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NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 415
72 JUL12 P 4 55
Rl'CEtVED Bv.___
Introduced by SENATOR IMEE R. MARCOS
AN ACT
AMENDING PRESIDENTIAL DECREE NO. 194, OTHERWISE 
KNOWN AS THE "AUTHORIZING ALIENS, AS WELL AS ASSOCIATIONS, 
CORPORATIONS OR PARTNERSHIPS OWNED IN WHOLE OR IN PART BY 
FOREIGNERS TO ENGAGE IN THE RICE AND CORN INDUSTRY, AND FOR 
OTHER PURPOSES", AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 20, Article II of the 1987 Constitution provides that, "The State 
recognizes the indispensable role of the private sector^ encourages private enterprise/ 
and provides incentive to needed investments."
Republic Act No. 11203 otherwise known as ""An Act Liberalizing the Importation, 
Exportation and Trading ofRicef' was signed into law by the President on 14 February 
2019. The law liberalized the rice sector by repealing quantitative import restrictions, 
allowing the private sector to import rice subject to existing tariff rates, as defined by 
the World Trade Organization Agreement on Agriculture and the ASEAN Trade in 
Goods Agreement. Further, the law removed the quantitative export restrictions, as
well.
While the importation of rice has been liberalized, the local supply chain remains 
restrictive as far as foreign investments are concerned. Section 5 of P.D. No. 194 
(Authorizing Aliens, as well as Associations, Corporations or Partnerships Owned in 
Whole or in Part by Foreigners to Engage In the Rice and Corn Industry, and For Other 
Purposes) mandates foreigners engaged in the rice and corn Industry to divest after a 
time period to be established by the National Food Authority (NFA). In accordance to 
this, the NFA issued NFA Council Resolution No. 193 s. 1998, which mandates foreign 
investors to divest a minimum of sixty percent (60%) of their equity to Filipino citizens 
within a 30-year period from the start of operations. Such limitation reduces the


amount of investment available to the rice and corn Industry and accounts for 
underinvestment In the sector, particularly In post-harvest facilities.
This bill seeks to address under-investment in the rice and corn Industry by 
deleting Section 5 of P.D. No. 194, thereby allowing foreigners to participate in the 
rice and corn industry similar to how foreigners are allowed to participate in other 
industries not included in the Foreign Investment Negative List, among others.
In view of the foregoing, the approval of this bill is earnestly sought.
IMEE R. MARCOS


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S.B. No. 41
V'^vw’;/<©n'icp c'f t!’c ^
•22 JUL12 P4 *55
m-CEiV.;ufe
Introduced by SENATOR IMEE R. MARCOS
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AN ACT
AMENDING PRESIDENTIAL DECREE NO. 194, OTHERWISE 
KNOWN AS THE "AUTHORIZING ALIENS, AS WELL AS ASSOCIATIONS, 
CORPORATIONS OR PARTNERSHIPS OWNED IN WHOLE OR IN PART BY 
FOREIGNERS TO ENGAGE IN THE RICE AND CORN INDUSTRY, AND FOR 
OTHER PURPOSES", AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Section 3 of Presidential Decree No. 194 is hereby deleted:
[-Sec. 3. The National Grains Authority may authorize the alien •of
business organization mentioned in Section 1 hereof to engage in the 
rice and/or corn industry, subject to the following conditiofvsf
a. The National Grains-Authority shall certify that there is an urgent 
need for foreign investment in the undertaking and that the some w\W
not pose a clear and present danger of promoting monopoliesHSif 
combination in restrain of trader
b. The alien, association, corporation or partnership-shall have 4he 
necessary financial capability and technical competcnc-er
c. The alien, association, corporation or partnership shall submit-e 
development plan acceptable to the National Groins Authority;^
SEC. 2. Section 4 of Presidential Decree No. 194 is hereby deleted:
[Sec. I. A minimum total investment in the undertaking shoit-be 
established from time to time by the National Grams Authority^j
SEC. 3. Section 5 of Presidential Decree No. 194 is hereby deleted:
[Section 5. In connection with the foreign equity participation, at least 
60% thereof shall be transferred to Filipino citizens over a period-to 
be established by the rJational Grains Authorib/ at the time of approval


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of its authority to engage in the industry^ or phase out its opcratiOB
within the same period.]
SEC. 4. Section 7 of Presidential Decree No. 194 is hereby deleted:
[Sec. 7. The National Crains Authority-shall impose such other
reasonable conditions as may be deemed necessary-}
SEC. 5. Section 8 of Presidential Decree No. 194 is hereby amended to read as 
follows:
"Section 8. The [National Grains Authority} DEPARTMENT OF 
AGRICULTURE, in coordination with the Department of [Agricultar-e} 
ENVIRONMENT and Natural Resources, DEPARTMENT OF TRADE 
AND INDUSTRY, and other offices concerned shall issue such rules 
and regulations as may be necessary to the implementation of the 
provisions of this Decree."
SEC. 6. The remaining provisions of Presidential Decree No. 194 shall be 
renumbered accordingly.
SEC. 7. Repealing Clause. - All laws, decrees, orders, rules and regulations or 
other Issuances or parts thereof inconsistent with the provisions of this Act are hereby 
repealed or modified accordingly.
SEC. 8. Separability Clause. - If any portion or provision of this Act Is declared 
unconstitutional, the remainder of this Act or any provision not affected thereby shall 
remain in force and effect.
SEC. 9. Effectivity. - This Act shall take effect after fifteen (15) days following 
the completion of its publication either in the Official Gazette or In a newspaper of 
general circulation in the Philippines.
Approved,