WHEREAS, the Philippine Coconut Authority was authorized by P.D. 1854 to assess and collect a PCA Fee of Three Centavos for every kilogram of copra or husked nuts or their equivalent in copra terms of other coconut products, delivered to and/or purchased by copra exporters, oil millers, desiccators and other end users of coconut product;

WHEREAS,    Executive    Order    No.    292    otherwise    known    as    The Administrative Code of 1987, authorizes all government agencies empowered by equivalent to the full cost of service, which was reiterated by Executive Order No. 159 series of 1994 and Executive Order Nos. 197 and 218, both series of 2000;

WHEREAS, pursuant to the aforecited law and executive issuances, the Authority issued and amended its Rules and Regulations implementing P.D. 1854, current of which is Administrative Order No. 01 series of 2011 which pegged the PCA Fee at Twelve Centavos per kilo of copra equivalent of husked/de-husked nuts, fresh young nuts (buko), and copra equivalent in other coconut products;

WHEREAS,  to  effectively  implement  the  Rules  and  Regulations,  the Authority promulgated Administrative Order No. 02 series of 2010 which essentially provided, as one of the grounds for suspension, revocation or non- renewal of registration the œNon-payment of PCA Fees ;

WHEREAS, in order to ensure full collection of PCA Fees while helping industry stakeholders, the Authority issued Administrative Order No. 01 series of 2018 partly suspending the efficacy of Section 5.2 Item 7 (Non-payment of PCA Fee) of Administrative Order No. 02 series of 2010 as per amendment by Administrative Order No. 01 series of 2012;

WHEREAS, the Authority has deemed it expedient to extend the mechanism and provide more definitive parameters in crafting payment agreements;

NOW THEREFORE, Administrative Order No. 01 series of 2017 is hereby amended viz:

I.    A Certificate of Registration (CoR) may be issued to a person or entity engaged in business involving coconut and other palm oil products and by- products with current PCA Fee deficiencies upon filing of application for registration and payment of application fee and current PCA Fees including interests (accruing from 01 January 2018 up to the time of filing of application) at current rate of Twelve Centavo per kilogram, and upon execution of agreement with the Authority on the payment agreement of its PCA Fee and interests accruing up to 31 December 2017, provided that in case of installments, interests shall be applied on principal only on diminishing balance basis, provided finally, that payment agreement shall be without prejudice to existing government accounting and auditing rules.

II.    Persons and entities engaged in business involving coconut and other oil palm products and by-products which are currently paying the full Twelve Centavo rate are not covered by this exception.

These rules and regulations shall take effect immediately from date of its publication in two (2) newspapers of general circulation and shall remain effective until revoked.

Approved by the PCA Governing Board in its Resolution No. 029-2018.