SEC. 10. A new Section 14 is hereby inserted, to read as follows:
"SEC. 14. Participatory Guarantee System (PGS). -
(a) Basic Principles. The PGS shall be the mechanism which small farmers/fisherfolk, their farms/associations/cooperatives shall be certified as engaged in organic agriculture and as producers of organic agriculture products. The participatory organic certification from a government agency or OCBs, organized in accordance with this Act, shall be promoted and accepted. The products certified through the PGS shall be traded only in the domestic market, unless covered by an international certification or a mutual recognition agreement.
An association or group under the PGS shall adhere to the PNS for organic agriculture.
Further, associations or groups under the PGS shall adopt the following features and characteristics:
(i) Existence of organic agriculture norms conceived by the organic agriculture stakeholders, norms that are appropriate to smallholder agriculture;
(ii) Grassroots organization: the participatory certification should be perceived as a result of a social dynamic, based on the active participation of all stakeholders;
(iii) Existence of principles and values that enhance the livelihoods and well-being of farming families and promote organic agriculture;
(iv) Documented management systems and procedures;
(v) Provision of mechanisms to verify farmer's compliance to established norms;
(vi) Provisions of mechanisms for supporting farmers to produce organic products and be certified as organic farmers, which shall include field advisors, newsletters, farm visits, web sites, among others;
(vii) Existence of a bottom-line document, such as a farmer's pledge, that shall state his/her agreement to the established norms;
(viii) Introduction or use of seals or labels providing evidence of organic status; and
(ix) Existence of a clear and previously defined set of recommendations and measures against farmers who fail to comply with standards.
(b) Legal Personality. The core PGS group shall be registered with the municipality/city where the PGS group is predominantly located. It shall secure a mayor's permit from said municipality/city, possession of which shall suffice as proof of registration and the grant of legal personality, which however shall be limited only to PGS transactions.
The national organization of LGUs actually engaged in organic agriculture shall also secure a legal personality for purposes of accreditation by the BAFS.
Any other OCB shall secure a mayor's permit from the municipality/city where it intends to operate and possession of which shall suffice to grant them legal personality for purposes of accreditation by the BAFS.
(c) Certification. Certification.The BAFS shall provide the guidelines for the certification of farms, pursuant to the provisions of this Act.
A farm/farmowner applying for certification as an organic agriculture practitioner shall join a PGS group in the same municipality/city where his/her farm is located, or with a PGS group in a municipality/city within the same province to which he/she, as the farmowner, regularly interacts or conducts business with.
The farm/farmowner shall apply for a participatory organic certificate with a core PGS group of the PGS group where the farm belongs; or with a national organization of LGUs initiating organic agriculture practices, a member of which is the municipality/city where the PGS group is located; or with any private group or organization actually engaged in organic agriculture and operating in that municipality/city; any of which is accredited as an OCB.
The decision of any of the abovementioned OCBs shall be appealable to the BAFS: Provided, That the BAFS shall rule on the appeal within thirty (30) days from its receipt. Otherwise, the appealed decision shall be considered reversed.
The withdrawal of membership in the PGS group shall mean forfeiture of the privilege for the farm/farmowner to use the participatory organic certificate.
In case a member of the core of PGS group representing a farm applies for renewal of certification with the same core PGS group, the member of the core PGS group must inhibit himself/herself before the application for renewal can be considered.
(d) Accreditation. The BAFS shall provide the guidelines for accreditation.
A registered core PGS group shall apply for accreditation with the BAFS. A core PGS group shall be accorded accreditation by the BAFS only if it has at least five (5) members, coming from different farms within the municipality/city or within the province, certified and actually practicing organic agriculture. The BAFS shall extend technical and financial support to a core PGS group in its application for accreditation.
For purposes of this section, the BAFS is hereby authorized to certify five (5) individual farms as a core PGS group: Provided, That once such core PGS group is accredited to certify, it can subsequently certify as organic agriculture compliant other core PGS groups: Provided, further, That the authorization to certify shall be deemed revoked when the core membership becomes less than five (5) or any of the minimum five (5) member farms becomes noncompliant to organic agriculture standards.
A national organization of LGUs actually initiating or engaged in organic agriculture; or any private group or organization actually engaged in organic agriculture, as direct farm producer, as a promoter/advocate of the ways, methods, and principles of organic agriculture; or as a marketer of organic agriculture produce; may also apply for accreditation as an OCB.
The BAFS shall issue its decision on the application for accreditation by a core PGS group or any qualified entity applying for accreditation within sixty (60) days from the submission of the complete requirements. Failure to render decision within such period, shall be deemed an approval of the application for accreditation as an OCB. The BAFS shall not charge any application fee.
(e) Organization Levels.
(1) The Core PGS Group. Every core PGS group should have at least five (5) members, composed of farmers from a combination of both the crops and livestock sectors. It may add to its membership farmers from other sectors in agriculture. NGOs, people' s organizations, buyers of organic agriculture products, suppliers of organic inputs, among others, who all live or operate within the province and regularly interact with the concerned PGS group.
Each core PGS shall have the following duties and responsibilities:
(i) Develop an understanding of the organic standards;
(ii) Make sure farm practices are compliant;
(iii) Make a pledge that they understand and adhere to the organic standards;
(iv) Conduct inspection and certification activities of member farms. At least a majority of the members of the core PGS group who joined in the actual inspection and certification activity should sign on the truthfulness of the findings of the inspection and certification activity;
(v) Recommend which farms will be certified;
(vi) Initiate key field trainings for farmer-members and residents in their locality to promote organic agriculture;
(vii) Attend municipal/provincial PGS meetings and share information;
(viii) Take actions on defaults/noncompliance as per sanction guidelines to be provided by the BAFS, OCBs and municipality/city PGS groups; and
(ix) Assist defaulting and noncompliant members to regain certification status.
(2) Municipality/City PGS Group. The municipal/city PGS group shall be composed of the following: 10 one (1) representative for each core PGS group in the municipality/city; and 2) one (1) representative from a regional agricultural state university or college (SUC) or local private agricultural educational institution: Provided, That there should be at least two (2) core PGS groups in the municipality/city before a municipal/city PGS group can be established.
The municipality/city PGS group shall conduct its business and affairs based on the majority decision of the members present, after having secured a quorum.
The municipality PGS group shall have the following powers, duties and responsibilities:
(i) Together with the BAFS, develop or update and implement the PGS, as provided in this Act;
(ii) Ensure that compliant farmer members continue to comply with all the requirements of the applicable PNS for organic agriculture and relevant regulatory requirements;
(iii) Maintain a registry of core PGS groups operating within its area of jurisdiction, which shall be forwarded to the BAFS on year-end for the latter's national database;
(iv) Together with the OCB involved in the inspection and certification activity, and in coordination with the NAFS, issue participatory organic certificate and the "PGS guaranteed organic" label/mark to compliant small farmer/fisherfolk and/or their farm/association/cooperative; and
(v) Submit regularly to the BAFS, a list of certified small farmer/fisherfolk and/or their farm/association/cooperative.
In case a municipal/city PGS group has yet to be established, the BAFS, in coordination with the LGU concerned, shall assume the powers, duties and responsibilities of this group.
(3) Provincial and National PGS group. It shall be the option of the PGS groups to form their aggrupation at the provincial and national levels. They shall receive the financial and technical assistance, support and guidance of the departments in the NOAB and the DA-BAFS in this regard. The provincial governments shall encourage and support the formation and activities of these PGS groups in the different provinces, cities and municipalities within their jurisdiction.
(f) Promotion. The NOAB shall actively promote, search and recognize associations or groups that have been practicing organic agriculture through the PGS, in accordance with this Act. The NOAB shall ensure that each province in the country has a PGS group. Every PGS group shall conduct trainings and promote organic agriculture.
(g) Trainings and Inspection. The Agricultural Training Institute (ATI) shall, in close coordination with the BAFS, make available the required training program on organic agriculture standards and processes for PGS groups applying for BAFS accreditation. The BAFS shall conduct random inspections to ensure that PGS groups are all compliant with the PNS for organic agriculture. The BAFS shall keep a record of compliant PGS groups in the country and shall publish a list of such compliance at least once a year.
(h) Incentives. Any small farmer/fisherfolk or their farms/associations,cooperatives engaged in organic agriculture or any organic input producer, certified by its core PGS group or any OCB, accredited under this section, to be compliant for a period of five (5) years, without any offense or infraction, shall be eligible for a full government subsidy of the cost for an international certification for one (1) year: Provided, That they shall export their products. Further, so long as the same entities maintain their status for compliance, they shall be invited and given, for free, prime location in any government agency-initiated or sponsored trade and business marketing gathering of Filipino products, for the purpose of displaying and selling their own organic products."