REPUBLIC ACT NO. 7308 - AN ACT TO
PROMOTE AND DEVELOP THE SEED INDUSTRY IN THE PHILIPPINES AND CREATE A
NATIONAL SEED INDUSTRY COUNCIL AND FOR OTHER PURPOSES
Section 1. Short Title. — This Act shall be known as the Seed
Industry Development Act of 1992.
Sec. 2. Declaration of Policy. — It is hereby
declared the policy of the State to promote and accelerate the
development of the seed industry and, for this purpose, the Government
shall:
a) conserve, preserve and develop the plant genetic
resources of the nation;
b) encourage and hasten the organization of all
sectors engaged in the industry, integrate all their activities, and
provide assistance to them;
c) consider the seed industry as a preferred area of
investment;
d) encourage the private sector to engage in seed
research and development and in mass production and distribution of
good quality seeds; and
e) provide the local seed industry protection against
unfair competition from imported seeds.
Sec. 3. Definition of Terms. — When used in this
Act, the following terms shall mean as follows:
a) "Seed" shall mean plant material used of the
production of food, forage, fibers, industrial crops, oil, flowers,
grasses, herbs and aquatic plants, including but not limited to
meristem, and clonal propagules such as tubers, corms, cuttings, and
micro-propagated plantlets;
b) "Seed lot" shall mean a definite quantity of seeds
indemnified by a lot number or other identification marks, or every
portion of the bag or any container, the contends of which uniformly
represent the factors which appear in the label within allowable
tolerance;
c) "Breeder Seed" shall mean a seed directly
controlled by the originating, or in certain cases, the sponsoring
plant, breeder or institution and which provide the source for the
initial and recurring increase of foundation seeds;
d) "Foundation Seed" shall mean seed that is a
progeny of breeder seeds as to handled as to maintain a minimum
acceptable level of genetic purity and identity;
e) "Registered Seed" shall mean the progeny of
foundation seeds so handled as to maintain satisfactory genetic
identity and purity;
f) "Seed Industry" shall mean the different
components of the chain of activities undertaken by an individual,
association, cooperative, corporation or firm, academic institutions,
public agricultural research institutes in the production, processing,
testing, handling, grading, storage, distribution, and marketing of
seeds for agricultural production with economic benefits;
g) "Seed testing" shall mean the accurate and prompt
analysis of a seed sample based on methodologies prescribed by the
Council to determine its quality;
h) "Seed Certification" shall mean a system of seed
production geared toward maintaining genetic identity, varietal purity
and standards of quality seeds of superior crop varieties;
i) "Quality Control" shall mean a systematic approach
to determine, achieve and maintain desired standards of seed quality;
j) "Seed Sample" shall mean a quantity of seeds drawn
from seed lots in accordance with the rules for seed sampling to be
promulgated under this Act, properly identified, labeled, and submitted
for seed testing;
k) "Label" shall mean any written, printed or graphic
presentation in any manner on the seed container giving information as
required in the rules and regulations promulgated under this Act;
l) "Seed Dealer/Trader/Merchant" shall mean any
person, firm, agency, cooperative or corporation engaged in the
processing and/or marketing of seeds;
m) "Seed Grower/Producer" shall mean any person,
natural or juridical, engaged in the production, processing and/or
marketing of seeds;
n) "Seed control" shall mean the regulation of seed
marketing through registration of seed merchants/dealers compulsory
labeling, and establishment of minimum standards of seed quality.
Sec. 4. National Seed Industry Council. — There is
hereby created a National Seed Industry, hereinafter referred to as the
"Council", to replace the existing Philippine Seed Board. The Council
shall be composed of the following who, except for the representatives
of the private sector shall serve in ex officio capacity.
a) Secretary, Department of Agriculture — Chairman
b) Director , Bureau of Plant Industry — Vice
Chairman and Executive Director.
c) Dean, College of Agriculture University of the
Philippines at Los Baños, Laguna — Member
d) Director, Institute of Plant Breeding — Member
e) Crop Research Director, Philippine Council for
Agriculture Forestry and Natural Resources Research and Development —
Member
f) Director, Philippine Rice Research Institute —
Member
g) Two (2) representatives from accredited farmers'
organizations
h) One (1) Representative from the seed industry —
Member
The representatives of the sectors enumerated herein, who shall be
nominated by their respective sectors or associations, shall be
appointed by the Secretary of Agriculture and shall serve for a term of
three (3) years. Only citizens of the Philippines shall be members of
the Council. In case of vacancy the appointed successor shall serve
only the unexpired portion of the term of his predecessor.
Sec. 5. Duties and Functions. — The Council shall
have the following duties, powers and functions:
a) to formulate policies that will stimulate plant
breeding activities for the development of the genetic resources of the
country in accordance with the provisions of this Act;
b) to encourage persons, associations, cooperatives
and corporations engaged in genetic resources conservation, varietal
development, production and processing, quality control, storage,
marketing, and distribution of seeds to adopt system and practices
which improve the quality of seeds for distribution to farmers;
c) to promote the establishment of infrastructures
and other support services in priority areas geared toward the
development of the seed industry;
d) to formulate a comprehensive medium and long-term
national seed industry development program in order to achieve
self-sufficiency in the supply of high quality seeds;
e) to grant awards, subsidiaries and other forms of
assistance to seed or plant breeders who develop or are developing
outstanding varieties or cultivars;
f) to formulate policies that will stimulate plant
breeding activities; and
g) to promote rules and regulations to implement the
provisions of this Act.
Sec. 6. Council Meetings. — The Council shall hold
regular quarterly meetings: provided, that it may hold special meetings
when necessary upon the call of the Chairman or upon written request of
at least three (3) members. The presence of five (5) members shall
constitute a quorum.
The members of the Council shall not receive any compensation:
provided, that they shall be entitled to per diems and travel
allowances, to be determined by the Council for every attendance in the
meetings.
Sec. 7. Chairman, Duties and Responsibilities. —
The Chairman of the Board shall have the following duties and
responsibilities:
a) to preside over the meetings of the Council;
b) to supervise the operations and administration of
the Council; and
c) to exercise such other functions and perform such
other duties as may be vested in him by the Council.
Sec. 8. Executive Director, Duties and
Responsibilities. — The Executive Director shall have the following
duties and responsibilities:
a) to execute, direct and implement the policies,
regulations and resolutions issued by the Council;
b) To assist in the administration, management and
supervision of the functional activities of the Council;
c) to coordinate, monitor and evaluate the seed
program of the different government agencies;
d) to administer and manage the budgetary
appropriations and financial disbursements of the Council; and
e) to supervise the Council Secretariat and maintain
official records, files and proceedings of the Council.
Sec. 9. Council Secretariat. — The Council shall
have a Secretariat which shall furnish the necessary administration,
secretarial and other support services to the Council. The Secretariat
shall be under the direction and supervision of the Executive Director.
The personnel of the Secretariat shall be appointed, and their
compensation fixed by the Chairman upon the recommendation of the
Executive Director in accordance with Civil Service rules and
regulations.
SECTION 10. Technical Secretariat. — There is hereby
created under the Council a technical Secretariat which shall assume
the functions of the existing Philippine Seed Board Technical Working
Groups. The heads and the members of the Technical Secretariat shall be
appointed and their compensation and tenure fixed by the Chairman upon
the recommendation of the Executive Director.
The Technical Secretariat shall establish seed standards and formulate
systems and procedures for varietal identification, evaluation,
nomination, review and approval for registration, commercial release
and discontinuation of crop cultivars or varieties in the National
Agricultural Crop Production and Development Program.
SECTION 11. National Seed Quality Control Services. —
There shall be a National Seed Quality Control Services, hereinafter
referred to as "Services", which shall be constituted in the Bureau of
Plant Industry. It shall have control and supervision over filed
inspection and control services, and seed testing laboratories which
shall be established by the Bureau of Plant Industry in various parts
of the country as are necessary to ensure the attainment of the
purposes of this Act. All personnel, funds and equipment of the
existing control services and the field inspection services of the
Department of Agriculture are hereby transferred to the herein created
body.
SECTION 12. Functions of the National Seed Quality
Control Services. — The National Seed Quality Control Services shall
perform the following functions:
a) formulate plans and programs on seed quality
control services and activities on seed testing, plant/seed material
confirmation and other quality control schemes to be developed:
b) sample and conduct seed analysis and issue the
corresponding report of analysis of samples drawn from locally produced
and imported seed within the purview of this Act;
c) conduct field inspection of the seed crops, seed
storage and processing facilities and other activities required for
seed/plant material certification and issue the corresponding report of
inspection within the purview of this Act;
d) conduct other related functions like seed research
and seed technology training for its clientele;
e) collect reasonable fees for testing of seeds,
inspection of crop fields and facilities and for issuance of permits
and licenses in relation to the activities of the Services;
f) supervise and coordinate all official seed testing
laboratories in the regions and provincial satellite laboratories and
seed certification in all provinces and sub-provinces;
g) accredit private seed testing laboratories; and
h) perform such other functions as the Council may
direct.
SECTION 13. Seed Industry Development Program. — The
Council shall adopt within ninety (90) days after it has been
constituted, a Seed Industry Development Program hereinafter referred
to as the "Program", which shall be implemented by its constituent
agencies.
a) A network of seed centers to be known as the
National Seed Network shall be established at the Bureau of Plant
Industry and major agricultural colleges and universities to produce
sufficient quantity of breeder, foundation and registered seeds of all
varieties developed by the government sector;
b) The Department of Agriculture shall have the
overall task of directing and coordinating the activities of its
component agencies in accelerating the development of
the seed industry;
c) The Bureau of Plant industry shall have the direct
responsibility for the production, distribution, regulation of breeder,
foundation and registered seeds, and the implementation of the Program,
including but not limited to the management of the existing research
stations and seed farms, seed testing laboratories, and certification
services under a self-reliant management scheme;
d) The University of the Philippines at Los
Baños shall provide leadership in plant technology activities
related to plant improvement, genetic resources conservation, and in
vitro mass production of planting
e) The Philippine Rice Research (PHILRICE) shall
develop appropriate rice varieties under Philippine Conditions and
propagate them into breeder, foundation, and registered seed and extend
all necessary technical assistance to ensure the proper utilization of
such seeds on the farm level;
f) The Board of Investment (BOI) shall promulgate
necessary rules for the development of the seed industry as a preferred
area of investment; and
g) The private sector of the seed industry shall
direct their collective efforts towards an increased and more active
cooperation and coordination with the government agencies. Farmers'
organizations shall take active part in the conservation of the plant
genetic resources of the nation.
SECTION 14. Incentives. — The private sector may
avail of the following incentives to develop the local seed industry:
a) Individuals, farmers' organizations, cooperatives,
and corporations, wholly owned by Filipinos shall be entitled to
technical assistance from the Government, including training in seed
technology, and availment of seeds and results of basic research
studies;
b) Technical equipment used in seed processing,
sowing, meristem culture, storage and quality testing by individuals,
farmers organizations, cooperatives and corporations wholly-owned by
Filipinos shall be exempted from duties and taxes during their first
five (5) years of operation subject to the following conditions:
1) The equipment are not manufacture domestically in
sufficient quantity of comparable quality and at reasonable prices;
2) They are reasonably needed and will be used
exclusively by the importer in the operation of its business;
3) Approval of the Council was obtained prior to the
importation;
4) In case the importer transfers, sells, or disposes
of the equipment within five (5) years from acquisition without prior
approval of the Council the former shall be solidarily liable with the
transferee to pay double the amount of tax exemption given it. The
Council may permit transfer, sale or disposition of said equipment
within the said five (5) years if made to another person or entity
enjoying similar incentives, or for reason of proven technical
obsolescence, or for purposes of replacement to improve and expand the
operations of the importer;
5) The importer shall not enjoy a similar incentive
under the Omnibus Investments Code of 1987.
However, cooperatives organized and registered under Republic Act No.
6938 shall be covered by Articles 61, 62, and 63 of the said law
pertaining to the tax exemption privileges of cooperatives; and
6) Expenses for research, development and extension
of private Filipino seed producers shall enjoy a two hundred percent
(200%) deduction from their gross income for the first five (5) years
of operation in accordance with the rules and regulations to be
promulgated by the Department of Finance within ninety (90) days from
the effectivity of this Act.
SECTION 15. Restrictions. — The following acts are
prohibited:
a) Importation in commercial quantities of species of
seeds that are being produced locally, except seeds difficult to grow
under ordinary conditions or when allowed by the Council;
b) Exportation of rare species, varieties, lines and
strains of plants from the country except for scientific or
international exchange purposes which shall be determined by the
Council; and
c) Such other activities as the Council may deem fit
to prohibit.
SECTION 16. Funds of the Council. — There is hereby
created a special account in the general fund to be known as the Seed
Fund which shall be obtained from the following sources:
a) Five million pesos (P5,000,000.00) to be
appropriated out of any funds in the National Treasury not otherwise
appropriated;
b) the existing Seed Fund;
c) revenues from the sale of certified seeds and
plant materials, including but not limited to the income derived from
the products of research stations and seed farms, seed processing and
testing fees, field inspection fees, seed export and import fees,
license fees, fees for the issuance of permits to seed
growers/producers, fines collected for violations of this Act; and
d) donations from private or government agencies,
either domestic or foreign: provided, that said funds shall be held in
trust by the Bureau of Plant Industry: provided, further, that the
allocation, utilization and disposition of such funds shall be by and
under the authority of the Council.
SECTION 17. Appropriations. — The amount necessary to
carry out the provisions of this Act is hereby authorized to be
appropriated in the General Appropriations Act of the Year following
its enactment into law and thereafter.
SECTION 18. Authority to Search and Condemn Unlawful
Seed Lots. — In order to carry out effectively the provisions of this
Act, the Executive Director of the Council is hereby authorized to
search and seize seed lots labeled, identified or imported in violation
of this Act; Provided, that a search warrant shall first be secured
from the proper court and the same shall be served/enforced with the
assistance of the Philippine National Police (PNP) of the National
Bureau of Investigation.
Should the seed lots so searched and seized be found after due hearing,
to be suitable for condemnation, in his judgment, the Executive
Director is hereby empowered to issue to any of his designated
representatives an order for condemnation of unlawful seed lots, in
which case the same shall be processed, relabeled or otherwise disposed
of in such manner as he may deem appropriate: provided, that in no case
shall the Executive Director order such condemnation without giving the
claimant an opportunity to apply for the release of said seed lot or
permission to process it in compliance with this Act, subject to the
payment of just compensation in the proper case.
SECTION 19. Penal Provisions. — Any person, firm, or
association who shall violate any provision of this Act or the
implementing rules and regulations promulgated pursuant to this Act,
shall, upon conviction, be punished with a fine of not more than Ten
thousand pesos (P10,000.00) or imprisonment of not more than five (5)
years, or both, in the discretion of the Court: provided, that in the
case of a firm or association, the penalty of imprisonment shall be
imposed upon the officer(s) who knowingly participated, abetted, or
consented to the commission of such punishable acts.
Sec. 20. Rules and Regulations. — The Council
Shall within ninety (90) days from the effectivity of this Act,
promulgate the necessary rules and regulations for the enforcement of
the provisions of this Act.
Sec. 21. Repealing Clause. — All existing laws,
rules and regulations or parts thereof inconsistent with the provisions
of this Act are hereby repealed, superseded or modified accordingly:
provided, however, that nothing in this Act shall amend, modify to
repeal the provisions of Republic act No. 7160, otherwise known as the
Local Government Code.
Sec. 22. Separability Clause. — If any part,
section, or provision of this Act shall be held invalid or
unconstitutional, the rest of the provisions shall not be affected
thereby.
Sec. 23. Effectivity. — This Act shall take effect
fifteen (15) days after its complete publication in the Official
Gazette or in at least two (2) newspapers of general circulation.
Approved: March 27, 1992
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