RULES AND REGULATIONS TO MAINTAIN MINDANAO AS AN FMD-FREE ZONE

WHEREAS, reports gathered by the Department of Agriculture (“DA”)
have shown that incidences of Foot and Mouth Disease (“FMD”) continue to
occur in most provinces of Luzon and some parts of Visayas.

WHEREAS, the whole island of Mindanao has been free of FMD for the
past 20 years, and has been declared as an FMD-free zone locally on
March 29, 1993 by virtue of Administrative Order No. 8 signed by
Secretary Roberto S. Sebastian.

WHEREAS, Luzon was declared an FMD calamity area last June 15, 1995
by virtue of Executive Order # 25, and recently, an FMD outbreak
occurred in the province of Iloilo on September 6, 1999.

WHEREAS, there is danger of spreading FMD by shipping and
transporting FMD-susceptible animals, namely pigs, cattle, carabao, goat
and sheep, their fresh/frozen meat, their semi-processed meat and
semi-processed milk, their semi-processed by-products, dung of pigs and
ruminants, and animal effects like hay, straw, forage or similar
material coming from infected areas to the FMD-free areas like Mindanao.

WHEREAS, the threat of spreading the FMD from Luzon and Visayas to
Mindanao is increasing considering that there are direct flights and sea
routes from FMD-infected areas to Mindanao.

WHEREAS, there is a need to maintain the whole island of Mindanao
as an FMD-free zone and to be recognized as such by the Office
International Des Epizooties (“OIE”) in order for our livestock and
livestock products to be able to enter the world market and to help the
present administration in making Mindanao as the Food Basket of the
Country.

WHEREAS, in order to maintain Mindanao as an FMD-free zone, all
concerned agencies of the government, LGU’s and concerned sectors shall
cooperate in the effort towards maintaining Mindanao as an FMD-free
zone.

WHEREAS, with the recent outbreak of FMD affecting the province of
Iloilo, livestock farmers in Mindanao are very much worried that it may
soon reach the shores or Mindanao unless a comprehensive plan and
measures are in place to prevent its entry into the island.

NOW, THEREFORE, I, EDGARDO J. ANGARA, Secretary of Agriculture,
pursuant to Section 18, Chapter 4, Title IV, Book IV of Executive Order
No. 292, and the provisions of Administrative Order No. 9, Series of
1993 implementing Republic Act No. 7394, otherwise known as Consumer Act
of the Philippines, do hereby issue this Order.

SECTION 1.       Definition of Terms. —

a.   FMD-Susceptible Animals — refers to hog, cattle, carabao, sheep, and goat.

b.   Meat — refers to fresh, chilled or frozen part of a
carcass, including edible offal from but not limited to cattle, buffalo,
pigs, goat, sheep, horse and poultry but excluding meat derived from
marine animals under the Convention on International Trade of Endangered
Species of Wild Fauna and Flora (“CITES”)

c.   Meat Products — refers to meat referred above, which has been subjected to treatment by cooking, drying, salting, brining or smoking.

d.   Animal By-Products — as used in this Order refers to
hides, horns, skin, bones, hooves or other parts or products of pig,
cattle, carabao, goat and sheep unsuitable for human consumption.

e.   Fully-Processed Meat Products — refers to meat
products which have been subjected to such treatment that will ensure
the destruction of the FMD Virus according to the following procedures
and that necessary precautions were taken after processing to avoid
contact of the meat with any potential source of FMD Virus:

1.      Canning — Meat is subjected to heart treatment in a
hermetically sealed container to reach an internal core temperature of
at least seventy (70) degrees centigrade for a minimum of thirty (30)
minutes or to any equivalent treatment which has been demonstrated to
inactivate the FMD Virus.

2.      Thorough Cooking — Meat, previously deboned and defatted,
shall be subjected to heating so that an internal temperature of
seventy (70) degrees centigrade or greater is maintained for a minimum
of thirty (30) minutes.

3.      Drying After Salting — When rigor mortis is complete, the
meat must be deboned, salted with cooking salt ( NaCl) and completely
dried. It must not deteriorate at ambient temperature.

Drying is defined in terms of the ratio between water and protein which must not be greater than 2.25:1.

f.          Semi-Processed Meat Products — refers to meat
products which have not been subjected to such treatment as enumerated
in paragraph (e) that will ensure the destruction of FMD Virus.

g.         Fully-Processed Animal Products — are those
animal-products which have been subjected to such treatment that will
ensure destruction of the FMD virus such as heat treatment of at least
seventy (70) degrees centigrade for a minimum of thirty (30) minutes or
thorough drying after salting with cooking salt.

h.         Semi-Processed Animal Products — as used in
this Order refers to those animal products which have not been subjected
to such treatment that will ensure the destruction of the FMD virus as
stated in paragraph (g) of this Section.

i.          Animal Effects — as used in this Order refers to any
hay, forage or similar materials used as blankets and the likes for
FMD-susceptible animals.

SECTION 2.       General Requirement for Movement of FMD-Susceptible Animals, their Meat, Meat Products, and By-Products.
— All shipments of FMD-susceptible animals, their meat, meat products,
and by-products from one province to another shall require a written
authority/permit from the Director of the Bureau of Animal Industry
(“BAI”) or his duly authorized representative.

In case of meat and meat products, a Certificate of Inspection from
the National Meat Inspection Commission (“NMIC”) is required in addition
to the written authority/permit from the Director of BAI or his duly
authorized representative.

SECTION 3.       Prohibition of Movement of FMD-Susceptible Animals, their Meat, Meat Products and By-Products.—
The shipment of FMD-susceptible animals, their fresh/frozen meat and
semi-processed meat products, dung of pigs and ruminants including any
hay, straw, forage or similar material from Luzon and Visayas to
Mindanao is prohibited.

The shipment of fully-processed meat products and by-products of
FMD-susceptible animals from Luzon and Visayas to Mindanao shall be
allowed provided it has complied with the requirement under Section 2 of
this Order and the Meat Inspection Certificate shall specify therein
that it was packed and handled in such a way that it can not be exposed
to a source of FMD virus.

SECTION 4.       Shipment of FMD-Susceptible
Animals, their Meat, Meat Products and By-Products within Mindanao and
from Mindanao to Visayas and Luzon. — The shipment of
FMD-susceptible animals, their meat, meat products and by-products
within Mindanao and from Mindanao to Visayas and Luzon shall be allowed
provided it has complied with the requirement under Section 2 of this
Order.

SECTION 5.       Shipment of Meat and Meat Products from Areas where no Personnel of the NMIC is Assigned.—
In case of shipments of meat and meat products from areas without any
personnel from the NMIC, a Certificate of Inspection from the
Provincial/City/Municipal Veterinarian, as the case may be, shall be
required in addition to the authority/permit from the Director of BAI or
his duly authorized representative.

SECTION 6.       Special Shipments.—
Special shipments may be allowed from non-FMD infected areas subject to
guidelines promulgated by the DA provided there has been no FMD
outbreak for the past five (5) years in the area concerned. However, in
all cases under this section, a negative laboratory result from FMD
shall be required before the permit is granted.

No unloading of FMD-susceptible animals destined for FMD-free zones
during stopover of aircrafts or vessels in FMD-affected areas.

SECTION 7.       Status of the Prohibition in Case Certain Regions of Visayas and Luzon are Officially Declared as FMD Free Zone. —
In case certain regions of Visayas or Luzon are officially declared as
FMD-free zones by the government or by other officially recognized
accrediting body, the shipment of FMD-susceptible animals, their meat
and semi-processed meat products, semi-processed hides and horns,
semi-processed milk of FMD-susceptible animals, dung of pigs and
ruminants, any hay, straw, forage or similar materials from said region
to Mindanao and other officially declared FMD-free zones shall be
allowed subject to the requirement specified under Section 2 of this
Order.

SECTION 8.       Duties and Responsibilities of the National Meat Inspection Commission
. — It shall also be the duty and responsibility of the NMIC to see to
it that meat and meat products that are allowed to be shipped to
Mindanao and other FMD-free zones have been packed and handled in such a
way that it cannot be exposed to a source of FMD virus, and that the
packing and handling have been in accordance with the rules and
regulations issued by the NMIC.

SECTION 9.       Duties and Responsibilities of Livestock Farms and Establishments
. — It shall be the duty and responsibility of the livestock farms and
establishments to see to it that bio-security measures are instituted in
their farms and that their convoys/trucks/personnel are properly
disinfected after arrival from FMD-infected areas.

It shall be mandatory on the part of the owners, operators, managers,
farm veterinarians, farm consultants of livestock farms and
establishments to report immediately the occurrence or existence of FMD
in their farms or establishments or within their vicinity.

It shall also be mandatory for commercial livestock farms and
establishments to have their farms or establishment accredited by the DA
through Veterinary-Quarantine Services before they are allowed to ship
or transport their animals, meat and meat products from one province to
another.

SECTION 10.    Duties and Responsibilities of Shipping Lines, Airlines and Other Common Carriers as well as Cargo Forwarders. —

a)   It shall be the duty of the shipping lines, airlines and other
common carriers, as well as cargo forwarders, their owners, managers,
employees or agents not to allow the loading of any FMD-susceptible
animals, their meat, meat products and by-products without the written
authority/permit issued by the Director of the BAI or his duly
authorized representative.

b)   Shipping lines departing from FMD-affected areas to
Mindanao-shall see to it that all livestock vans/crates are thoroughly
cleaned and disinfected before loading, and ships who shall refuse to do
so may not be allowed to load any livestock for the succeeding voyage
or voyages.

c)   Shipping lines departing for Mindanao shall install footbaths
at the foot of the stairs/gangplanks for passengers to step on prior to
boarding or disembarking the vessel.

d)   Shipping lines docking at the ports of Mindanao shall not
source their meat and meat products from FMD-affected areas and shall
properly dispose swill in accordance with the recommendation of the
Veterinary Quarantine Office in the port concerned.

e)   All ships, airplanes and other common carriers calling at the
port/airport of Mindanao are subject to inspection by Veterinary
Quarantine Officers before its departure to Mindanao and upon their
arrival at the port of Mindanao. Owners, agents, operators, and master
thereof shall provide the needed assistance to the Veterinary Quarantine
Officers in the performance thereof.

f)    Ships or aircrafts whose animal cargo is found positive for
FMD shall be properly disinfected at the expense of the shipping line or
airline concerned under the supervision of the Veterinary Quarantine
Services.

SECTION 11.    Transshipment of Imported Animals and Meat.
— Imported animals destined for Mindanao may be transshipped through
Luzon or Visayas, provided it is not allowed to get out of the port and
are handled in such a way that it will not be exposed to the FMD Virus.
Imported meat destined for Mindanao and FMD-free areas shall not be
allowed to be stored in any storage facilities in FMD-affected areas.

SECTION 12.    Disposition of illegal Shipments.
— Unauthorized shipment of animals, meat, meat products and
by-products, FMD vaccines and other items shall be disposed of in
accordance with the following guidelines:

a)    Animals — FMD-susceptible animals without
signs of FMD shall not be allowed to be unloaded or if already unloaded
shall be seized and returned immediately to their place of origin or
source. Any unreasonable refusal on the part of the owner or consignee
to immediately return the animal to its place of origin shall be a
ground for confiscation or detention of the animal at the expense of the
owner or consignee. Animals found to be diseased with FMD shall
immediately be condemned and disposed of by burning and/or burying in a
deep pit.

b)    Meat and Meat Products — Unauthorized
shipment of meat and meat products shall be ordered returned immediately
to its place of origin, or in case of refusal of the owner or shipper
or consignee shall be seized, condemned and disposed by burning or
burying in a deep pit.

Meat and meat products showing signs of FMD or positively
identified to be from FMD-infected animals shall immediately be seized,
condemned and disposed of by burning and/or burying in a deep pit.

c)    FMD Vaccines — Unauthorized shipment of FMD vaccines shall be seized and turned over to the BAI for proper disposition.

d)    Other items — Other items not enumerated
above shall be seized and returned to their place of origin or source.
Refusal on the part of the owner or consignee shall be a ground for the
confiscation and disposal by burning and/or burying in deep pit.

Any cost incurred in the disposition of illegal shipment shall be
paid/shouldered by the shipper, trader, person or corporation liable for
such violation.

All seizures of animals, meat, meat products and by-products and
other items must ba properly documented, witnessed and covered by
appropriate custody/acknowledgment receipt prior to condemnation or
release.

SECTION 13.    Non-Liability Clause
. — All charges for storage, demurrage, cartage, labor incident to
inspection, cost of disinfection and disposition or condemnation under
this Order shall be paid by the shipper, trader, person or corporation
liable, and the Director of BAI or his duly authorized representative
shall not be held liable for damages to the commodity or any other
damages in the course of the implementation of the provisions of this
Order.

SECTION 14.    Presumption of Guilty
. — Any person having in his possession, control or custody
FMD-susceptible animal, its meat and meat products as well as those that
are regulated or prohibited to be shipped under this Order shall, upon
demand by competent authorities, exhibit the documents prescribed in the
preceding sections. Failure to exhibit the required document within the
reasonable period shall be prima facie evidence that said animal,
animal products and by-products in his possession, control or custody is
being transported in violation of the provisions of this Order.

It will be prima facie evidence of guilt on the part of the shipper
when the animals in his possession, custody or control are found to be
affected with FMD as diagnosed by the Director of BAI or his duly
authorized representative.

SECTION 15.    Penalty . — Any
violation of any provision of this Order by persons, corporations,
livestock traders, owner or master of vessels, boats or aircrafts or any
common carrier or by any officer thereof shall render them liable to
prosecution, and upon conviction they shall suffer the penalty of a fine
of not less than Five Hundred Pesos (P500.00) and not more than double
the amount of the value of the animals, meat, meat products and
by-products in his possession, control or custody, or by imprisonment of
not more than two (2) years, or both at the discretion of the court.
Carriers of the illegal shipment may be impounded for a period of not
more than one (1) month at the discretion of the court.

Any Veterinary Quarantine Officer/Inspector, officer of the BAI or
NMIC found to be grossly negligent in the implementation of the
provisions of this Order shall be held administratively liable in
accordance with applicable Civil Service Law, Rules and Regulations.

SECTION 16.    Repealing Clause . — Any provision or portion of any rules and regulation inconsistent herewith is hereby repealed or amended accordingly.

SECTION 17.    Effectivity Clause . — This Order shall take effect thirty (30) days after its publication in at least two (2) newspapers of general circulation.

Adopted: 29 Feb, 2000

(SGD.) EDGARDO J. ANGARA
Secretary