SECTION 1. Coverage - The standards provided for in these rules shall be applicable to all copra sold to or traded in the domestic or foreign market by: copra dealers, oil millers including their buying stations, and agents dealing with physical transfer of the commodity.  However, the individuals and entities mentioned herein may set stricter standards of limitation, including requirements for rejection depending on the special quality of copra that they may require.

SECTION 2. Moisture Content - Unless otherwise revised or changed by the Authority at any time after the issuance of these rules, the base price shall be set for copra at a moisture of twelve percent (12%), that is, semi-resecada.  Price adjustments for copra shall be within the moisture range of twelve percent (12%) to seven percent (7%) as indicated in the moisture scale given in Table A1.^*   The adjustment represents a simple allowance for weight lost during drying.

Copra with a moisture content in excess of twelve percent (12%) must be rejected with the single exception of Tapahan dried copra within the moisture range of twelve point one percent (12.1%) to fourteen percent (14%) which may be purchased by PCA certified traders, who must immediately carry out secondary drying to attain twelve percent (12%) moisture or less on receipt.  However, copra in this category shall not qualify for ARM premiums in Table B.^*   Price adjustments for this Tapahan dried copra are given in Table A2^* which discounts the copra to allow for drying costs.

All copra dealers, copra exporters and oil millers, trading in quantities of 500 kg. or more shall use a sampling spear in combination with a Brown-Duvel moisture meter for the determination of moisture in copra deliveries.  Those trading in quantities less than 500 kg. may use the "break" method for moisture estimation for a period of one year from the effectivity hereof, or until such time as a more suitable method becomes available, whichever comes earlier.

SECTION 3. Grading by Aflatoxin Regulated Mold (ARM) - All copra traded shall be classified into four grades according to the percentage of Aflatoxin Related Mold (ARM) found on examination using the procedures given in Annex 2.^*   ARM is defined as a mold that is yellow-green in color together with molds that have penetrated the surface of the copra making indentations or holes that are easiest seen in a cross-section when the copra is split.  Unless otherwise revised or changed by the Authority the grades based on Aflatoxin Related Mold and the associated price adjustments are those given in Table B.^*

The premium for Grade I copra may be increased at the discretion of the Buyer, but the discounts for Grades III and IV are fixed.

SECTION 4. Inferior Copra - Burnt copra and copra goma (copra with rubbery texture) together represent inferior copra.  Inferior copra shall be discounted at a rate of zero point seventy-five percent (0.75%) by weight of such copra included in the delivery up to a maximum of twenty percent (20%).  This discount is presented in Table C^* The method for the determination of inferior copra is given in Annex 2.^*

SECTION 5. Dust and Foreign Matters - Any copra delivery containing, dust, dirt or other matter shall be discounted at the rate of one percent (1%) for every one percent (1%) of dust/foreign matter.  This discount is presented in Table D.^*

The determination of the weight of dust/foreign matter shall be subject to the mutual agreement of buyer and seller. Guidelines for the assessment of dust/foreign matter are given in Annex 2.^*

SECTION 6. Yellow-Green Mold -

1. Farmers must examine their copra prior to delivery to the primary trader and remove any copra seen to contain the yellow-green aflatoxin forming mold.  Such contaminated copra should be destroyed by burning.

2. Primary traders shall examine all purchases of copra and reject any individual copra cups or pieces found to contain the aflatoxin forming mold. Such contaminated copra should be destroyed.

3. Copra buyers, other than primary traders, must immediately report to PCA the source of any delivery found to contain aflatoxin forming mold in excess of two percent (2%).

SECTION 7. Information Campaign - From August 15, 1991, to September 1, 1991, it shall be the responsibility of all sectors of the industry i.e. from the oil millers, copra dealers, copra traders/exporters and buyers to vigorously disseminate the information of this Administrative Order.  Oil millers, dealers, exporters and traders shall post in conspicuous places copies (in original English and in the local dialect translation) of this Administrative Order effective August 15, 1991.

The PCA regional, provincial and municipal offices shall, in close coordination with the private sectors and the network of Small Coconut Farmers Organization (SCFOs), initiate an intensive information program in their respective areas of responsibility thereby insuring clear understanding of the Administrative Order by all parties of the industry.  Particular attention will be directed towards the identification of the yellow-green aflatoxin forming mold.

SECTION 8. Enforcement Monitoring, Evaluation and Review - Upon the effectivity of this order, the Administrator of PCA shall constitute a task force to monitor strict enforcement of this order and such other rules, circulars and guidelines as may be issued hereafter.  The members of the task force shall exercise the duties and responsibilities as may be required of them by the Administrator or as deputized by the Department of Agriculture for purposes of administering the effective enforcement and recommending the necessary sanctions allowable by existing department orders.

SECTION 9. Penalty - For any violation or circumvention of this Administrative Order and any provisions thereto, including all guidelines, appendices to the same, the Authority may impose any one or both of the following sanctions:

9.1 Administrative sanction:

1. Non-processing of application for export and/or non-issuance of export clearance and/or permit to load;
   
   
2. Cancellation/suspension of the Certificate of Registration.

9.2 Penal and civil sanction. The penalty imposed by the Philippine Coconut Authority shall be without prejudice to whatever civil or criminal liabilities that may be imposed by the appropriate courts arising from said violations pursuant to Section 1, Article IV, P.D. No. 1468.

SECTION 10. Repealing Clause - All orders, rules and regulations inconsistent with the foregoing provision are hereby repealed or modified accordingly.

SECTION 11. Effectivity - These Rules and Regulations shall take effect fifteen (15) days after publication.

Adopted: 6 Aug. 1991

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^* Text available upon request., at Office of the NAR, U.P. Law Center.