Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
`  t House Bill No.  8987
Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
lst District,  llocos Norte
EXPLANATORY NOTE
With   36,000   kilometers   of  shoreline   -  the   fifth   longest   in   the  world   -  the
Philippines has the potential of becoming a salt-exporting  country. And yet the reality at
present is that we are actually importing  as  much  as 93°/o  of our salt requirement,  and
our  domestic  salt  industry  has  been  in  steady  decline  over  the  years  to  the  point  of
being deemed a dying industry.
It has not been always like this. There was a time when we are almost 100°/o self-
sufficient  in  salt.  We  used  to  have  a  number  of  production  areas  with  a  thriving  salt
industry.   We  even   have  an   entire  province   in  the  country  bearing   a   name  whose
etymology literally means "place of salt" or "place of salt-making" (ref.  Pangasinan).
The  sad  plight  of our  salt  industry  has  been  attributed  to  a  number  of factors.
Import   liberalization   has   led   to   the   flooding   of  cheap   salt   import.   Years   of   rapid
urbanization   have   resulted   in  former  salt  farms   being   converted   to   more   lucrative
industries  such  as  fishponds,  residential,  commercial  or  industrial  areas.  Most  small-
scale  salt producers  have  also failed  to  adapt to  changes  brought  by climate  change,
and  this  is  unfortunate  considering  that  their  industry  is  very  dependent  on  weather
conditions.  The  government  has  also  failed  to  prioritize  the  development  of  our  local
industries  and  there  were  no  focused  interventions  to  stimulate  some  of the  flagging
industries.
Perhaps,  however, one of the major causes responsible for the steady decline of
the country's salt industry is the passage of Republic Act No.  8172, otherwise known as
the  Act for Salt  lodization  Nationwide  (ASIN).  Mandating  that all  food-grade  salt  in  the
Philippines  be  iodized  but applied  to the entire salt industry,  our local  salt farmers were
marginalized    in   the   massive   shift   to   iodization.   The   capital   requirement   for   the
machinery  and  technology  necessary for  iodization  proved  to  be  too  heavy  especially
for subsistence,  small  and  medium  scale  salt farmers  and  producers so  much  so that
those in the industry dropped one by one and shifted to other sources of livelihood.


lt   is   urgent   and   vital   therefore   to   revive   and   modernize   the   Philippine   salt
industry.   We   need   a   comprehensive   salt   industry   development   program   that  will
mobilize  resources  that  will  reduce  import  dependence  and  achieve  food  sufficiency.
Our salt farmers and salt producers must be given access to needed technology, capital
and support services so that they could attain increased income for their families,  scale-
up local production that can lower importations and also ensure food safety and  product
quality.
Among  ASEAN  member states,  Indonesia  and  Vietnam  have  included  salt  self-
sufficiency as part of their priorities for food,  agricultural  and  industrial  development. As
far  as  Thailand   is  concerned,  we  are  actually  importing  a  small  portion  of  our  salt
requirement from that country.
In  view  of the  precarious  state  of our country's  salt  industry,  perhaps the  better
approach  is  that we  encourage,  not  require,  the  iodization  of our salt  production.  It  is
believed   that  there   is   room   or  space  for  the   making   of  different  varieties   of  salt
depending on various industry requirements. By moving forward this way, we expect not
only to  revive  our domestic  salt production  but also  serve  as  a  stimulus to  the  various
ancillary or dependent economic activities to our salt industry.
On  the  basis  of  the  foregoing  considerations,  the  early  approval  of  this  bill  is
earnestly sought.
FERD[NAND ALEXANDER A.  MARCOS


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
NINETEENTH CONGRESS
Second Regular Session
' House Bill No. 8967
Introduced by Rep. FERDINAND ALEXANDER A. MARCOS
1 st District,  llocos Norte
AN ACT
REVITALIZING THE SALT INDUSTRY, CREATING A COMPREHENSIVE  PLAN  FOR
ITS  DEVELOPMENT,  PROVIDING  INCENTIVES TO SALT FARMERS,  PRODUCERS
AND EXPORTERS, AND PROVIDING FUNDS THEREFOR
Be  it  enacted  by the  Senate  and  the  House  of  Representatives  of the  Philippines  in
Congress assembled:
SECTION   1.   Short  I/.I/e.  -This  Act  shall  be  known  as  the  "Philippine  Salt
Industry Development Act".
SEC.   2.   Dec/araf/-on  of  Po//-cy.  -  It  is  the  policy  of  the  State  to  promote
industrialization  and  full  employment  based  on  sound  agricultural  development through
industries  that  make full  and  efficient  use  of human  and  natural  resources,  and  which
are competitive  in  both  domestic and foreign  markets.  For this purpose,  the State shall
provide  support through  appropriate  technology  and  research,  and  adequate financial,
production,  marketing,  and  other  support  services  to  revitalize  the  salt  industry,  attain
increased  income for salt farmers and  salt producers,  achieve salt self-sufficiency,  and
become a net exporter of salt.
SEC. 3. Defi.n/.I/.on of Terms. -As used in this Act:
a)  Art/.sana/ sa/f refers to  unrefined  sea  salt,  derived  directly from  a  living  sea  or
ocean,  harvested  and  cooked  through  a  natural  evaporation  process.  It  retains
natural   traces   of   minerals   depending   on   the   source   and   the   manner   of
production, such as solar evaporation, cooked or smoked.


b)   Food-grade sa/f refers to salt for human and animal consumption;
c)   /odi-zed sa/f refers to any type of salt artificially spray-coated with iodine;
d)  /ndusfr/.a/   sa/I   refers   to   salt   used   in   the   treatment,   processing,   and/or
manufacture of non-food commercial products;
e)  Ph/-//.pp/-ne  sea  sa/I refers  to  salt  produced  from  the  evaporation  of seawater,
brine, or concentrated brine in any salt farm within the Philippines.
f)    Sa/I  farm  refers  to  areas  of  land,  shorelines,  or  coastal  areas,   including  its
buildings,  machineries,  and  equipment  used  for salt  production.  Salt farms  may
be classified according to sizes as follows:
(i) Sma//-sea/e sa/f farm -salt farm of not more than three (3) hectares;
(ii)  Arfedi-win-sea/e sa/f farm -salt farm  of more than  three (3)  hectares but not
more than fifty (50) hectares; and
(iii) Large-sea/e sa/f farm -salt farm owned or leased by individuals that is more
than fifty (50) but not more than five hundred  (500) hectares, or salt farm owned
or leased by an association, cooperative or corporation that is more than fifty (50)
but not more than one thousand (1,000) hectares; and
g)   Sa/f producer  refers  to  an  individual,  corporation,  cooperative,  or  association
involved  in the production of sea salt.
SEC.   4.   Philippine  Salt  Industry   Roadmap.   -  For  the  al+alnmer\+  Of  the
objectives  of  this  Act,   there   shall   be  formulated   and   established   a   Philippine   Salt
Industry Development Roadmap ("Roadmap"), which shall  include,  but not be limited to,
programs,  projects,  interventions and  incentives for the development and management,
research,     processing,      utilization,     modernization,      business     development,     and
commercialization    of    Philippine    salt.    The    Roadmap    shall    include    the    following
objectives, among others:
(a)  Increase  salt production  in  order to  attain  salt self-sufficiency,  and  become a
net exporter of salt;
(b) Encourage salt farming and expand the number of salt-producing areas;
(c) Ensure the sustainable production,  management and harvesting, and  soil and
water conservation practices in salt-farming areas;
(d)   Promote  public  and   private  investments  in  the   salt  industry  development
programs;
(e)   Ensure   the   sustainability   and   viability   of   the   salt   industry   through   the
establishment  of cooperatives  among  salt farmers  and  producers  in  order to  optimize


local   production   and   improve  access  to  government  interventions,   assistance,   and
incentives;
(f) Advance market access for Philippine salt products locally and internationally;
(g)  Extend  technical  and  financial  assistance  for  the  development,  processing,
commercialization, and  marketing of Philippine salt products;
(h)  Develop  and  distinguish  category  of salt  areas  into  artisanal  salt  production
areas,  as  gourmet salt  producing  areas,  iodized  salt  producing  areas,  salt ecotourism
sites, and similar sites or areas, and provide appropriate incentives;
(i)  Introduce  new  salt  development  technology  based  on  robust  research  and
development (R & D) activities;
ti) Provide continuous training and capacity building in the salt industry;
(k)  Provide technical  and  financial  assistance  in  the  local  design  and  fabrication
of high-capacity processing equipment and machineries for the salt industry;
(I)  Adopt  a  program  for  the  active  formation  of  cooperatives  of  salt  farmers
pursuant to Section 21  of this Act; and
(in) Support R & D activities for salt revitalization.
SIC. 5. Creation of the Philippine Salt Industry Development Council. -To
ensure the  unified  and  integrated  implementation  of the  Roadmap  and  accelerate  the
modernization   and   industrialization   of  the   Philippine  Salt   Industry,   a   Philippine  Salt
Industry    Development    Council    (PSIDC)    is    hereby    created    with    the    following
composition:
(a) Secretary of the Department of Agriculture (DA) as Chairperson;
(b) Secretary of the Trade and  Industry (DTl) as Co-Chairperson;
(c) Secretary of the  Department of Environment and  Natural  Resources (DENR),  as
Vice-Chairperson;
Members:
(d) Secretaryofthe Department          of         Science           and      Technology
(DOST);
(e) Secretary of the Department of Health (DOH);
(f)  Secretary of the Department of Tourism;
(g) Chairperson of the Cooperative Development Authority (CDA);
(h) Director-General of the National  Economic and  Development Authority;


(i) Director of the Bureau of Fisheries and Aquatic Resources (BFAR);
0)   Chief Executive Officer of the Land  Bank of the Philippines (LBP);
(k)   One   representative   each  from   the   League  of  Provinces  of  the   Philippines,
League of Cities of the Philippines,  and  League of Municipalities of the Philippines;
(I)   One   (1)   representative   from   the   private   sector   engaged   in   salt-production
business;
(in) One (1 ) representative from the salt farmers or workers;
(n) One (1 ) representative from the salt farmer cooperatives; and
(o)  One (1 )  representative from  the  private  sector engaged  in  a  business belonging
to the local salt industry, other than farming and production.
SEC. 6. Funcfi.ons of the PS/DC. -The PSIDC shall  have the following powers
and functions:
(a)       Formulate  the  philippine  salt  Industry  Development  Roadmap  containing
the short-term, medium-term and long term-development plan;
(b)  Identify specific and  priority  programs  and  projects  in  support of,  and  in  line
with the Roadmap;
(c)   Provide  development  funds,   technical   assistance  and   equipment  to   salt
farmers and the industry. The support shall  be commensurate to the size of the
salt farm;
(d)   Undertake  the   construction,   through   the   DA-BFAR,   of  new   small   scale
artisanal salt farms;
(e)  Identify  sources  of financing  and  facilitate  credit windows  with  government
banks   and   the   Agricultural   Credit   Policy   Council   to   expand   salt   industry
development;
(f)  Increase  production  of local  salt by  increasing  land  area devoted  to  salt and
improving farm productivity;
(g)   Institutionalize   capacity   building   for  salt  farmers  through   the  Agricultural
Training  Institute;
(h) Strengthen market linkage and  promotion of Philippine salt;
(i)  Conduct  continuing   R  &   D  on   innovation   and   modernization     of  the  salt
industry;
0) Establish an Agri-Insurance Program for salt producers;


(k)  Establish  parameters  and  guidelines  when  domestically-produced  salt  may
be  subjected  to  mandatory  salt  iodization  under the  provisions  of Republic Act
(RA)   No.   8172,   otherwise   known   as  "An  Act  for  Salt   lodization   Nationwide
(ASIN).   Such   parameters  shall   include  the  level  of  iodine  deficiency  among
Filipinos and the degree of recovery of the domestic salt industry;
(I)  Establish  parameters  and  guidelines  when  imported  salt  may  be  exempted
from   mandatory  salt  iodization   under  the   provisions  of  RA  No.   8172.   Such
parameters  shall  include the  level  of iodine deficiency among  Filipinos  and  the
degree of recovery of the domestic salt industry;
(in)  Recommend  to  the  Department  of  Budget  and  Management  the  required
yearly   appropriations  for  the   plan   and   implementation   of  salt  development
programs;
(n)  Submit annual  reports,  not later than  June  30  of each  year,  to the  Office of
the   President   and   to   each    House   of   Congress,   on   the   status   of   the
implementation   of  the   Roadmap   and   the   salt   industry   development   in   the
country; and
(o) Promulgate such rules and regulations, and exercise such other powers and
functions, as may be necessary to carry out the objectives of this Act.
SEC i.  Program  Management Office and Secretariat. -The DA-BFAF` shall
lead  in the industry strengthening, expansion and  promotion of the salt industry. Toward
this  end,  a  Program  Management  Office  (PMO)  is  hereby  created  under the  Office  of
the  Director  of  the  BEAR  to  oversee  the  overall  implementation  of  the  salt  industry
development roadmap  as well  as the  conduct of regular monitoring  of its  execution  by
the implementing agencies and/or partners.
The   Secretariat   is   also   hereby   created   under  the   PMO   and   shall   perform
functions  such   as  coordinating   and   managing  the   regular  meetings  of  the   PSIDC,
preparing  and/or  consolidating  reports  for the  PMO,  monitoring  the  implementation  of
policy   decisions   that   the   PSIDC   has   adopted,   and   liaising   with   all   the   member
departments and relevant agencies of the government, as needed.
SEC.  8.  Sa/f as  gas/.c Agri.cu/fura/ Product.  - Salt,  whether unprocessed  or
processed,  is  hereby  classified  as  a  basic  agricultural  product  with  all  its  necessary
legal and  regulatory implications.
The  DA shall also ensure that salt is a  priority commodity to  be produced  locally
in  areas or regions identified  in this Act,  as well  as  in the development plan for the  salt
industry. The required resources shall be allocated by the DA for this purpose.


SEC. 9. Jurisdiction over Salt Farms and Fishponds with Salt Farms. -The
administrative jurisdiction  and  management of salt farms and fishponds with  salt farms
shall  be lodged with the  DA-BEAR.  All  applications for salt farm  leases,  including  those
submitted  to  the  DENR,  shall  henceforth  be  processed  by the  DA-BFAR.  However,  all
existing   salt  farm   lease  agreements  issued   by   DENR  shall   remain   valid   until  their
expiration. Thereafter, application for renewal shall be lodged with the DA-BFAR.
SEC.10. Prr-or/-fy A/eas for Sa/I Prodqcf/'on. -Provinces with Type  1  climate,
which   include   llocos   Norte,   llocos   Sur,   La   Union,   Pangasinan,   Zambales,   Bataan,
Occidental  Mindoro,  Palawan,  Antique,  and  Marinduque,  are  hereby  declared  priority
areas  for  salt  production.  As  such,  these  provinces  shall  be  prioritized  in  the  national
development of salt farms.  The  DENR shall  identify and  map  sites within  these  priority
areas suitable for salt production,  and the  DA-BFAR shall then  issue the corresponding
tenurial  instrument  to  qualified  applicants  for  the  development  of  salt  farms  in  these
areas.
SEC  11.   utilization   of  Public   Lands   Previously   Intended  for  Fishpond
Development and Those With Existing Fishpond Lease Agreements (FLAs). -AI
areas  previously  released  to  DA-BFAR for fishpond  development that were  not  issued
with fishpond  lease agreements (FLAs), or those areas previously covered  by FLAs but
were   subsequently   cancelled   or   terminated    or   previously   reverted,    are   hereby
automatically  identified  as  areas  suitable  for  salt  production  that  may  be  issued  with
tenurial instruments by DA-BFAR.
Existing  FLAs  shall  also  include  salt  farming  or  production  as  among  the  valid
activities  that  may  be  undertaken   by  the  leaseholder  under  the  condition  that  the
required annual commercial fish and/or salt production under the existing  FLA rules and
regulations  is  complied  with.  FLA  holders  who  intend  to  venture  into  salt farming  shall
be given the same support, training,  and financing given to salt farmers and  producers,
as provided under this Act.
SEC.   12.   Identification   of   Additional   Public   Lands   Suitable   for   Salt
Producfi.on.  -  Consistent with  the  Roadmap  adopted  by the  PSIDC,  the  DENR  shall
identify  additional  areas  suitable  for  salt  production.  Once  identified  and  mapped-out,
the DA-BFAR shall issue the appropriate tenurial instruments to qualified applicants.
SEC.13. Mun;c;pa/ Waters. -  As far as practicable, portions of municipal waters
adjacent to areas identified as suitable for salt farm development may be included in the


tenurial  instrument,  and  as  such,  these  municipal  waters  may  also  be  utilized  as  salt
farms:  Provt.ded,  That no  critical  habitat or spawning ground  of fish  may be affected  by
the salt farm development in such municipal waters: and Provt.ded fuwher, That the LGU
concerned has been consulted.
SEC.14. Qqa/iTr-cafi-ons of Tend/7.a/ Awardees. -Consistent with the provisions
of  this   Act,   the   Secretary   of  Agriculture   shall   come   up   with   the   qualifications   of
awardees  of  salt-farm  tenurial  instruments  taking  into  account  relevant  laws  on  the
matter.
SEC.  15.  Registration,  Construction,  and  Lease  of Salt  Farms. -The DA:
BFAR shall facilitate the prompt registration of salt farms as well as assist in the design,
construction,  and  development of small-scale  artisanal  salt farms,  either on  its  own  or
through  partnership with the private sector. The DOST, on the other hand,  shall  provide
the   necessary  technology   in   the   construction   of  large-scale   salt  farms   employing
modern   technologies   to   increase   production   efficiency   and   environmentally-sound
practices.
The  DENR  shall  promptly  act  on  the  processing  and  issuance  of  permits  and
clearances, such as Environmental Compliance Certificates,  prior to the development of
salt farms  to  ensure  that  such  projects will  not  cause  a  significant  negative  impact  on
the environment.
Individuals   may   lease    up   to   five   hundred    (500)   hectares   of   salt   farms.
Corporations,  associations,  and  cooperatives  may  lease  up  to  one  thousand  (1,000)
hectares.  A  lease  applicant  may  apply  for  a  lease  for  more  than  one  area  and  hold
several  lease agreements,  but in  no case shall the total  area covered  by such  multiple
lease agreements exceed the limits prescribed under this provision.  Leases shall have a
tenure  of  twenty-five  (25)  years,  renewable  for  another  twenty-five  (25)  years.  Upon
expiration  of the  second  lease,  the  existing  lease  may apply for a  new  lease  over the
same  area.  Lease  rates  for  salt farm  and  fishponds  shall  be  determined  by  the  DA-
BFAR, and shall be aligned with the prevailing  FLA rates.
SEC.   16.   Periods   for  Approval   of   Salt   Farm   Lease   Agreements   and
/ssuance of TenurJ.a/ /nsfrunenfs,.  Term/.nat/-on. -The BFAR Provincial  Officer shall
process  new  salt  farm  lease  applications  within  sixty  (60)  calendar  days,  and  shall
forward  such  application  to  the  BFAR  Regional   Director,  who  shall  have  thirty  (30)
calendar   days   to   approve   or   return   the   application.   When   approved,   the   tenurial
instrument shall be issued to the applicant within the thirty (30)-day period.


For  the   renewal   of  the   lease   agreement,   the   BFAR   Provincial   Officer  shall
process  salt farm  lease  application  within  sixty  (60)  calendar  days,  and  shall  forward
such  application  to  the  BFAR  Regional  Director,  who  shall  have  fifteen  (15)  calendar
days  to  approve  or  return  the  application.  Upon  such  approval,  the  BEAR  Regional
Director  shall  issue  the  tenurial  instrument  to  the  applicant  within  the  fifteen  (15)-day
period.
For  the   transfer  of  leases,   the   BFAR   Provincial   Officer  shall   process   such
application   for   transfer   within   sixty   (60)   calendar   days,   and   shall   forward   such
application  to the BFAR  Regional  Director , who  shall  have thirty (30) calendar days to
approve  or  return  the  application.   Upon  such  approval,  the  BFAR  Regional  Director
shall issue the tenurial instrument to the transferee within the thirty (30)-day period.
Unfavorable  decisions  by the  BFAR  Regional  Director may  be  appealed  by the
applicant to  the  BFAR  National  Director within  thirty  (30)  calendar days from  receipt of
such  decision.   Such  appeal   shall   be  resolved  within   sixty  (60)  calendar  days  from
receipt by the National  Director. A copy of the decision  shall be immediately sent to the
appellant and  to  the  BFAR  Regional  Director concerned.  In  case  of favorable  decision
on   the   appeal,   the   concerned   BFAR   Regional   Director   shall   issue   the   tenurial
instrument within seven (7) calendar days from receipt of said favorable decision.
The   DA   Secretary   shall   issue   the   appropriate   rules   and   guidelines   for  the
termination  of  salt  farm  lease  agreements,  and  consequently  the  revocation  of  the
tenurial instruments issued pursuant to this Act.
SEC.  11.  Promotion  of  Artisanal  Salt  and  Non-Traditional  Salt  Farming
Mefhodo/ogi.es  and  Techni.ques.  -   The  PSIDC  shall  promote  and  support  artisanal
salt farming,  as well  as available  non-traditional  alternative  methods and  techniques of
salt   farming   that   allow   year-round   production   of   salt   even   under   erratic   weather
patterns.  The  introduction  of  new  technology  shall  be  preceded  by  R  &  D  activities
spearheaded   by  the  Department  of  Agriculture  -  National   Fisheries  Research  and
Development Institute (DA-NFRDl) in close coordination with the DOST.
SE:C.18. Funding and Technical Support for the Development of Salt Farms
and  Equi`pmenf.  -  The  DA-BFAR  shall  provide  funding  and  technical  support  in  the
development  and  operation  of  salt  farms.   It  shall  also  provide  equipment  and  other
necessary support to salt farmers.
SEC 19. Construction of Salt Farm Roads, to be known as Daan Asinan. -
Consistent with the development plans on the revitalization of salt industry, the DA shall,
in  coordination with the  LGUs and  salt farmers within the area,  identify priority locations


of roads linking the salt farms to the market, to be known as Daan As+'nan. The DA shall
take into account the investment for salt farm to be undertaken in the area, the number
of  salt  farmers  and  their families  who  shall  benefit  therefrom  and  the  amount  of  salt
produced  or potentially  produced  in  the  salt farms.  Thereafter,  the  DA  shall  undertake
the construction, improvement, and maintenance of the Daan As/.nan.
SEC.  20.  7+ai.ni.ng Programs. - The  DA  shall,  together with  other government
offices such  as but not limited to the  DOST,  DTl  ,  Food  and  Drug Administration (FDA),
and    Technical    Education    and    Skills    Development    Authority    (TESDA),    provide
complementary training  programs to develop and  upgrade the  skills and  competencies
of  salt  farmers  and   producers,   ensure  product  traceability  and  compliance  to  food
safety,   technology   acquisition   including   product   labelling   and   packaging,   conduct
continuous   training   on   market   positioning   for   Philippine   artisanal   or   specialty   and
industrial  salts and  such  other skills necessary in the maintenance and  development of
the local salt industry.
SEC. 21. Sa/f Farmers Cooperaf/.yes. -The CDA shall assist in the formation of
cooperatives  of  local  salt  farmers  and  producers  in  order  that  they  can  economically
engage in the production and  distribution of Philippine salt. The CDA shall also assist in
the organizational  strengthening,  capacity-building,  and  financial  literacy training  of salt
farming  and  producing  cooperatives and their members so that they can  leverage their
resources,   ensure   sustainable   operations,   and   increase  the   number  of  successful
cooperative-managed salt farms in the country.
SEC.  22.  Labeling  of  Salt  Made  in  the  Philippines.  -    AIl  salt produced  or
manufactured  in the  Philippines for export shall  be  labeled  as "Made  in the  Philippines"
in    a    prominent   and    conspicuous    manner   on    the    product,    its    packaging,    and
accompanying  documentation,  and  shall  comply  with  the  requirements  of  RA  7394,
otherwise known as the ``Consumer Act of the Philippines."
For domestically produced  salt intended for the local  market,  salt manufacturers,
producers or farmers are encouraged to provide a label ``Made in the Philippines."
The  DTI  shall  assist  domestic  salt  manufacturers,  producers  or farmers  on  this
labeling requirement.
SEC. 23. Reg/.sfraf/.on w/.fh DA-BFAR. -Salt farmers,  producers   and importers
of salt shall  register with the BFAR.


The  BFAR  shall  continue  to  implement  measures  ensuring  compliance  of  salt
farmers   with   food   safety   laws   and   guidelines   intended   for   human   and   animal
consumption:  Provided, That salt which are not intended for food consumption,  shall not
be  subjected  to  food  safety  laws  and  guidelines.   For  this  purpose,  the  BEAR  shall
engage  the  expertise  of  the   Philippine  Council  for  Agriculture,  Aquatic  and   Natural
Resources Research and Development and the Food and Nutrition Research Institute.
SEC. 24. /mporfafi-on of Sa/I. - No person shall  import salt without securing the
appropriate authorization from the following agencies:
(a) DOH-FDA and DA-BFAR -for food-grade salt; and
(b) DA-BFAR -for industrial salt.
The DOH-FDA and DA-BFAR shall align and streamline their processes.
SEC.  25.  TaH7-f/.cat/-on.  -   Tariff collections shall  be automatically deposited  in  a
special   account   with   the   Bureau   of   the   Treasury   which   shall   be   used   for   the
development   of   the   salt   industry,    through    the   Salt    Industry    Development   and
Competitiveness Enhancement Fund.
Salt  imports  include  imported  products  under the following  Harmonized  System
headings or ASEAN  Harmonized Tariff Nomenclature Codes, the Descriptions:
2501  -Salt  (including  table  salt and  denatured  salt)  and  pure  sodium  chloride,
whether or not in aqueous solution containing added anti-caking   or free flowing agents;
sea water.
(i)            2501.00.10
(ii)          2501.00.20
(iii)         2501.00.50
(iv)         2501.00.51
(v)         2501.00.91
(vi)        2501.00.93
Table salt
Unprocessed rock salt
Sea Water
Salt, denatured, industrial
With sodium chloride content more than 600/o
but less than 970/o, calculated on a dry basis,
fortified with  iodine
Other, with sodium chloride content 97°/o or
more but less than 99.90/o, calculated on a
dry basis


(vii)       2501.00.99                                   Others
Tariff collection shall be automatically credited to a special account in the general
fund  of  the  national  treasury,  which  shall  be  in   place  within  ninety  (90)  days  upon
effectivity of this Act.
SEC. 26.  Creation  of the  Salt Industry  Development and  Competitiveness
Enhancement   Fund.    -    There    is    hereby    created    a    Salt    Development    and
Competitiveness Enhancement Fund, herein referred to as the "SIDCEF:"
Provt.bed,  That  allocation  and  utilization  of the  SIDCEF  shall  be  subject  to  the
following guidelines:
(a)  The   Secretary  of  the   DA  shall   be  accountable  and   responsible  for  the
management and  utilization  of the  said  fund  in  coordination with  the  other government
agencies concerned;
(b) The amount allocated  shall  be released directly to the implementing agencies
as  provided  for  in  this  Act  based  on  the  objectives  of the  Salt  Industry  Development
Roadmap:  Provt.ded further, That the unutilized portion of the SIDCEF shall not revert to
the general fund but shall continue to be used for the purpose for which it was set aside.
The fund releases shall not be subject to any ceiling by the DBM; and
(c)  Any  program  undertaken  in  accordance  with  this  Act  shall  only  be  deemed
complementary  and  supplementary  to,  and  shall  not  be  replacement  of  any  existing
programs for the fisherfolk  already  implemented  by  the  DA-BFAR  and  other  agencies
concerned.
SEC.  27.  Revi.ew of the Sa/f Tar/`ff Rates. - Consistent with the policies of this
Act,  the  Tariff Commission  shall  review the  most favored  nation  or  MFN  in-quota  and
out-quota tariff rates on salt imports originating from non-Association of Southeast Asian
Nations  (ASEAN),  World  Trade  Organization  (WTO)  member  states.  Within  sixty  (60)
days following  the effectivity of this Act,  the Tariff Commission  shall  recommend  to the
National  Economic  and  Development  Authority  Board  the  possible  MFN  in-quota  and
out-quota  rate  adjustments for  salt  imports  that will  ensure  the  competitiveness  of the
local industry.
SEC. 28. Powers of the Pres;dent. -The President, consistent with the national
interest  of  safeguarding   Filipino   salt   producers,   is   hereby  empowered   to   act  with
delegated  authority to  revise  or adjust existing  rates of customs  duties  on  salt imports
under the WTO Agreement on  agriculture under ASEAN  Trade in  Goods Agreement or
ATIGA,  including any necessary change in classification: Provt.c/ed, That the adjustment


is time-bound  and  the  power herein  delegated  to the  President shall  only be exercised
when  Congress  is  not  in  session:   Provt.ded,   further,  That  any  order  issued  by  the
President  adjusting   the  applied   tariff  rates  shall  take   effect  fifteen   (15)  days  after
publication.
The power herein delegated to the President may be withdrawn or terminated  by
Congress  through  a  joint  resolution  in  accordance  with  the  provisions  under  Section
1609 of RA 10863 or the "Customs Modernization and Tariff Act or the CMTA."
SEC.  29.  Trade  and Export Ass/.stance.  -  The  DTI  and  DA  shall  assist  and
support local  salt farmers  in  the trade and  exportation  of domestically-produced  salt.  It
shall   enhance  the   capabilities  and   global   competitiveness  of  potential   and   existing
producers and  exporters of salt through  export financing;  business  matching;  provision
of  trade  and  market  information;  organization  of  trade  fairs  and  business  missions;
conduct  of  seminars,   workshops,   conferences   and   symposium   on   export-   related
subjects,    including    export    documentation    and    procedures;    product   design    and
development;  market consultancy; and product consultancy.
SEC.  30.  Prioritization  of  Domestically-Produced  Salt.  - The  govemmeut
shall   prioritize  the   use  of  domestically-produced   salt  in   its  programs,   including  the
fertilization of coconut farms by the Philippine Coconut Authority.
SEC.  31. /ncenfi.yes. -The following  incentives shall  be provided to investors in
salt farm development and salt processing facilities:
(a)  The  Board  of  Investments  shall  classify  salt  farms  as  preferred  areas  of
investment    under   its    Investment    Priorities    Plan    subject   to    pertinent    rules    and
regulations;
(b)  The  salt  farmers  and   processors  shall   be  given   priority  to  access  credit
assistance  and  guarantee  schemes  being  granted  by  government finance  institutions;
and
(c) Salt farm development and their equipment shall be covered by the Philippine
Crop Insurance Corporation.
SEC.  32.  Research. -The DA-NFRDl  shall conduct research,  either on  its own
or  in  collaboration  with  state  universities  and  colleges  and  other stakeholder  research
institutions,   to   enhance   the   technological   development,    provide   applicable   policy
direction,  and  develop  innovative  project-based  interventions that may be  adopted  and
implemented to achieve the objectives of this Act.


The  DOST  Philippine  Council  for  Industry,   Energy  and   Emerging  Technology
Research  and  Development  Council  (PCIEERD),  as  lead  together with  other  relevant
DOST offices and agencies shall develop and  implement a comprehensive program for
the  acquisition,  design,  and  manufacture  of salt  iodization  equipment,  and  transfer  of
the salt iodization technology to salt producers/manufacturers.
SEC.   33.   Human  Resources  Deve/opmenf.  -  All   stakeholders  in  the  salt
industry  shall  contribute  to  the  development  of a  sustainable  human  resource  for the
industry.  Towards  this  end,  the  DOLE,  in  collaboration  with  the  duly  recognized  salt
associations and  salt cooperatives,  the  Commission  on  Higher  Education,  the TESDA,
the  Professional  Regulation  Commission  (PRC),  the CDA   and the  private sector,  shall
formulate and  implement a  Human  Resources  Development (HRD) Master Plan for the
salt industry which shall include, among others, the following:
a) Capacity  building,   skills  trainings,   and   institutional  strengthening  of  the  salt
farm  workers,  salt  farmers,  salt  farming  and  producing  cooperatives,  and  their
organizations to actively contribute in productivity and competitiveness;
b) Scholarship  program  for  the  underprivileged  but  deserving  college  and  post
graduate  students  who  are  taking  up  courses  in  relevant  fields  of  discipline  in
state  universities  and  colleges  which  have  programs  in  agriculture,  agricultural
engineering  and  mechanics,  and  chemical  engineering/salt  technology;  and  for
vocational  courses and  skills development for farmers and farm technicians,  and
skilled workers in salt farms; and
c)  Conduct  of capability  training  or  attendance  to  local  or  international  trainings
and seminars by salt farmers and workers.
SEC. 34. Mandatory Salt lodization;  Exemptions and Incentives. -lmported
food  grade  salt  shall  continue  to  comply  with  the  mandatory  iodization  as  provided
under  the  provisions  of  RA  8172.  Domestically-produced  salt  including  industrial  salt
shall  be exempt from  said  mandatory iodization.  However,  as provided  under Section 6
(k) and (I) of this Act,  PSIDC may exercise its power to require the mandatory iodization
of  domestically-produced  salt  and  may  exempt  the  mandatory  iodization  of  imported
food grade salt.
The  DTl,   DOH,  and   DOST-PCIEERD  shall  develop,  enhance,  implement  and
sustain  programs  that will  encourage  and  incentivize  local  salt  producers to  iodize  the
salt that they produce and manufacture for human and animal consumption.
SEC. 35. Ro/e of LGUs. -The LGUs with areas suitable for salt production shall,
as far as  practicable,  establish  their respective  Salt  Industry  Development Task  Force.


The  LGUs shall  regularly conduct a survey of existing  salt farms and  salt enterprises in
their   respective   localities.   Each   local   Salt   Industry   Development   Task   Force   shall
conduct a survey of existing salt processing enterprises that are operating in the locality.
In  cooperation  with  the  DA-NFRDl,   DENR,   DTl  and  the  appropriate  DOST-Regional
Office,   and   in   consultation   with   the   DA   and   BFAR,   they   shall   identify   and   map
appropriate areas for local salt production.
The   LGUs  shall   also  enact  local  ordinances  to   support  the  development  of
Philippine  sea  salt,  artisanal,  gourmet,  and  specialty  salt  produced  in  their  respective
municipalities  or  cities,  implement  appropriate  measures  to  ensure  the  ease-of-doing
business and ensure that salt farmers or producers and local gourmet outlet owners are
free  from  harassment  on  alleged  non-compliance  with  iodization  requirements.   Law
enforcement  units,  including  members  of  the  Philippine  National  Police,  shall  ensure
that domestic salt farmers and producers are not unduly burdened.
SEC.   36.   Agenc/.es'  Regu/ar  Programs.   -  The   mandates,   functions   and
activities   of  the   various   departments   and   agencies   identified   in   this   Act   shall   be
considered regular programs and shall be included in their annual budgets.
SEC.  37.  Reporfi'ng. - The various departments  and  agencies specified  in  this
Act shall  provide  regular updates to  the  PSIDC on  the  progress of their programs  and
activities toward the realization of the objectives of this Act.
SEC. 38. Congress/.ona/ Overs/.ghf. -The Congressional Oversight Committee
on    Agriculture    and     Fisheries    Modernization    (COCAFM)    shall    ensure    the    full
implementation of this Act.
SEC. 39. Appropr7-af/'ons. -The amount necessary for the initial implementation
of this Act shall be charged against the current year's appropriations of the departments
and   agencies   concerned.   Thereafter,   such   amount  as   may   be   necessary  for  its
continued   implementation shall be included  in the annual General Appropriations Act.
SEC. 40.  Implementing  Rules  and Regulations. -The PSIDC created under
Section  5 of this Act shall  be convened  within  sixty (60) days from  the approval  of this
Act.  Thereafter,  it shall  issue the  implementing  rules  and  regulations to  efficiently  carry
out the provisions of this Act within one hundred twenty (120) days from approval of this
Act.


SEC. 41. Separabi-/i-fy C/aqse. - If any portion or provision of this Act is declared
unconstitutional  or invalid,  the  other provisions  not affected  thereby  shall  remain  in  full
force and effect.
SEC.  42.  Repea/i.ng C/ause. -The  pertinent provisions of RA 8172,  RA 8550,
otherwise  known  as the  "Philippine  Fisheries  Code  of  1998,"  as  amended,  are  hereby
modified   or   amended   accordingly.   Further,   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.   43.   Effect/-v/-fy.  -This  Act  shall  take  effect  fifteen   (15)  days  after  its
publication  in  the  Official  Gazette  or  in  any  newspaper  of  general  circulation  in  the
Philippines.
Approved.