REPUBLIC OF THE PHILIPPINES

CONGRESS OF THE PHILIPPINES

METRO MANILA

Fifth Regular Session

Begun and held in Metro Manila on Monday, the twenty-second of July, nineteen
hundred and ninety-one.
__________________

[REPUBLIC ACT NO. 7308]

AN ACT TO PROMOTE AND DEVELOP THE SEED INDUSTRY IN THE

PHILIPPINES AND CREATE A NATIONAL SEED INDUSTRY COUNCIL AND
FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress

assembled:

SECTION 1.
Short Title. This act shall be known as the Seed Industry
Development Act of 1992.
SECTION 2.
Declaration of Policy. It is hereby declared the policy of the
State to promote and accelerate the development of the seed industry and for this
purpose, the Government shall:
a)
b)
c)
d)
e)

conserve, preserve and develop the plant genetic resources of the nation;
encourage and hasten the organization of all sectors engaged in the
industry, integrate all their activities and provide assistance to them;
consider the seed industry as a preferred area of investment;
encourage the private sector to engage in seed research and development
and in mass production and distribution of good quality seeds; and
provide the local industry protection against unfair competition from
imported seeds.

SECTION 3.
Definition of Terms. When used in this Act, the following
terms shall mean as follows:
a)

Seed shall mean plant material used for the production of food, forage,
fibers, industrial crops, oil, flowers, grasses, herbs and aquatic plants,
including but not limited to meristem, and clonal propagules such as
tubers, corns, and micro-propagated plantlets;

b)

Seed Lot shall mean a definite quantity of seeds identified by a lot

number or other identification marks, or every portion of the bag or any
container, the contents of which uniformly represent the factors which
appear in the label within allowable tolerance;

c)

Breeder Seed shall mean a seed directly controlled by the originating, or

in certain cases, the sponsoring plant, breeder or institution and which
provide the source for the initial and recurring in crease of foundation
seeds;

d)

Foundation Seed shall mean seed that is a progeny of breeder seeds to

handled as to maintain a minimum acceptable level of genetic purity and
identity;

e)

Registered Seed shall mean the progeny of foundation seeds so handled

as to maintain satisfactory genetic identity and purity;

f)

Seed Industry shall mean the different components of the chain of

activities undertaken by an individual, association, cooperative,
corporation or firm, academic institution, public agricultural research
institute in the production, processing, testing, handling, grading, storage,
distribution, and marketing of seeds for agricultural production with
economic benefits;

g)

Seed Testing shall mean the accurate and prompt analysis of a seed
sample based on methodologies prescribed by the Council to determine
its quality;

h)

Seed Certification shall mean a system of seed production geared

toward maintaining genetic identity, varietal purity and standards of
quality seeds of superior crop varieties;

i)

Quality Control shall mean a systematic approach to determine, achieve

and maintain desired standards of seed quality;

j)

Seed Sample shall mean a quantity of seed drawn from seed lots in
accordance with the rules for seed sampling to be promulgated under this
Act, property identified labeled and submitted for seed testing;

k)

Label shall mean any written, printed or graphic presentation in any

manner on the seed container giving information as required in the rules
and regulations promulgated under this Act;

l)

Seed dealer/Trader/Merchant shall mean any person, firm, agency,

cooperative or corporation engaged in the processing and/or marketing of
seeds;

m)

Seed Grower/Producer shall mean any person, natural or judicial,

engaged in the production, processing and/or marketing of seeds;

n)

Seed Control shall mean the regulation of seed marketing through

registration of seed merchants/dealers compulsory labeling, and
establishment of minimum standards of seed quality.

SECTION 4.
National Seed Industry Council There is hereby created a
National Seed Industry Council, hereinafter referred to as the Council, to replace the
existing Philippine Seed Board. The Council shall be composed of the following who,
except for the representatives of the private sector shall serve in ex officio capacity.
a)
b)
c)
d)
e)
f)
g)
h)

Secretary, Department of Agriculture - Chairman

Director, Bureau of Plant Industry Vice Chairman and Executive
Director
Dean, College of Agriculture University of the Philippines at Los Baos,
Laguna Member
Director, Institute of Plant Breeding Member
Crop Research Director, Philippine Council for Agriculture Forestry and
Natural Resources Research and Development Member
Director, Philippine Rice Research Institute Member
Two (2) representatives from accredited farmers organizations
One (1) representative from the seed industry Member

The representatives of the sectors enumerated herein, who shall be nominated by

their respective secotrs or association, shall be appointed by the Secretary of Agriculture
and shall serve of a term of three (3) years. Only citizens of the Philippines shall be
members of the Council. In case of vacancy the appointed successors shall serve only
the unexpired portion of the term of his predecessor.

SECTION 5.
Duties, Powers and Functions. The Council shall have the
following duties, powers and functions:
a)

b)

c)
d)

e)

f)
g)

to formulate policies that will stimulate plant breeding activities for the
development of the genetic resources of the country in accordance with
the provisions of this Act;
to encourage persons, associations, cooperatives and corporations
engaged in genetic resources conservation, varietal development,
production and processing, quality control, storage, marketing and
distribution of seeds to adopt systems and practices which improve the
quality of seeds for distribution to farmers;
to promote the establishment of infrastructures and other support services
in priority areas geared toward the development of the seed industry;
to formulate a comprehensive medium and long-term national seed
industry development program in order to achieve self-sufficiency in the
supply of high quality seeds;
to grant awards, subsidies and other forms of assistance to seed or plant
breeders who develop or are developing outstanding varieties or
cultivars;
to formulate policies that will stimulate plant breeding activities; and
to promulgate rules and regulations to implement the provisions of this
Act.

SECTION 6.
Council Meeting. The Council shall hold regular quarterly
meetings: Provided, That it may hold special meetings when necessary upon the call of
the Chairman or upon written request of at least three (3) members. The presence of five
(5) members shall constitute a quorum.
The members of the Council shall not receive any compensation: Provided, That
they shall be entitled to per diems and travel allowances, to be determined by the
Council for every attendance in the meetings.
SECTION 7.
Chairman, Duties and Responsibilities The Chairman of the
Board shall have the following duties and responsibilities:
a)
b)
c)

to preside over the meetings of the Council;

to supervise the operations and administration of the Council; and
to exercise such other functions and perform such other duties as may be
vested in him by the Council.

SECTION 8. Executive Diretor, Duties and Responsibilities The Executive

Director shall have the following duties and responsibilities:
a) to execute, direct and implement the policies, regulations and resolutions
issued by the Council;
b) to assist in the administration, management and supervision of the functional
activities of the Council;
c) to coordinate, monitor and evaluate the seed program of the different
government agencies;
d) to administer and mange the budgetary appropriations and financial
disbursements of the Council; and
e) to supervise the Council Secretariat and maintain official records, files and
proceedings of the Council.

SECTION 9.
Council Secretariat. The Council shall have a Secretariat
which shall furnish the necessary administration, secretarial and other support services
to the Council. The Secretariat shall be under the direction and supervision of the
Executive Director. The personnel of the secretariat shall be appointed and their
compensation fixed by the Chairman upon the recommendation of the executive
Director in accordance with the Civil Service rules and regulations.

SECTION 10. Technical Secretariat. There is hereby created under the

Council a Technical Secretariat which shall assume the functions of the existing
Philippine Seed Board Technical Working Groups. The heads and the members of the
Technical Secretariat shall be appointed and their compensation and tenure fixed by the
Chairman upon the recommendation of the Executive Director.
The Technical Secretariat shall establish seed standards and formulate systems
and procedures for varietal identification, evaluation, nomination, review and approval
for registration, commercial release and discontinuation of crop cultivars or varieties in
the National Agricultural Crop Production and Development Program

SECTION 11. National Seed Quality Control Services. There shall be a

National Seed Quality Control Services, hereinafter referred to as Services, which
shall be constituted in the Bureau of Plant Industry. It shall have control and
supervision over field inspection and control services, and seed testing laboratories
which shall be established by the Bureau of Plant Industry in various parts of the
country as are necessary to ensure the attainment of the purposes of this Act. All
personnel, funds and equipment of the existing Seed Certification Section of the Bureau

of Plant Industry, the seed quality control services and the field inspection services of
the Department of Agriculture are hereby transferred to the herein created body.

SECTION 12. Functions of the National Seed Quality Control Services. The
National Seed Quality Control Services shall perform the following functions:
a) formulate plans and programs on seed quality control services and activities
on seed testing, plant/seed material certification and other quality control
schemes to be developed;
b) sample and conduct seed analysis and issue the corresponding report of
analysis of samples drawn from locally produced and imported seed within
the purview of this Act;
c) conduct field inspections of seed crops, seed storage and processing facilities
and other activities required for seed/plant material certification and issue
the corresponding report of inspection within the purview of this Act;
d) conduct other related functions like seed research and seed technology
training for its clientele;
e) collect reasonable fees for testing of seeds, inspection of crop fields and
facilities and for issuance of permits and licenses in relation to the activities of
the Services;
f) supervise and coordinate all official seed testing laboratories in the regions
and provincial satellite laboratories and seed certification in all provinces and
sub-provinces;
g) accredit private seed testing laboratories; and
h) perform such other functions as the Council may direct.

SECTION 13. Seed Industry development Program. The Council shall adopt
within ninety (90) days after it has been constituted, a Seed Industry Development
Program hereinafter referred to as the Program which shall be implemented by its
constituent agencies.
a)

b)

c)

A network of seed centers to be known as the National Seed Network

shall be established at the Bureau of Plant Industry and major agricultural
colleges and universities to produce sufficient quantity of breeder,
foundation and registered seeds of all varieties developed by the
government sector;
The Department of Agriculture shall have the overall task of directing and
coordinating the activities of its component agencies in accelerating the
development of the seed industry;
The Bureau of Plant Industry shall have the direct responsibility for the
production, distribution, regulation of breeder, foundation and registered

d)

e)

f)
g)

seeds, and the implementation of the Program, including but not limited
to the management of the existing research stations and seed farms, seed
testing laboratories, and certification services under a self reliant
management scheme;
The University of the Philippines at Los Baos shall provide leadership in
plant biotechnology activities related to plant improvement, genetic
resources conservation, and in vitro mass production of planting materials
through the Institute of Plant Breeding (IPB);
The Philippine Rice Research Institute (PHILRICE) shall develop
appropriate rice varieties designed under Philippine conditions and
propagate them into breeder, foundation, and registered seeds and extend
all necessary technical assistance to ensure the proper utilization of such
seeds on the farm level;
The Board of Investment (BOI) shall promulgate necessary rules for the
development of the seed industry as preferred area of investment; and
The private sector of the seed industry shall direct their collective efforts
towards an increased and more active cooperation and coordination with
the government agencies, farmers organization shall take active part in the
conservation of the plant genetic resources of the nation.

SECTION 14. Incentives. The private sector may avail of the following
incentives to develop the local seed industry:
a)

b)

Individuals, farmers organizations, cooperatives and corporations,

wholly owned by Filipinos shall be entitled to technical assistance from
the Government, including training in seed technology and availment of
seeds and results of basic research studies;
Technical equipment used in seed processing, sowing, meristem culture,
storage and quality testing by individuals, farmers organizations,
cooperatives and corporations wholly owned by Filipinos shall be
exempted from duties and taxes during their first five (5) years of
operation subject to the following conditions:
1)
2)
3)
4)

The equipment are not manufactured domestically in sufficient

quantity of comparable quality and at reasonable prices;
They are reasonably needed and will be used exclusively by the
importer in the operation of its business;
Approval of the Council was obtained prior to the importation;
In case the importer transfers, sells or disposes of the equipment
within five (5) years from acquisition without prior approval of the
Council the former shall be solidarity liable with the transferee to
pay double the amount of tax exemption given it. The Council may

5)

6)

permit transfer, sale or disposition of said equipment within the

said five (5) years if made to another person or entity enjoying
similar incentives, or for reason of proven technical obsolescence,
or for purposes of replacement to improve and expand the
operations of the importer.
The importer shall not enjoy a similar incentive under the Omnibus
Investments Code of 1987. However, cooperatives organized and
registered under Republic Act No. 6938 shall be covered by Articles
61, 62 and 63 of the said law pertaining to the tax exemption
privileges of cooperatives; and
Expenses for research, development and extension of private
Filipino seed producers shall enjoy a two hundred percent (200%)
deduction from their gross income for the first five (5) years of
operation in accordance with the rules and regulations to be
promulgated by the Department of Finance within ninety (90) days
from the effectivity of this Act.

SECTION 15.
a)

b)

c)

Restrictions. The following acts are prohibited:

Importation in commercial quantities of species of seeds that are being

produced locally, except seeds difficult to grow under ordinary conditions
or when allowed by the Council;
Exportation of rare species, varieties, lines and strains of plants from the
country except for scientific or international exchange purposes which
shall be determined by the Council; and
Such other activities as the Council may deem fit to prohibit.

SECTION 16. Funds of the Council. There is hereby created a special account
in the general fund to be known as the Seed Fund which shall be obtained from the
following sources:
a)
b)
c)

Five million pesos (P 5,000,000.00) to be appropriated out of any funds in

the National Treasury not otherwise appropriated;
The existing Seed Fund;
Revenues from the sale of certified seeds and plant materials, including
but not limited to the income derived from the products of research
stations and seed farms, seed processing and testing fees, field inspection
fees, seed export and import fees, licenses fees, fees for the issuance of
permits to seed growers/producers. Fines collected for violations of this
Act; and

d)

Donations from private or government agencies, either domestic or

foreign: Provided, That said fund shall be held in trust by the Bureau of
Plant Industry, Provided, further, That the allocation, utilization and
disposition of such funds shall be by and under the authority of the
Council.

SECTION 17. Appropriations. The amount necessary to carry out the

provisions of this Act is hereby authorized to be appropriated in the General
Appropriations Act of the year following its enactment into law and thereafter.

SECTION 18. Authority to Search and Condemn Unlawful Seed Lots. In

order to carry out effectively the provisions of this Act, the Executive Director of the
Council is hereby authorized to search and seize seed lots labeled, identified or
imported in violation of this Act: Provided, That a search warrant shall first be secured
from the proper court and the same shall be served/enforced with the assistance of the
Philippine National Police (PNP) or the National Bureau of Investigation.
Should the seed lots so searched and seized be found after due hearing, to be
suitable for condemnation, in his judgment, the Executive Director is hereby
empowered to issue to any of his designated representatives an order for condemnation
of unlawful seed lots, in which case the same shall be processed, relabeled or otherwise
disposed of in such manner as he may deem appropriate: Provided, That in no case shall
the Executive Director order such condemnation without giving the claimant an
opportunity to apply for the release of said seed lot or permission to process it in
compliance with this Act, subject to the payment of just compensation in the proper
case.

SECTION 19. Penal Provisions. Any person, fir, or association who shall
violate any provision of this Act or the implementing rules and regulations
promulgated pursuant to this Act, shall, upon conviction, be purnished with a fine of
not more than Ten Thousand pesos (P 10,000.00) or imprisonment of not more than five
(5) years, or both, in the discretion of the court: Provided, That in the case of a firm or
association, the penalty of imprisonment shall be imposed upon the officer(s) who
knowingly participated, abetted or consented to the commission of such punishable
acts.
SECTION 20. Rules and Regulations. The Council shall, within ninety (90)
days from the effectivity of this Act, promulgate the necessary rules and regulations for
the enforcement of the provisions of this Act.

SECTION 21. Repealing Clause. All existing laws, rules and regulations or
parts thereof inconsistent with the provisions of this Act are hereby repealed,
superseded or modified accordingly: Provided, however, That nothing in this Act shall
amend, modify or repeal the provisions of republic Act No. 7160, otherwise known as
the Local Government Code.

SECTION 22. Separability Clause. If any part, section or provision of this

Act shall be held invalid or unconstitutional, the rest of the provisions shall not be
affected thereby.

SECTION 23. Effectivity. This Act shall take effect fifteen (15) days after its
complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation.

Approved,
ORIGINAL SIGNED

ORIGINAL SIGNED

RAMON V. MITRA
Speaker of the House of Representatives

NEPTALI A. GONZALES
President of the Senate

This bill which is a consolidation of Senate Bill No. 401 and House Bill No. 28002,
was finally passed by the Senate and the House of Representatives on February 3, 1992
and January 29, 1992, respectively.

ORIGINAL SIGNED

ORIGINAL SIGNED

CAMILO I. SABIO
Secretary General
House of Representatives

ANACLETO D. BADOY, JR.

Secretary of the Senate

Approved: March 27, 1992

ORIGINAL SIGNED

CORAZON C. AQUINO
President of the Philippines

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