Penalties for Non-Compliance
- Buyers failing to use moisture meters face imprisonment from one to six months and fines from ₱1,000 to ₱5,000.
- Agents acting on behalf of buyers face imprisonment up to 30 days and fines ₱100 to ₱500.
- Alien violators face additional penalty of deportation.
Approval and Certification of Moisture Meters
- Moisture meters must be examined and tested by the Institute of Science and Technology (IST).
- Only meters approved by IST, found accurate and fit, are authorized for use.
- IST attaches a lead seal and issues a certificate upon payment of ₱20 fee, creating a special fund.
- Certificates include brand, serial number, calibration, and approval details.
- Only locally manufactured moisture meters are approved.
Use of Unauthorized Moisture Meters
- Using a moisture meter without lead seal or valid certificate leads to penalties similar to non-use.
- Agents and alien violators are subject to the same penalties and deportation respectively.
Posting of Certification
- The certificate must be displayed conspicuously near the moisture meter at the site of use.
Re-certification of Moisture Meters
- Calibration must be re-certified every 180 days by the IST Director.
- ₱10 fee charged for each re-certification, contributing to the special fund.
- Re-certification can be refused if the meter is no longer fit for use.
Re-examination by Philippine Coconut Administration
- The Philippine Coconut Administration (PCA) may request re-examination of a meter's calibration any time without fee.
Prohibition Against Tampering
- Tampering to favor buyer or seller is punishable by imprisonment (1-6 months) and fines (₱1,000-₱5,000).
- Alien violators receive additional deportation penalty.
Sellers’ Right to Witness Moisture Reading
- Sellers or their representatives must be allowed to witness moisture meter readings.
Sampling Procedures
- Samples representing at least 10% of the whole copra stock must be randomly drawn in presence of buyer and seller representatives.
- Samples should be thoroughly mixed; testing samples must represent the whole batch.
- Fraud in sampling is punishable by imprisonment (1-6 months), fines (₱1,000-₱5,000), and possible deportation for aliens.
Penalty for Misreading Moisture Meter
- Buyers or their agents who give incorrect readings to seller’s prejudice face penalties akin to sampling fraud.
Committee for Moisture Content Deduction Scale
- A committee is created to establish a graduated deduction scale based on moisture content.
- Members include PCA Board Chairman (chair), representatives of coconut planters and copra exporters.
- Deduction scale must align with losses determined by tests from IST and PCA.
- No deduction for copra with moisture content ≤5%; premiums apply for less than 5% moisture.
Committee’s Duties and Publication of Scale
- Committee to convene within 20 days of Act’s approval; scale formulated within 30 days after.
- Majority vote needed for approval.
- Approved scale published thrice in Official Gazette and in 5 newspapers over 3 weeks, expenses borne by PCA.
Effectivity and Enforcement of Moisture Deduction Scale
- Scale becomes part of the Act and takes effect one year after the Act’s approval.
- No deduction beyond scale is allowed; violation invokes penalties as in section 2.
Certification of Moisture Measurement at Purchase
- Buyers must issue a triplicate certificate per first domestic purchase detailing:
- Moisture reading
- Number of bags
- Gross weight
- Tare weight
- Net weight
- Deductible moisture percentage and weight
- Remaining weight
- Price based on 5% moisture
- Amount payable
- Failure to issue certificate punished with imprisonment and fines.
Supervision and Fees
- PCA supervises moisture meter operation and certificate issuance.
- PCA imposes a fee of ₱0.05 per 100 kilos of copra per first domestic purchase, paid by the buyer.
- Fee collection funds PCA supervisory functions; imposed once per copra lot.
Pricing Basis
- All copra prices must be quoted based on moisture content of 5% (reseca basis).
General Penalty and Responsibility of Managers
- Unspecified violations carry penalties in section 2.
- Juridical persons’ managers bear responsibility for violations.
Criminal Procedure and Effective Date
- Violations prosecuted under ordinary criminal action rules.
- The Act takes effect immediately upon approval.