Section 15. Accreditation of Organic Certifying Body

The BAFPS is hereby designated and authorized to grant official accreditation to organic certifying body or entity.

The BAFPS is tasked to formulate the necessary rules and procedures in the accreditation of organic certifying body: Provided, That there shall be atleast one (1) accredited organic certifying body each in Luzon, Visayas and Mindanao or in case of only (1) organic certifying body is accredited, it shall have at least one (1) satellite office or processing unit each in Luzon, Visayas and Mindanao

Section 16. Registration of Organic Food and Organic Input Producers

All organic food and input establishments must register with the director, BAFPS, registration under this section shall begin within ninety (90) days of the enactment of this Act. Each such registration shall be submitted to director through an electronic portal and shall contain such information as the director by guidance may determine to be appropriate. Such registration shall contain the following information:

(a) The name, address and emergency contact information of each organic food or input establishment that the registrant owns or operates;

(b) The primary purpose and business activity of each organic food or input establishment, including the dates of operation if the organic food establishment is seasonal;

(c) A list of the organic food or input produced and corresponding brand names;

(d) For organic food establishment, the name, address and contact information of the organic food certifying body that certified the organic products sold by the company;

(e) An assurance that the registrant will notify the director of any change in the products, function or legal status of the domestic food establishment (including cessation of business activities) not later than 30 days after such change; and

(f) For organic input producers, a list of materials used in the production of each particular input

Section 17 Labeling of Organic Produce

The label of organic produce shall contain the name, logo or seal of the organic certifying body and the accreditation number issued by the BAFPS. Only third party certification is allowed to be labeled as organically produced.

Section 18 Retailing of Organic Produce

Retail establishments or stores of organic produce shall designate a separate area to display the organic produce to avoid mixing it with non-organic produce.

Section 19 Availability of Trading Post for Organic Inputs

Local chief executives shall establish, as far as practicable, at least one (1) trading post for organic inputs for every LGU in the area of jurisdiction.

Section 20 Research, Development and Extension

The Bureau of Agricultural Research (BAR), as the lead agency, shall coordinate with the other agencies of the DA, the Department of Agrarian Reform (DAR), the Department of Science and Technology (DOST), the Department of Education (DepED), the Department of Interior and Local Government (DILG), the strategic agricultural-based sate universities and colleges (SUCs), including private organizations, to develop, enhance, support and consolidate activities and related technologies for the formulation and implementation of a unified and integrated organic agriculture RDE plan and programs for the national to the field level. The organic agriculture RDE plans and programs shall include, but not limited to the following:

(a) Research, development and commercialization of appropriate, innovative and viable organic agricultural technologies;

(b) Nationwide promotion of developed and commercially viable biodegradable farm wastes and by-products through various extension strategies to accelerate the production, use and distribution of organic fertilizers; and

(c) Conduct research for market development, policy formulation, regulation and certification.

Section 21. Creation of Organic Agriculture RDE Network

An organic agriculture RDE network shall be organized by the BAR, composed of research and educational institutions, LGUs, nongovernment agencies and the recognized association of organic fertilizer manufacturers and distributors, agricultural engineers, agriculturists, soil technologists, farmers group and/or associations.

Section 22. RDE Centers

National, regional and provincial organic R & D and extension centers shall be organized, established and integrated as a major component of the existing RDE centers of DA, the DOST, the DENR, SUCs and the LGUs. These will be strengthened and enhanced to spearhead the integrated program to develop and promote organic agriculture throughout the country.

Section 23. Organic Agriculture in the Formal and Non-formal Sectors

The National Government, through the DepED and in coordination with concerned government agencies, NGOs and private institutions, shall strengthen the integration of organic agriculture concerns in school curricula at all levels.

Section 24. Incentives

The government shall extend incentives for the production and propagation of organic farm inputs by maximizing their use in all government and government supported agricultural production, research and demonstration programs. Incentive shall also be provided to farmers whose farms have been duly certified as compliant to the Philippine National Standards (PNS). Further, the DA may give cash reward in recognition of the best organic farm in the country.

The DA, the DAR, the DOST, the DILG, the Department of Trade and Industry (DTI), the DepED, the Department of Finance (DOF), the Land Bank of the Philippine (LBP), and other government lending and non-lending institutions shall also assist organic input producers and organic farmers through the provision of adequate financial, technical, marketing and other services and resources. These include, but shall not be limited to, the following:

(a) Exemption from the payment of duties on the importation of agricultural equipment, machinery and implements as provided under Republic Act No. 9281, which amends Republic Act No. 8435 or the Agriculture and Fisheries Modernization Act (AFMA);

(b) Identification by LGUs of local taxes that may be offered as incentives to organic input production and utilization;

(c) Provision of preferential rates and special window to organic input producers and users by the LBP;

(d) Subsidies for certification fees and other support services to facilitate organic certification;

(e) Zero-rated value-added tax (VAT) on transactions involving the sale/purchase of bio-organic products, whether organic inputs or organic produce; and

(f) Income tax holiday and exemption for seven (7) years, starting from the date of registration of organic food and organic input producers on all income taxes levied by the National Government.

The tax incentives shall be given only to purely organic agriculture entities/farmers and shall be subject to the accreditation of the BAFPS and periodic reporting by the BAFPS to the DOF: Provided, That the said incentives shall be available only to micro, small and medium enterprises as defined under Section 3 of Republic Act No. 9501 or the Magna Carta for Micro, Small and Medium Enterprises.

Section 25. Appropriations

50m pesos and the existing budget for the promotion of organic farming of the DA is hereby appropriated for the initial year of implementation of this Act.

Thereafter, such amount as may be necessary for the continuous operation of the NOAB and the implementation of the program shall be included in the annual General Appropriation Act (GAA).

The NOAB is hereby authorized to solicit and accept assistance or facilities in the form of grants from individuals and entities here and abroad, and to utilize these funds and resources for purposes of this Act, subject to the usual budget, accounting and auditing rules and regulations.

Section 26. Penal Provision

Any person who willfully and deliberately:

(a) obstructs the development of propagation of organic agriculture, or the manufacture, production, sale or use of organic agricultural inputs;

(b) refuses without just cause to extend the support and assistance required under this Act; and

(c) mislabels or claims that the product is organic when it is not in accordance with the existing standards for Philippine organic agriculture or this Act shall, upon conviction, be punished by imprisonment of not less than one (1) month nor more than six (6) months, or a fine of not more than Fifty thousand pesos (P50, 000.00), or both, at the discretion of the court. If the offender is a corporation or a juridical entity, the official who ordered or allowed the commission of the offense shall be punished with the same penalty. If the offender is in the government service, he shall in addition, be dismissed from the office.

Section 27. Implementing Rules and Regulations

The NOAB shall adopt rules and regulation to implement the provisions of this Act within ninety (90) days from the effectivity of this Act and submit the same to the COCAFM for review and approval. In the drafting of the implementing rules and regulations, the DOF shall be consulted in connection with the tax incentive provided under Section 24 hereof.

Section 28. Annual Report

The NOAB shall render an annual report to both House of Congress on the accomplishment of the program. A review on the viability of the program shall be made by the concerned agencies after three (3) years of its implementation.

Section 29. Congressional Oversight Committee

The COCAFM shall be the congressional oversight committee for purposes of this Act. The COCAFM shall review and approve the implementing rules and regulations of this Act and also perform the following functions:

(a) Monitor and ensure the proper implementation of this Act.

(b) Review the proper implementation of the programs on organic agriculture and the use of its funds;

(c) Review the performance of the NOAB; and

(d) Such other functions it deems necessary.

Section 30. Separability Clause

if any provisions of this Act is declared invalid or unconstitutional, the other provisions not affected thereby shall remain in full force and effect.

Section 31. Repealing Clause

All laws, presidential decrees, executive orders, presidential proclamations, rules and regulations or parts thereof contrary to or inconsistent with this Act are hereby repealed or modified accordingly.

Section 32. Effectivity. - This Act shall take effect fifteen (15) days following its publication in at least two (2) newspapers of general circulation or in the Official Gazette, whichever comes first.