Republic of the Philippines
HOUSE OF REPRESENTATIVE:
Quezon City, Metro Manila

Seventeenth Congress
First Regular Session

3535)

HOUSE BILL NO.

EXPLANATORY NOTE

In 1992, upon the approval of Republic Act No. 7308, otherwise known as the “Seed
Industry Development Act of 1992,” the National Seed Industry Council was created. The

Council replaced the former Philippine Seed Board which was responsible for the approval
and registration of crop varieties.

The enforcement of RA 7308 strengthened the role of the Bureau of Plant Industry
(BPI) in the development of the seed industry, from research and development, field testing,
supervision, monitoring, coordination, accreditation of seed growers and plant nursery
‘operators, to searching and seizing illegal seeds and plant materials.

Although the law is an essential measure to the development of the seed industry, it is
opportune to revisit the twenty-two year-old law in order to adapt to the needs and realities of
the bureau and the agricultural industry. One of the provisions that needs amendment is the
provision on the authority to search and condemn unlawful seed lots. RA 7308 limits the
power of the Executive Director of the BPI to confiscate the seeds which are illegally labeled,

identified or imported and apprehend the owners or sellers. It also allows the processing and
relabeling of the seized seeds.

Another provision which calls for amendment is the penal provision. RA 7308
mandates a fine of not more than ten thousand pesos (P10,000.00), which is notably very low
due to inflations. The current penalty no longer discourages the commission of the offense,
and in fact, enhances the violation of the law because of the very small fine imposed.

This bill aims to proposed amendments to a two-decade old law to further bring high
quality seeds and planting materials to the farmers.

In view thereof, approval of this bill is earnestly sought.

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Republic of the Phi
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

Sixteenth Congress
First Regular Session

BILL NO. 3535

Introduced by Representative Sharon S. Garin

AN ACT
ENHANCING AND PROMOTING THE SEED INDUSTRY IN THE
PHILIPPINES, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 7308,
OTHERWISE KNOWN AS THE “SEED INDUSTRY
DEVELOPMENT ACT OF 1992”

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

TION 1. Section 3 of Republic Act No. 7308 is hereby amended to read as follows:

“SEC. 3. Definition of Terms. As used in this Act, the following terms [and
‘phrases] shall mean as follows:

a) xxx;
b) XXX XXX _XXKS

b-1) “UNLAWFUL SEED LOT” REFERS TO THOSE SEED LOTS
DISPLAYED FOR SALE INFESTED WITH INSECT PESTS OR INFECTED
WITH DISEASES SOLD BY DEALERS/PRODUCERS WITH FALSE
DOCUMENTS AND CERTIFICATION DEPARTMENT OF AGRICULTURE
(DA) OR BUREAU OF PLANT INDUSTRY (BPI), INCLUDING BUT NOT
LIMITED TO IMPORTED SEEDS WITHOUT THE PROPER
PHYTOSANITARY DOCUMENTS AND CUSTOMS CLEARANCES;

b-2) “FALSE DOCUMENTS” SHALL MEAN ANY FALSE OR
MIS N' ECLARATION IN ANY M. (RIAL PARTICULAR ON
THE PACKAGE OR ON THE LABEL WHICH BEARS ANY STATEMENT,
DESIGN OR DEVICE REGARDING THE QUALITY OR THE KIND OR
VARIETY OF SEED CONTAINED THEREIN, NAME OF A FICTITIOUS
INDIVIDUAL OR ENTITY AS THE DEALER OF THE KIND OR VARIETY,
OR IF THE PACKAGE IS OTHERWISE DECEPTIVE WITH RESPECT TO



ITS CONTENTS, AND = SUCH = OTHER) =— ANALOGOUS
MISREPRESENTATION.

XXX

e-1) “CERTIFIED SEED” SHALL MEAN THE PROGENY OF BREEDER,
FOUNDATION SEED OR REGISTERED, BUT NOT FROM CERTIFIED
SEEDS THAT ARE SO HANDLED AS TO MAINTAIN SATISFACTORY
IC IDENTITY AND PURITY;

¢-2) “GOOD SEED” SHALL MEAN SEED THAT MAY BE PRODUCED
FROM VARIETIES NOT YET APPROVED BY THE NATIONAL SEED
JSTRY COUNCIL (NSIC) AND MEETING STANDARDS
IONED BY THE NSIC. ANY CLASS OF CERTIFIED, IN CASE IT
DOES NOT CONFORM WITH THE COUNCIL'S CORRESPONDING
STANDARDS, MAY QUALIFY AS GOOD SEED;

XXX

n-1) “UNFAIR COMPETITION” SHALL MEAN BIASED OR
PREJUDICED CONDITIONS DESCRIBING A TRADE TRANSACTION AS.
EVIDENCED BY THE DUMPING OF SALE SUBSIDIZED SEEDS AND
PLANTING MATERIAL;

n-2) “ADEQUATE QUANTITY” SHALL MEAN THE IMMEDIATELY
PRECEDING THREE-YEAR AVERAGE LOCAL PRODUCTION OF A SEED
VARIETY WHICH IS NOT LESS THAN NINETY PER CENT (90%) OF
PERCEIVED DEMAND FOR THE SEED VARIETY;

n-3) “COMPETITIVE PRICE” SHALL MEAN THE DOMESTIC PRICE
WHICH IS THE PRICE CHARGED BY SEED WHOLESALERS TO SEED
DEALERS OF LOCALLY PRODUCED SEED VARIETY IN THE VICINITY
OF THE POINT OF ENTRY WHICH IS NO MORE THAN THE LANDED
COST OF THE SAME AND OF IDENTICAL QUALITY IMPORTED SEED
VARIETY PLUS APPLICABLE IMPORT DUTIES AND TAXES.”

SEC. 2. Section 11 of the same Act is hereby amended to read as follows:

“SEC. 11. National Seed Quality Control Services. There shall be a National Seed
Quality Control Services, hereinafter referred to as Services, which shall be
constituted in the Bureau of Plant Industry. It shall have control and supervision over
field inspection and control services, and seed testing laboratories which shall be
established by the Bureau of Plant Industry in various parts of the country as are
necessary to ensure the attainment of the purposes of this Act. All personnel, funds
and equipment of the existing control services and the field inspection services of the
Department of Agriculture are hereby transferred to the herein created body

THE DIRECTOR OF THE BPI, UPON ENDORSEMENT OF THE
EGIONAL DIRECTORS OF THE DA, SHALL RECOMMEND THE



APPOINTMENT AND DEPUTATION OF THE SEED INSPECTORS FOR
THE APPROVAL OF THE SECRETARY OF AGRICULTURE.”

SEC. 3. Section 15 of the same Act is hereby amended to read as follows:
“SEC. 15. Restrictions. - The following acts are prohibited:
4) Importation in commercial quantities of species of seeds that are being produced

locally, except seeds difficult to grow under ordinary conditions or when allowed by
the Couneil;

b) Exportation of rare species, varieties, lines and strains of plants from the country
except for scientific or international exchange purposes which shall be determined by
the Council; [and]

C) ANY ACT OF DISPLAYING, SELLING, AND TRANSPORTING OF
UNLAWFUL SEED LOT; AND

D) [c)] Such other activities as DETERMINED BY the Council. [may deem fit to
prohibit.”

EC. 4, Section 18 of the same Act is hereby amended to read as follow:

“SEC. 18. Authority to Search and Condemn Unlawful Seed Lots. - [In order to
carry out effectively the provisions of this Act, the Executive Director of the Council
is hereby authorized to search and seize seed lots labeled, identified or imported in
violation of this Act; Provided, That a search warrant shall first be secured from the
proper court and the same be served/enforced with the assistance of the Philippine
‘National Police (PNP) of the National Bureau of Investigation.] THE COUNCIL OR
ITS DULY DEPUTIZED COMMITTEE IS VESTED WITH AUTHORITY TO
PERFORM THE FOLLOWING POWERS AND FUNCTION:

A) INVESTIGATE SUSPECTED VIOLATORS OF THIS ACT;

B) ARREST AND APPREHEND ANY PERSON ACTUALLY
COMMITTING OR ATTEMPTING TO COMMIT AN OFFENSE UNDER
THIS ACT;

C) SEARCH AND SEIZE UNLAWFUL AND PROHIBITED SEED LOTS
AS STATED IN SECTION 15 OF THIS ACT: PROVIDED, THAT PROBABLE,
CAUSE FOR THE SEARCH IS ESTABLISHED;

D) STOP THE TRANSPORT AND/OR SHIPMENT OF SEED LOTS
WITHOUT AUTHORITY OR WITHOUT LEGAL DOCUMENTS IN
ACCORDANCE WITH PERTINENT LAWS, REGULATIONS OR POLICIES
ON THE MATTER;



E) AUTHORITY TO SEEK THE ASSISTANCE OF OTHER LAW
ENFORCEMENT AGENCIES FOR THE EFFICIENT AND EFFECTIVE
IMPLEMENTATION OF THIS ACT; AND

F) PERFORM SUCH OTHER FUNCTIONS AS MAY BE NECESSARY
TO IMPLEMENT THE PROVISIONS OF THIS ACT.

THE COUNCIL, THROUGH ITS EXECUTIVE DIRECTOR, IS HEREBY
EMPOWERED TO ORDER THE PROPER DISPOSITION OF SEIZED AND
CONFISCATED SEED LOTS. THE COUNCIL SHALL FORMULATE
POLICIES AND GUIDELINES FOR THE PROPER IMPLEMENTATION OF
‘THIS PROVISION.

[Should the seed lots so searched and seized be found after due hearing, to be
suitable for condemnation, in his judgment, the Executive Director is hereby
empowered to issue to any of his designated representatives an order for
condemnation of unlawful seed lots, in which case the same shall be processed,
relabeled or otherwise disposed of in such manner as he may deem appropriat
Provided, That in no case shall the Executive Director order such condemnation
without giving the claimant an opportunity to apply for the release of said seed lot or
Permission to process it in compliance with this Act, subject to the payment of just
‘compensation in the proper case.]

SEC. 5. Section 19 of the same Act is hereby amended to read as follows:

“SEC. 19. Penal Provisions. Any person, CORPORATION, PARTNERSHIP,
firm, ESTABLISHMENT, [or] association, OR ANY JURIDICAL ENTITY who
shall violate any provision of this Act or the implementing rules and regulations
promulgated pursuant to this Act, shall, upon conviction, be punished with a fine of
not more than FIFTY THOUSAND PESOS (P50,000.00) [Ten thousand pesos
(P10,000.00)] or imprisonment of not more than five (5) years, or both, in the
discretion of the Court: Provided, That in the case ofa CORPORATION,
PARTNERSHIP, firm, ESTABLISHMENT, [or] association, OR ANY
JURIDICAL ENTITY, the penalty of imprisonment shall be imposed upon the
officer(s) AND MEMBERS OF THE BOARD OF DIRECTORS [who knowingly
participated, abetted, or consented to the commission of such punishable acts].”

ANY VIOLATION TO ANY PROVISION OF THIS ACT SHALL BE
SUFFICIENT GROUND FOR SUSPENSION, CANCELLATION, OR
REVOCATION OF THE SAME.

6, Section 2] of the same Act is hereby amended to read as follows:

‘C. 19. Repealing Clause. Alll [existing] laws, DECREES, ORDERS, rules and
regulations OR OTHER ISSUANCES or parts thereof WHICH ARE inconsistent
WITH [of] THIS ACT are hereby repealed, AMENDED [superseded] OR
MODIFIED ACCORDINGLY. [Provided, however, That nothing in this Act shall
amend, modify to repeal the provisions of Republic act No. 7160, otherwise known as
the Local Government Code.}”



SEC. 7. Separability Clause. - If any part or provision of this Act is declared
unconstitutional or invalid, the remaining parts or provisions thereof which are not affected
shall continue to be in full force and effect.

Section 8. Effectivity. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a national newspaper of general circulation.

Approved,