} I "EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
Third Regular Session 
)
SENATE
S.B. No. 2516
RECEIVED
FILED
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 rote 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 ofRicd' 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
1


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.
/l.
IMEE R. MARCOS


EIGHTEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
Third Regular Session 
)
SENATE
S.B. No. 2516
FILED
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
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Section 3 of Presidential Decree No. 194 is hereby deleted:
2 
["Sec.-3—The National Grains- Authority may authorize the alien or
3 
business organization mentioned in Section 1 hereof to engage in the
4 
rice and/or corn industry, subject to the following-conditions:
5 
Q. The National Grains Authority shall certify that there is an urgent
6 
need for foreign investment in the undertaking and that the some
7 
will not pose a clear and present danger of pronFteting monopolies
8 
or con>binQtion in restrain of trade.
9 
b. The alien, association, corporation or partnership shall hove the
10 
necessary financial capability and technical competencer
11 
c. The alien, association, corporation or partnership shall-submit a
12 
development plan acceptable to the National Grains Authority.f,]
13 
SEC. 2. Section 4 of Presidential Decree No. 194 is hereby deleted:
14 
["Sec. -4. A minimum total investment in the undertaking shall-be
15 
established from time to time by the National Grains Authority.,,]
16 
SEC. 3. Section 5 of Presidential Decree No. 194 is hereby deleted:
17 
["Section 5. In connection with-the foreign equity participation, at least
18 
60% thereof shall be transferred to Filipino citizens over a period to
19 
bo established by the Nationol Grains Authority at the time of approval
20 
of its authority to engage in the industry, or phase out its operatioFt
21 
within the same-periodr"]


1 
SEC. 4. Section 7 of Presidential Decree No. 194 is hereby deleted:
2 
["Sec. 7. The Notional-Grains Authority shall-impoGO such other
3 
fcasonabic conditions as may be deemed nccossaryT"]
4 
SEC. 5. Section 8 of Presidential Decree No. 194 is hereby amended to read as
5 
follows:
6 
"Section 8. The [Notional Grains Authority] DEPARTMENT OF
7 
AGRICULTURE, in coordination with the Department of [Agriculture]
8 
ENVIRONMENT and Natural Resources, DEPARTMENT OF TRADE
9 
AND INDUSTRY, and other offices concerned shall issue such rules
10 
and regulations as may be necessary to the implementation of the
11 
provisions of this Decree."
12 
SEC. 6. The remaining provisions of Presidential Decree No. 194 shall be
13 
renumbered accordingly.
14 
SEC. 7. Repealing Clause. - All laws, decrees, orders, rules and regulations or
15 
other issuances or parts thereof inconsistent with the provisions of this Act are hereby
16 
repealed or modified accordingly.
17 
SEC. 8. Separability Clause. - If any portion or provision of this Act is declared
18 
unconstitutional, the remainder of this Act or any provision not affected thereby shall
19 
remain in force and effect.
20 
SEC. 9. Effectivity. - This Act shall take effect after fifteen (15) days following
21 
the completion of its publication either in the Official Gazette or in a newspaper of
22 
general circulation in the Philippines.
Approved,