Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

NTEENTH CONGRESS
First Regular Session

HOUSE BILL N0.8883

Introduced by REP. EVELINA G. ESCUDERO

EXPLANATORY NOTE

This bill is being filed as a counterpart measure of House Bill No. 1998 filed by Rep.
Sharon Garin in the House of Representatives,

It is the policy of the State to recognize the essential role of coconut as a strategic,
indigenous, replenishable and renewable source of livelihood for a great number of people.

‘The coconut industry, which covers 3.563 hectares or 26% of the total agricultural land in
the country, is one of the biggest agricultural industries in the country. It produces an annual
average of 15.2 billion coconuts, with over 24 million direct and indirect stakeholders in over 69
provinces in the country.

The Philippine Coconut Authority was created pursuant to Presidential Decree 232 in 1973
to promote the accelerated development of the coconut industry and to prov ide policy directions for
such purpose, Subsequent legislations were also enacted for the same purpose, the last being
Presidential Decree 1468 in 1978. However, said laws were created to address the conditions of the
coconut industry almost 4 decades ago, making the present charter of the Philippine Coconut
Authority undeniably deficient.

Thus, this bill brings about the necessary transformations to the Philippine Coconut
Authority both at the policy and operational levels, by legislating a Coconut Industry Development
‘Act which will provide an up-to-date overall strategic guidance to the industry. To implement the
policy and objectives of this measure, a non-stock, government corporate entity known as the
Philippine Coconut Industry Development Authority (PHILCIDA) is created and established,
headed by a 7-member Board of Directors with its Chairman as head and Chief Executive Officer
of the Authority.

This measure equips the PHILCIDA with solid and multifaceted mandate, which focuses on

developmental, governmental, regulatory, research and development, and corporate powers and
fumetions. It also provides assistance to coconut farmers through marketing assistance and other
extension services to boost the yield and expand the income of coconut farmers, as well as
intermediation and arranging services for investment, financing, and trade, among others. It also
presents measures on rehabilitation and fertilization of coconut trees



Removal of corporate restriction of PCA is also proposed to make it a profitable,
sustainable, and development-oriented agency. In 2013, PCA had only a subsidy of around

P939.750 million, equivalent to a mere 1.86% of the total allocation of the Department of
Agriculture.

Research and development is also provided in the bill to cultivate a culture of scientific
excellence and professionalism in its agricultural and industrial research and establish credence to
the initiatives, findings, and innovations of PCA. This will allow the development and propagation
of new discoveries and technologies.

In view of the foregoing, the passage of this measure is fervently sought.

ERO.


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEV

‘TEENTH CONGRE
First Regular Session

HOUSE BILL No, 8883

Introduced by REP. EVELINA G. ESCUDERO

AN ACT
REVITALIZING THE COCONUT INDUSTRY, APPROPRIATING FUNDS.
THEREFOR AND FOR OTHER PURPOSES

ARTICLE
GENERAL PROV!

IONS.

SECTION 1. Short Title. — This Act shall be known as “The Coconut Industry
Development Act.”

SEC. 2. Statement of Policy. — 11 is the policy of the State to recognize the essential role
of coconut as a strategic, indigenous, replenishable and renewable source of livelihood for a
reat number of people. Towards this end, the State shall promote the rapid, steady and
continuous integrated development and growth of the coconut industry in all its aspects and
ensure that the coconut farmers, farm workers, processors, lessees and tillers, and their
families, shall become direct participants in, and beneficiaries of, such development and
growth thereby inereasing their income and uplifting their quality 0

‘As used in this Act, “coconut” shall encompa:
coconut and oil palm-based products and by-product:

nut trees and oil palm trees, and

SEC. 3. Goals and Objectives, ~ Pursuant to the above-mentioned policy, the effort of
government shall be directed towards the following goals and objectives:

a) Promote the steady, accelerated, and orderly development of the coconut industry
consistent with the agrarian reform policy of the government;

b) Develop and establish the coconut farming systems including but not limited to the
tablishment of model coconut farms:

©) Hasten and advance industrialization in the coconut industry and the diversification
and proper utilization of coconut products and by-products, and oil palm products and
by-products


d) Promote the effective utilization and marketing of coconut products and by-products
and oil palm products and by-products in the domestic and foreign markets and
preserve the competitiveness and reliability of the country as a major producer and
supplier of said products, by establishing national standards acceptable in the
international market;

e) To increase production by expanding the planting and replanting program of coconut
trees in strategic areas identified as having the most potential and the rehabilitation
and fertilization of existing coconut trees:

f) Conduct scientific researches and investigations in all areas pertaining to agricultural,
industrial, marketing and socio-economic aspect of the coconut industry and
encourage the participation of small farm holders in research and technology;

2) Encourage and promote the organization of coconut farmers cooperatives,
associations, and organizations and provide them credit and financing schemes:

h) Generate and disseminate information and communication to farmers, producers and
other sectors to ensure the appreciation and adoption of appropriate technology and
practices, inventions, as well as the proper awareness and correct understanding of
issues and development in the coconut industry; and

i) Coordinate and integrate all efforts of various agencies of government and provide
general direction for the steady and orderly development of the industry

ARTICLE I
POWERS AND FUNCTIONS OF THE
PHILIPPINE COCONUT INDUSTRY DEVELOPMENT AUTHORITY

SEC. 4, Philippine Coconut Industry Development Authority. ~ To implement the policy
and objectives of this Act, there is hereby created and established a non-stock, government
corporate entity known as the Philippine Coconut Industry Development Authority
(PHILCIDA), hereinafter referred to as the Authority

SEC. 5. Powers and Functions, ~ The Authority shall exercise the following core powers
and functions:

a) Developmental Power and Function
1) Formulate and adopt a general program of development geared towards ine
farm productivity, through planting or replanting of suitable seedling varieties
rehabilitation and fertilization of coconut, integrated coconut-based farming.
systems and product processing, and whenever necessary, the construction of
related support and infrastructure facilities, For this purpose, the Authority shall
adopt a special program to maximize the yield of small coconut farmers and their
farm families particularly those farms covered by the agrarian reform program of

the government;

b) Research and Development Powers and Functions
1) Undertake scientific researches and investigations on crop and varietal
improvement, pests and diseases, agronomy and mineral nutrition, coconut wood
utilization, virology and biochemistry and epidemiology of cadang-cadang, and


2)

6)

rn

8)

such other similar studies on varietal and crop improvement of general or local
suitability;

Undertake scientific researches and investigations on food, non-food products
and by-products including bio-diesel, directly or in collaboration with other public
agencies or the private sector;

Conduct intensive studies and data research, establish and maintain a database
of primary, accurate and reliable information on coconut culture, production,
pricing capacity, marketing, inventories as well as scientific thesis and treaties in
coordination with other government offices, the private sector and international
agencies and bodies;

Establish, maintain and operate such number of research centers and experiment
stations, including laboratories, seed gardens, nurseries, pilot farms and industrial
facilities as may be necessary to undertake extensive research in coconut pests and
diseases, improvement of copra, manufacture of coconut products and by-products
or oil palm products and by-products, and the greater utilization of the coconut for
traditional and non-traditional use

Construct, invest, establish and operate integrated coconut centrals, processing
plants and integrated processing mills and other support facilities in aid of its
research and development function;

Secure or obtain registration of intellectual property rights on any discoveries,
new process, or utilization involving coconut products and by-products or oil palm
products and by-products resulting from its research and studies:

Develop, package, utilize, promote, and transfer viable techniques and
technologies: Provided, however, That an appropriate royalty or technological
transfer fee shall be imposed, the amount of which shall be determined by the
PHILCIDA Board of Directors:

Purchase or fabricate such machineries, material, equipment and supplies as
may be necessary to execute successfully such researches, investigations and
experimental work as provided under this Act on its own or in partnership with
other agencies

Regulatory Powers and Functions

1) Regulate the marketing and the exportation of coconut products and by-
products and oil palm products and by-products to conform with quality or food
standards recognized by both the domestic and international market;

2) Take samples and conduct examination of any copra, coconut products and by-
products and oil palm products and by-products that are subject to domestic and
international standards; to conduct laboratory analysis to determine the
chemical characteristics of moisture content, contaminants, including the
presence of toxin and other contaminants and issue the necessary commodity
clearance and export permit: Provided, That the Authority may withhold the
issuance of such clearance or permit, or suspend or cancel any clearance or
permit already issued in case of violation by the holder of any provision of this
‘Act or rules and regulations duly promulgated by the Authority:

3) Develop and recommend for the adoption of the Bureau of Plant Industry and.
other concerned government agencies measures and methodology quarantine
for coconut products and by-products and oil palm products and by-products; to
impose such restrictions in the transport movement or handling of the same in
accordance with such standards and quarantine procedure determined by the
Authority:

4) Order the closure of any mill, refinery. processing firm, copra warehouse or any
place or building where coconut products and by-products or oil palm products



and by-products are stored or to intercept any vehicle or ship or vessel carrying
or transporting coconut products and by-products or oil palm products and by-
products, and seize the contents thereof, where there is reasonable ground to
believe that the owner, possessor or person or persons in control of such place,
building, vehicles, ship or vessel, of such products have violated the provisions
of this Act or any rules and regulations promulgated thereto in a manner that is
prejudicial and detrimental to the coconut industry, or the consuming public;

d) Corporate Powers and Functions

1)

3)

6)

0)

Create subsidiaries or enter into partnerships or joint ventures with any public
or private foreign or local entity, natural or juridical, and acquire, own or hold
shares of stock or interest therein for the purpose of fully utilizing the
commercial value of pioneer and new technology generated in the industry, of
of financing the manufacture, on commercial scale of coconut products and by-
products or oil palm products and by-products: Provided, That such subsidiary,
partnership, joint venture, which the Authority is authorized to create, shall be
governed by the provisions of general laws applicable to corporations and such
entities: Provided, further, That after such partnership, subsidiary, or joint
venture with private Filipino citizens or entities authorized to be created shall
have become fully viable for commercial operation, and the Authority has
recovered its investments or contributions, the Authority shall immediately
divest itself of its interest over the partnership, subsidiary, or joint venture in
favor or any private person or entity. For purposes of this paragraph, the
Authority shall make studies and investigations of the enterprises and projects
for which the loans, contributions and subscriptions to the capital of the
enterprise or investments mentioned are needed, and determine the advisabil
of financing the same:

Lease real estate, lands and interest in lands owned and acquired by the
‘Authority including buildings or other structures with their appurtenances in
pursuance of any partnership or joint venture to implement its technology or
developmental projects and programs;

Borrow, raise or obtain funds; to issue bonds and other instruments of
indebtedness: or to enter into any financial or credit arrangement fom any
financial or lending institutions, local or foreign, in order to support or carry out
its objectives and purposes, subject to pertinent laws governing public debts and
expenditures: and when necessary, subject to the approval of the President;
Receive grants, subsidies, donations or contributions from corporations, trusts,
foundations, associations and other sources from any private or government
office, agency or corporation, local or foreign;

Purchase, own, lease, hold, or otherwise acquire real estate, lands and interest in
lands and to own, hold, improve, develop, and manage any real estate so
acquired and to erect, rebuild, enlarge, alter or improve buildings or oth
structures with their appurtenances on any lands so owned or occupied
Purchase, own, lease, hold, or otherwise acquire such machineries, equipment,
tools, materials, supplies, or other parts as may be necessary, convenient or
appropriate for any of the purposes for which the Authority is formed:

Invest and deal with the funds of the Authority in stocks, bonds and other
secured collaterals with skill, care, prudence and diligence, in order not to make
such funds idle and unproductive pending their full utilization for the principal
objects and purposes for which the Authority has been organized: Provided,
however, That such investment or investments shall be subject to the approval
of the President,



e)

i)

Extension Services and Market Development Powers and Functions

1) Render training, extension service programs and disseminate information to
coconut farmers, farm workers and processors relative to production
technology, marketing systems, entrepreneurial and other technical skills and
values, attitude formation and socio-economic development strategies;

2) Promote, encourage and assist coconut [planters,] farmers, processors and
workers organize themselves into associations and cooperatives, equip them
With greater capability of marketing their products, and assist them obtain more
credit facilities: to register and accredit such associations and cooperatives for
purposes of participation in the developmental programs of the Authority
Provided, That the Authority shall not directly or indirectly influence the
farmers in the exercise of their choice or selection of candidates ot leaders in
the organizations:

3) Provide, in coordination with the private sector, a system of accreditation of
association of traders, millers, desiccators, farmers, exporters and end-users of

coconut products and by-products and oil palm products and by-products;

4) Undertake of participate in trade missions to obtain better preferential trading
arrangements with importing countries, and enter or otherwise participate in
behalf of the coconut trading industry in all agreements, arrangements, missions
or conventions with any foreign government or entity with respect to trading
relations, market quotas. tariff and non-tariff barriers and such other matters
affecting the export of coconut products and by-products, and oil palm products
and by-products:

5) Assist coconut farmers, organizations in marketing their products locally or
abroad when the need arises;

6) Assist coconut farmers organizations in establishing farmer owned bonded
warehouses and processing facilities:

7) Develop credit assistance programs and funding mechanisms for coconut
{planters,| farmers, processors, workers, and organization:

8) Engage in the business of manufacture and merchandise of coconut consumer
products and by-products and distribute the same in the local market to avert the
short supply of such products for the interest of the consumers;

9) promote the expansion and development of the domestic and foreign market for
coconut products and by-products and oil palm products and by-products.

Governmental Powers and Functions

1) Impose and collect all fees, charges, assessments and imposts including
interests and surcharges authorized under this Act or its implementing rules and
regulations and disburse funds generated by the Authority from its operations to
carry out its functions;

2) Require exporters, traders, millers, refiners, desiccators, oleo-chem
processor, other manufacturers and end-users of coconut products and by-
products, and oil palm products and by-products to submit periodic reports of
production, receipts of deliveries or purchases or both, sales, inventory,
contracts and such other data the Authority may deem necessary to properly and
effectively promote the development of the industry:

3) Promulgate its own rules for investigation and procedure to investigate
complaints involving violations of this Act or any rules and regulations issued
pursuant thereto, or any such other laws, rules and orders affecting the coconut
industry; attribute or settle conflicting claims or render the appropriate decision
or award including the imposition and administrative penalty of cancellation,



revocation and suspension of license, registration, permit or clearance issued in
accordance with this Act;

4) Call upon or deputize any official or law enforcement agency of the government
as may be necessary to assist the Authority in carrying out and enforcing its
functions under this Act;

5) Issue subpoena or subpoena duces tecum and/or subpoena ad testificandum to
summon witnesses to appear in any investigation or hearing conducted by it;

6) Enter into, make, conclude, perform, and carry out contraets of every kind and
nature and for any lawful purpose which are necessary, proper or incidental to
any business or purpose of the Authority; and

7) Adopt, alter and use a corporate seal; to sue and be sued; and otherwise to do
and perform all acts or exercise all powers and functions necessary or incidental
to attain the national policy and objectives under this Act.

ARTICLE HL

BOARD OF DIRECTORS AND OTHER PERSONNEL

SEC. 6. Board of Directors. ~ The corporate powers and duties of the Authority shall be
vested and exercised by a Board of Directors, hereinafter referred to as the Board, composed of
seven members to be appointed by the President, three of whom shall represent the coconut
farmer sector, one (1) from the trading and processing sector, one (1) from the science and
research sector, and two (2) from the government sector. The Chairman shall be designated by
the President from among the members appointed. in his absence, the chairman may designate
any member of the board to preside during the meeting.

SEC. 7. Tenure. ~ The members of the Board shall hold office for a term of six (6) years
or until their suecessors shall have been appointed and qualified or unless sooner removed for
cause. Appointment to vacant positions shall only be for the unexpired term of the predecessor.

SEC. 8. Powers and Functions, — The Board shall exercise the following powers and
function:

a) Formulate and adopt a national government plan for the coconut industry and
promulgate the necessary rules and regulations, policies and measures in support of
the plan:

b) Presoribe the organization of the Authority and fix the compensation and allowances of
all its personnel in accordance with law;

©) Reorganize the Authority when there is a need to institute reforms in the organizational
structure to effect economy and promote efficiency. For this purpose, the Board may
group, coordinate, consolidate or integrate positions and create, reclassify, split and
abolish positions;

d) Adopt, promulgate or amend, revise, modify or repeal rules and regulations necessary
to implement the provisions of this Act;

e) Appoint the Administrator and deputy administrators and other officers upon the
recommendation of the Chairman and Chief Executive Officer;

£) Approve the annual budget and such supplemental budgets of the Authority;


g) Review, revise, modify, increase or decrease the fees and assessment authorized to be
collected in this Act as current industry condition may warrant taking into account
public interest, cost of services and the prices of coconut products and by-products,
and oil palm produets and by-products: and

h) Perform such other duties as may be assigned to it by the President of the Philippines,
consistent with this act.

EC. % Quorum and Meeting. ~ The Board shall meet as often as the exigency of the
serviee may demand, The presence of at least four (4) members shall constitute a quorum and
the vote of a majority of the members present constituting a quorum shall be necessary for the
adoption of any rule, resolution, decision or any other aet of the Bo:

C. 10. Compensation. ~ ‘The members of the Board shall each receive per diems for
every committee and board meetings actually attended in accordance with existing rules and
regulations: Provided. however, That the total per diem collected each month shall not exceed
the equivalent per diem for four (4) committee/board meetings. Unless and until the President
of the Philippines has fixed a higher per diem for the members of the Board, such per diem
shall not be more than six thousand for every committee / board meeting.

SEC. 11. Officers and Personnel, — ‘The Chairman of the Board, who shall have the rank
and privileges of a Department Secretary, shall be the head and Chief Executive Officer of the
Authority, Upon his recommendation, the Board shall appoint an Administrator of the
Authority who shall be the Chief Operating Officer, with the rank and privileges of a
Department Undersecretary. The Administrator shall have the responsibility of managing the
day-to-day affairs and operations of the Authority subject to the supervision and control of the
Chief Executive Officer and in accordance with the policies established by the Board.

‘The Administrator shall have a term of six (6) years unless sooner removed.

‘There shall be such sufficient number of deputy administrators as the Board may prescribe
to assist the Administrator who shall be appointed or removed for cause by the Board, ‘The
Administrator and the deputy administrator may be assigned with such powers and duties as
the Chairman and Chief Executive Officer may prescribe from time to time,

SEC. 12. Application of the Civil Service Law, — All officers and employees of the
Authority shall be subject to the civil service laws, rules and regulations, and all selection and
appointments shall be based on merit and fitness,

ARTICLE IV

MANAGEMENT AND OPERATIONS

SEC. 13, Management, - The management of the corporate affairs of the Authority shall
be the responsibility of the Chief Executive Officer with the assistance of the Administrator,
deputy administrator for planning and such other officers as may be determined by the Board

SEC, 14, Duties of the Chief Executive Officer. ~ The Chief Executive Officer shall
exercise the following duties and responsibilities:

a) Initiate and develop corporate policies, programs and objectives for approval of the
Board:


) Establish general administrative and operating policies;
¢) Appoint all other non-officer employees of the Authority:

4d) Execute for and in behalf of the Authority contracts, obligations and agreements which
are required to be approved by the Board;

¢) Appoint technical consultants;

1) Discipline officers and employees in accordance with civil service laws, rules and
regulations;

g) Submit the internal organizational structure of the Authority, finane
ay be required by the Board:

| statements and

h) Delegate or assign any of the foregoing powers and duties except the power to appoint
any official in the hierarchy of authority and always subject to his supervision and
control; and

i) Exercise such other powers and duties as may be assigned by the Board

SEC. 15. Corporate Planning Office. — To assist the Chief Executive Officer in the
formulation of general plans and programs, promulgation of policies, the monitoring and
evaluation of industry and corporate activities, there shall be a Corporate Planning Office
which shall serve as the technical arm under the office of the Chairman, having the status of a
branch which shall be headed by director for corporate planning with a rank of deputy
administrator. The term of the director for corporate planning shall be co-terminus with the
Chairman.

SEC. 16, Duties of the Chief Operating Officer. - The Chief Operating Officer shall
exercise the following duties and responsibilities:

4) Ensure that the administrative and operating policies are carried out under the
direction and control of the Chairman and Chief Executive Officer;

b) Prepare and submit to the Chief Executive Officer, within sixty (60) days before the
beginning of each calendar year, an annual operational budget of the Authority; and

©) Monitor operational problems,
to improve the day-to-day afle

adopt remedial measures and submit poli
and operations of the Authority.

proposals

4) perform other duties and funetions as may be assigned by the chairman of the board.
SEC. 17, Branch Offices. ~ The Authority shall have the following branches:

a) Agricultural and Industrial Research and Development Branch for the execution and
implementation of systematic, unified, and credible research and development
policies, plans and programs on coconut production, utilization, propagation, and
related technologies as guided by principles of scientific excellence and
professionalism including the implementation of policies, plans and programs relating
to advancement in industrialization and development for the coconut products and by



products, and oil palm products and by-products particularly on food, oleo-chemicals,
fuels and lubricants;

b) Market Research and Development Branch for the formulation and implementation of
policies, plans and programs relating to domestic and international markets
development affecting the coconut industry including the enforcement of market rules
and regulations formulated by the Authority:

©) Field Operations Branch for execution and implementation of policies, plans and
programs relating to production, marketing and processing activities

) Administration and Finance Branch for developing and maintaining the delivery of all
necessary administrative, financial and manpower support for the whole operations of
the Authority; and

e) Development Information and Communication Branch for the execution and
implementation of policies, plans and programs relating to development information
and communication as well as other socio economic research and development.

Every branch shall be headed by a deputy administrator or such qualified acting or
officer in charge as may be designated by the Chief Executive Officer

SEC. 18, Regional Offices. — ‘The Authority shall establish and organize regional offices
in coconut producing areas in the country in accordance with the political and administrative
regions in the country and such number of provincial or district offices, or both, that will assist
the Authority in the full implementation of this Act.

SEC. 19. Departments, Divisions and Units. ‘here shall be organized such specialized
departments, divisions, units or offices as may be necessary 10 provide the needed
administrative, technical and specialized services. as may be deemed proper and expedient by
the Board, which shall be headed by a person with the required specialization or expertise as
prescribed in the qualification standard for the position or function.

ARTICLE V.
SOURCES OF FUNDING

SEC. 20. Coconut Development Fund, — There is hereby established a national coconut
development fund to be administered by the authority for the purpose of financing the growth and
development of the coconut industry, including human resource development, training of farmers
and other related activities. The sum necessary for the establishment of the fund is hereby
authorized to be appropriated in the General Appropriations Acts of the years following its
enactment into law,

SEC. 21. Other Sources of Funding, ~ In the event the fund as provided in Sections 20 of
this Act become insufficient, an amount shall be appropriated from the following source

a) ‘The proceeds of loans which the Authority may obtain from financial institutions:
Provided, That should the total outstanding proceeds shall at any one time exceed One
Billion Pesos (P1,000,000,000.00), the transaction shall be subject to the approval of
the President;


b) All other proceeds, income, and collections arising from transactions authorized
under this Act: Provided. That proceeds herein mentioned shall be used to finance
socio-economic, developmental, and research and development programs and projects
of the Authori

©) The proceeds of the value-added tax imposed on all coconut products and by-
products; except copra, copra cake and meal which are hereby exempted from
payment of value added tax and on the services of coconut oil mills, desiccated
coconut factories and other processors of coconut products shall be collected by the
Bureau of Internal Revenue under Executive Order No. 273, entitled “Adopting A
Value-Added Tax, Amending For This Purpose Certain Provisions Of the National
Internal Revenue Code, And For Other Purposes,”: Provided, That such proceeds of
the value added tax shall be deposited with the Treasurer of the Philippines within the
first ten (10) days of each quarter and shall be automatically appropriated to finance
the programs and projects of the Authorit

ARTICLE VI
REGISTRATION, LICENSE, PERMITS

SEC. 22. Application for Registration. — Any person directly or indirectly engaged in the
manufacture, processing, and other business involving coconut products and by-products, and
other oil palm products and by-products to be determined by the Authority pursuant to its rules
and regulations shall apply for registration with the Autho:

SEC. 23. License to Operate. — Upon approval of application for registration, the
Authority shall issue the corresponding license to operate under such rules and regulations
promulgated for the purpose. The application for registration and license shall be mandatory
for both the principal and his agents in the case of natural persons, and the central or main
offices and their branches or subsidiaries in the case of juridical persons.

ARTICLE VIL
COMMODITY SUPER’

ION

24. Application for Export Clearance. ~ Nowwithstanding any provision of law to
the contrary, all exporters of copra, coconut oil, desiccated coconut, copra cake or meal, and
other coconut products and by-products shall file with the Authority, not later than ten (10)
days prior to the date of loading, an application for export clearance pursuant to such forms
prescribed by the Authority under its implementing rules and regulations.

SEC. 25. Use of Moisture Meter. — For an accurate determination of moisture content in
the copra resecada, and in observation of the standard scale for moisture content established by
the Authority, all persons or firms engaged in the business involving copra shall use moisture
meters duly calibrated, serialized and sealed by the Authority or any duly authorized office.

SEC. 26. Fees, - The Authority shall collect in addition to the fees for the issuance,
renewal or replacement of license and registration such reasonable fees to cover the cost of
under this Act,



ARTICLE VIL
INCENTIVES
SEC. 27. Tax Incentives. ~The coconut industry, its institutions, members and

participants shall be entitled to all tax and non-tax incentives under existing applicable laws,
decrees, executive orders and similar issuances,

SEC. 28, Tax Exemption. ~ Notwithstanding the provisions of any law to the contrary, all
real properties, equipment and machinery acquired by the Authority for its operations under
this Act shall be exempt from all taxes, fees, duties, imposts and assessments, both national
and local except income tax.

ARTICLE IX
SPECIAL PROVISIONS

SEC. 29. Conservation of Coconut Trees. ~ In order to conserve and protect the
resources devoted to coconut industry, the Authority shall regulate the cutting or destruction of
coconut trees in accordance with the provisions of Republic Act 8048, otherwise known as the
Coconut Preservation Act of 1995, including all amendments thereto on the date this Act takes
effect and to execute and enforce the police powers granted under this Act.

SEC. 30. Measures to Protect the Industry. ~ When the general welfare of the industry
for national interest so requires, and when there exist unabated increase in production capacity
resulting, singly or collectively, in cutthroat competition, overproduction, underselling, and
smuggling of poor quality coconut products and by-products, or oil palm products and by-
products, thereby threatening the viability and stability of the coconut industry or any sector
thereof, the Authority shall regulate or otherwise suspend the issuance of license for the
establishment and operation of any new coconut oil mill, desiccated coconut plant or refinery
of the upgrading of capacities of existing mill, plant or refinery. In granting the license, the
‘Authority shall evaluate and determine the need for the establishment of additional mills or
plant or upgrading the capacity of any existing mills or plant in relation to

a) The existing market demand;
b) The production capacity prevailing in the country, locally or any sector of the industry;

jals; and

¢) The level and flow of supply or raw mater

d) Such other circumstances which may affect the viability or stability of the industry
concerned,

ARTICLE X
PENALTIES

SEC, 31. Penalties. — Any person who wilfully or deliberately violates any of the
provisions of this Act of rules or regulations duly promulgated hereunder shall be punished by
a fine of not less than two hundred thousand pesos (P200,000.00), or by imprisonment of not
more than five (5) years, or both: Provided, That should the violation constitute an act
punishable under the Revised Penal Code, the pertinent provision and penalty prescribed in the
said Code shall apply


If the violation be committed by an association, partnership, corporation or any juridical
person, the officer o officers, director or employee responsible for the violation shall be held
liable and shall suffer the penalties provided herein, An alien found guilty shall after having
served his sentence be immediately deported and in case of a naturalized citizen, his Certificate
of Naturalization shall be cancelled.

SEC, 32, Interest and Charges. ~ Assessment and regulatory ot service fees or charges
which are not paid on the due date thereof shall be subject to penalty interest of fourteen (14%)
percent per annum. In addition thereto, a surcharge of twenty five (25%) percent shall be
imposed in case of wilful or fraudulent failure to pay as determined by the court in a case filed
therefor.

ARTICLE XI
TRANSITORY PROVISION

SEC. 33. Implementing Rules and Regulations, ~The PHILCIDA is hereby given full
power and authority to promulgate such rules and regulations it may deem proper and
necessary for the effective implementation of this Act.

SEC. 34. Abolition. — The Philippine Coconut Authority is hereby abolished and its
powers and functions transferred to the Philippine Coconut Industry Development Authority
together with all the appropriations and funding from all sources, including all its obligations,
equipment and other assets and such personnel as are necessary: Provided, That as a result or
incident of the abolition . no personnel shall be terminated ot separated except when the Board
shall exercise its authority to reorganize pursuant to Article IIL, Section 8 of this Act: Provided
further, That displaced personnel as a result of the abolition shall be given compensation
equivalent to twice their present salary for every year of goverment service. Provide
furthermore, that the Authority through the Board, shall effect the transfer of absorbed
personnel in a manner that will ensure the least disruption of on-going programs and projects
Provided finally, that until such reorganization is implemented, all officers and employees of
the abolished agency shall continue all functions and discharge all their duties and
responsibilities

ARTICLE XII
MISCELLANEO!

SEC. 35. Separability Clause. ~ If any part or provision of this Act is declared
unconstitutional, other parts or provisions thereof which are not affected thereby shall continue
to be in full force and effect.

SEC. 36. Repeating Clause, — All laws, decrees, executive orders, rules and regulations
and other issuances or parts thereof, inconsistent with the provisions of this Act, are hereby
repealed or modified accordingly.

SEC. 37, Effectivity. This Act shall take effect fifteen (15) day
at least two (2) national newspapers of general circulation

after its publication in

Approved,