NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
Senate Bill No.
(In Substitution of Senate Bill No. 120)
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Prepared by the Committees on Agriculture, Food and Agrarian Reform; Finance; 
and Ways and Means with Senator Cynthia A. Villar as author thereof
AN ACT
TO DEVELOP THE PHILIPPINE CORN INDUSTRY, ENHANCE THE 
AVAILABILITY AND AFFORDABILITY OF QUALITY FEEDS AND STAPLE 
FOOD, AND PROVIDE FOR A CORN COMPETITIVENESS ENHANCEMENT
FUND
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Short Title. - This Act shall be known as the "Philippine Corn 
Industry Development Act".
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SEC. 2. Declaration of Policy. - It is the policy of the State to promote the
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inclusive development and competitiveness of the corn industry, particularly among
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smallhold farmers, to increase the supply of yellow corn, white corn and other
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indigenous corn varieties to enhance the availability and affordability of corn for the
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feeds industry and for human consumption. It is likewise the policy of the State to
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increase the income of farmers and farm workers to alleviate rural poverty through
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enhanced production efficiency and efficient post-production facilities.
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Towards this end, the State shall nurture an enabling environment and establish
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responsive government policies and support programs for the corn industry, with
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primary focus on the smallhold corn farmers.
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The State shall be committed to providing necessary support and incentives to
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build stronger partnerships and cooperation with the private sector in recognition of
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their vital role in achieving the objectives of this Act.
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SEC. 3. Definition of Terms. - As used in this Act:
a) 
Corn refers to yellow corn for animal feeds, and white corn and other 
indigenous corn varieties for human consumption;
b) 
Feeds refers to a single or combination of ingredients, supplements, and 
additives by specific formuia to be fed directly to animals which is capable 
of providing the nutritional requirements in order to sustain life, promote 
growth, production, and reproduction; and
c) 
Smallhold Farmer refers to a farmer owning or cultivating three (3) 
hectares or less of farmland;
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SEC. 4. Corn Industry Development Roadmap. - The roadmap shall set
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the strategic direction and key initiatives of the Corn Industry Development under this
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Act. It shall be crafted in consultation with relevant stakeholders that Include but not
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limited to smallhold farmers, feed processors, livestock farmers, regulatory offices,
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and academe. It shall be finalized within sixty (60) days from the effectivity of this Act
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and updated every five (5) years thereafter.
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The Bureau of Plant Industry, together with the government agencies cited in
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this Act, shall spearhead the crafting of the roadmap.
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SEC. 5. Designation of the Bureau of Riant Industry (BPI); Creation of
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a BPI Corn Unit and BPI Field Offices. - The BPI is hereby designated as the
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implementing agency of this Act. Towards this end, the BPI is hereby authorized to
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establish and maintain a Corn Unit at its main office which shall be headed by the BPI
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Director. It shall also establish BPI field offices in corn production areas designated in
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this Act. Both shall derive budgetary support from the Corn Fund.
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The Corn Unit shall also be the Corn Program Management and Coordinating
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Office (PMCO) which shall serve as the planning and administrative secretariat in the
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implementation of this Act.


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SEC. 6. Powers and Functions. - In addition to its existing powers and
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functions as the premier government agency in the plant industry, the BPI shall have
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the following powers and functions under this Act:
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a) Manage, supervise and monitor the Corn Fund under Sections 8 and 9 of this
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Act;
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b) In partnership with the Bureau of Agricultural Research (BAR) and the corn
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research stations in corn provinces designated herein, establish a network of
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research institutions engaged in corn varietal improvement, propagation, and
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distribution;
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c) Establish and manage a corn gene bank of all the corn varieties developed
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under this Act, which shall be kept, protected, accessed and utilized for the
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implementation of this Act, especially those funded and developed by the BAR;
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and
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d) Establish a reliable, efficient and holistic corn industry database management
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system which shall cater to the needs of the corn industry, particularly the corn
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production areas in this Act
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SEC. 7. Corn Production Areas. - The provinces of Isabela, Bukidnon,
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Pangasinan, Quirino, and Camarines Sur are hereby designated as corn production
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areas and shall be the sole beneficiaries of the Corn Fund under this Act. Their
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designation is based on historical corn production data of the country and climatic
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factors.
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These provinces shall share to other provinces, through the BPI field offices,
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quality corn seeds and feeds they produce. The BPI shall draft guidelines for the
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operationalization of sharing and distribution with other provinces.
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SEC. 8. Creation of the Corn Competitiveness Enhancement Fund
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(Corn Fund). - In addition to the regular budget from the annual General
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Appropriations Act (GAA) of the agencies herein mentioned, there is hereby created a
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Corn Competitiveness Enhancement Fund for the use of these agencies.


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The Corn Fund shall consist of an annual appropriation of Three billion pesos
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(f3,000,000,000.00) sourced from tariff collections on imported corn, feed wheat,
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feeds and other products and ingredients for feeds for the fraction of the year and for
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the next ten (10) years following the effectivity of this Act.
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Corn Imports include imported products under the following HS headings or
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2022 AHTN Codes, and Descriptions:
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10.05 
Maize (corn).
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1005.90.90 - - Other
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1005.90.90.100 - - - In-Quota
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1005.90.90.200 
— Out-Quota
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Feed Wheat Imports include imported products under the following HS
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headings or 2022 AHTN Codes, and Descriptions:
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10.01 
Wheat and meslin.
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— Other
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1001.99.91 --Meslin
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1001.99.99 - - Other
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Feeds and Other Products and Ingredients for Feeds Imports include imported
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products under the following HS headings or 2022 AHTN Codes, and Descriptions:
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10.03 
- Barley
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1003.10.00 - Seed
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1003.90.00 - Other
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10.04 
- Oats
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1004.10.00 - Seed
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1004.90.00 - Other
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10.07 Grain Sorghum
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1007.10.00 - Seed
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1007.90.00 - Other
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23.01 Flour, meals and pellets, of meat or meat offal, of fish or of crustaceans,
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molluscs or other aquatic invertebrates, unfit for human consumption;
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greaves.
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2301.10.00 - Flours, meals and pellets, of meat or meat offal; greaves
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2301.20 
- Flours, meals and pellets, of fish or of crustaceans.


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molluscs or other aquatic invertebrates
2301.20.10 
- Offish, with a protein content of less than 60% by weight 
2301.20.20 - Of fish, with a protein content of 60% or more by weight
2301.20.90 
-Other
23.02 Bran, sharps, and other residues, whether or not in the forms of pellets, 
derived from the sifting, milling or other working of cereals or of 
leguminous plants.
2302.10.00 - Of maize (corn)
2302.30 
- Of Wheat:
2302.30.10 
- - Brans and pollards
2302.30.90 
- - Other
2302.40 
- Of other cereals:
2302.40.10 
-Ofrice
2302.40.90 
-Other 
2302.50.00 - Of leguminous plants
23.03 Residues of a starch manufacture and similar residues, beet-pulp, 
bagasse, and other waste of sugar manufacture, brewing or distilling 
dregs and waste, whether or not in the form of pellets
2303.10 
- Residues of starch manufacture and similar residues:
2303.10.10 
- - Of manioc (cassava) or sago
2303.10.90 --Other
2303.20.00 - Beet-pulp, bagasse and other waste of sugar 
manufacture
2303.30.00 - Brewing or distiliing dregs and waste 
23.04 Oil-cake and other solid residues, whether or not ground or in the form 
of peilets, resulting from the extraction of soya-bean oil.
- Soya-bean meal 
2304.00.29 --Other 
2304.00.90 -Other


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23.05 
2305.00.00 Oil-cake and other solid residues, whether or not
ground or in the form of pellets, resulting from the extraction of ground­
nut oil.
23.06 Oil-cake and other solid residues, whether or not ground or in the 
forms of pellets, resulting from the extraction of vegetable or microbial 
fats or oils, other than those of heading 23.04 or 23.05.
2306.10.00 - Of cotton seeds;
2306.20.00 - Of linseeds;
2306.30.00 - Of sunflower seeds;
- Of rape or colza seeds
2306.41 
- - Of low erucic acid rape or colza seeds
2306.41.10 ---- Of low erucic acid rape seeds
2306.41.20 — Of low erucic acid colza seeds
2306.49 
- - Other:
2306.49.10 — Of other rape seeds
2306.49.20 — Of other colza seeds 
2306.50.00 - Of coconut or copra;
2306.60 
- Of palm nuts or kernels;
2306.60.10 
- - Ground or in the form of pellets
2306.60.90 --Other
2306.90 
- Other:
2306.90.10 --Of maize (corn) germ
2306.90.90 --Other;
23.07 
2307.00.00 Wine lees; argol.
23.08 
2308.00.00 Vegetable materials and vegetable waste,
vegetable residues and by-products, whether or not in the form of 
pellets, of a kind used in animal feeding, not elsewhere specified or 
included
23.09 Preparations of a kind used in animal feeding.
2309.90 
- Other
- - Complete feed :
2309.90.11 — Of a kind suitable for poultry


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2309.09.12 — Of a kind suitable for swine
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All tariff collections shall be automatically credited to a special account for Corn
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Industry Development in the general fund of the national treasury which shall be in
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place within forty five (45) days from the effectivity of this Act: Provided, That if the
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tariff collection exceeds three billion pesos (P3,000,000,000.00) in any given year
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within the next ten (10) years following the effectivity of this Act, the excess tariff
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revenue shall automatically be added to the Corn Fund of the following year and the
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total amount be allocated and utilized in accordance with this Act.
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Provided further, That allocation and utilization of the Corn Fund shall be
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subject to the following guidelines:
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a) The recipient agency shall be accountable and responsible for the
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management and utilization of the said fund in coordination with other
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government agencies concerned. It shall provide the Secretary of the
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Department of Agriculture (DA) and the BPI Director with a regular report
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on its fund management and utilization;
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b) The amount allocated shall be released directly to the implementing
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agencies as provided for in this Act based on the objectives and plans of the
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Corn Industry Development Roadmap, under Section 4 of this Act:
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Provided, That the unutilized portion of the Corn Fund allocated to the
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implementing agencies shall not revert to the general fund but shall
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continue to be used for the purpose for which it was set aside. Fund releases
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charged against the said funds shall not be subject to any ceiling by the
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Department of Budget and Management; and
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c) Any program undertaken in accordance with this Act shall only be deemed
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complementary and supplementary to, and shall not be a replacement of
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any existing programs for corn farmers already implemented by the DA and
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other agencies concerned.
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SEC. 9. Allocation, Disbursement and UtiUzatiion of the Corn
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Competitiveness Enhancement Fund. - Subject to the usual accounting and
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auditing rules and regulations, the Corn Fund shall be allocated, disbursed and utilized
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as follows:


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Eighty percent (80%) for yellow corn production; Twenty percent (20%) for 
white corn and other indigenous corn varieties, which shall be respectively 
divided by both as follows:
a) Forty percent (40%)-- 23% for post-production, 15% for mechanization of 
corn farms, to be implemented by PHILMECH as grant in kind to eligible 
farmers' associations or organizations, registered corn cooperatives, and 
local government units (LGUs) in the form of provision of corn farm 
equipment such as corn planters, tillers, farm tractors, forage choppers, 
rotary seeders, power/boom sprayers, fertilizer spreader/applicator, 
harvesters, corn shellers, mechanical dryers, moisture meters, feed 
processors, and the establishment and improvement of corn post-harvest 
centers (including corn mills, waste utilization facilities and equipment, and 
corn-silage facilities), and warehouses and/or silos, and 2% for Program 
Management Office (PMO): Provided, That PHILMECH shall endeavor to 
develop and utilize local talents and resources in the manufacturing and 
provision of the foregoing equipment, tools and facilities;
b) Twenty percent (20%) for provision of seeds and fertilizers, to be 
implemented and/or supervised by the BPI: Provided, That in the 
procurement of seeds for distribution to farmers under this Act, the BPI 
shall source seeds from the ones developed by local Filipino seed producers 
and registered with the Philippine Seed Board or National Seed industry 
Council, until their supply lasts;
c) Twenty percent (20%) for the establishment and operations of the BPI Corn 
Unit and the field offices in corn producing provinces in this Act, which shall 
include the hiring and maintenance of needed personnel (15%), and for 
roadmap, corn bank, review of the Corn Fund, and holistic database 
management (5%);
d) Ten percent (10%) for extension and training activities to increase corn 
productivity, including training course grants, training/capacity building of 
beneficiaries for maintenance servicing of machinery and equipment, and 
organizing and clustering of smallholder corn farmers into formal groups, 
cooperatives or associations. The fund shall be utilized by the Agricultural
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Training Institute (4%), PHILMECH (3%) and DA-National Corn Program 
(2%); The PHILMECH shall create its PMO for extension and training for 
1%;
e) Ten percent (10%) for research to be implemented by Bureau of 
Agricultural Research (BAR), 8% of which shall be spent for corn applied 
research and 2% for basic research: Provided, That the research outputs 
shall be owned by the government, through BPI, and any subsequent 
commercialization, propagation or distribution of said outputs may be the 
subject of contractual arrangements between and among the BPI, BAR, and 
local Filipino private entities that developed said outputs: Provided, further, 
That research initiatives shall include, but not limited to:
i) Nutrient Management which shall look into increase yield and income 
thru the use of cost reducing technologies (Site-specific Nutrient 
Management for Maize (SSNM), Integrated Pest Management (IPM), 
Community-based Participatory Research (CPAR), and development 
of biofertilizers);
ii) Collection, conservation, and utilization of corn varieties for the 
development and improvement of resistance to biotic and abiotic 
stresses, and development and commercialization of high yielding 
and stress resistant open pollinated varieties and hybrids;
iii) Pest Management thru development of rapid detection of aflatoxin 
and other pests;
iv) Mechanization thru development of low-cost postharvest machinery 
that will reduce losses;
v) Sustainable soil and water management in corn production areas;
vi) Food and feed product development and commercialization for 
livelihood upliftment; and
vii) Development of training and learning modules.
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SEC. 10. Beneficiaries/Grantees of Com Fund. - Within one hundred
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eighty (180) days from the effectivity of this Act, the DA, in consultation with farmers'
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cooperatives and organizations and LCDs, shall validate and update the master list of


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eligible beneficiaries in corn production province in this Act to ensure that those listed
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are corn farmers, cooperatives, associations, and organizations.
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The beneficiaries of the Corn Fund are smallhold corn farmers listed in the
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Registry System for Basic Sectors in Agriculture (RSBSA), and corn farmer
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cooperatives, associations, or organizations accredited by the DA in the designated
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corn production provinces: Provided, That preferential attention shall be given to
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smallhold corn farmers who are members of cooperatives, associations or
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organizations.
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SEC 11. Review of the Com Competitiveness Enhancement Fund. - The
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following mandatory review of the Corn Fund shall be performed:
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1. The Philippine Institute for Development Studies (PIDS) shall conduct
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impact evaluation of the Corn Fund program on corn productivity on the
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third (3rd), sixth (6th) and ninth (9th) year of the effectivity of this Act;
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2. The percentage allocation of the Corn Fund will be reviewed on the third
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(3rd) year from the effectivity of this Act for possible revisions should
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intervention priorities change; and
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3. On the ninth (9th) year from the effectivity of this Act, a mandatory review
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shall be conducted by the Congressional Oversight Committee on
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Agricultural and Fisheries Modernization (COCAFM) to determine whether
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the Corn Fund and its utilization as provided for under this Act shall be
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continued, amended, or terminated. The increase or decrease in farmers'
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incomes shall be a primary benchmark in determining the effectiveness of
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the interventions under the program and its possible extension;
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In view of its oversight function, the COCAFM, at any time, may conduct an
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assessment of the implementation of programs and utilization of Corn Fund as directed
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under this Act.
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SEC. 12. Lifting of Export Restrictions on Corn. - All laws, rules,
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regulations, guidelines, and other issuances imposing export restrictions on corn,
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except those related to the prevention and spread of plant, animal pests and diseases,
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are hereby lifted and/or repealed.
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SEC. 13. Disposition of Com Fund under the National Food Authority
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(NFA). - The NFA shall liquidate and report on the accomplishment of its existing
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corn marketing assistance program. Its corn development fund, enhanced electronic
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trading system for corn, created under Presidential Memo No. 468 dated March 17,
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1998, held in trust by the NFA, is hereby dissolved and the remaining money balance
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transferred to the BPI for inclusion in the Corn Fund.
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SEC. 14. Powers of the President. -The President is hereby empowered to:
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a) Revise or adjust existing rates of customs duties on corn, feed wheat,
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feeds, and other products and ingredients for feeds imports up to their
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respective bound rates committed by the Philippines under the WTO
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agreement on agriculture and under ASEAN Trade in Goods Agreement,
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including any necessary change in classification applicable to their
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importation, subject to the provisions of the Customs Modernization and
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Tariff Act (CMTA): Provided, That the adjustment is time-bound and that
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the power herein delegated to the President shall only be exercised when
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Congress is not in session: Provided further, That any order issued by the
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President adjusting the applied tariff rates shall take effect fifteen (15) days
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after publication;
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b) Allow the importation of corn, feed wheat, feeds, and other products and
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ingredients for feeds products at a lower applied tariff rate to address the
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situation in the event of any imminent or forecasted shortage, animal
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disease epidemic, or such other situation requiring government
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intervention for a limited period and/or a specified volume. Such order shall
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take effect immediately and can be issued even when Congress is in
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session.
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The power herein delegated to the President may be withdrawn or terminated
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by Congress through a joint resolution.
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SEC. 15. Separability Clause. - If any provision of this Act is declared
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unconstitutional, the remainder thereof not otherwise affected shall remain in full force
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and effect.
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SEC. 16. Repealing Clause. - Such other laws, presidential decrees, executive
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orders, letters of instruction, proclamations or administrative regulations that are
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inconsistent with the provisions of this Act are hereby repealed, amended, or modified
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accordingly.
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SEC. 17. Effectivity. - This Act shall take effect after fifteen (15) days
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following the completion of its publication in the Official Gazette, or in a newspaper of
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general circulation.
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Approved,
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