REPUBLIC ACT No. 3018
AN ACT LIMITING THE RIGHT TO ENGAGE IN THE RICE AND CORN INDUSTRY TO CITIZENS OF THE PHILIPPINES, AND FOR OTHER PURPOSES.
Section 1. No person who is not a citizen of the Philippines, or association, partnership or corporation, the capital or capital stock of which is not wholly owned by citizens of the Philippines, shall directly or indirectly engage in the rice and/or corn industry except as provided in Section three of this Act.
As used in this Act, the term "rice and/or corn industry" shall mean and include the culture, milling, warehousing, transporting, exportation, importation, handling the distribution, either in wholesale or retail, the provisions of Republic Act Numbered Eleven hundred and eighty to contrary notwithstanding, or the acquisition for the purpose of trade of rice (husked or unhusked) or corn and the by-products thereof: Provided, That public utilities duly licensed and registered in accordance with law may transport corn or rice.
Section 2. Within sixty days from the date of approval of this Act, all persons who are not citizens of the Philippines and associations, partnerships or corporations the capital or capital stock of which is not wholly owned by citizens of the Philippines, engaged and duly licensed to engage in the rice and/or corn industry as of the date of approval of this Act shall register and file under oath with the city or municipal treasurer of the place where they reside or have their principal office a verified statement in quadruplicate containing the names, addresses and nationality of the owners, partners or stockholders, the amount of their assets, the nature and the amount of their investments, the names of their principal officials and such other related matters as may be prescribed by the Secretary of Finance.
Copies of said statement shall be sent to the provincial treasurer and the Secretary of Finance.
Section 3. All such persons, associations, partnerships, or corporations that have complied with the requirements provided in Section two hereof, if they so apply, shall be allowed to continue to engage in their respective lines of activity in the rice and/or corn industry only for the purpose of liquidation, as follows:
(a) Those engaged in the retail, wholesale, culture, transportation, handling, distribution or acquisition for the purpose of trade of rice and/or corn and the by-products thereof shall be allowed to continue to engage therein for a period of two years from the date of effectivity of this Act; and
(b) Those engaged in the milling and/or warehousing of rice and/or corn and the by-products thereof shall be allowed to continue to engage therein for a period of three years from the date of effectivity of this Act:
Provided, That upon the termination of the periods above-provided none of said alien persons or entities shall be allowed and granted a license to engage in the rice and/or corn industry: Provided, further, That the maximum amount of the capital investments of said alien persons or entities in their respective lines of activity in the industry shall be pegged to the amount of capital investments required to be declared under Section two hereof: Provided, finally, That after the date of approval of this Act no license to engage in the rice and/or corn industry in any field of activity shall be granted to any new alien applicant therefor.
The license to any alien to engage in the rice and/or corn industry as above-provided shall be forfeited for any violation of any provision of laws, rules, or regulations issued pursuant thereto on economic control, nationalization, monetary, foreign exchange, taxation, health, weights and measures, labor and other laws relating to trade, commerce and industry.
Failure of any alien to renew a license for any year within the periods above-provided shall mean voluntary retirement and shall bar renewal thereof.
Section 4. For the purpose of this Act, the Development Bank of the Philippines shall set aside an adequate revolving fund for loan of at least fifty million pesos, which shall be lent to Filipinos with interest of not more than seven per cent per annum against secured collaterals for milling, processing, warehousing, and marketing of rice and/or corn: Provided, That rice mills or warehouses, after evaluation by the lending banks, may also be included and allowed as collateral for corresponding loans extended to Filipinos who may wish to construct or purchase ricemills or warehouses.
Likewise, the Philippine National Bank set aside a similar adequate revolving loan fund of at least fifty million pesos for cultivation and production, including crop loans, and quedans which shall be lent to Filipinos with interest of not more than six per cent per annum against secured collaterals: Provided, That the Central Bank shall rediscount the commercial papers covering the loans contemplated in the section at the lowest possible rate in order to insure the maintenance of financial assistance to the rice and/or corn industry: Provided, further, That FaCoMAs and other cooperatives, individual farmers, small landowners and tenants engaged in the production of palay, rice and/or corn shall be given priority in the grant of such loans.
Producers or planters of rice and/or corn shall be allowed to organize, any provisions of law to the contrary notwithstanding, irrespective of whether or not there may be any existing FaCoMas or farmers cooperative association in their places of business and as duly organized associations shall likewise be entitled to the credit facilities that shall be available from the Development Bank of the Philippines and the Philippine National Bank therein contemplated: Provided, That the said associations of producers or planters of rice and/or corn shall not be entitled to the credit facilities provided for in Republic Act Numbered Eight hundred and twenty-one: Provided, further, That in areas where established FaCoMas cannot efficiently or fully take care of the volume of operations in the rice and/or corn production and/or marketing, as certified to that effect by the Agricultural Credit and Cooperative Financing Administration, the organization of another FaCoMa may be authorized, which FaCoMa shall likewise be entitled to all the rights and privileges provided for in Republic Act Numbered Eight hundred twenty-one.
Section 5. There is hereby created a board, which shall be known as the Rice and Corn Board, hereinafter called the Board, which shall administer the provisions of this Act and shall study and recommend measures for the improvement and development of the rice and corn industry. It shall be composed of the Secretary of Commerce and Industry, as chairman; the Secretary of Agriculture and Natural Resources, as vice-chairman; the Governor of the Central Bank, the President of the Philippine National Bank, the Chairman of the Development Bank of the Philippines, one representative of millers and warehousemen, two representatives of planters or producers, one representative of retailers and wholesalers, one representative of consumers cooperative and one representative of labor, as members, with the representatives of the private sector to be appointed by the President of the Philippines with the consent of the Commission on Appointments. The Chairman, the Vice-Chairman and Members of the Board shall each receive a per diem of twenty-five pesos for every meeting of the Board attended by them. The Board shall have such personnel as may be necessary who shall be appointed by it and whose compensation shall be fixed by it.
Section 6. Within thirty days from date of approval of this Act, the Rice and Corn Board shall issue such rules and regulations as may be necessary to carry out the provisions of this Act. Such rules and regulations shall take effect fifteen days after their publication in a newspaper of general circulation printed in Manila. The provisions of this Act and the rules and regulations issued thereunder shall be translated into the dialects spoken in the different regions and shall be given as wide publicity as possible in the provinces, towns and rural areas.
Section 7. Violations of the provisions of this Act or of any rules or regulations issued thereunder shall be punished by imprisonment of not less than five years nor more than ten years, and a fine of not less than five thousand pesos nor more than ten thousand pesos, and immediate deportation after service of the sentence.
Whenever the violation is committed by a corporation or association, the President and each one of the directors or managers of said corporation or association who shall have knowingly permitted or failed to prevent the commission of said violation shall be held liable as principals thereof.
The penalty hereinabove provided shall be imposed upon a Filipino citizen who has allowed himself to be used as a dummy in violation of this Act. In case the offender is a naturalized citizen he shall in addition to the penalty prescribed herein, suffer the penalty of cancellation of his naturalization certificate and its registration in the civil registry and deportation.
If the offender is a public officer or employee, he shall, in addition to the penalty of imprisonment and fine prescribed herein, be dismissed from office and perpetually disqualified from holding any public office.
Section 8. Nothing contained in this Act shall in any way impair or abridge whatever rights are granted to citizens or juridical entities of the United States of America under existing treaties or agreements between that country and the Republic of the Philippines.
Section 9. Appropriation. For the operation and maintenance of the Rice and Corn Board, the sum of five hundred thousand pesos is hereby appropriated out of any funds in the National Treasury not otherwise appropriated which sum shall immediately be placed at the disposal of the Board upon approval of this Act.
Section 10. All laws or parts thereof inconsistent with this Act are hereby repealed.
Section 11. Effectivity. Except for those provisions the effectivity of which is specifically stated, this Act shall take effect on January 1, 1961.
Approved: August 2, 1960
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