Office of the Board of Directors of the Fertilizer and Pesticide Authority Adopted by Referendum

July 2013

FPA BOARD RESOLUTION NO. 01-13

OFFICE OF THE BOARD OF DIRECTORS OF THE FERTILIZER AND PESTICIDE AUTHORITY ADOPTED BY REFERENDUM

WHEREAS, the Fertilizer and Pesticide Authority was created by virtue of P.D. 1144 to assure the people of adequate supply of quality fertilizer and pesticide (F/P) at reasonable prices, rationalize their production and marketing, and educate the public on the safe and judicious use of these inputs to the agricultural sector in line with the national objective of increasing food production;

WHEREAS, Policy issues are vested with the FPA Board of Directors Chaired by the Secretary of Agriculture;

WHEREAS, Chapter 6.6 of the FPA Pesticide Regulatory Policies and Implementing Guidelines prohibits the importation of locally produced technical grade materials and its corresponding finished products used in the manufacture and formulation of pesticides which reads:

'No importation of locally produced technical grade materials and the corresponding finished products is allowed by the FPA. However, the manufacturer is required to submit proof that the price of the technical materials locally produced is competitive with the world market price."

WHEREAS, in 2009, the FPA Board through FPA Board Resolution No. 01 dated 18 November 2009 Series of 2009 resolved and amended the aforequoted "FPA PESTICIDES REGULATORY POLICIES AND IMPLEMENTING GUIDELINES" governing the importation of pesticides by lifting the prohibition on the importation of locally produced technical grade materials and its corresponding finished products contained in Chapter 6, item 6.6 of the Greenbook, Pesticide Regulatory Policies and Implementing Guidelines which reads that:

"WHEREAS, such importation ensure that the items to be imported shall be subject to the flag law, i.e., the importation is allowed if the price of local products is more that 15% of that which is being imported."

WHEREAS, in 2010, the Honorable FPA Board Chairman, Secretary Proceso J. Alcala issued a Memorandum Circular No. 02 entitled, "Guidelines in the Implementation of Pesticide Technical Grade Materials and Its Corresponding Finished Products" dated 17 September 2010 pursuant to FPA Board Resolution No. 01, Series of 2009;

WHEREAS, the FPA Board Resolution No. 1 dated 18 November 2009, Series of 2009 and Memorandum Circular No. 02 have been overtaken by the economic policy of President Benigno S. Aquino III with the issuance of Executive Order No. 45, Series 2011 entitled Designating the Department of Justice as the Competition Authority ". . . to update or revise existing laws to enable the Government to deal more effectively with monopolistic practices and all forms of trusts and combination in restraint of trade or free competition and/or ending to bring about non-competitive prices of articles of prime necessity providing the need to promote competition in domestic and international trade and level the playing field in the market . . ." pursuant to the trade liberalization initiatives under the Asia Pacific Economic Cooperation (APEC).

WHEREAS, the Crop Protection Association of the Philippines (CPAP) and KEMISTAR Corporation are requesting the Board the deletion in the Memorandum Circular the phrase "is allowed if the price of local products is more than 15% of that which being imported" to level the playing field in the market among stakeholders.

WHEREAS, the locally produced technical materials and its corresponding finished products is allowed to be imported provided it is registered with the FPA.

WHEREAS, the request delete Chapter 6, item 6.6. is reasonable considering that the pesticide technical grade materials does not fall under the classification of articles, materials, and equipment for public use, public building, or public works under the Flag Law otherwise known as Commonwealth Act (CA) No. 138 and therefore the same does not apply.

WHEREAS, pursuant to the review of the Legal Division of the Department of Agriculture (DA), CA No. 138 which was made as basis for the said provision has NO APPLICATION in the present concern. CA 138, particularly Section 4 thereof, pertains to "purchase of articles for the Government" and has nothing to do with the importation issues which the FPA Board Resolution seeks to address.

NOW THEREFORE, the Board hereby RESOLVES to amend FPA Board Resolution No. 1 Series 2009 by deleting the 9th paragraph which reads as follows:

WHEREAS, such importation shall ensure that the items to be imported shall be subject to the flag law i.e., the importation is allowed if the price of local products is more than 15% of that which is being imported;"

Quezon City, Philippines ___ July 2013.

APPROVED BY:

(SGD.) PROCESO J. ALCALASecretary of Agriculture, and Chairman, FDA Board

HON. CESAR V. PURISIMASecretary

Signed by representativeSecretary

(SGD.) HON. AMANDO M. TETANGCO, JR.Governor

(SGD.) HON. CLARITO M. BARRONDirector

(SGD.) HON. JUAN MIGUEL T. CUNADirector

HON. OMAR T. MIERPresident

(SGD.) HON. KENNETH HARTIGAN-GODirector General

Published in the Official Gazette, Vol. 111, No. 1, page 53 on January 5, 2015.