New Copra Classification and Quality Standards

Section 1(a) requires all copra dealers, copra exporters, and oil millers, including their buying stations, to comply with the moisture-based premia and discounts.
Compliance under Section 1(a) is required effective November 2, 1990.
The moisture-based premia and discounts are made an integral part of PCA Administrative Order No. 01.

Section 2(a) requires that a copra delivery should not have mold infection exceeding ten percent (10%).
Section 2(a) mandates rejection of any copra delivery with molds exceeding ten percent (10%).
Section 2(a) requires a copra dealer who rejects a delivery to advise the nearest oil miller or copra exporter within twenty-four (24) working hours to warn against buying the rejected poor quality copra.
Section 2(a) requires an oil miller or copra exporter who rejects a delivery to advise the nearest copra buyer (oil-miller, copra exporter, or copra dealer) using the same rejection-warning obligation.

Section 3(a) requires that any copra delivery containing copra goma must be discounted based on the extent of presence.
Section 3(a) provides the following goma discount penalties: 10% → 1.5%, 15% → 2.30%, 20% → 3.00%, and more than 20% → Rejected.
Section 3(a) treats “More than 20%” copra goma as a rejected condition.

Section 4(a) requires that any copra delivery containing dust, dirt, or other matters must be discounted.
Section 4(a) imposes the discount rate at one percent (1%) for every one percent (1%) of dust/foreign matter.
Section 4(a) requires that the weight determination of dust/foreign matter is subject to mutual agreement of buyer and seller.

Section 1(a) incorporates the Table of Premia and Discounts At Various Copra Moisture Contents as the operative standard for classification.
The Table provides premium (%) and discount (%) based on the copra moisture percentage.
For moisture 7.0 and below, the table provides a premium of 5.5 and lists multiple discount values for moisture above specific ranges.
For moisture 10.9, the table provides a discount of 1.6; for moisture 14.0, it provides a discount of 4.0.
The table provides that moisture Above 14.0 results in Reject.

Section 5(a) requires oil millers, copra exporters, and their buying stations to finish informing copra dealers with copies of the Administrative Order during August 1, 1990 to October 31, 1990.
Section 5(a) requires all oil millers and copra exporters to post copies of the Administrative Order in conspicuous places in English and in dialect translation effective November 2, 1990.
Section 5(a) requires all copra dealers, during the same period, to inform their sellers (farmers or other small dealers) of the detailed provisions of the Administrative Order.
Section 5(a) requires PCA regional officers and extension workers to conduct the same information campaign for the guidance of all copra producers.

Section 6(a) authorizes the Authority to impose any or all of the following sanctions for violations of the Rules:
- Non-processing of application for export and/or non-issuance of export clearance and/or permit to load;
- Cancellation/suspension of the Certificate of Registration.
Section 6(a) provides that, in addition to administrative sanctions, the responsible person or entity is punishable upon conviction by:
- a fine of not more than twenty thousand pesos (P20,000.00); and
- imprisonment of not more than five (5) years.
Section 6(a) provides that if the offender is a corporation, partnership, or juridical person, the penalty is imposed on the officer authorizing, permitting, or tolerating the violation.
Section 6(a) provides that an alien found guilty is immediately deported after serving the sentence, and that for a naturalized citizen, the certificate of naturalization is cancelled.

Section 7(a) repeals or modifies any orders, rules, and regulations inconsistent with the Administrative Order’s provisions.
Section 8(a) provides that except for Section 5, the Administrative Order takes effect on November 2, 1990.
Section 5 operates during the campaign period from August 1, 1990 to October 31, 1990 in preparation for the November 2, 1990 compliance effect.