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html Fertilizer Regulatory Services and Requirements


Licensing Activities Product Registration Activities Licensing Requirements Product Registration Requirements

Licensing Activities A. Fertilizer Handlers 1. Importer 2. Manufacturer 3. Exporter 4. Indentor 5. Processor 6. Formulator 7. Repacker 8. Distributor 9. Area Distributor 10. Bulk Handler 11. Dealership Product Registration Activities A. Fertilizer (Local & Imported) 1. 2. 3. 4. 5. 6. 7. Inorganic (old) Inorganic (new) Organic Soil Conditioner Raw Material Plant Growth Promoter Specialty

Status of Registration

Full Registration/Renewal (3 years validity) Provisional Registration?Renewal (annual1y)

Licensing Requirements A. Fertilizer

1. 2. 3. 4.

Duly accomplished and notarized Application Form (original copy) Copy of latest Income Tax Return and Financial Statement Copy of Certificate of Registration of Business Name with DTI For Manufacturer-copy of last year's production and sales report, production capacities and copy of Environmental Compliance Certificate (ECC), (if not yet submitted) 5. For Indentor-copy of contract/certification with manufacturer/supplier 6. For Bulk Handlers-list of clients, ports and bulk handling equipments, owned and/or a lease contract 7. For Manufacturer and/Importer-list of distributors and dealers per province by region 8. For Area Distributor-submit distributorship agreement/certification from the suppliers and list of dealers 9. For Processor-copy of Mining Permit from the Bureau of Mines and GeoSciences and last year's monthly production and sales report 10. Inspection report and recommendation from the FPA Provincial Officer 11. Warehouse registration for manufacturer, importer and distributor 12. Product registration of the fertilizer to be sold 13. License fee-based on company's capitalization. (Subscribed/Paid-up Capital plus Retained Earnings). Please be reminded that personal checks are not accepted. Product Registration Requirements A. Fertilizer 1. Administrative requirements: Application form FPA License to manufacture/import/distribute, etc. 2. Technical requirements: a. For new application:

Schematic diagram/production process Sample of the product for confirmatory analysis at any FPA accredited laboratory Proposed label or bag Certificate of analysis from the source/country of origin Brochure/pamphlets of exporting/manufacturing firm or company profile Test for pathogens Bioefficacy data: test crop EUP Permit Completeness of data

b. Renewal application: Inform FPA of any changes on the above items Recent chemical analysis from an FPA accredited laboratory 3. Filing and registration fee

-----------------------------------------------------------------------------------------------------REPUBLIC ACT No. 3050 AN ACT EXEMPTING LOCAL FERTILIZER COMPANIES FROM THE PAYMENT OF SPECIAL IMPORT TAX, MARGIN FEE ON FOREIGN EXCHANGE, SALES AND COMPENSATING TAXES AND CUSTOMS DUTIES ON THEIR IMPORTATION OF CAPITAL GOODS, EQUIPMENT, SPARE PARTS, RAW MATERIALS, SUPPLIES, CONTAINERS AND FUEL. Section 1. Notwithstanding any provisions of law to the contrary, subject to the conditions hereinafter provided, any person, partnership, company or corporation engaged or which shall engage in the manufacture of fertilizer of whatever nature shall be entitled to exemption until December thirty-one, nineteen hundred and sixty-five from the payment of the special import tax, margin fee on foreign exchange, sales and compensating taxes and customs duties payable by such person, partnership, company or corporation, in respect to the importation of capital goods, equipment, spare parts, raw materials, supplies, containers and fuel by any of those engaged in the above industry: Provided, however, That the importation of raw materials as mentioned in this section, made by farmers for farmers' cooperatives if applied to their land shall be entitled to the same exemption mentioned in this section. Section 2. Any person, partnership, company or corporation granted exemption under the provisions of this Act shall, during the period of exemption, report to the National Economic Council at the end of every fiscal year the actual foreign exchange requirements, a complete list and correct valuation of all real and personal property of its industrial plant or factory, and a financial statement under oath. Section 3. The Department of Finance shall promulgate the rules and regulations necessary for the implementation of this Act. Section 4. It shall be unlawful for any person to make any material misrepresentation in any report or document required by Section two of this Act or by the rules and regulations promulgated thereunder. Section 5. Any person violating any provision of this Act or any of the rules and regulations promulgated pursuant thereto shall, upon conviction, be sentenced to pay a fine not exceeding thirty thousand pesos or suffer imprisonment for a period not exceeding three years, or both, at the discretion of the court: Provided, however, That if the offender is a corporation, association or partnership, the penalty shall be imposed

upon the presiding, directors, managers, managing partners, as the case may be, and/or the person charged with the administration thereof. And if he is an alien, in addition to the penalties herein prescribed, he shall be deported without further proceedings on the part of the Deportation Board. Section 6. All existing laws, executive orders and administrative rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby modified or repealed accordingly. Section 7. This Act shall take effect upon its approval. Approved: June 17, 1961 -----------------------------------------------------------------------------------------------------PRESIDENTIAL DECREE No. 135 February 22, 1973 CREATING THE FERTILIZER INDUSTRY AUTHORITY WHEREAS, fertilizer is a vital input to food production and must therefore be supplied in adequate quantities at the lowest possible cost; WHEREAS, world fertilizer prices have increased drastically in recent months; WHEREAS, the domestic fertilizer market has elements of disorganization leading to higher distribution costs; WHEREAS, there is a need to insure the viability of the fertilizer industry in which the government has substantial financial interests; WHEREAS, the national interest demands the maximum production utilization of all installed fertilizer production capacity in the country and the rationalization of all fertilizer importations of the industry; WHEREAS, the objectives for the fertilizer industry can be most expeditiously accomplished through greater government participation and control through a centralized government authority; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated September 22, 1972, as amended, do hereby create the Fertilizer Industry Authority to regulate, control and develop the fertilizer industry in the Philippines with the end in view of assuring the agricultural sector of adequate fertilizer supply at the lowest possible cost.

Section 1. The Fertilizer Industry Authority, which shall have jurisdiction over all existing and potential manufacturers and suppliers of fertilizer and fertilizer inputs, shall have the following functions: 1. To control and regulate the prices, terms mark-ups, distribution channels, promotion, storage and other marketing factors in the domestic fertilizer market; 2. To establish and implement regulations governing the import and export of fertilizer inputs, and when necessary, to itself and/or export such items; 3. To control and regulate all aspects of domestic fertilizer production, including the utilization of idle capacity and orderly expansion of the industry. 4. To control and assist in the financing of the importation of fertilizer and fertilizer inputs, of production of inventory and working capital, and of the expansion of the industry; 5. To do all such things as may be necessary to maintain an adequate supply of fertilizers to the domestic market at reasonable prices while maintaining the long-term viability of the industry. Section 2. The Fertilizer Industry Authority shall be composed of the following officials or their representatives: 1. Secretary of Agriculture and Natural Resources, Chairman. 2. Secretary of Finance, Member 3. Chairman, Board of Investments, Member 4. Governor, Central Bank, Member 5. President, Philippine National Bank, Member The Authority is empowered to create the position of Executive Director and other subordinate officials as may be required. All managerial and technical positions shall be specifically exempt from WAPCO and Civil Service requirements. The Authority shall be supported by a Secretariat to be supplied initially by the Department of Agriculture and Natural Resources until such time as the Authority can create its own staff. Section 3. The Fertilizer Industry Authority shall have the following powers: 1. To make a continuous assessment of the fertilizer supply and demand situation, both domestic and worldwide;

2. To establish and enforce sales quotas, production schedules, distribution areas and such other marketing regulations as may be necessary to assure market stability and viable operations in the industry; 3. To determine and set the volumes and prices, both wholesale and retail, of fertilizer and fertilizer inputs; 4. To negotiate and enter into contracts for all imports and exports of fertilizer and fertilizer inputs; 5. To import fertilizer and fertilizer inputs exempt from customs duties, compensating and sales taxes and all other taxes for a period of two years from date hereof, unless earlier terminated or later extended by the President, and to sell or convey such fertilizer or fertilizer input to any individual association, partnership, or corporation likewise exempt from the payment of customs duties and all other taxes. 6. To control and regulate all marketing companies, whether importer, indentor, wholesaler or retailer; 7. To regulate and control quality of the different grades of fertilizer and to set new grades when necessary; 8. To compel the utilization of unused or underutilized capacities of fertilizer companies and to direct any improvements, modifications or repairs as may be necessary to accomplish this; 9. To approve or to reject the establishment of new fertilizer or fertilizer input plants and the expansion or contracting of existing capacities; 10. To promote and coordinate all fertilizer research; 11. To obtain complete access to all pertinent information on the operations of the industry, including audited and/or unaudited financial statements, marketing, production, and inventory data; 12. To call upon anyone in the fertilizer industry or in industries related to the fertilizer industry or any other government agency to assist the Authority in carrying out its functions; 13. To establish and impose appropriate penalties on the fertilizer manufacturers, distributors, dealers, wholesalers, retailers and raw-materials suppliers for violations of any rule, quota, or guideline established by the Authority; and 14. To do any and all acts not contrary to law or existing decrees and regulations as may be necessary to carry out the functions of the Authority;

Section 4. The Fertilizer Industry Authority may delegate such selected privileges, powers, or authority as may be allowed by law to corporations, cooperatives, associations, or individuals as may presently exist or be organized to assist the Authority in carrying out its functions. Section 5. The Fertilizer Industry Authority shall constitute itself immediately and shall exist for five (5) years from the date of this Decree, unless earlier abolished by the President of the Philippines. Section 6. This Decree shall take effect immediately. Done in the City of Manila, this 22nd day of February, in the year of Our Lord, nineteen hundred and seventy-three. -----------------------------------------------------------------------------------------------------FPA MEMORANDUM CIRCULAR NO. 96-08 Series of 1996 Dated: August 9, 1996 TO : ALL CONCERNED FROM : FRANCISCO C. CORNEJO ADMINISTRATOR SUBJECT : IMPLEMENTING GUIDELINES ON FERTILIZER PRODUCT REGISTRATION Pursuant to the provisions of Presidential Decree 1144 and its implementing Rules and Regulations, the Fertilizer and Pesticide Authority is hereby issuing these new guidelines in the registration of commercial fertilizers, soil conditioners/amendments, microbial inoculants, fertilizer raw materials, and plant growth regulators prior to their distribution and sale. I. PURPOSE These updated guidelines provide information for the registration of the aforementioned products to ensure farmers and end-users that the products being marketed are of good quality as guaranteed by the manufacturers and/or distributors. II. COVERAGE AND DEFINITION OF TERMS These guidelines shall apply to new products filed for registration and those products having full or provisional registration status. The following products are covered by the provisions of these guidelines: A. FERTILIZER Any substance, solid or liquid, inorganic or organic, natural of synthetic, single or a combination of materials that is applied to the soil or on the plant to provide one or more of the essential elements to improve plant nutrition, growth yield or quality or for producing a chemical change in the soil which will contribute to the improvement of plant nutrition and

growth. 1. Inorganic Fertilizer Any fertilizer product the properties of which are determined predominantly by its content of mineral matter or synthetic chemical compounds. It also refers to any chemical compound which is in liquid or in solid form and contains considerable amounts of at least one of the essential plant nutrients, such as nitrogen, phosphorus, potassium, secondary macronutrients and the micronutrients. a) Conventional grades shall include all inorganic fertilizers in solid or liquid forms which are highly soluble, proven effective for specified crops by field experiments for at least two years and which have full registration with FPA. b) New grades shall include locally formulated or imported fertilizers with no previous registration with FPA. c) Specialty grades shall include finished products recommended to overcome a specific problem or supply the nutrient need of a specific ornamental, indoor plant, lawn grasses or for any purpose other than growing agricultural food, feed, fiber or other industrial crops. 2. Organic Fertilizer Any product of plant and/or animal origin that has undergone decomposition through biological, chemical and/or any other process as long as the original materials are no longer recognizable, free from plant or animal pathogens, soil-like in texture, contains not less than 20% organic matter (o. m.) oven-dry basis and can supply nutrients to plants. All other materials that fall short of theses requirements shall be classified as soil conditioners or amendments whichever is applicable. a) Pure Organic decomposed plant or animal materials to which decomposing activators may have been added to hasten the process of decomposition and to which no chemical or inorganic fertilizer material has been added to the finished product to affect the nutrient content. b) Fortified/Enriched Organic Fertilizer an organic fertilizer material which had been enriched with microbial inoculants, hormones and/or chemical additives to increase its nutrient content. B. SOIL CONDITIONER/SOIL AMENDMENT Any organic or inorganic material, natural or synthetic, that is applied to the soil to modify certain soil physical properties, such as structure, moisture retaining capacity, shrinking and swelling capacity or resistivity to crusting and to improve soil chemical and biological conditions. Examples are polyelectrolytes such as complex vinyl and acrylic, gypsum, diatomaccous earth, vermiculite, perlite, lime, and sawdust. Strictly, a fertilizer is also an amendment but the term is more commonly used for materials applied for their fertilizing value. C. RAW MATERIALS

Any organic or inorganic material used in the production of intermediate or finished fertilizer products. This also includes naturally-occurring fertilizers such as guano, rock phosphate, limestone, dolomite, peat, gypsum and sulfur deposits that are found in nature, mined and used in fertilizer production. D. PLANT GROWTH REGULATOR (PROMOTER) Any organic or inorganic compound, natural or synthetic, which in low concentration promotes or modifies any physiological process in plants. E. MICROBIAL INOCULANTS Biologically active products containing optimum population of one or a combination of active strains of bacteria, actinomycetes, algae and fungi that are useful in different biological activities, such as N-fixation, decomposition of organic residues and solubilization/ concentration of a specific element from the soil. III. PROCESS OF REGISTRATION A. Requirement for Product Registration 1. Administrative Requirements a. Duly accomplished and notarized application form. b. FPA license to manufacture/import/distribute/etc. 2. Technical Requirements (See Summary in Attachment 1) a. Inorganic Fertilizer a.1. Conventional inorganic fertilizer material including specialty fertilizers a.1.1. For New Application 1) Sample of the finished product for confirmatory analysis at any FPA accredited laboratory 2) Proposed label or bag 3) Certificate of Analysis from the source/country of origin 4) Brochure/pamphlets of exporting/manufacturing firm (company profile) a.1.2. Renewal Application 1) Inform FPA of any changes on the above items 2) Recent chemical analysis from an FPA accredited laboratory a.2. New inorganic fertilizer including specialty fertilizer a.2.1. For New Application 1) Proposed label or bag 2) Guaranteed Analysis of Nutrients or Active Ingredients A certificate of analysis of nutrients by an FPA accredited laboratory must be submitted to FPA by the applicant together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. 3) Source, kind and analysis of raw materials 4) General description of production process 5) Brochure 6) Field test report of an FPA accredited researcher in accordance with FPA Test Protocol (Attachment II) 7) Performance evaluation of efficacy from country of origin (if imported)

8) Local inspection report by FPA staff on plant sites, raw materials, production process, laboratory facilities and manpower, sanitation, occupational health hazard and environmental pollution (local) a.2.2. Renewal 1) Inform FPA of any changes on the above items 2) Recent chemical analysis from an FPA accredited laboratory b. Organic Fertilizers b.1. New Applications 1) Proposed packaging materials 2) Guaranteed Analysis of Nutrient or Active Ingredients A certificate of analysis of nutrients by an FPA accredited laboratory must be submitted to FPA by the applicant together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. Example: Total Nitrogen (%) - Ammoniacal nitrogen (%) - Nitrate nitrogen (%) - Organic nitrogen (%) Total P2O5 (%) Available P2O5 (%) Total K2O (%) Water Soluble K2O (%) For Classification, the following Specifications are as follows: Pure Fortified a) Total NPKbelow 7% above 7% b) C:N 12:1 12:1 c) Moisture not > 35% not > 35% d) O.M. not < 20% not < 20% 3) Kind and analysis of raw materials 4) General description of production process 5) Brochure 6) Field test report of an FPA Test Protocols (Attachment II) 7) Performance evaluation of efficacy from country of origin (if imported) 8) Local inspection report by FPA staff on plant site, raw materials, production process, laboratory facilities, manpower, sanitation, health hazard and environmental pollution. 9) Any claim on the presence of beneficial microorganism shall be specified and quantified. 10)Test for Pathogens b.1.2 Renewal 1) Inform FPA of any changes on the above items 2) Recent chemical analysis from an FPA accredited c. Soil Conditioners and Soil Amendments c.1. New Application

1) Proposed packaging material 2) Guaranteed Analysis of Nutrients or Active Ingredients A certificate of analysis of nutrients by an FPA accredited laboratory must be submitted to FPA by the applicant together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. 3) Source, kind and analysis of raw materials 4) General description of production process 5) Brochure 6) Field test report of an FPA accredited researcher in accordance with FPA Test Protocols (Attachment II) 7) Performance evaluation of efficacy from country of origin (if imported) 8) Local inspection report by FPA staff on plant site, raw material, production process, laboratory facilities and manpower, sanitation and hazards to health and environment (local product) 9) Additional Information For Lime As Amendment a) % particle size passing through 60, 40, 20 and 10 mesh sieve b) Percent active compound CaCO3% MgCO3 c) Neutralizing value (CaCO3 equivalent, %) c.2 Renewal 1) Inform FPA of any changes on the above items 2) Recent chemical analysis from an FPA accredited laboratory d. Plant Growth Regulatory (Promoter) d.1. New Application 1) Proposed label 2) Guaranteed Analysis of Nutrients or Active Ingredients A certificate of analysis of nutrients by a reputable laboratory (independent local or foreign analytical laboratory) must be submitted to FPA by the applicant together with the product sample for confirmatory analysis at any FPA accredited laboratory. 3) Product Physical and Chemical Properties a) Chemical composition of the technical (raw material) and commercial product, state impurities and inert ingredients. b) Chemical name of the active ingredients c) Chemical structure d) Flammability e) Volatility f) Stability 4) Toxicological Requirements (for synthetic plant growth regulator) Acute Oral Toxicities Acute Dermal Toxicities 5) General description of production process

6) Brochure 7) Field test report of an FPA-accredited researcher in accordance with FPA Test Protocols (Attachment II) 8) Performance evaluation of efficacy from the country of origin 9) Local inspection report by FPA staff on plant site, laboratory facilities, manpower, sanitation and hazards to health and environment (local product) d.2 Renewal 1) Inform FPA of any changes on the above items 2) Recent chemical analysis from an FPA accredited laboratory e. Raw Materials e.1 New Application 1) Proposed packaging material 2) Guaranteed analysis of nutrient content and active substances A certificate of analysis of nutrients by an FPA accredited laboratory must be submitted to FPA by the applicant together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. e.2 Renewal 1) Inform FPA of any changes in the above item 2) Recent chemical analysis from an FPA accredited laboratory f. Microbial Inoculant f.1 New Application 1) Proposed label 2) A certificate of analysis of the population of one or a combination of active strains of bacteria, actinomycetes, algae and fungi by an accredited laboratory together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. 3) Field test report of an FPA accredited researcher in accordance with FPA Test Protocols (Attachment II) 4) Brochure 5) Local inspection report by FPA staff on plant site, raw material, production process, laboratory facilities and manpower, sanitation, health hazard and environment. (local product) 6) Test of Pathogens f.2 Renewal 1) Inform FPA for any changes on the above items 2) Recent chemical analysis from an FPA accredited laboratory B. Guaranteed Analysis The composition of the fertilizer material with respect to its minimum plant food nutrient contents shall conform with the guaranteed analysis and which shall be indicated on the proposed label of the package. The permissible minimum deviation from the guaranteed nutrient analysis shall be plus or minus two percent of the declared percentage content of each of the major nutrients but for organic fertilizers,

the allowable deviation shall be plus or minus five percent. A certificate of analysis of nutrients by an FPA accredited laboratory must be submitted to FPA by the applicant together with two product samples taken from the same batch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis shall be on the applicants account. C. Biological Efficacy Data Generation 1. General Information 1) Bioefficacy data provide a mechanism to ensure that the fertilizer product will perform as indicated in the label. 2) Adequate data to support claims on the label on the effectiveness of a fertilizer to supply the nutrients guaranteed by the product and needed by the plant should be provided by the registrant as an integral part of registration. 3) Two-season testing showing consistent positive results for a target crop in one or different regions are acceptable for full registration for crops in the same commodity grouping. 4) For the product to qualify for provisional registration, one season testing in one region is acceptable. However, provisional registration shall be limited only to the test crop and other similar crops belonging to the same crop group. 2. Experimental Use Permit (EUP) Experimental Use Permit (EUP) should be applied for and approved before any bioefficacy field test is conducted to generate data required for registration (Attachment III) as the data must ultimately meet the requirements for registration. EUP applicants should take necessary measures to ensure that the test meets the standard protocols for efficacy testing. Studies which are conducted without approved EUP and not in accordance to FPA standard protocols will have to be repeated and that will cause additional cost to the registrant and delay in the registration of the product. All experiments should be conducted by FPA accredited researchers. FPA accredited researchers belonging to a private firm are not allowed to conduct efficacy trial for their company. The applicant must submit the application for EUP at least one month prior to the conduct of the test. A return receipt will serve as the approval for the EUP. Whenever the application is disapproved by FPA, a written notice will be sent to applicant within 15 days after the application. Conditions such as limiting the quantity of importations of the product may be imposed for those applying for EUP. The volume of product to be imported shall be limited to the amount needed for the generation of efficacy data. Likewise for locally produced product, the amount to be processed shall be limited to the amount needed for the generation of data which FPA requires. Specific information and conditions are stated in Attachment III. An EUP is valid only for one growing season of testing a crop. The period of coverage for an EUP may be extended upon request and payment of additional filing fee provided the reasons are acceptable to the Authority. Extension for EUP shall be under a specified period of time.

3. Test Protocol Efficacy data generation should comply with the basic requirements specified in the efficacy test protocol and should be conducted by FPA accredited researcher. (Attachment III) 4. Expansion of uses which include crop groupings FPA prescribed test protocols for specific crops per product type are contained in Attachment II. Crop groupings on the representative crop are contained in Attachment IV. For the expansion of the products use, one efficacy test with significant results should be conducted on the target crop. Other crops belonging to the same crop grouping do not need an additional efficacy test. D. Labeling Requirement The label is very important in packaging and marketing a fertilizer product. It is a legal document. Information on the label provides the sellers and the buyers with the safe and effective use of the product for which it is registered. Fertilizer Circular 83-06, series of 1983 defines the label requirements for liquid and specialty fertilizers. Label means a display of the written, printed or graphic information on the immediate container of any fertilizer product. Label must be of such design and material that does not deteriorate easily, become illegible or get separated from the container under the rigors of transport, storage and use. It should withstand extreme weather conditions. General Considerations in Labeling (Liquid/Specialty fertilizer) 1. All information contained in the label must be legible, in English and/or Filipino. 2. Label must have purple border band of a minimum of 1/8 inch for container smaller than 250 ml or 300 grams net weight and inch for bigger container up to 4 liter or 5 kilograms. 3. For products packed in cardboard boxes or plastic bags weighing 1-5 kilograms, the items required on product information and direction for use should be printed directly on the container. The required border band should also be printed. 4. For products sold in containers smaller than 250 ml, only the product information is required to be printed on the label. These should be printed in the space specified in the same label. The direction for use should be printed in a separate leaflet or flier. Specific Considerations in Labeling (liquid foliar and specialty fertilizer) The label must contain the following: Middle Panel: Trade Name/Fertilizer Grade Total N (%) Ammoniacal nitrogen (%) Nitrate nitrogen (%) Total P2O5 (%) Available P2O5 (%) Water Soluble K2O (%)

Trace Elements (ppm of each element, if any) Artwork (only crops registered) Net Weight/Volume of Content Caution F.P.A. Registration No.: KEEP OUT OF REACH OF CHILDREN Right Panel: Directions for Use: Crops:dosage:frequency Other instructions/information Left Panel: Manufacturer/Distributor, Name and Address Compatibility Warranty Package Storage and Disposal Date of Formulations; Lot No. Color Band - Purple Specific Considerations in Marking of Bags of Solid Fertilizers The bag or container shall be marked with the following: Front: Brand Name Guaranteed Analysis Total N (%) - Ammoniacal nitrogen (%) - nitrate nitrogen (%) Total P2O5 (%) Available P2O5 (%) Total K2O (%) Water Soluble K2O (%) Trace Elements (ppm of each element, if any) Moisture Content O.M. % C:N F.P.A. Registration Number Back: Name of Manufacturer Address of Manufacturer Batch number and coded months and year of Manufacture Contents (net mass, in kg.) E. Review Process Application for registration should be duly accomplished and submitted induplicate. It will be screened for completeness and if found incomplete, it will be returned to applicant. Filing fee will be collected when all the required documents are submitted. The application will be entered into the registration tracking system and the data forwarded to Technical Consultants. Reviewers/Technical Consultants will be expected to complete the review of

the data within 30 days. If the results of reviews are satisfactory, the FPA will notify the applicant of the status of registration. IV. TYPES OF REGISTRATION GRANTED The types of registration granted are as follows: 1. Provisional/Conditional Registration-the technical requirements had been completed including one season of significant efficacy test on a representative crop. 2. Full Registration granted when all the technical requirements were satisfactorily complied with including another season efficacy test on a representative crop. V. OTHER PROVISIONS A. Validity and Renewal of Registration Full registration of a product shall be effective for 3 years and shall expire on December 31 of the third year. A provisional registration shall expire on December 31 of the same year from date of issue. Renewal of full or provisional registration may be filed until March 31 of the subsequent year after expiration after which surcharges equivalent to 100% of the registration fee will be levied. No renewal applications will be accepted after June 30 of that year. Failure to renew registration will mean automatic cancellation of the product registration. Products previously registered but registration of which was cancelled due to failure to renew on time will be treated as new application. B. Upgrading of Provisional Registration to Full Registration A provisional registration will be upgraded to a full registration when all the technical requirements including the second season of significant efficacy test on the same representative target crop have been met satisfactorily. A provisional registered product shall be renewed only once hence applicant should generate immediately the required bioefficacy data for full registration status. C. Label Expansion Product label should contain only recommendations for crops in particular group on which the product had been found to be effective. For label expansion, one efficacy test with significant result should be conducted on the representative crop in the desired crop grouping. Other crops belonging to the same crop grouping do not need an additional efficacy test. (See Attachment IV-Crop Groupings) D. Protection of Data Data submitted to support the first full or provisional registration will be granted protection for a period of five years from the date of first issuance of registration. During this period subsequent registrants may rely on these data only with first party authorization or otherwise must submit their own data. After five years from the date of first issuance of registration, all data may be freely cited in support of registration by any applicant, provided convincing proof is submitted that the product being registered has the same raw materials and production process. E. Transfer of Registration Transfer of registration is accepted provided that the product to be transferred

is currently registered and the following requirements are satisfactorily complied with: 1) Application form duly accomplished and notarized 2) Deed of Transfer 3) Propose Label 4) Certificate of chemical analysis by an FPA accredited laboratory 5) Sample for confirmatory analysis F. Registration of Product on a per Supplier Basis Any product being applied for registration should be registered on a per supplier basis regardless of country of origin. VI. PAYMENT OF FEES The Fee for an Experimental Use Permit (EUP) is P500.00 for local product and P1,000.00 for imported ones. EUP payment is on a per product per crop per cropping period. Registration fees shall be collected per product based on FPA approved rates for new and renewal application. VII. REPEALING CLAUSE All previous guidelines and circulars inconsistent herewith are hereby superceded or modified accordingly. VIII. ADMINISTRATIVE PENALTIES Administrative sanctions shall be imposed against all persons or entities who shall violate or shall refuse to abide by the provisions of this Memo Circular. These sanctions shall include, but will not be limited to, the cancellation of registration, revocation of license, refusal to endorse an application for the availment of the deferred tax payment scheme and such other sanctions that the FPA is empowered to do under its charter. The imposition of administrative sanctions shall be without prejudice to the filing of criminal case against the erring persons pursuant to the penalty clause of P.D. 1144. VIII. EFFECTIVITY This Guideline shall be effective thirty (30) days from the date of issuance. FRANCISCO C. CORNEJO Administrator FPA-FORM PR-I APPLICATION FOR IMPORTED FERTILIZER PRODUCT REGISTRATION *********************************************************************** ***************************** 1. a. Brand/Trade Name: ________________________________________________ b. Type of Product: ___________________________________________________ c. Certified/Guaranteed Analysis: ________________________________________ ________________________________________________________________ 2. a. Name of Company/Importer: _________________________________________ b. Address: ________________________________________________________ ________________________________________________________________ c. Repacker ( ) Formulator ( ) Distributor ( ) Importer/Indentor ( )

d. Certification from Mother Company: __________________________________ 3. Country of Origin/Supplier: _____________________________________________ 4. Size/Type of Packaging: _______________________________________________ 5. Target Users/Crops: __________________________________________________ ___________________________________________________________________ 6. Agency Handling Experimentation/Field Test (if any): ________________________ ___________________________________________________________________ I HEREBY CERTIFY that the foregoing data and information including those in the annexes hereof are true and correct to the best of my knowledge. IN WITNESS WHEREOF, I have hereunto set my hands this ________ day of _______________________, 19______ at ___________________________________ Philippines. ______________________________ Name & Signature of Firms President Manager or Authorized Representative Application No.:____________________________ Official Reciept No.:_________________________ Amount Paid: ______________________________ Date: _____________________________________ Place: ____________________________________ REPUBLIC OF THE PHILIPPINES PROVINCE OF ______________ MUNICIPALITY OF ___________ SUBSCRIBED AND SWORN TO before me this ______________________ day of ___________________ 19______ at ____________________________, Philippines Affiant exhibited to me his/her Residence Certificate No. _________________________ Issued on ____________________ 19______ at _______________________________ Philippines. _______________________ NOTARY Until December 31, 19_____ PTR No. _______________ Doc. No. ___________ Book No. ___________ Page No. ___________ Series of 19_________ Original should bear P15.00 documentary stamps. FPA-Form PR-I Annex INFORMATION SHEET ON COST COMPONENTS AND PRICES (For Imported Products) *********************************************************************** ***************************** To be based on most recent importation FPA Certification No.: ______________________

Name of Product ________________________________ Type of Fertilizer ________________________________ Unit of measure (Please stat if in Metric ton, liter, etc.) ________________________________ C & F/CIF Price (in foreign currency) _____________________ Peso Value _____________________ Customs Duty _____________________ Taxes _____________________ 3% ad valorem _____________________ Wharfage _____________________ Stevedoring & Arrastre _____________________ Other Landing Charges _____________________ Miscellaneous _____________________ ________________________________ Landed Cost _____________________ Administrative/Selling Cost _____________________ Interest Charges _____________________ Others Specify _____________________ Total Cost _____________________ Importers Mark-Up _____________________ ________________________________ Ex-warehouse Price _____________________ Note: Enumerate warehouse & corresponding ex-warehouse prices if more than one. FPA-Form PR-L Application No. ___________________ Official Receipt No. ________________ Amount Paid _____________________ Place ___________________________ APPLICATION FOR LOCALLY MANUFACTURED/MINED FERTILIZER PRODUCT REGISTRATION *********************************************************************** ***************************** 1. a. Brand/Trade Name: ________________________________________________ b. Type of Product: ___________________________________________________ c. Certified/Guaranteed Analysis of Product: _______________________________ _________________________________________________________________ 2. a. Name of Producer/Company: _________________________________________ b. Business Address/es & Tel. Nos.: 1) Head Office: ________________________________________________ ________________________________________ Tel. Nos. ___________ 2) Regional/Provincial Office: _____________________________________ ________________________________________ Tel. Nos. ___________ 3) Location of Plant: ____________________________________________ ________________________________________ Tel. Nos. ___________ 4) Location of Warehouses: ______________________________________ ___________________________________________________________ 3. List of Materials/Raw Materials used in the Production of Product: ____________

_________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 4. Actual Production Process (for original application): _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 5. Target Users/Crops: _______________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ 6. Agency Handling Experimental/Field Test (if any): ________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ _________________________________________________________________ I HEREBY CERTIFY that the foregoing data and information including those in the annexes hereof are true and correct to the best of my knowledge. I WITNESS WHEREOF, I have hereunto set my hands this _________________ day of ___________________, 19________ at ________________________________. _______________________ Name and Signature of firms President, Manager of Authorized Representative *********************************************************************** ***************************** REPUBLIC OF THE PHILIPPINES PROVINCE OF _______________ MUNICIPALITY OF ____________ SUBSCRIBED AND SWORN TO before me this ___________ day of ________ _________________, 19______ at _________________________, Philippines. Affiant exhibited to me his/her Residence Certificate No. _________________________ issued on ____________________ 19_________ at _______________________, Philippines. _____________________ NOTARY Until December 31, 19___ PTR No. _____________ Doc. No. __________ Book No. __________ Page No. __________

Series of 19 ________ Original should bear P15.00 documentary stamps. FPA Form PR-L Annex INFORMATION SHEET ON COST COMPONENTS AND PRICES (For Locally Manufactured Products) *********************************************************************** ***************************** Name of Products: ______________________________________________________ Type of Fertilizer: _______________________________________________________ Unit of Measure (Please state if in metric ton, liter, etc.) __________________________ Direct Raw Materials __________________________ Direct Labor __________________________ Utilities (Power/Fuel) __________________________ Total Variable Manufacturing Cost __________________________ Fixed cost/plant overhead __________________________ Total Manufacturing Cost __________________________ Administrative/Selling Cost __________________________ Interest Charges __________________________ Others (specify) __________________________ Total Cost __________________________ Manufacturers Mark-up __________________________ Ex-factory Price __________________________ http://fpa.da.gov.ph/newdevt.html General Description of the Fertilizer Sector by: Gregorio "Jun" Arboleda, Jr. Legal Assistant II (Including a brief account on agricultural situation, fertilizer supply, production, export and consumption) Updated: October 13, 1998 I. The Agriculture Sector A. The Role of the Agriculture Sector in the Economy The Philippines, like many other countries in the Asia Pacific Region, considers agriculture as one of the most important sectors of the economy. Its importance is reflected by its contribution to national output, employment and export earnings. The Philippine economy is basically agricultural, majority of the workforce are involved in this sector and the processing of agricultural products account for the largest share of the manufacturing sector. In 1997, the Gross Value Added (GVA) of the agriculture sector reached P182 billion. This amounted to almost 21 percent share of the total Gross Domestic Product of the country. Despite the declining performance of the agricultural sector in 1997 as compared to last years

achievement, it still turned out to be a good year for Philippine agriculture. During the year, the sector grew by only 2.9% in GVA compared to 3.4% for the same period in 1996. B. Agricultural Situation About 32% (9.73 million ha) of the countrys total land area of 30 million hectares distributed in 7,100 islands are devoted to agriculture and comprised of 3.42 million farms majority of which are less than 3 ha. in size. Two types of crops are grown in the country, food crops and commercial crops. The former comprised mainly of rice, corn, vegetables, legumes, root crops and fruits. Commercial crops, on the other hand, are composed of sugar cane, coconut, banana, abaca, pineapple. tobacco and other plantation crops grown not only for domestic consumption but also for export market. Rice and corn, the major food grain crops, account for about 51% of the total cropped area. Almost all of the irrigated areas, estimated at 1.46 million ha are planted with rice. Foodgrain production in the Philippines is still below full potential and yields remain low compared to neighboring countries. Future increases in agricultural production, particularly in foodgrains and commercial crops, will be generated mainly from increases in yield per unit area through stable irrigation supply, use of high yielding varieties and efficient production technologies. Most of the favorable land in the country are already under cultivation. On the other hand, sizable crop areas are being withdrawn from cultivation to give way to residential area and industrial development. Thus, extension of cultivation, if possible, would have to be on marginal lands. Intensive cultivation without the application of fertilizer to restore soil fertility would, in effect, lead to lower yield per hectare. Balanced application of fertilizer is expected to continue as a major approach to sustain production at high levels. Practice and research have shown that higher yields can be obtained with proper application of inputs and improved cultural management technologies. II. Profile of the Philippine Fertilizer Sector A. Fertilizer Policies Historically, fertilizer policies in the Philippines have taken various forms, largely in response to economic and political factors that shaped the mode of agricultural and economic development policies. Fertilizer policies have taken a dual and often conflicting objective of providing low-priced fertilizers to farmers as well as adequate incentives to local fertilizer manufacturers. 1. Applicable Laws In the years prior to February 1973, the fertilizer industry in the Philippines was marked by a policy of laissez faire, the importation, distribution, marketing and all other aspects of the industry were free from government control, regulation or monitoring. This was the period when fertilizer demand was low given the priority that the government accorded to agriculture. Although there are certain fertilizer laws which were promulgated, these statutes mainly concern incentives and subsidy. In 1972, the government launched a program geared towards attaining self-sufficiency in major staple

crops, namely, rice and corn. One of the major components of this program continues to be fertilizer. There was a marked increase in the demand for fertilizer especially the nitrogenous grades which are mostly imported, in line with the extensive fertilization program aimed at enhancing production. It was then that the government realized that some form of control is needed to be exercised over the fertilizer industry. On February 13, 1973, Presidential Decree No. 135 was promulgated creating the Fertilizer Industry Authority (FIA). By virtue of this law, the government completely changed its policy of non intervention to one of rigid and all encompassing control over the fertilizer industry. FIA power was so broad since its jurisdiction included control over prices, mark-up, distribution channels, promotion, import, export and production of fertilizers. The same law likewise empowered FIA to enter into contracts for purposes of exporting or importing fertilizer. One of the most significant provisions of the law, however, was the mandate of outright tax exemption for the importation of all kinds of fertilizers. In May 1977, presidential Decree No. 1144 was promulgated abolishing the FIA and creating in its stead the Fertilizer and Pesticide Authority (FPA) which is currently the implementing agency for fertilizer laws. PD 1144 merged the fertilizer and pesticide industries and placed them under the jurisdiction of a single government agency.. The law also adopted and retained the broad power provided for under PD 135 on fertilizer regulation and control. 2. Liberalization Policy of the Government In line with the liberalization policy of the government in 1986, FPA relegated considerable administrative control on the industry and replaced this with developmental support through mutual cooperation and implementation of policies and guidelines for the interest of the agricultural sector, the industry and for the betterment of the farmers. While there is lesser government intervention, quality assurance and strict monitoring system are being institutionalized. Fertilizer trade was deregulated through the following measures: Removal of procurement control (i.e. determination of import requirements, conduct of bidding and allocation of import volume) Scrapping of the price-setting function of the government Discontinuance of the issuance of FPA Import Permit for fertilizer importations. 3. Tariff Exemption and other Incentives While the subsidy on fertilizer imports, covering the amount of customs duties (3%), was discontinued effective Jan 1, 1998 the 10 % value-added tax exemption on fertilizer is still in effect. Starting on the last quarter of 1999, fertilizer imports by direct users (i.e. cooperatives, farmers associations, partnership and other entities directly involved in agriculture/fishery) will be granted total exemption. The incentive is in line with the implementation of R.A. 8435 otherwise known as the Agriculture and Fisheries Modernization Act. 4. Balanced Fertilization Strategy

Agricultural developments in the Philippines require a thorough review of current policies in terms of soil and plant nutrition for a sustainable agricultural productivity. The record of fertilizer sales showed that it almost doubled in ten years while the rate of fertilizer use grew by about 2% annually and the improvement in crop yield is minimal. The major reason for the low response of crops, particularly grains, to increase in fertilizer consumption is the imbalance in the use of nitrogen (N) and phosphorous (P). This was coupled with the continuous use of urea which induced deficiency in sulfur. The current fertilizer use imbalance causes the removal of P from the soil and the corresponding loss of applied N and P to the ground water and the atmosphere. The key therefore is the term "balance". In response, a time series and cross sectional study of soil types and characteristics on all provinces of the country was conducted to determine location specificity, approximate mixture of chemical and organic fertilizer, consideration for micronutrients and other essential plant food and others. Having identified these areas with the corresponding soil characteristics, a recommendation on fertilizer grade development and distribution was made. The recommendation is divided into two groups, namely: (a) Soil fertility maintenance and (b) Soil fertility rehabilitation B. Fertilizer Situation Currently, several fertilizer grades available in the world market are also obtainable in the Philippines. Of the straight N fertilizers, urea and ammonium sulphate dominated the market, potash was derived mainly from muriate of potash. For phosphates, 16-20-0 and DAP are the predominant grades and for complete formulations, 14-14-14. In addition, there are other specialty formulations, mostly imported, used mainly in the cut-flower, ornamental and nursery business. 1. Fertilizer Production a. Local Producers Presently there are four (4) manufacturers/blenders of phosphatic fertilizers in the country, namely, Philippine Phosphate Fertilizer Corporation, AFC Fertilizers and Chemicals, Farmix Fertilizers Corporation and Soiltech Agricultural Products, Inc. The International Chemical Industries which started operations in 1986 produce sulphate of potash. Aside from these companies, there are also others which produce liquid foliar fertilizers and commercial organic fertilizers. b. Manufacturing Facilities Physical facilities and capacities of the local fertilizer manufacturers are presented in Table 1. Domestic production depends mainly on imported raw materials such as rock phosphate, anhydrous ammonia, sulfuric acid and other finished fertilizer grades which are needed in the blending process of fertilizer production. c. Production Figures 1990-1998 For the covered period, the sector experienced lean production levels in 1990 and 1992 at 934.0 and 930.0 thousand MT, respectively. production levels for the other years ranged from 1.0 million MT to 1.6 million MT with peak activity registered in 1996. A 26% increase in domestic production was realized in

1995 followed by a 16% increase in 1996 until a negative growth in 1997 registered at 18%. Overall, production grew by an average rate of 6%. 2. Fertilizer Importation 1990-1998 The trend in importation during the eight (8) year period varies, but generally increased with its lowest in 1993 at 1.1 million MT and highest in 1997 at 1.2 million MT. For the same period, imports increased by 1.7%. Highest growth was registered in 1994 at 6.3%. 3. Fertilizer Sales 1990-1998 The domestic market expanded in terms of production tonnage for nearly 1.5 million MT in 1990 to 2.0 million MT in 1997. Except for downtrends in 1991 and 1995, domestic sales continuously went up exhibiting an average increase of 6% during the eight (8) year period. 4. Fertilizer Exports 1990-1998 Except for an increase in 1991, 1994 and 1995, export levels remained relatively low compared to period covering 1986-1989. From a range of 449.0 thousand MT to 549.0 thousand MT (1990-1997) to a range of 527.0 thousand MT to 724.0 thousand MT (1986-1989). from the 1990 levels, exports increased significantly by 77% in 1991 followed by a decline of 35% in 1992. The average growth rate for the period 1990-1997 was 5.6%. 5. Fertilizer Supply 1990-1998 Except for a slight decline in 1992, the total fertilizer supply steadily increased from 1990 to 1996 before sloping down in 1997. For the year 1997, total supply aggregated to 2.6 million MT. Gross supply of fertilizer for the eight (8) year period grew by 3.5%. Highest increase was recorded in 1995 at 16% while the lowest was in 1997 at 8%. C. The Government factor and the Prospect of the Fertilizer Sector 1. The Role of the Government The Philippine government continuously promotes agricultural programs to improve the countrys crop production particularly, rice and corn. The government launched the Grains Production Enhancement Program (GPEP) under the Philippine Agricultural Development Plan (1991-1995). Under GPEP, the government set self-sufficiency in rice and corn as key targets. The first three (3) phases of GPEP were aimed at improving farm productivity. During these phases, subsidized certified seeds and organic fertilizer were distributed, shallow tube wells were installed and various types of postharvest facilities and equipment were established. In 1996, the government implemented GPEP Phase IV, a revitalized and refocused national program to sustain and increase domestic grain production known as the Gintong Ani (Golden Harvest) which is currently the national

rice and corn production program aimed at improving rice and corn productivity through balanced fertilization and adoption of improved farm technology. The government is likewise expanding the irrigation infrastructure with the construction of new systems and rehabilitation of existing units that will eventually service a total of 928,000 hectares. As a supplement to the larger system, a total of 5,000 shallow tube wells are targeted for installation that will irrigate some 15,000 hectares. Farm to market roads will be constructed and rehabilitated in the program areas. Aside from this program and support services, the government is currently initiating a campaign on the utilization of a balanced fertilizer nutrition for optimum crop yields while preserving and enhancing the condition of the soil. 2. Outlook of the Philippine Fertilizer Sector Agricultural growth will require active support for increase in the use of fertilizers. The average actual usage of fertilizer by farmers is still way below the recommended rate of four (4) bags of NP/NPK and two (2) bags of urea per hectare for rice and six (6) bags NP/NPK and two (2) bags of urea per hectare for corn to maximize productivity. For the next fifteen (15) years, it is projected that increases in fertilizer demand in the Philippines would come from the following: a. b. c. d. e. f. Increased irrigated areas Increased areas devoted to high yielding varieties corn High usage in all crops The adoption of improved technologies and developments in the fruit sub-sector Renewed interest and new opportunities in the coconut industry Development in the horticultural crops

The demand for all types of fertilizers is expected to continue growing for the next fifteen (15) years. Urea consumption is expected to grow at a moderate rate of 4% a year considering that actual usage for rice and corn is close to the recommended rate. NP/NPK fertilizer consumption is expected to grow at 8% rate before slowing down to 6% and 4% in intervals of five (5) years. Potash consumption would grow at a rate of about 2% per annum, coming mainly from the increase in usage in the sugarcane and fruit bearing trees. The projected increase in fertilizer demand is expected to be accompanied by changes in NPK usage ratios. Local farmers currently use about 4-7 kgs. of N to every one kilogram of phosphorous fertilizer applied to more than one ton of palay (rough rice) per hectare. This application is higher than the desired ratio of 3-4 N for every one kilogram of P. The promotion of the balanced use of fertilizer through optimum amount and proper ratio of applied nutrients will lead to the gradual change in N:P:K ratios. With growing population and improving economy, the fertilizer sector of the Philippines will continue to play a vital role in sustaining agricultural productivity and stable food supply until the next millennium.

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