cooperatives, individual farmers, small landowners, and tenants engaged in production of palay, rice, and/or corn.
Section 4 permits producers or planters of rice and/or corn to organize, regardless of any contrary law, even if there is no existing FaCoMas or farmers cooperative association in their places of business.
Section 4 entitles duly organized producer/planter associations to credit facilities from the Development Bank of the Philippines and the Philippine National Bank.
Section 4 excludes those associations from credit facilities provided for in Republic Act Numbered Eight hundred and twenty-one.
Section 4 authorizes in areas where established FaCoMas cannot efficiently or fully handle the volume of production and/or marketing, as certified by the Agricultural Credit and Cooperative Financing Administration, the organization of another FaCoMas, which must be entitled to all rights and privileges under Republic Act Numbered Eight hundred twenty-one.

Establishment and composition of Rice and Corn Board

Section 5 creates a board known as the Rice and Corn Board to administer the Act and to study and recommend measures for improvement and development of the rice and corn industry.
Section 5 sets its membership as: the Secretary of Commerce and Industry (chairman), the Secretary of Agriculture and Natural Resources (vice-chairman), the Governor of the Central Bank, the President of the Philippine National Bank, the Chairman of the Development Bank of the Philippines.
Section 5 adds members from specified sectors: one representative of millers and warehousemen, two representatives of planters or producers, one representative of retailers and wholesalers, one representative of consumers cooperatives, and one representative of labor.
Section 5 provides that private sector representatives are appointed by the President of the Philippines with the consent of the Commission on Appointments.
Section 5 provides that the Chairman, Vice-Chairman, and members receive a per diem of twenty-five pesos for every meeting attended.
Section 5 provides that the Board may have necessary personnel whose compensation is fixed by the Board.

Board rules, publicity, and publication

Section 6 requires that within thirty days from approval, the Rice and Corn Board issue rules and regulations necessary to carry out the Act.
Section 6 provides that the rules and regulations take effect fifteen days after their publication in a newspaper of general circulation printed in Manila.
Section 6 requires translation of the Act and the rules and regulations into dialects spoken in different regions.
Section 6 requires wide publicity in provinces, towns, and rural areas.

Criminal penalties and administrative consequences

Section 7 punishes violations of the Act or its rules and regulations with imprisonment of not less than five years nor more than ten years and a fine of not less than five thousand pesos nor more than ten thousand pesos, with immediate deportation after service of the sentence.
Section 7 provides corporate/association liability: for violations committed by a corporation or association, the President and each director or manager who knowingly permitted or failed to prevent the violation are held liable as principals.
Section 7 imposes the penalty on a Filipino citizen who allows himself to be used as a dummy in violation of the Act.
Section 7 provides that for a naturalized citizen, in addition to the imprisonment and fine, there is cancellation of the naturalization certificate and its registration in the civil registry, plus deportation.
Section 7 provides that if the offender is a public officer or employee, in addition to imprisonment and fine, the offender is dismissed from office and perpetually disqualified from holding any public office.

Rights under US treaties preserved

Section 8 provides that the Act does not impair or abridge whatever rights citizens or juridical entities of the United States of America have under existing treaties or agreements with the Republic of the Philippines.

Appropriation for Board operations

Section 9 appropriates five hundred thousand pesos for the operation and maintenance of the Rice and Corn Board out of any National Treasury funds not otherwise appropriated.
Section 9 requires the sum to be placed at the Board’s disposal upon approval of this Act.

Repeal and effectivity

Section 10 repeals all laws or parts of laws inconsistent with the Act.
Section 11 provides that, except for provisions with specifically stated effectivity, the Act takes effect January 1, 1961.
Republic Act No. 3018 was approved August 2, 1960.