RULE ON REQUIREMENT FOR NFA SHIPPING PERMIT TO TRANSPORT RICE AND/OR CORN AND/OR THEIR BY-PRODUCTS BY WATER FOR PURPOSES OF MONITORING THE STOCK POSITION AND MOVEMENTS OF TRADE …

Pursuant to the powers granted to the National Food Authority under
Presidential Decree No. 4 as amended, to devise and maintain a system
for regularly obtaining information on current stock positions of rice
and/or corn and/or their by-products, their prices, and movements, and
to forestall illegal trading activities, this Circular is hereby issued
for the information and compliance of all concerned:

1.         All shippers of rice and/or corn and/or their by-products
by means of water transport, whether for commercial or for domestic
consumption whose volume is fifteen (15) metric tons (i.e. 300 bags @50
kg net) and above, shall be required to apply to the nearest NFA office,
for a NFA Shipping Permit prior to loading. Provided, however, that if
the rice/corn to be shipped are of foreign origin, a volume of five (5)
metric tons or quantity of one hundred (100) bags @ 50 kg net and above
shall be covered by a NFA Shipping Permit. The application shall be
accomplished in triplicate copies using the prescribed form stating
among others the quantity, commodity (rice/corn), value, names of
shipper and consignee.

For the purpose of this Circular, the term “water transport” shall
mean and include, but not limited to vessel, boat, barge and other water
crafts. Rice and/or corn commodities, could either be a full container
load (FCL) and/or a less container load (LCL), which includes stocks
loaded on trucks on board ferry boats.

2.         Both shipper and consignee should be duly licensed by NFA
as wholesaler/transporter. In case the rice/corn to be shipped are
imported, the shipper/transporter should likewise be a licensed NFA
importer and duly granted NFA Import Permit.

If the shipper/transporter is not the direct, importer and have just
acquired/bought the commodities from wholesaler or importer, the
shipper/transporter documentary evidences such as invoices issued by the
seller/importer and the corresponding NFA licenses/permits of the same.

3.         Consignees of all rice/corn shipments whether required a
NFA Shipping Permit or not should be able to present for their
protection, Sales Invoices and NFA licenses and/or other enforcement
agencies. Absence of these documents or possession of spurious documents
shall be a ground for seizure and detention and eventual confiscation
of the stocks by NFA and/or by other enforcement agencies.

4.         To ensure adherence and compliance to quality, packaging
and labelling standards under L/C No. AO-97-08-001 known as Phil. Grains
Standards for Rice and Corn, all shippers are required to show samples
of empty sacks (polypropylene or polythylene bags/sacks) of rice/corn to
be shipped, before the NFA regional or provincial offices could issue
the NFA Shipping Permit.

5.         The NFA Shipping Permit which will be valid only for a
period of fifteen (15) calendar days from date of issue, shall be given
on a per shipment/transaction basis in four (4) copies. It shall be
signed by NFA Regional Director or Provincial Manager concerned or their
duly authorized representatives before the rice and/or corn and/or
their by-products shall be allowed to be loaded on the vessel, barge,
boat, and other water crafts. A shipper/transporter who shall shipout
rice/corn in succession (in a row), may secure the Permit in advance
provided that the details of shipments are known before-hand.

6.         All consignees of the shipped rice and/or corn and/or
their by-products shall likewise be required to submit a Report to the
NFA Provincial office having jurisdiction on the location where
rice/corn shall be discharged/unloaded, within twenty-four (24) hours
from receipt of the goods, in triplicate copies using the prescribed
form.

7.         The NFA Provincial Offices concerned when deemed
necessary, shall conduct random inspection whether at the shipper’s
warehouse or at the pier/port of loading and at the port of discharge or
consignee’s warehouse, of the stocks covered with a NFA Shipping
Permit.

8.         A fee of One Hundred Pesos (P100.00) shall be paid by the
applicant/shipper to the NFA office issuing the NFA Shipping Permit to
cover the inspection and monitoring expenses and other administrative
cost.   ICASEH

9.         The necessary forms shall be secured from the nearest NFA office.

Non-compliance with this Circular shall subject the offender, upon
conviction, to a punishment by imprisonment of not less than one year
nor more than six months or a fine of not less than One Thousand Pesos
(P1,000.00) nor more than Four Thousand Pesos (P4,000.00), or both such
fine and imprisonment, at the discretion of the court pursuant to
Section 29 (c) of Presidential Decree No. 4. Provided, however, that
non-compliance with the rules, regulations, decisions, orders, circulars
or directives does not constitute a higher offense under P.D. 4. The
offender may also be subject to administrative proceedings where the
penalty of suspension and/or cancellation of his/her NFA license may be
imposed. The NFA may issue cease and desist orders pending the
termination of the administrative case.

If the violation is committed by a corporation, partnership or
association, the penalty shall be imposed upon the President, Directors,
Managers Managing Partner, as the case may be, or other officials
thereof, responsible for such violation.

This Letter-Circular supersedes Letter Circular No. A.O. 99-02-001
dated February 09, 1999 and shall take effect fifteen (15) days
following its publication once in a newspaper of general circulation and
filing with the U.P. Law Center.

Adopted: 9 Sept. 1999

(SGD.) EDUARDO NONATO N. JOSON II
Administrator