Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS

First Regular Session
House Bill No.2143

Introduced by Representative Julius Cesar “Jay” V. Vergara

EXPLANATORY NOTE

This bill seeks to provide for the mandatory labeling of milled rice for
commercial distribution and impose penalties for violation thereof.

Title II, Chapter IV of Republic Act (RA) No. 7394 or the Consumer Act of the
Philippines, provides policies on labeling and marketing of consumer products. Under
the said law, the Department of Trade and Industry shall enforce the provisions on
labeling and packaging except with food, drugs, cosmetics, devices, and hazardous
substances, which are handled by concerned departments.

In the case of agricultural products such as rice and corn, the National Food
Authority (NFA) was mandated to establish and enforce the national grains standards
in collaboration with various sectors under Presidential Deeree No. 4, Series of 1972,
or the development of the rice and corn industry, and the creation of the National
Grains Authority, RA 7394, and RA 10611, or the Food Safety Act of 2013. Hence, the
NFA developed the Philippine Grains Standardization Program which prescribed the
standard specifications on the quality, packaging, labeling, including test and analysis
of rice and corn, and other grain commodities. Under the program, all persons
engaged in the wholesaling and distribution of rice must strictly observe the proper
use of packaging materials, labels, and price tags on their products.

However, in 2019, the enactment of RA 11203 lifted the quantitative restriction
on rice import and repealed the regulatory and enforcement powers of the NFA. Said
law transferred the food safety functions of the NFA to the Bureau of Plant Industry,
whose primary task is to safeguard the plant industry.

On the other hand, under RA 8435 or the Agriculture and Fisheries Modernization
Act of 1997, the Bureau of Agriculture and Fisheries Standards (BAFS) of the
Department of Agriculture was tasked to formulate and enforce standards of quality
in the processing, preservation, packaging, labeling, importation, exportation,
distribution, and advertising of fresh and primary agricultural and fisheries products.
In 2019, the BAFS developed the Philippine National Standard for Grains-Grading,

1


and Classification of Paddy and Milled rice. This standard provides specific guidance
to promote product quality and safety, ensure efficiency, and strengthen
competitiveness in rice post-production and marketing, including the minimum
requirements for labeling of milled rice. Also, the Food Safety Act of 2013 vests upon
the BAFS the responsibility to develop, adopt, amend or revise food safety standards
and codes of practice for primary and post-harvest foods for the use of the DA in
developing food safety regulations.

‘The overlapping functions among different agencies regarding food safety and
labeling resulted in severe confusion in the rice trading community. Despite existing
standards on rice labeling, compliance remains voluntary. Wholesalers and
distributors commonly ignore rice labeling policies because they are vague, and do
not identify which government agency covers the implementation.

Strengthening national policies in standard food labeling is paramount to
maintain standards of quality, safety, identity, and origin, particularly when it
involves the staple food for daily consumption. Providing clear, valid, and reliable
information could help consumers make smart choices. This will also promote locally-
produced rice, which was recorded as having the least pesticide among rice produced
in other Southeast Asian countries, according to a study conducted by the
International Rice Research Institute. Demand for local rice will increase and in turn,
rice traders will be encouraged to source their supply from local farmers. More
importantly, this measure aims to protect consumers, and prevent and penalize unfair,
deceptive, and fraudulent rice trading practices such as mixing of local with imported
rice or misbranding poor quality rice as high-grade to command higher prices.

By providing adequate and specific measures on rice labeling, the proper
implementing government agency is identified, responsible business conduct is
encouraged, and consumer protection is achieved.

In view of the foregoing, approval of this bill is earnestly sought.

ee

JULIUS CESAR “JAY” V. VERGARA
Third District, Nueva Ecija


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

TWENTIETH CONGRESS
First Regular Session

House Bill No, 2743

Introduced by Representative Julius Cesar “Jay” V. Vergara

AN ACT
PROVIDING FOR THE MANDATORY LABELING OF MILLED RICE FOR
COMMERCIAL DISTRIBUTION AND IMPOSING PENALTIES FOR
VIOLATION THEREOF

Be it enacted by the Senate and the House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Short Title. - This Act shall be known as the “Commercial Rice
Labeling Act.”

SEC. 2. Declaration of Policy. - It is the policy of the State to promote the rights
and welfare of consumers. The State recognizes the importance of providing adequate
and accurate information on food products, particularly rice, to assist the public in
making safe, healthy, and high-quality food choices. Toward this end, the State shall
enforce proper and truthful labeling of milled rice and protect the public from unfair
and deceptive rice trading practices.

SEC. 3. Coverage. - This Act covers all persons or entities engaged in the
business of wholesale, distribution or retail of milled rice. For purposes of this Act,
milled rice refers to polished rice kernels obtained after removal of hull and bran, to be
sold domestically or internationally, whether imported or locally produced.

SEC. 4. Commercial Rice Labeling Standards. - All persons engaged in the
business of wholesale, distribution or retail of milled rice shall affix a label to the rice
packaging material, whether in bulk or retail container, in accordance with the
standards provided in this Act, existing regulations issued under the Philippine
National Standard for Grains Grading and Classification of Paddy and Milled Rice,
and the minimum labeling requirements for consumer products provided under
Republic Act (RA) No. 7394, otherwise known as the “Consumer Act of the Philippines.”

The label must indicate the following:


(a) Name of product;

(b) Grade of milled rice;

(©) Degree of milling;

(d) Date of milling;

(e) Net weight;

(8) Type/s of seed/s processed with corresponding composition percentages;
(g) Place of origin; and

(h) Name and place of business of the wholesaler or distributor.

The required information provided in this Act must appear on the label in a
permanent, conspicuous, and legible print that is easily identifiable and in distinct
contrast with other words, design or statements in the rice package.

Unpacked milled rice for retail which is displayed in wooden or fiberglass
containers in any place of commerce shall be labeled in accordance with the standards
provided in this Act. The label shall be printed in bold letters and figures near the
price tag, and conspicuously displayed on the rice containers.

SEC. 5. Sworn Declaration. - Before being allowed to distribute the milled rice
in commerce, all wholesalers or distributors are required to submit to the Bureau of
Agriculture and Fisheries Standards (BAFS) a sworn affidavit attesting to the
truthfulness of the required information on the label of milled rice. The BAFS shall
issue a labeling standard certification mark to the wholesaler or distributor upon
evaluation and determination of compliance with the standards provided herein.

SEC. 6. Prohibited Acts. - It is unlawful for any person engaged in the business
of wholesale, distribution or retail of milled rice to display, sell, or distribute the milled
rice without a label or if the label in the packaging or container of the milled rice does
not conform to the provisions of this Act.

It shall likewise be unlawful for any person engaged in the business of
wholesale, distribution or retail of milled rice to provide or cause to provide false or
grossly inaccurate information on the label.

SEC. 7. Penalties. - Any person who violates Section 6 of this Act shall be
punished with imprisonment of not less than one (1) year but not more than five (5)
years, or a fine of not less than Two Hundred Thousand Pesos (P200,000.00) but not
more than One Million Pesos (P1,000,000.00), or both, at the discretion of the court.


If the offender is an alien, the offender shall be deported after service of
sentence and payment of fine without further deportation proceedings.

If the violation is committed by a juridical person, the board of directors,
officers and all persons directly responsible for the violation shall suffer the penalty
imposed under this section.

SEC. 8. Transitory Provision. - Within six (6) months after the effectivity of
this Act, all persons or entities engaged in the business of wholesale, distribution or
retail of milled rice, shall label all their existing inventories of milled rice in accordance
with the standards as provided in this Act. Thereafter, al! inventories of milled rice
which do not conform to the new labeling standards provided in this Act shall be
considered as mislabeled subject to the penalties provided in Section 7 of this Act.

SEC. 9. Implementing Agency. - The BAFS of the Department of Agriculture
shall, pursuant to its existing functions provided under RA No. 8435, otherwise
known as the “Agriculture and Fisheries Modernization Act of 1997,” adopt and enforce
the rice labeling standards provided under this Act. The BAFS shall review every three
(3) years and revise, if necessary, such standards to supplement the labeling
requirements for the effective implementation of this Act.

SEC. 10. Implementing Rules and Regulations. - Within sixty (60) days from
the effectivity of this Act, the Secretary of Agriculture shall, in coordination with the
Secretary of Trade and Industry, issue the necessary rules and regulations for the
effective implementation of this Act.

SEC. 11. Repealing Clause. - All existing laws, orders, decrees, rules and
regulations or parts thereof inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.

SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.

Approved,