Seed Industry Development Act of 1992

State policy and purposes

Section 2 declares the State policy to promote and accelerate the development of the seed industry, with the Government to:
- Conserve, preserve and develop the plant genetic resources of the nation.
- Encourage and hasten the organization of all sectors engaged in the industry, integrate their activities, and provide assistance.
- Consider the seed industry as a preferred area of investment.
- Encourage the private sector to engage in seed research and development and in mass production and distribution of good quality seeds.
- Provide local seed industry protection against unfair competition from imported seeds.
Section 2 directs Government action toward plant genetic resource conservation, seed industry organization, investment promotion, private sector participation, and protection against unfair import competition.

Core definitions established

Section 3 defines “Seed” as plant material used for the production of food, forage, fibers, industrial crops, oil, flowers, grasses, herbs and aquatic plants, including but not limited to meristem and clonal propagules such as tubers, corms, cuttings, and micro-propagated plantlets.
Section 3 defines “Seed lot” as a definite quantity of seeds identified by a lot number or other identification marks, or every portion of the bag or any container, whose contents uniformly represent the factors appearing in the label within allowable tolerance.
Section 3 defines seed categories:
- “Breeder Seed” as a seed directly controlled by the originating or sponsoring plant breeder/institution providing the source for the initial and recurring increase of foundation seeds.
- “Foundation Seed” as progeny of breeder seeds so handled as to maintain a minimum acceptable level of genetic purity and identity.
- “Registered Seed” as progeny of foundation seeds so handled as to maintain satisfactory genetic identity and purity.
Section 3 defines seed-industry and quality system concepts:
- “Seed Industry” as the chain of activities undertaken by individuals, associations, cooperatives, corporations or firms, academic institutions, and public agricultural research institutes in production, processing, testing, handling, grading, storage, distribution, and marketing of seeds for agricultural production with economic benefits.
- “Seed Testing” as accurate and prompt analysis of a seed sample based on methodologies prescribed by the Council to determine quality.
- “Seed Certification” as a system of seed production geared toward maintaining genetic identity, varietal purity, and standards of quality.
- “Quality Control” as a systematic approach to determine, achieve, and maintain desired standards of seed quality.
- “Seed Sample” as a quantity drawn from seed lots in accordance with sampling rules to be promulgated under the Act, properly identified, labeled, and submitted for seed testing.
- “Label” as any written, printed or graphic presentation on the seed container giving information required in rules and regulations.
- “Seed Dealer/Trader/Merchant” as any person, firm, agency, cooperative, or corporation engaged in processing and/or marketing of seeds.
- “Seed Grower/Producer” as any person (natural or juridical) engaged in the production, processing and/or marketing of seeds.
- “Seed control” as regulation of seed marketing through registration of seed merchants/dealers, compulsory labeling, and establishment of minimum standards of seed quality.

National Seed Industry Council structure

Section 4 creates the National Seed Industry Council, referred to as the “Council,” to replace the existing Philippine Seed Board.
Section 4 provides the Council composition:
- Secretary, Department of Agriculture — Chairman
- Director, Bureau of Plant Industry — Vice Chairman and Executive Director
- Dean, College of Agriculture, University of the Philippines at Los BaA AA12os, Laguna — Member
- Director, Institute of Plant Breeding — Member
- Crop Research Director, Philippine Council for Agriculture Forestry and Natural Resources Research and Development — Member
- Director, Philippine Rice Research Institute — Member
- Two (2) representatives from accredited farmers’ organizations
- One (1) representative from the seed industry
Section 4 requires that members representing private sectors shall serve in ex officio capacity and are nominated by their sectors/associations and appointed by the Secretary of Agriculture.
Section 4 limits Council membership to Philippine citizens only.
Section 4 sets term rules: appointed private-sector representatives serve three (3) years, and a successor serves only the unexpired portion of the predecessor’s term in case of vacancy.

Council powers, meetings, and officers

Section 5 grants the Council duties, powers, and functions to:
- Formulate policies that stimulate plant breeding activities for developing the genetic resources of the country under the Act.
- Encourage adoption of practices that improve the quality of seeds for distribution to farmers by persons and entities engaged in conservation, varietal development, production and processing, quality control, storage, marketing, and distribution.
- Promote establishment of infrastructures and other support services in priority areas for seed industry development.
- Formulate a comprehensive medium and long-term national seed industry development program to achieve self-sufficiency in high-quality seed supply.
- Grant awards, subsidies and other assistance to seed or plant breeders developing outstanding varieties or cultivars.
- Promulgate rules and regulations to implement the Act.
Section 6 requires the Council to hold regular quarterly meetings and allows special meetings upon call of the Chairman or upon written request of at least three (3) members.
Section 6 provides quorum as five (5) members.
Section 6 states that Council members do not receive compensation, but are entitled to per diems and travel allowances determined by the Council for each meeting attendance.
Section 7 assigns the Chairman duties to:
- Preside over Council meetings.
- Supervise operations and administration of the Council.
- Exercise other functions vested by the Council.
Section 8 assigns the Executive Director duties to:
- Execute, direct, and implement Council policies, regulations, and resolutions.
- Assist administration, management, and supervision of Council functional activities.
- Coordinate, monitor, and evaluate the seed program of different government agencies.
- Administer and manage the Council’s budgetary appropriations and financial disbursements.
- Supervise the Council Secretariat and maintain official records, files, and proceedings.

Secretariat, technical functions, and seed quality services

Section 9 creates the Council Secretariat to provide necessary administrative and support services under direction and supervision of the Executive Director.
Section 9 requires Secretariat personnel to be appointed and compensated based on Civil Service rules and regulations, with compensation fixed by the Chairman upon the Executive Director’s recommendation.
Section 10 creates a Technical Secretariat under the Council to assume the functions of the existing Philippine Seed Board Technical Working Groups.
Section 10 requires the Technical Secretariat to establish seed standards and formulate systems and procedures for varietal identification, evaluation, nomination, review, and approval for:
- Registration
- Commercial release
- Discontinuation of crop cultivars or varieties in the National Agricultural Crop Production and Development Program.
Section 11 establishes the National Seed Quality Control Services (“Services”) in the Bureau of Plant Industry and grants it control and supervision over:
- Field inspection and control services
- Seed testing laboratories necessary to ensure attainment of the Act’s purposes.
Section 11 transfers to the Services:
- All personnel, funds and equipment of the existing Seed Certification Section of the Bureau of Plant Industry
- The seed quality control services and the field inspection services of the Department of Agriculture.
Section 12 requires the Services to:
- Formulate plans and programs on seed quality control activities, including seed testing, plant/seed material certification, and other quality control schemes.
- Sample and conduct seed analysis and issue reports for locally produced and imported seeds within the Act’s purview.
- Conduct field inspections of seed crops, seed storage and processing facilities, and issue inspection reports within the Act’s purview.
- Perform related functions including seed research and seed technology training for its clientele.
- Collect reasonable fees for seed testing, inspection of crop fields and facilities, and issuance of permits and licenses relating to Services activities.
- Supervise and coordinate official seed testing laboratories in regions and provincial satellite laboratories and seed certification across provinces and sub-provinces.
- Accredit private seed testing laboratories.
- Perform other functions the Council directs.
Section 13 requires the Council to adopt a Seed Industry Development Program (“Program”) within ninety (90) days after the Council is constituted, to be implemented by its constituent agencies.

Seed industry program implementation and incentives

Section 13 directs establishment of a network of seed centers called the National Seed Network at the Bureau of Plant Industry and major agricultural colleges and universities to produce sufficient quantities of breeder, foundation, and registered seeds of all government-developed varieties.
Section 13 assigns implementation roles:
- Department of Agriculture directs and coordinates component agencies to accelerate seed industry development.
- Bureau of Plant Industry directly handles production, distribution, regulation of breeder, foundation and registered seeds, and implementation including management of existing research stations and seed farms, seed testing laboratories, and certification services under a self-reliant management scheme.
- University of the Philippines at Los BaA AA12os provides leadership in plant biotechnology related to plant improvement, genetic resources conservation, and in vitro mass production of planting materials through the Institute of Plant Breeding (IPB).
- Philippine Rice Research Institute (PHILRICE) develops rice varieties suited to Philippine conditions, propagates them into breeder, foundation, and registered seeds, and provides technical assistance for farm-level utilization.
- Board of Investments (BOI) promulgates necessary rules for seed industry development as a preferred area of investment.
- The private sector directs collective efforts toward increased coordination with government agencies, while farmers’ organizations actively participate in conserving plant genetic resources.
Section 14 allows private sector incentives to develop the local seed industry, including technical assistance from Government (including training in seed technology and seeds and results of basic research studies) for:
- Individuals, farmers’ organizations, cooperatives, and corporations wholly owned by Filipinos.
Section 14 exempts technical equipment used in seed processing, sowing, meristem culture, storage, and quality testing by individuals, farmers’ organizations, cooperatives, and corporations wholly owned by Filipinos from duties and taxes during the first five (5) years of operation, subject to conditions that:
- The equipment is not manufactured domestically in sufficient quantity of comparable quality and at reasonable prices.
- The equipment is reasonably needed and used exclusively by the importer.
- Approval of the Council is obtained prior to importation.
- If the importer transfers, sells, or disposes of the equipment within five (5) years from acquisition without prior Council approval, the importer is solidarily liable with the transferee to pay double the tax exemption given.
- The Council may permit transfer, sale or disposition within five (5) years when made to another person/entity enjoying similar incentives, for proven technical obsolescence, or for replacement to improve/expand the importer’s operations.
Section 14 bars eligibility for the same incentive under the Omnibus Investments Code of 1987 for the importer for whom the equipment tax exemption applies.
Section 14 provides cooperatives organized and registered under Republic Act No. 6938 are covered by Articles 61, 62, and 63 of Republic Act No. 6938 pertaining to tax exemption privileges of cooperatives.
Section 14 grants a deduction incentive: expenses for research, development and extension of private Filipino seed producers enjoy a two hundred percent (200%) deduction from gross income for the first five (5) years of operation under rules and regulations to be promulgated by the Department of Finance within ninety (90) days from effectivity of the Act.

Restrictions on importation and exportation

Section 15 prohibits:
- Importation in commercial quantities of species of seeds produced locally, except seeds difficult to grow under ordinary conditions or when allowed by the Council.
- Exportation of rare species, varieties, lines and strains of plants from the country except for scientific or international exchange purposes determined by the Council.
- Such other activities as the Council may deem fit to prohibit.

Council funding and appropriations

Section 16 creates a special fund known as the Seed Fund sourced from:
- Five million pesos (P5,000,000.00) appropriated from National Treasury funds not otherwise appropriated.
- The existing Seed Fund.
- Revenues from sale of certified seeds and plant materials, including income from products of research stations and seed farms; seed processing and testing fees; field inspection fees; seed export and import fees; license fees; fees for issuance of permits to seed growers/producers; and fines collected for violations of the Act.
- Donations from private or government agencies, domestic or foreign.
Section 16 requires the Seed Fund to be held in trust by the Bureau of Plant Industry.
Section 16 provides that allocation, utilization, and disposition of the Seed Fund are by and under the authority of the Council.
Section 17 authorizes appropriation for necessary implementation through the General Appropriations Act of the year following enactment and thereafter.

Search, seizure, hearing, and condemnation

Section 18 authorizes the Executive Director to search and seize seed lots labeled, identified or imported in violation of the Act to carry out its provisions.
Section 18 requires a search warrant from the proper court and service/enforcement with assistance of the Philippine National Police (PNP) or the National Bureau of Investigation.
Section 18 allows the Executive Director, after due hearing, to order condemnation of unlawful seed lots deemed suitable for condemnation, through designated representatives.
Section 18 requires condemned seed lots to be processed, relabeled, or otherwise disposed of as the Executive Director may deem appropriate.
Section 18 bars condemnation without giving the claimant an opportunity to apply for release of the seed lot or permission to process it in compliance with the Act, subject to payment of just compensation in the proper case.

Penalties and enforcement

Section 19 imposes criminal penalties for violations of the Act or its implementing rules and regulations.
Section 19 provides that, upon conviction, the penalty for any person, firm, or association is:
- A fine of not more than Ten thousand pesos (P10,000.00), and/or
- Imprisonment of not more than five (5) years, in the discretion of the Court.
Section 19 provides that for a firm or association, imprisonment is imposed on the officer(s) who knowingly participated, abetted, or consented to the punishable acts.

Implementing rules; repeals and separability

Section 20 requires the Council to promulgate necessary rules and regulations within ninety (90) days from the Act’s effectivity.
Section 21 repeals, supersedes, or modifies all existing laws, rules and regulations or parts inconsistent with the Act.
Section 21 preserves the Local Government Code: nothing in the Act amends, modifies, or repeals Republic Act No. 7160.
Section 22 provides separability: if any part, section, or provision is held invalid or unconstitutional, the rest of the Act remains unaffected.