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(NAR) VOL. 26 NO. 2/ APRIL - JUNE 2015
Adopted: 12 May 2015
Date Filed: 28 May 2015
WHEREAS, it is declared in RA No. 7581, otherwise known as the “Price Act” of 1992, that the State shall ensure the availability of basic necessities and prime commodities at all times without denying legitimate business a fair return on investment, and at the same time, provide effective and sufficient protection to consumers against hoarding, profiteering and cartels with respect to the supply, distribution, marketing, and pricing of said goods, especially during periods of calamity, emergency, widespread illegal price manipulations and other similar situations.
WHEREAS, RA No. 10623 (of 2013) amended certain provisions of RA No. 7581, including and particularly, the law’s provisions defining the terms “Basic Necessities” and “Prime Commodities”.
WHEREAS, the Government Agencies tasked to implement the “Price Act”, namely: the Department of Agriculture (DA), the Department of Health (DOH), the Department of Environment and Natural Resources (DENR), and the Department of Trade and Industries (DTI), pursuant to Section 10 of RA 7581, promulgated Joint Administrative Order No. 1, Series of 1993 (JAO 1, S. 1993), otherwise known as the Implementing Rules and Regulations (IRR) of RA No. 7581.
WHEREAS, on account of the enactment of RA No. 10623, the said implementing agencies together with the Department of Energy, which this law included in the Price Coordinating Council, adopted Joint Administrative Order No. 13-1, Series of 2013, amending JAO No. 1, S. 1993.
WHEREAS, as provided in RA 7581, as amended and its IRR (JAO 1, S. 1993 as amended by JAO 13-1, S. 2013), the DA has jurisdiction over the following commodities (hereinafter, may also be collectively referred to as “Agricultural Commodities”):
(A) Basic Necessities (B) Prime CommoditiesWHEREAS, under the said IRR, each implementing agency is mandated to conduct regular monitoring of the prices and supply of basic necessities and/or prime commodities by constituting its own task force/s for the purpose.
WHEREAS, under the same IRR, administrative actions for violations of RA 7581 and its IRR shall be in accordance with procedures provided by the concerned implementing agency.
WHEREAS, pursuant to the above mandate, there is a need for the DA to promulgate rules and regulations for the monitoring of the prices of Agricultural Commodities and the prosecution and adjudication of administrative cases instituted for violations of the Price Act in relation to Agricultural Commodities.
NOW, THEREFORE, pursuant to Section 10 of RA 7581 and considering the foregoing premises, the following rules and regulations to govern the monitoring of the price and supply of Agricultural Commodities, the enforcement of applicable laws and regulations in relation thereto, and the adjudication of administrative cases filed for the violation of the Price Act, its IRR and this Administrative Order, are hereby prescribed:
RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms – As used in this Order, the following terms and phrases shall have the sense or meaning correspondingly provided:
Section 2. Functions - The BPTC shall:
The DA Central Office Monitoring Team (to be called the Central Bantay Presyo Monitoring Team) shall be composed of representatives from the AMAS, the BPI, the BAI, the BFAR, the NMIS, the NDA, the SRA, the DA Central Office National Rice Program and National Corn Program staff, and the Agriculture and Fisheries Council (AFC). It shall headed by the Assistant Secretary for AMAS who is hereby authorized to form other and such number of monitoring teams at the DA Central Office as may be necessary to effectively carry out the objectives of this Order.
The monitoring teams at the Regional Field Offices shall be referred to as the Regional Bantay Presyo Monitoring Teams. The composition and number of monitoring teams per region shall be determined by the Regional Executive Director concerned; Provided that each Regional Bantay Presyo Monitoring Team shall include as member, a representative from the Regional Agriculture and Fisheries Council (RAFC).
Section 2. Duties and Responsibilities - Each Monitoring Team shall have the following duties and responsibilities;
The Report shall contain the following comparative price analyses:
For purposes of this Order, the AMAS is hereby directed to prepare a uniform format for the Report required to be submitted by the “Bantay Presyo Monitoring Team”.
Section 4. Evaluation of the Report - The Reports submitted by the Monitoring Teams shall be evaluated by the Assistant Secretary for AMAS or the Regional Director concerned who shall submit a monthly Evaluation Report to the Bantay Presyo Technical Committee, together with appropriate recommendations, such as, but not limited to:
For this purpose, the Bantay Presyo Technical Committee or the Regional Executive Directors may issue recommendations for the issuance of SRPs to the Secretary based on the submitted Reports of the Bantay Presyo Monitoring Teams. Before the submission of such recommendations, consultations with various stakeholders and concerned sectors to validate/ determine the SRP will be conducted by the Bantay Presyo Technical Committee or the Regional Offices. The SRP issued by the Secretary of Agriculture shall be in effect for a period of no longer than sixty (60) days unless the said SRP is earlier revoked/ lifted through an Order or superseded by a new SRP issued by the Secretary of the DA, upon the recommendation of the Bantay Presyo Technical Committee or the concerned Regional Director/s, as the case may be; Provided that a current SRP may also be extended through an Order of the Secretary, also upon the recommendation of the Bantay Presyo Technical Committee or the concerned Regional Director/s prior to the lapse of the effectivity period(whether the initial or subsequent/extension period).
Section 2. Procedure After the Issuance of the Suggested Retail Price – The following procedure shall be observed after the Secretary of Agriculture has issued the SRP.
This shall be without prejudice to the rules relative to administrative and criminal proceedings/sanctions for profiteering as provided under Section 5 of the Price Act and pertinent provisions of its IRR.
RULE V
ADMINISTRATIVE PROCEDURE FOR ADMINISTRATIVE ACTIONS FOR VIOLATIONS OF R.A. 7581
Section 1. Construction - The provisions under this Rule shall be liberally construed to carry out their objective of promoting the just, speedy, and inexpensive resolution of cases. Further, the best interest of the consumer shall be considered in the interpretation and implementation of the provisions of these Rules.
Section 2. Coverage - This Administrative Procedure shall govern all administrative actions initiated in the DA for violation of RA No. 7581, as amended, its Implementing Rules and Regulations, and/or this Order in relation to the jurisdiction of the DA over Agricultural Commodities.
“Violations of the Price Act” are infringements of the provisions of RA 7581, as amended, to include:
Selling or offering for sale of any basic necessity above the level at which the same should have been frozen in areas subject to “Automatic Price Control” pursuant to Section 6 of RA No. 7581; [1]
Selling or offering for sale of any basic necessity or prime commodity at a price beyond the mandated Price Ceilings as provided under Section 7 of the said Act; [2]
Hoarding, which is the undue accumulation by a person or combination of persons of any basic necessity or prime commodity beyond his or their normal inventory levels or the unreasonable limitation or refusal to dispose of, sell or distribute the stocks of any basic necessity or prime commodity to the general public or the unjustified taking out of any basic necessity or prime commodity from the channels of production, trade, commerce, and industry.
Profiteering, which is the sale or offering for sale of any basic necessity or prime commodity at a price grossly in excess of its true worth.
There shall be prima facie evidence of profiteering whenever a basic necessity or prime commodity being sold: (a) has no price tag; (b) is misrepresented as to its weight or measurement; (c) is adulterated or diluted; or (d) whenever a person raises the price of any basic necessity or prime commodity he sells or offers for sale to the general public by more than ten percent (10%) of its price in the immediately preceding month or of the Suggested Retail Price: Provided, That, in the case of agricultural crops, fresh fish, fresh marine products, and other seasonal products covered by this Act and as determined by the implementing agency, the prima facie provision shall not apply;
Cartel, which is any combination of or agreement between two (2) or more persons engaged in the production, manufacture, processing, storage, supply, distribution, marketing, sale or disposition of any basic necessity or prime commodity designed to artificially and unreasonably increase or manipulate its price. There shall be prima facie evidence of engaging in a cartel whenever two (2) or more persons or business enterprises competing for the same market and dealing in the same basic necessity or prime commodity, perform uniform or complementary acts among themselves which tend to bring about artificial and unreasonable increase in the price of any basic necessity or prime commodity or when they simultaneously and unreasonably increase prices on their competing products thereby lessening competition among themselves.
Section 3. Designation of Adjudication Officers – For purposes of the implementation of pertinent provisions of this Rule, the Secretary shall designate Adjudication Officers upon the recommendation of the Assistant Secretary for AMAS or the Regional Executive Director, as the case may be.
Section 4. Jurisdiction/Powers and Duties of Adjudication Officers – Adjudication Officers shall have original and exclusive jurisdiction to determine and adjudicate Administrative Actions filed for the violation of the Price Act or its IRR, whether commenced through the filing of a complaint or a formal charge.
For this purpose, Adjudication Officers shall have the following powers and duties:
Section 6. Commencement - All cases for violation of the Price Act and its implementing Rules and Regulations, or this Order shall commence upon the filing of a sworn complaint or a formal charge, which need not be under oath.
At least two (2) copies of the complaint or formal charge, and its annexes or attachments, and as many copies required to be served upon each of the defendants or respondents, shall be filed.
Complaints and Formal Charges shall be acted upon within a period of fifteen (15) days from receipt thereof by the proper office, as specifically provided for under Section 10 of this Rule.
Section 7. Contents of Complaint or Formal Charge
The complaint or formal charge should be written in a clear, simple and concise language and in a systematic manner as to apprise the respondent of the nature and cause of the accusation against him/her and to enable him/her to intelligently prepare his defense or answer.
The complaint/formal charge shall contain the following: Full name and address of the complainant;Full name and address of the person complained of (respondent), if known, or any alias and/or sufficient description of the person and whereabouts/ location of store, stall, outlet, or place where the business of respondent is known to be customarily conducted;
A narration of the relevant and material facts (including material dates) which shows the respondent’s commission of acts or omissions allegedly in violation of the Price Act and/or its IRR;
Reliefs sought.The following documents shall be attached to the complaint or formal Charge, to form integral parts thereof:
All documentary evidence and affidavits of his witnesses, if any; andCertification or statement of "non-forum shopping" as detailed under Section 9 hereof. Provided, that, this certification/ statement may, instead of being appended to the complaint/formal charge, already be incorporated therein.
Section 8. Rule on Suit Against Associations Without Juridical Personality – When two or more persons associated in any business, transact such business under a common name, whether it comprises the names of such persons or not, the association may be sued under such common name. Administrative sanctions shall be imposed upon any or all of them found to have knowingly participated in the acts constituting any violation of the Price Act.
Section 9. Prosecution of a Separate Action/Prohibition on Forum Shopping – The complainant or the duly authorized officer signing the formal charge, as the case may be, shall certify under oath to the following statements incorporated into the complaint or formal charge or made in a separate document captioned “Certification of Non-Forum Shopping” appended to the complaint or formal charge and simultaneously filed therewith: (a) that the complainant or office or agency concerned has not theretofore commenced any action or filed any claim involving the same issue in any court, tribunal, quasi-judicial agency and, to the best of his knowledge, no such other action or claim is pending therein; (b) if there is such a pending action or claim, a complete statement of the present status thereof; and (c) if he should thereafter learn that the same or similar action or claim has been filed or pending, he shall report that fact within five (5) days therefrom to the Adjudication Officer before whom the complaint or formal charge is pending.
The failure to comply with the foregoing requirement shall not be curable by mere amendment of the complaint or of the formal charge, but shall be cause for the motu proprio dismissal without prejudice of the case by the Adjudication Officer.
Section 10. When and Where to File the Complaint/ Formal Charge
Except when otherwise provided for by law, a complaint for violation of the Price Act, shall be filed with the office (Regional Field Unit or AMAS at the National Capital Region) specified by the parties in a written agreement executed prior to the filing of the complaint.
If there is no such written agreement, then the complaint shall be filed at the concerned office of the DA Regional Field Unit (DA RFU), or in the AMAS in the NCR, in any of the following places at the option of the complainant:
Place where the violation was committed, wholly or partially; Place of the residence of the complainant at the time of the violation; andPlace of residence of the respondent, or where its principal office is located if the respondent is a juridical person, at the time of the violation.
Formal charges shall be filed in accordance with the rule under paragraph (b) hereof.Section 11. Filing of Pleadings and Other Papers - All pleadings and papers in connection with the case shall be filed with the records/docketing office of the concerned Regional Field Unit or of the DA Central Office, as the case may be.
Section 12. Service of Summons, Notices, Orders, Resolutions, Decisions - Summons, Notices/Processes, Orders, Resolutions, and Decisions shall be served, personally or by registered mail upon the parties to the case.
Section 13. Prohibited Pleadings and Motions - For purposes of these Rules, the following pleadings and motions shall be prohibited:
Section 15. Prescription of Actions - A complaint or formal charge for the violation of the Price Act, Its IRR or this Order, shall be filed within one (1) year from the date of the commission of the violation/offense, or if such date is unknown at that time, then within one (1) year from the date of discovery thereof. Otherwise, such action is barred.
Section 16. Docketing and Assignment - All complaints and formal charges shall be docketed and assigned a Docket Number. After docketing, the Director for AMAS, in cases filed in the National Capital Region, or the Regional Executive Director in cases filed before it, shall assign the complaint to an Adjudication Officer who shall determine:
Section 17. Summons - If, on the basis of the allegations of the complaint or of the formal charge and the supporting evidence initially submitted, the Adjudication Officer determines that the complaint/ formal charge complies with or fulfills all the requirements heretofore mentioned, he/she shall issue a summons and cause the same, along with a copy of the complaint or formal charge, to be served upon the respondent, copy furnished the complainant. The summons shall require the respondent to file an answer to the complaint or formal charge within fifteen (15) days from receipt of the summons.
The summons shall be served by personal service or by registered mail.
Section 18. Answer - The respondent shall answer the complaint in writing and under oath, denying specifically the material allegations of the complaint and/or alleging lawful defense. All affirmative defenses not pleaded in the answer shall be deemed waived.
Section 19. Mediation - Within five (5) days from the filing of the answer or the lapse of the period to answer if none has been filed, the Adjudication Officer shall issue a notice of mediation, which shall be served upon each of the parties concerned at least five (5) days before the holding thereof. During mediation, the Adjudication Officer shall:
Section 20. Compromise and Execution During Mediation - If, during the mediation stage, the parties agree to an amicable settlement of the case, they shall sign an agreement containing the terms and conditions thereof. The agreement must not be contrary to law, morals, good customs, public order, or public policy. The Adjudication Officer shall thereafter render a decision based on the compromise agreement, which shall be immediately final and executory.
Section 21. Mandatory Preliminary Conference - Should mediation fail to resolve the case, the Adjudication Officer shall conduct a preliminary conference to consider the following:
Section 22. Preliminary Order - At any time after the conduct of the mandatory preliminary conference and before judgment, the Adjudication Officer may motu proprio or upon verified application by the complainant, or by the officer who signed the formal charge, issue a preliminary order requiring any person to refrain from doing a particular act or, otherwise, to perform a particular act, if the Adjudication Officer is satisfied that the commission or the continuance of the act complained of during the pendency of the action or the non-performance of the act directed to be carried out would probably work injustice to the complainant or the general public. The Preliminary Order may include reasonable measures to prevent the disposition or tampering of evidence and to compel the attendance of the respondent in the proceedings.
The Adjudication Officer may require the complainant to file with the office of the Adjudication Officer, a bond executed to the respondent, in an amount to be fixed by the Adjudication Officer, to the effect that the complainant will pay to such party all damages that he/she may sustain by reason of the preliminary order should the Adjudication Officer finally decide that the complainant was not entitled thereto. No bond shall be required in cases initiated by a formal charge.
The preliminary order may only be granted upon prior notice and hearing on the application for issuance of preliminary order.
The preliminary order may be dissolved fully or partially at anytime by the Adjudication Officer motu proprio, or upon application by the respondent after prior notice and hearing on the application for the dissolution thereof. The grounds for objecting to or for a motion for dissolution, of any injunctive relief under Section 6, Rule 58 of the Rules of Court shall be applicable.
Section 23. Temporary Order - Any of the following temporary orders may also be issued by the Adjudication Officer upon the filing of complaint or formal charge:
The supporting affidavits shall take the place of direct testimony. Affidavits and supporting documentary evidence which were annexed to the complaint or formal charge, and the answer, as the case may be, and forming part of the records of the case, are deemed automatically reproduced for purposes of presentation of evidence and need not be annexed to the position papers. They shall, however, be distinctly identified for reference in the position paper.
Upon the submission of the position papers, or upon the expiration of the fifteen (15) day period, the case shall be deemed submitted for decision, unless the Adjudication Officer deems it proper or necessary to still call the parties to clarificatory hearings.
In any event, the Adjudication Officer shall notify the parties within a reasonable time from the submission of the position papers or the expiration of the period for the submission thereof, that the case is deemed submitted for decision or, otherwise, that clarificatory hearings are set or going to be called. In the latter instance, the case shall be deemed submitted for decision as provided under the following section. In all cases, further proceedings shall be concluded within a period of fifteen (15) days from the lapse of the period to file position papers.
Section 25. Proceedings Before the Adjudication Officer - The proceedings before the Adjudication Officer shall be non-litigious in nature. Subject to the essential requirements of due process, the technicalities of law and procedures and the rules governing the admissibility and sufficiency of evidence obtained in the courts of law shall not apply. The Adjudication Officer shall employ reasonable means to ascertain the facts of the controversy including a thorough examination or re-examination of witnesses. The case is deemed submitted for decision upon the conclusion of the proceedings before the Adjudication Officer.
Section 26. Decision - Within fifteen (15) days after the case is submitted for decision, the Adjudication Officer shall issue a decision in writing stating clearly and distinctly the facts and the law on which it is based.
Section 27. Motion for Reconsideration - Only one (1) Motion for Reconsideration is allowed within the period to appeal.
Section 28. Appeal - Appeal from a final decision, judgment or order of the Adjudication Officer which completely disposes of a case, may be taken by the party adversely affected thereby (Appellant) by filing a Memorandum of Appeal with the Secretary of the DA, copy furnished Adjudication Officer and the other party (Appellee), within fifteen (15) days from receipt of the Decision or the order denying the motion for reconsideration, on any of the following grounds:
Section 30. Instances When Case on Appeal is Deemed Submitted for Resolution - Upon the submission of the Comment on the Memorandum of Appeal or upon the expiration of the period within which to file the same, the case on appeal shall be deemed submitted for resolution, unless the DA Secretary deems it necessary to call the parties to clarificatory hearing/s.
In any event, the DA Secretary shall notify the parties within a reasonable time from the submission of the Comment on the Memorandum of Appeal or the expiration of the period for the submission thereof, that the case on appeal is deemed submitted for resolution or, otherwise, that clarificatory hearing/s are set or going to be called. In the latter instance, the case shall be deemed submitted for resolution upon the conclusion of the said hearing/s.
Section 31. Submission of Position Papers Upon Agreement of the Parties - At any time after the submission of the Comment or the lapse of the period within which to file the same, but before the DA Secretary issues a resolution or decision on the appeal, the parties may, upon agreement and through a manifestation to the Secretary, simultaneously submit their respective position papers. In any event, the parties’ position papers shall be filed only within the thirty-day period after the case is deemed submitted for resolution.
Section 32. Decision/Resolution on Appeal - The Secretary shall resolve the appeal within a period of thirty (30) days after the case is submitted/ deemed submitted for resolution. The Decision of the Secretary shall become final and executory if no further appeal is made to the Office of the President within the reglementary period of fifteen (15) days from receipt of notice by the aggrieved party of the decision/resolution appealed from, or of the denial of a motion for reconsideration therefrom.
Section 33. Execution - After the decision becomes final and executory, the Adjudication Officer shall, on motion of the interested party or motu proprio, issue an Order of Execution with the corresponding Writ of Execution requesting the proper Office of the Sheriff to execute said decision. No deputation is necessary.
Section 34. Applicability of the Revised Rules of Court
Subject to the requirements of due process, the technical rules of Evidence prevailing in the courts of law shall not be strictly applied hereto.
In the absence of any applicable provisions in these Rules, the pertinent provisions of the Rules of Court shall apply suppletorily.
RULE VI
ADMINISTRATIVE PENALTIES
Section 1. Imposable Administrative Penalties . - The Adjudication Officer may impose the following administrative penalties to those that may be found to have violated the Price Act:
For Violations of Section 5 (2) (Profiteering), 6 (Automatic Price Control) and 7 (Mandated Price Ceiling) of Republic Act No. 7581 otherwise known as the Price Act, the schedule of imposable fines is as follows;
