CREATING THE FERTILIZER INDUSTRY AUTHORITY

• Number: Presidential Decree No. 135
• Sections: 7

Preamble

WHEREAS, fertilizer is a vital input to food production and

must therefore be supplied inadequate quantities at the lowest possible

cost;

WHEREAS, world fertilizer prices have increased drastically

in recent months;

WHEREAS, the domestic fertilizer market has elements of

disorganization leading to higher distribution costs;

WHEREAS, there is a need to insure the viability of the

fertilizer industry in which the Government has substantial financial

interests;

WHEREAS, the national interest demands the maximum

production utilization of all installed fertilizer production capacity

in the country and the rationalization of all fertilizer importations of

the industry; and

WHEREAS, the objectives for the fertilizer industry can be

most expeditiously accomplished through greater government participation

and control through a centralized government authority;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution as

Commander-in-Chief of all the Armed Forces of the Philippines, and

pursuant to Proclamation No. 1081, dated September 21, 1972, and General

Order No. 1, dated September 22, 1972, as amended, do hereby create the

Fertilizer Industry Authority to regulate, control and develop the

fertilizer industry in the Philippines with the end in view of assuring

the agricultural sector of adequate fertilizer supply at the lowest

possible cost.

Section 1

SECTION 1. The Fertilizer Industry Authority, which shall

have jurisdiction overall existing and potential manufacturers and

suppliers of fertilizer and fertilizer inputs, shall have the following

functions:

To control and regulate the prices, terms, mark-ups,

distribution channels, promotion, storage and other marketing factors in

the domestic fertilizer market;

To establish and implement regulations governing the import

and export of fertilizer inputs, and when necessary, to itself import

and/or export such items;

To control and regulate all aspects of domestic fertilizer

production, including the utilization of idle capacity and the orderly

expansion of the industry;

To control and assist in the financing of the importation

of fertilizer and fertilizer inputs, of production, or inventory and

working capital, and of the expansion of the industry; and

To do all such things as may be necessary to maintain an

adequate supply of fertilizers to the domestic market at reasonable

prices while maintaining the long-term viability of the industry.

Section 2

SEC. 2. The Fertilizer Industry Authority shall be composed

of the following officials or their representatives:

Secretary of Agriculture and Natural Resources, Chairman

Secretary of Finance, Member

Chairman, Board of Investments, Member

Governor, Central Bank, Member

President, Philippine National Bank, Member

The Authority is empowered to create the position of Executive

Director and other subordinate officials as may be required. All

managerial and technical positions shall be specifically exempt from

WAPCO and Civil Service requirements.

The Authority shall be

supported by a Secretariat to be supplied initially by the Department of

Agriculture and Natural Resources until such time as the Authority can

create its own staff.

Section 3

SEC. 3. The Fertilizer Industry

Authority shall have the following powers:

To make a continuous assessment of the fertilizer supply and

demand situation, both domestic and worldwide;

To establish and enforce sales quotas, production schedules,

distribution areas and such other marketing regulations as may be

necessary to assure market stability and viable operations in the

industry;

To determine and set the volumes and prices, both wholesale

and retail of fertilizer and fertilizer inputs;

To negotiate and enter into contracts for all imports and

exports of fertilizer and fertilizer inputs;

To import fertilizer and fertilizer inputs exempt from

customs duties, compensating and sales taxes and all other taxes for a

period of two years from date hereof, unless earlier terminated or later

extended by the President, and to sell or convey such fertilizer or

fertilizer input to any individual association, partnership, or

corporation likewise exempt from the payment of customs duties and all

other taxes;

To control and regulate all marketing companies, whether

importer, indentor, wholesaler or retailer;

To regulate and control quality of the different grades of

fertilizer and to set new grades when necessary;

To compel the utilization of unused or underutilized

capacities of fertilizer companies and to direct any improvements,

modifications or repairs as may be necessary to accomplish this;

To approve or to reject the establishment of new fertilizer

or fertilizer input plants and the expansion or contraction of existing

capacities;

To promote and coordinate all fertilizer research;

To obtain complete access to all pertinent information on

the operations of the industry, including audited and/or unaudited

financial statements, marketing, production, and inventory data;

To call upon anyone in the fertilizer industry or in

industries related to the fertilizer industry or any other government

agency to assist the Authority in carrying out its functions;

To establish and impose appropriate penalties on the

fertilizer manufacturers, distributors, dealers, wholesalers, retailers

and raw-materials suppliers for violations of any rule, quota, or

guideline established by the Authority; and

To do any and all acts not contrary to law or existing

decrees and regulations as may be necessary to carry out the functions

of the Authority.

Section 4

SEC. 4. The Fertilizer Industry Authority may delegate such

selected privileges, powers, or authority as may be allowed by law to

corporations, cooperatives, associations, or individuals as may

presently exist or be organized to assist the Authority in carrying out

its functions.

Section 5

SEC. 5. The Fertilizer Industry Authority shall

constitute itself immediately and shall exist for five (5) years from

the date of this Decree, unless earlier abolished by the President of

the Philippines.

Section 6

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila, this 22nd day of February, in the

year of Our Lord, nineteen hundred and seventy-three.

(Sgd.) FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO MELCHOR

Executive Secretary