Declaration of Policy
- Promote rural development through agricultural productivity and efficient use of resources.
- Support salt industry revitalization to achieve self-sufficiency and net export.
- Preserve and rehabilitate the natural environment.
Definitions
- Artisanal salt: unrefined salt from sea using traditional methods.
- Salt farms: land/coastal areas used for salt production, classified as individual (≤50 ha) or corporate/cooperative (≤250 ha).
- Salt producers classified by volume: subsistence (≤2 MT), small (>2 to 300 MT), medium (>300 to 2000 MT), large (>2000 MT).
- Salt production methods include solar evaporation, cooking.
Philippine Salt Industry Development Roadmap (Salt Roadmap)
- Formulate programs for salt industry development including production, marketing, research, and commercialization.
- Mandate alignment with salt iodization law (RA No. 8172).
- Objectives: increase production/self-sufficiency, expand farming areas, promote sustainability and investment, enhance market access, support R&D, provide training.
Creation of Philippine Salt Industry Development Council (Salt Council)
- Chair: DA Secretary; Vice-Chair: DTI Secretary.
- Members from BFAR, DENR, DOST, DOH, DOT, DPWH, DOLE, CDA, NFRDI, local government leagues, private sector, and salt cooperatives.
- One-third quorum requirement.
Functions of the Salt Council
- Develop and update five-year Salt Roadmap.
- Identify and fund priority programs and projects.
- Facilitate mechanization and financing.
- Promote increased production, capacity building, research, market linkage, insurance.
- Report annually to President and Congress.
- Issue implementing rules and regulations.
Creation of Program Management Office (PMO)
- Under BFAR, oversee implementation and monitoring of the Development Plan.
- Serve as secretariat for the Salt Council.
Classification and Tax Exemptions
- Salt (processed/unprocessed) classified as aquatic resource product.
- Exempt from all taxes.
Land Mapping and Use for Salt Production
- DENR and BFAR to map and designate public lands suitable for salt production within 60 days.
- Priority areas include multiple coastal provinces.
- DENR to transfer mapped public lands to BFAR within 90 days.
- BFAR to allocate lands to qualified producers with Salt Production Tenurial Instrument (SPTI).
- SPTI issuance procedure and qualifications specified.
- Lease limits: individuals 50 ha, corporations/cooperatives 250 ha.
Utilization of Existing Fishpond Lease Agreements
- FLAs may include salt production.
- Amend FLAs accordingly for salt production use, valid for 25 years.
Registration and Control of Salt Producers
- Mandatory registration with BFAR.
- Separate FDA jurisdiction over food-grade salt.
- Specific document and operational requirements depending on type of producer.
- Registration valid for 3 years with appeal process for denial.
Support for Salt Farm Development
- BFAR to provide technical and material assistance to salt farms and cooperatives.
- Funded from tariff collections on imported salt.
- Development of salt industry program institutionalized in BFAR regular budget.
Infrastructure Development
- Construction of "Daan Asinan" roads linking salt farms to markets.
- DPWH to undertake road construction and maintenance coordinated with DA-BFAR and LGUs.
Research and Extension Services
- DA-NFRDI and DA-PhilMech to develop and promote salt production technologies.
- BFAR, DTI, DOST, DOLE, TESDA to provide training and capacity building.
Corps of Salt Production Trainers
- Formed from BFAR personnel, SUCs, ATI, and practitioners.
- Provide support for establishing salt farms nationwide.
Salt Farmers Cooperatives and Associations
- CDA to assist cooperatives organization, financial literacy, and capability building.
Trade and Export Assistance
- DTI and DA to support salt producers with financing, marketing, trade fairs, and export assistance.
- Locally produced salt given preference in government purchases.
Role of Local Government Units
- Establish Local Salt Industry Development Task Forces.
- Survey and identify appropriate local salt production areas with relevant agencies.
Importation and Use of Salt
- Permit system for salt importation enforced by DA-BFAR and FDA for food-grade salt.
- Mandatory use of domestically produced salt in government programs.
National Iodization Program
- Iodization of artisanal, non-food grade, and export salt optional.
- Use of artisanal salt in food manufacturing allowed.
- Responsibility for iodization placed on processors, not farmers.
- DOH to develop guidelines; BFAR-FPHTD to develop iodization technology.
Labeling Requirements
- Salt for export must be labeled "Made in the Philippines."
- Domestic salt producers encouraged to label similarly with DTI assistance.
Incentives
- Salt farms classified as preferred investment by Board of Investments.
- Exemption from import duties for salt-related machinery.
- Priority access to credit and insurance coverage.
Tariff on Imported Salt
- 9% ad valorem duty on all imported salt.
- Collections credited to special account for salt industry development.
Salt Industry Development and Competitiveness Enhancement Fund (SIDCEF)
- Funded from tariff collections.
- Allocated to machinery/equipment (50%), warehouses (40%), extension services (5%), and R&D (5%).
- Focus on cooperatives and subsistence/small farmers.
- Periodic review for continuation.
Presidential Powers
- President may adjust tariffs and classification on salt imports consistent with international agreements.
- Authority to lower tariffs temporarily in case of shortages or emergency.
- Actions subject to congressional review.
Reporting and Oversight
- Agencies to provide regular progress reports to Salt Council.
- COCAFM to exercise oversight.
Budget and Funding
- BFAR to provide initial funding; continuous funding included in General Appropriations Act.
Separability and Repealing Clauses
- Invalid provisions do not affect the rest of the Act.
- Amendments to RA 8172 and repeal of inconsistent laws.
Effectivity
- Act takes effect 15 days after publication in official gazette or newspapers.