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. 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.
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.
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.
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.
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.
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.