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    http://fpa.da.gov.ph/license_fert.html

    Fertilizer Regulatory Services and Requirements

    Licensing Activities

    Product Registration Activities Licensing Requirements

    Product Registration Requirements

    Licensing Activities

    A. Fertilizer Handlers

    1. Importer2. Manufacturer

    3. Exporter

    4. Indentor5. Processor

    6. Formulator

    7. Repacker

    8. Distributor9. Area Distributor

    10. Bulk Handler

    11. Dealership

    Product Registration Activities

    A. Fertilizer (Local & Imported)

    1. Inorganic (old)

    2. Inorganic (new)

    3. Organic4. Soil Conditioner

    5. Raw Material

    6. Plant Growth Promoter7. Specialty

    Status of Registration

    Full Registration/Renewal (3 years validity)

    Provisional Registration?Renewal (annual1y)

    Licensing Requirements

    A. Fertilizer

    http://fpa.da.gov.ph/license_fert.html#Licensing%20Activities%23Licensing%20Activitieshttp://fpa.da.gov.ph/license_fert.html#Product%20Registration%20Activities%23Product%20Registration%20Activitieshttp://fpa.da.gov.ph/license_fert.html#Licensing%20Requirements%23Licensing%20Requirementshttp://fpa.da.gov.ph/license_fert.html#Product%20Registration%20Requirements%23Product%20Registration%20Requirementshttp://fpa.da.gov.ph/license_fert.html#Product%20Registration%20Activities%23Product%20Registration%20Activitieshttp://fpa.da.gov.ph/license_fert.html#Licensing%20Requirements%23Licensing%20Requirementshttp://fpa.da.gov.ph/license_fert.html#Product%20Registration%20Requirements%23Product%20Registration%20Requirementshttp://fpa.da.gov.ph/license_fert.html#Licensing%20Activities%23Licensing%20Activities
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    1. Duly accomplished and notarizedApplication Form (original copy)

    2. Copy of latestIncome Tax Return andFinancial Statement

    3. Copy of Certificate of Registration of Business Name with DTI4. For Manufacturer-copy of last year's production and sales report, production

    capacities and copy ofEnvironmental 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 contract7. 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 dealers9. For Processor-copy ofMining Permitfrom the Bureau of Mines and Geo-

    Sciences and last year's monthly production and sales report

    10. Inspection report and recommendation from the FPA Provincial Officer

    11. Warehouse registration formanufacturer, importer and distributor12. Product registration of the fertilizer to be sold

    13. License fee-based on company's capitalization. (Subscribed/Paid-up Capital plusRetained 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 companyprofile

    Test for pathogens

    Bioefficacy data:

    test crop EUP Permit

    Completeness of data

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    b. Renewal application:

    Inform FPA of any changes on the above items

    Recent chemical analysis from an FPA accredited laboratory3. 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 theconditions 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 andcompensating 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 theprovisions 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 itsindustrial 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 andregulations 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 afine 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

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    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 thepart of the Deportation Board.

    Section 6. All existing laws, executive orders and administrative rules and regulations orparts 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 suppliedin 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 thegovernment 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 expeditiouslyaccomplished through greater government participation and control through a centralized

    government authority;

    NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, byvirtue of the powers vested in me by the Constitution as Commander-in-Chief of all theArmed 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 thefertilizer industry in the Philippines with the end in view of assuring the agricultural

    sector of adequate fertilizer supply at the lowest possible cost.

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    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 theutilization 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 officialsor 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 othersubordinate 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 theDepartment of Agriculture and Natural Resources until such time as the Authority cancreate 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;

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    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, compensatingand 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 likewiseexempt 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;

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    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 Authorityin carrying out its functions.

    Section 5. The Fertilizer Industry Authority shall constitute itself immediately and shallexist 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. 96-08Series 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, microbialinoculants, 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 acombination 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

    achemical change in the soil which will contribute to the improvement of plant nutrition

    and

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    growth.

    1. Inorganic Fertilizer

    Any fertilizer product the properties of which are determined predominantly by itscontent

    of mineral matter or synthetic chemical compounds. It also refers to any chemical

    compoundwhich 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

    macronutrientsand 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 longerrecognizable, 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 soilconditioners

    or amendments whichever is applicable.

    a) Pure Organic decomposed plant or animal materials to which decomposing activatorsmay 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 AMENDMENTAny 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,

    shrinkingand 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

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    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 concentrationpromotes or modifies any physiological process in plants.

    E. MICROBIAL INOCULANTS

    Biologically active products containing optimum population of one or a combinationof 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 Application1) Sample of the finished product for confirmatory analysis at any FPA

    accredited laboratory

    2) Proposed label or bag3) Certificate of Analysis from the source/country of origin

    4) Brochure/pamphlets of exporting/manufacturing firm (company profile)

    a.1.2. Renewal Application1) 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 fertilizera.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 laboratorymust 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 shallbe on the applicants account.

    3) Source, kind and analysis of raw materials

    4) General description of production process5) 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)

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    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 laboratoryb. Organic Fertilizers

    b.1. New Applications

    1) Proposed packaging materials2) 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 atany 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 Fortifieda) 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 process5) 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 bespecified and quantified.

    10)Test for Pathogens

    b.1.2 Renewal1) 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

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    1) Proposed packaging material

    2) Guaranteed Analysis of Nutrients or Active Ingredients

    A certificate of analysis of nutrients by an FPA accredited laboratorymust 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 shallbe on the applicants account.

    3) Source, kind and analysis of raw materials

    4) General description of production process5) 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 Amendmenta) % particle size passing through 60, 40, 20 and 10 mesh

    sieveb) 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 laboratoryd. Plant Growth Regulatory (Promoter)

    d.1. New Application

    1) Proposed label2) 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 toFPA 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) andcommercial product, state impurities and inert ingredients.

    b) Chemical name of the active ingredients

    c) Chemical structured) Flammability

    e) Volatility

    f) Stability4) Toxicological Requirements (for synthetic plant growth regulator)

    Acute Oral Toxicities

    Acute Dermal Toxicities

    5) General description of production process

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    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 items2) Recent chemical analysis from an FPA accredited laboratory

    e. Raw Materials

    e.1 New Application

    1) Proposed packaging material2) 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 atany 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 Inoculantf.1 New Application

    1) Proposed label

    2) A certificate of analysis of the population of one or a combinationof 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 accreditedlaboratory. 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 items2) Recent chemical analysis from an FPA accredited laboratory

    B. Guaranteed Analysis

    The composition of the fertilizer material with respect to its minimum plantfood 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,

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    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 samebatch for confirmatory analysis at any FPA accredited laboratory. Costs of such analysis

    shall be on the applicants account.

    C. Biological Efficacy Data Generation1. 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 cropin 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 belimited 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

    (AttachmentIII) 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 approvedEUP 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 locallyproduced 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.

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    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 containedin 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 resultsshould 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. Itis 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 andmaterial 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 containersmaller 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 1-5kilograms, 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 (%)

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    Trace Elements (ppm of each element, if any)

    Artwork (only crops registered)

    Net Weight/Volume of ContentCaution

    F.P.A. Registration No.:

    KEEP OUT OF REACH OF CHILDRENRight Panel:

    Directions for Use: Crops:dosage:frequency

    Other instructions/informationLeft Panel:

    Manufacturer/Distributor, Name and Address

    Compatibility

    WarrantyPackage Storage and Disposal

    Date of Formulations; Lot No.

    Color Band - Purple

    Specific Considerations in Marking of Bags of Solid FertilizersThe 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:NF.P.A. Registration Number

    Back:

    Name of Manufacturer

    Address of ManufacturerBatch number and coded months and year of Manufacture

    Contents (net mass, in kg.)

    E. Review ProcessApplication for registration should be duly accomplished and submitted

    induplicate.

    It will be screened for completeness and if found incomplete, it will be returnedto 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

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    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 GRANTEDThe 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 arepresentative crop.

    2. Full Registration granted when all the technical requirements were

    satisfactorily complied with including another season efficacy test ona 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 onDecember 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 thesubsequent year after expiration after which surcharges equivalent to 100% of the

    registration fee will be levied. No renewal applications will be accepted after June30 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 RegistrationA 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 DataData 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 partyauthorization 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 beingregistered

    has the same raw materials and production process.

    E. Transfer of Registration

    Transfer of registration is accepted provided that the product to be transferred

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    is currently registered and the following requirements are satisfactorily complied

    with:

    1) Application form duly accomplished and notarized2) Deed of Transfer

    3) Propose Label

    4) Certificate of chemical analysis by an FPA accredited laboratory5) 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 supplierbasis 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 percropping period.

    Registration fees shall be collected per product based on FPA approved rates

    for new and renewal application.

    VII. REPEALING CLAUSEAll 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 withoutprejudice to the filing of criminal case against the erring persons pursuant to the

    penalty clause of P.D. 1144.

    VIII. EFFECTIVITYThis 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 ( )

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    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 TObefore me this ______________________ day of

    ___________________ 19______ at ____________________________, Philippines

    Affiantexhibited 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.: ______________________

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    Name of Product ________________________________

    Type of Fertilizer ________________________________

    Unit of measure (Please stat if inMetric 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: ____________

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    _________________________________________________________________

    _________________________________________________________________

    __________________________________________________________________________________________________________________________________

    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 TObefore 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. __________

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    Series of 19 ________

    Original should bear P15.00 documentary stamps.

    FPA Form PR-L AnnexINFORMATION 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 importantsectors 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 agriculturalproducts 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 thedeclining performance of the agricultural sector in 1997 as compared to last years

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    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 comprisedof 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 ofrice, 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 lowcompared 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 andefficient production technologies. Most of the favorable land in the country are alreadyunder 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 withoutthe 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 inresponse 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 tolocal 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 wasthe 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, thegovernment launched a program geared towards attaining self-sufficiency in major staple

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    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 fertilizationprogram 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 IndustryAuthority (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 May1977, 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 adoptedand 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 followingmeasures: 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 inagriculture/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

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    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 offertilizer 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 keytherefore 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 areaswith 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 andDAP 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 phosphaticfertilizers 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 1986produce 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 onimported 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 leanproduction 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

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    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 increasedwith 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 MTin 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 lowcompared 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 1991followed 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 1990to 1996 before sloping down in 1997. For the year 1997, total supply aggregated to 2.6million 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 AgriculturalDevelopment Plan (1991-1995). Under GPEP, the government set self-sufficiency in riceand 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 facilitiesand 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

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    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 andrehabilitation 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 beconstructed 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 thecondition 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 thenext fifteen (15) years, it is projected that increases in fertilizer demand in the Philippines

    would come from the following:

    a. Increased irrigated areasb. Increased areas devoted to high yielding varieties corn

    c. High usage in all crops

    d. The adoption of improved technologies and developments in the fruit sub-sectore. Renewed interest and new opportunities in the coconut industry

    f. 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 yearconsidering 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% perannum, 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 everyone 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. Withgrowing 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.