WHEREAS, Presidential Decree No. 1854 authorized the Philippine Coconut Authority to Impose a PCA Fee of Three Centavos for every kilogram of copra or husked nuts or their equivalent in other coconut products delivered and/or purchased by copra exporters, oil millers, dessicators and other end-users of coconut products which shall be collected under such rules that PCA may promulgate.

WHEREAS, to implement the above-cited law and pursuant to Executive Order No. 292 otherwise known as the Administrative Code of 1987 which authorizes all government agencies empowered by law to collect fees, upgrade and increase their rates of fees and charges equivalent to the full cost of service, PCA issued a series of Administrative Orders, the latest of which is PCA Administrative Order No. 01, series of 2011 which increased the rate of PCA fees to Twelve Centavos (P0.12).

WHEREAS, for the purpose of monitoring payments and collections of PCA fee, Section 10 and 11 of PCA Administrative Order No. 01, series of 2011 likewise mandates PCA fee payors to submit a Monthly Summary Report of purchase, domestic and export sales, production and inventory of coconut products.

WHEREAS, Section 13 thereof  provides for sanctions for any violation of its provisions which includes, among others, cancellation/suspension/non-renewal of the Certificate of Registration.

WHEREAS, to effectively implement these policies and to avoid confusion, there is a need to amend Section 5.2 of Administrative Order No. 02, series of 2010 which provides for the œGrounds for Suspension or Revocation of Certificate of Registration  to include non-payment of PCA fees and non-submission of the transactions on purchases, domestic and export sales, production and inventory of coconut products.

WHEREAS, any act or violation of existing laws, rules and regulations administered by the Authority or other agencies of government should be included as a ground not only for denial of registration as provided under Section 3.5 thereof, but likewise for suspension, revocation or non-renewal of Certificate of Registration.

NOW, THEREFORE, foregoing premises considered, Section 3.5 and Section 5.2 of Administrative Order No. 02, Series of 2010 are hereby amended to read as follows:

œSection 3.5 Denial of Registration - The Authority reserves the prerogative to disapprove the application and deny the issuance of Certificate of Registration, if the applicant, after an investigation conducted by PCA, or upon receipt of derogatory report and recommendation from any agency of the goverment, has been found to have committed an act in violation of existing laws, rules and regulations administered by the Authority, or other agencies of government, or has committed an act, considered as unfair trade practice, as defined in these Rules.

SECTION 5.2 Grounds for Suspension, Revocation or Non-Renewal  - In addition to the grounds provided for under Section 3.5., any of the following acts, and after due investigation conducted thereon, shall be deemed sufficient ground for the issuance of an Order of Suspension, revocation or non-renewal of the Certificate -

1. Giving any false statements in the Application for Registration;
2. Hoarding of the registered commoditiy to manipulate prices or pricing policies of the government;
3. Non-reporting or misdeclaration of inventory in any disposition or location as may be required by PCA;
4. Non-posting of buying prices in conspicuous places of the place of business or premises of their buying stations;
5. Giving any false statement in any other reports as may be required from time to time by PCA;
6. Having been found guilty of unfair trade practice, such as, but not limited to adulteration, fraudulent designation, admixture, misbranding, etc.
7. Non-payment of the PCA fees;
8. Non-submission of the reports on purchases, domestic and export sales, production and inventory of coconut products;

All provisions of existing rules, regulations, orders and circulars inconsistent with this Order are hereby repealed or modified accordingly.

This Order shall take effect after fifteen (15) days from publication in a newspaper of general circulation.


Date Filed:  24 February 2012