Philippine Salt Industry Development Act

Policy and defined terms

Section 2 declares State policy to promote rural development through sound agricultural productivity, increasing rural income, and full and efficient use of human and natural resources.
Section 2 directs the State to support the revitalization of the salt industry through technology and research, and adequate financial, production, marketing, and other support services.
Section 2 sets objectives of increasing production by salt farmers and salt producers, achieving salt self-sufficiency, and becoming a net exporter of salt.
Section 2 also declares preservation, protection, and rehabilitation of the natural environment as part of the developmental policies.
Section 3 defines artisanal salt as locally produced unrefined salt derived directly from a living sea or ocean using traditional methods, retaining natural traces of minerals and produced by traditional/community-based enterprises.
Section 3 defines salt as unrefined salt derived directly from a living sea or ocean and harvested through cooking, smoking, or solar evaporation, retaining natural traces of minerals regardless of production manner.
Section 3 classifies salt farms as (1) individual salt farm of not more than fifty (50) hectares and (2) corporate or cooperative/association salt farm of not more than two hundred fifty (250) hectares.
Section 3 categorizes salt producers by annual production/trading/distribution volume: subsistence (not exceeding two (2) MT per year), small (more than 2 MT to 300 MT), medium (more than 300 MT to 2,000 MT), and large (exceeding 2,000 MT).

Salt industry roadmap and Salt Council

Section 4 establishes a Philippine Salt Industry Development Roadmap (Salt Roadmap) with programs, projects, and interventions for development and management, research, processing, utilization, business modernization, and commercialization of Philippine salt.
Section 4 requires alignment of the Salt Roadmap with the objectives and continued implementation of Republic Act No. 8172 and mandates inclusion of programs that support all-day-to-day objectives of salt iodization for food-grade salt under that law’s framework.
Section 4 identifies objectives including: increasing salt production to attain self-sufficiency and net export status; encouraging salt farming and expanding salt-producing areas; ensuring sustainable production and soil and water conservation practices; promoting public and private investments; and establishing cooperatives among salt farmers and salt producers for improved access to government interventions, assistance, and incentives.
Section 5 creates a Salt Council to ensure unified and integrated implementation of the Salt Roadmap and to accelerate modernization and industrialization of the salt industry.
Section 5 sets the Council’s composition with DA as Chairperson and DTI as Vice-Chairperson, and includes secretaries/heads from multiple government agencies, plus representatives from salt-producing area leagues, private salt-production business, and salt farmer cooperatives.
Section 5 requires that one-third (1/3) of all members constitute a quorum.
Section 6 tasks the Salt Council to formulate a five (5)-year Salt Roadmap with short-term, medium-term, and long-term development plans updated yearly or earlier as determined by the Council.
Section 6 gives the Salt Council powers including identifying priority programs, providing development funds and technical assistance commensurate to salt farm size, implementing mechanization support through machinery and equipment provision, facilitating financing/credit windows, institutionalizing capacity building through BFAR provincial officers, conducting continuing R&D, and establishing an agri-insurance program for salt producers.
Section 6 requires submission of annual reports not later than June 30 to the Office of the President and each House of Congress on the Salt Roadmap implementation and salt industry development.

Program Management Office and agency leadership

Section 7 provides that DA, through BFAR, shall lead implementation of the Development Plan.
Section 7 creates a Program Management Office (PMO) under the Office of the BFAR Director to oversee overall implementation and monitoring by implementing agencies and/or partners.
Section 7 assigns the PMO secretariat functions including coordinating and managing regular Salt Council meetings, preparing or consolidating reports, monitoring policy decisions, and liaising with government member departments and relevant agencies.
Section 7 provides that the PMO shall have a staff complement approved by the Salt Council.

Salt as aquatic resource; tax exemption

Section 8 classifies salt (unprocessed or processed) as an aquatic resource product.
Section 8 exempts salt from all taxes.

Public land mapping and transfer to BFAR

Section 9 mandates mapping, identifying, and designating public lands—including portions of municipal waters—as salt production areas.
Section 9 directs DENR, through appropriate bureaus and its attached agency NAMRIA, and BFAR to prioritize areas in the following provinces as priority areas for salt production: Ilocos Norte, Ilocos Sur, La Union, Pangasinan, Zambales, Bataan, Occidental Mindoro, Oriental Mindoro, Palawan, Marinduque, Quezon Province, Misamis Oriental, and Antique.
Section 9 requires completion of mapping/identification/designation within sixty (60) days from effectivity, and within six (6) months for other regions.
Section 9 requires sharing the results of mandatory mapping/identification/designation with the public through DENR and BFAR websites or other allowed means, and requires a report to both Houses of Congress through the Congressional Oversight Committee on Agriculture and Fisheries Modernization (COCAFM).
Section 10 mandates DENR to transfer public lands mapped/identified/designated as suitable for salt production to BFAR within ninety (90) days from effectivity.

Salt Production Tenurial Instrument (SPTI)

Section 11 mandates BFAR to allocate public lands for salt production to qualified salt producers.
Section 11 provides that BFAR issues a tenurial instrument called the Salt Production Tenurial Instrument (SPTI) to qualified salt producers for use of the public lands.
Section 11 requires certified copies of SPITIs to be furnished to the Salt Council through the PMO.
Section 11 requires respecting tenurial instruments on public lands already issued to private entities.
Section 11 requires that SPTIs be strictly used only for the purpose granted and that public land with salt farms shall not be converted to other uses other than for fisheries and aquaculture purposes.
Section 11 requires BFAR to give utmost consideration to Republic Act No. 11032 in issuance procedures.
Section 11 mandates BFAR to maintain a digital database of all SPTI applicants and holders for integrity of data, stronger data protection, and convenient data access.

SPTI application requirements and issuance

Section 11(a) provides that an application for an SPTI must be submitted to BFAR.
Section 11(a) requires each SPTI to indicate: (1) the grantee’s name and relevant information; (2) terms and conditions; (3) the period of use of the public land; (4) termination conditions including an undertaking to start salt farm construction and operation within one (1) year and to protect and preserve critical habitat for marine life; and (5) metes and bounds of the salt farm.
Section 11(a) requires processing of new/renewal/transfer applications submitted to the BFAR Provincial Office.
Section 11(a) requires BFAR to process and issue the SPTI within forty-five (45) days from complete submission of the three (3) requirements under Section 11(b); failure to issue results in the application being treated as approved and BFAR must immediately issue the SPTI.
Section 11(a) provides that the SPTI shall bear only the signature of the Regional Director and the BFAR Director.

Qualification for SPTI

Section 11(b) provides BFAR shall approve SPTI applications based only on these three (3) requirements:
- (1) a Certificate of Registration as a salt producer secured under Section 13;
- (2) a track record engaging in salt farm business or related business for at least three (3) years, or actual experience in salt production for at least three (3) years; and
- (3) payment of a rental fee equal to current rates exacted by BFAR.
Section 11(b) provides that cooperatives/associations of subsistence and small salt producers/farmers may substitute certification and endorsement from the LGUs where the intended salt farm will be established for the three (3) year period requirement.
Section 11(b) mandates preferential treatment for cooperatives/associations of subsistence and small salt producers/farmers in granting SPTIs and grants them rent-free use of the public land and its facilities for three (3) years from the start of salt farm operations.
Section 11(b) requires proof of authenticity of the nature and composition of cooperative/association members through certification from the DSWD local office and the LGU of residence.
Section 11(b) provides that misdeclaration, falsification, or any other false deed to conceal the real nature and composition of members makes officers liable for criminal acts under existing laws.

SPTI duration and early termination

Section 11(c) provides that an SPTI allows use of public land for salt production for twenty-five (25) years, renewable for another twenty-five (25) years.
Section 11(c) provides that BFAR may terminate early upon determination, through due process, of the grantee’s violation of provisions of the SPTI.

Size limits of salt farms under leases

Section 11(d) limits individual leases to up to fifty (50) hectares.
Section 11(d) limits corporate or cooperative/association leases to up to two hundred fifty (250) hectares.
Section 11(d) allows a lease applicant to apply for more than one area and hold multiple lease agreements, but the total area covered by multiple agreements must not exceed the limits.

Public lands previously under FLAs and other possession

Section 12 authorizes fishpond lease agreements (FLAs) issued by BFAR before enactment to include salt production as a valid activity.
Section 12 requires that if a lessee engages in salt production, the FLA (or the relevant portion) must be amended to reflect salt production, governed by the Act.
Section 12 provides that amended FLAs for salt production must state the full twenty-five (25)-year period.
Section 12 requires BFAR to notify possessors of other public lands already in private possession that the lands have been identified as suitable for salt production; development continues under the Act’s provisions if the possessor accedes.

Registration as salt producer and control measures

Section 13 requires all salt producers—whether SPTI holders or otherwise—to register with BFAR.
Section 13 preserves FDA jurisdiction over salt registration for human consumption under Republic Act No. 8172 and Republic Act No. 10611.
Section 13 sets registration qualification requirements for cooperatives/associations, corporations, and individuals/artisanal salt producers, including items such as LGU certifications, CDA or SEC registrations, production records, business plans, farm site inspection reports, and member-count affidavits for cooperatives/associations.
Section 13 mandates registration renewal every three (3) years.
Section 13 requires BFAR, within forty-five (45) days from complete submission, to issue the Certificate of Registration or issue a denial notice with explanation.
Section 13 provides an appeal process: an appeal must be filed with the BFAR Director within fifteen (15) days from receipt of Notice of Denial, and the Director must decide with administrative finality within fifteen (15) days from filing.

Support programs, roads, R&D, training

Section 14 mandates DA-BFAR, in consultation with industry participants, to provide technical support for development and operation of existing salt farms and assist in design for cooperative/association salt farms.
Section 14 authorizes BFAR to grant material and technical assistance to cooperative/association salt farms covering: salt farmer warehouses; inputs (including machinery and equipment); extension services; cooperative strengthening; and modern salt production and processing technology.
Section 14 funds the above mandate out of tariff collection on imported salt under Section 27 and Section 28.
Section 14 requires BFAR to institutionalize the Development of Salt Industry Program (DSIP) as a regular program funded by the General Appropriations Act (GAA), covering interventions not included for funding by the SIDCEF beyond BFAR’s regular GAA budget.
Section 15 requires identification of priority road locations linking salt farms to markets called Daan Asinan, considering investment cost, number of producers and their families to benefit, and amount of salt produced or potentially produced.
Section 15 requires DA-BFAR to coordinate with DPWH for construction, improvement, and maintenance of Daan Asinan.
Section 16 tasks DA-NFRDI, in coordination with DA-PhilMech, to spearhead development of latest salt production technology, including technology for year-round production under erratic weather patterns, mechanization from pre- to post-harvest, and cost-effective alternative methods.
Section 16 requires immediate transfer of completed study/technology/product results to salt producers/manufacturers.
Section 17 requires BFAR, in coordination with DTI, DOST, DOLE, TESDA, and other relevant agencies, to provide complementary training programs on skills upgrading, traceability, food safety compliance, technology acquisition including labeling and packaging, market positioning for artisanal/specialty and industrial salts, and other needed capabilities.
Section 18 requires BFAR to form a Corps of Trainers within thirty (30) days from effectivity, recruited from BFAR provincial personnel under FPHTD, qualified SUC experts, ATI experts, and practitioners, to help establish salt farms in areas designated by the Act.
Section 18 authorizes BFAR spending for travel, lodging, honoraria, and other necessary expenses within existing budgetary rules.
Section 19 tasks CDA to assist formation, organizational strengthening, and financial literacy of cooperatives and their salt farmer members/producers to build cooperative capabilities and increase successful cooperative-managed salt farms.
Section 20 mandates DTI and DA to assist local salt producers for trade and exportation through export financing, business matching, trade/market information, promotion to local and international markets, trade fairs and business missions, seminars/workshops/conferences on export documentation and procedures, product design and development, and market/product consultancy.
Section 20 requires preference for locally produced salt in government purchases.

LGU roles, import permits, mandatory use in government

Section 21 requires LGUs, as far as practicable, to establish Salt Industry Development Task Force (Salt Task Force) and conduct regular surveys of existing salt farms and salt processing enterprises in their localities.
Section 21 requires LGUs, in cooperation with DENR, BFAR, DA-NFRDI, DTI, and the appropriate DOST Regional Office, to identify areas for local salt production.
Section 22 prohibits importation of salt without a permit:
- DA-BFAR and DOH-FDA for food grade salt; and
- DA-BFAR for non-food grade salt.
Section 22 mandates DOH-FDA and DA-BFAR to harmonize and streamline permit processes.
Section 23 mandates the government to use domestically produced salt in its programs, including fertilization of coconut farms by the Philippine Coconut Authority (PCA).

National iodization program adjustments

Section 24 provides that, notwithstanding Republic Act No. 8172, iodization of artisanal and non-food grade salt and salt intended for export is optional in the country.
Section 24 allows use of artisanal salt by food manufacturers and food establishments.
Section 24 states salt produced by salt farmers is not automatically categorized as food grade and the burden of iodizing salt is not on salt farmers.
Section 24 allows food grade salt to be sold by farmers to salt processors provided that iodization is done by the processors.
Section 24 requires importers, traders, and distributors of imported food-grade salt undertaking fortification to comply with iodization standards set by DOH.
Section 24 requires DOH to develop guidelines for implementation, considering international trade nuances and standards affecting local food manufacturers and exporters.
Section 24 tasks BFAR-FPHTD to develop and implement a comprehensive program for acquisition, design, and manufacture of salt iodization equipment and further development of salt iodization technology.

Labeling requirements and incentives

Section 25 requires all salt produced or manufactured in the Philippines for export to be labeled “Made in the Philippines” prominently and conspicuously on the product, packaging, and accompanying documentation.
Section 25 requires exported salt to comply with Republic Act No. 7394, the “Consumer Act of the Philippines.”
Section 25 encourages domestically produced salt intended for the local market to bear the “Made in the Philippines” label.
Section 25 mandates DTI to assist domestic salt manufacturers, producers, or farmers with labeling requirements.
Section 26 provides incentives for investors in salt farms development and salt processing facilities:
- (a) BOI classifies salt farms as preferred areas of investment under its IPP subject to pertinent rules and regulations;
- (b) salt farm owners, salt processors, and related businesses are exempt from import duties for imported machines and equipment actually and directly used in their businesses, subject to pertinent rules and regulations;
- (c) salt producers and processors receive priority access to credit assistance and guarantee schemes granted by GFIs; and
- (d) salt farm development and equipment are covered by the Philippine Crop Insurance Corporation.

Tariff duty and salt fund creation

Section 27 levies an import duty on all imported salt of nine percent (9%) ad valorem.
Section 27 mandates that tariff collections be credited automatically to a special account with the National Treasury within ninety (90) days from effectivity for developing the salt industry.
Section 27 defines salt imports to include products under HS/AHTN codes under heading 2501 and enumerates specific subcodes including 2501.00.10 (Table salt), 2501.00.20 (Unprocessed rock salt), 2501.00.50 (Sea water), 2501.00.51 (Salt, denatured, industrial), 2501.00.91 (fortified with iodine with specified sodium chloride content range), 2501.00.92 (other with specified sodium chloride content range), and 2501.00.99 (Other).

SIDCEF: creation, duration, earmarks, review, release

Section 28 creates the Salt Industry Development and Competitiveness Enhancement Fund (SIDCEF) from the salt tariff collections special account with the National Treasury.
Section 28 provides the SIDCEF exists for the next ten (10) years following effectivity.
Section 28(a) mandates earmarking and implementation:
- 50% for provision of machinery and equipment (including sea water pumps, salt graders, salt harvesters, dump trucks and bagging machines, and salt iodization machines) to beneficiaries into salt iodization, implemented by BFAR;
- 40% for establishment of salt farm warehouses/storage areas implemented by DPWH;
- 5% for conduct of extension services implemented by BFAR provincial offices; and
- 5% for development of modern salt production and processing technology implemented by NFRDI.
Section 28(a) identifies beneficiaries as the salt cooperatives/associations of subsistence and small farmers fisherfolk.
Section 28(a) requires reviewing earmarking percentage at the end of the fifth (5th) year following effectivity, allowing earlier review if deemed necessary for revisions/upgrading based on changes in intervention priorities.
Section 28(a) requires focusing allocation/disbursement on provinces with the most number of salt farms.
Section 28(b) mandates a mandatory review at the end of the fifth (5th) year by COCAFM to determine whether the SIDCEF and its use shall be continued, amended, or terminated, using increase/decrease in farmers’ incomes as a primary benchmark.
Section 28(c) makes the Secretary of DA and the BFAR Director accountable for management and utilization of the fund in coordination with other concerned agencies.
Section 28(d) requires direct release of allocated amounts to implementing agencies based on Salt Roadmap objectives; unutilized portions do not revert to the general fund and continue to be used for the set purpose; fund releases are not subject to any DBM ceiling.
Section 28(e) requires that programs under the Act are complementary/supplementary and not a replacement of existing programs for fisherfolk already implemented by DA-BFAR and other agencies.

Presidential tariff adjustments and reporting/oversight

Section 29 empowers the President, with full delegated authority subject to the Customs Modernization and Tariff Act (CMTA), to revise or adjust customs duties on salt imports consonant with international agreements, including necessary changes in classification.
Section 29(a) requires such adjustment to be time-bound and to be exercised only when Congress is not in session.
Section 29(a) requires publication timing such that orders adjusting applied tariff rates take effect fifteen (15) days after publication.
Section 29(b) authorizes, for a limited period and/or specified volume, allowing importation of salt at a lower applied tariff rate to address an imminent or forecasted shortage or other situation requiring government intervention; such order takes effect immediately and can be issued even when Congress is in session.
Section 29 allows Congress to withdraw/terminate the delegated power through a joint resolution.
Section 30 requires departments and agencies specified in the Act to provide regular updates to the Salt Council on progress toward Act objectives.
Section 31 mandates COCAFM to regularly exercise oversight powers to ensure full implementation.
Section 32 provides that additional mandates, functions, and activities are regular programs funded in annual budgets, as particularly provided in Sections 15, 19, and 20.
Section 33 provides funding for implementation: amounts necessary are taken from BFAR appropriations, and further amounts needed for continued implementation are included in the annual GAA.

Separability and repeal/modification

Section 34 provides separability: invalid or unconstitutional provisions do not affect other provisions’ full force and effect.
Section 35 modifies Sections 3 and 5 of Republic Act No. 8172 accordingly.
Section 35 repeals or modifies all inconsistent laws, decrees, orders, rules and regulations, or other issuances or parts thereof.