Fertilizers
- Document symbol
- G/LIC/N/3/PHL/15/Rev.1
- Original language
- English
- Published on
- 21/02/2023
Outline of Systems
Q1. Give a brief description of each licensing system as a whole and, with respect to each, reply to the following questions as relevant, placing all of the material with respect to a given system in sequence together, and using cross references as appropriate when elements which have already been described are also present in another system.
Persons or entities who shall engage in the business of importing fertilizers must secure a license from the Fertilizer and Pesticide Authority (FPA).
Fertilizer products, organic or inorganic, raw materials and ingredients for fertilizer should also be registered with the FPA prior to importation. Product registration can either be Full or Provisional. Full Product Registration is granted when all administrative and technical requirements are satisfactorily complied with which includes two seasons of efficacy tests with significant results on a representative crop. Provisional Registration, on the other hand, is granted if there is only one season of efficacy test with significant results on a representative crop.
All imported fertilizer products intended for agricultural use are exempted from the payment of a 12% Value Added Tax. Certification for this incentive shall be secured from the FPA.
Purposes and Coverage of Licensing
Q2. Identify each licensing system maintained and state what products, appropriately grouped, are covered.
The following grade, type and classification of fertilizer products and raw materials (based on Philippine Standard) are subject for registration with the FPA:
(a) Inorganic Fertilizers (Traditional, New Grades, Specialty Grades, and Controlled Release);
(b) Biological Fertilizers (Microbial Inoculants, Genetically Modified Organisms, and Decomposers)
(c) Soil Conditioners/Soil Amendments;
(d) Plant Growth Regulators;
(e) Raw Materials;
(f) Bio stimulants;
(g) Fortified Organic.
Please see Products.
| Government Agencies/ Issuing Permits/ Clearance/Legal Basis | Commodity Description/Commodity Group/ Tariff Heading (TH) |
|---|---|
| Fertilizer and Pesticide Authority (FPA) Presidential Decree (P.D.) No. 1144 (Creating the Fertilizer and Pesticide Authority and Abolishing the Fertilizer Industry Authority) dated 30 May 1977; and Implementing Rules and Regulations (IRR) S. 1977; and DA Administrative Order No. 13, series of 2000 | 2017 Code |
| Hdg. No. 31.01 | Animal or vegetable fertilizers, whether or not mixed together or chemically treated; fertilizers produced by the mixing or chemical treatment of animal or vegetable products. |
| AHTN Code 3101.00.10 | - Of solely vegetable origin Other: |
| AHTN Code 3101.00.92 | - Of animal origin (other than guano), chemically treated |
| AHTN Code 3101.00.99 | - Other |
| Hdg. No. 31.02 | Mineral or chemical fertilizers, nitrogenous |
| AHTN Code 3102.10.00 | - Urea, whether or not in aqueous solution Ammonium sulphate; double salts and mixtures of ammonium sulphate and ammonium nitrate: |
| AHTN Code 3102.21.00 | - Ammonium sulphate |
| AHTN Code 3102.29.00 | - Other |
| AHTN Code 3102.30.00 | Ammonium nitrate, whether or not in aqueous solution |
| AHTN Code 3102.40.00 | Mixtures of ammonium nitrate with calcium carbonate or other inorganic non-fertilizing substances |
| AHTN Code 3102.50.00 | Sodium nitrate |
| AHTN Code 3102.60.00 | Double salts and mixtures of calcium nitrate in aqueous or ammonium nitrate |
| AHTN Code 3102.80.00 | Mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution |
| AHTN Code 3102.90.00 | Other, including mixtures not specified in the foregoing subheadings |
| Hdg. No. 31.03 | Mineral or chemical fertilizers, phosphatic |
| Super phosphates | |
| AHTN Code 3103.11 | - Containing by weight 35% or more of diphosphoruspentaoxide (P2O5) |
| AHTN Code 3103.11.10 | - - Feed grade |
| AHTN Code 3103.11.90 | - - Other |
| AHTN Code 3103.19 | - Other |
| AHTN Code 3103.19.10 | - - Feed grade |
| AHTN Code 3103.19.90 | - - Other |
| AHTN Code 3103.90 | Other: |
| AHTN Code 3103.90.10 | - Calcined phosphatic fertilizers |
| AHTN Code 3103.90.90 | - Other |
| Hdg. No. 31.04 | Mineral or chemical fertilizers, potassic |
| AHTN Code 3104.20.00 | Potassium chloride |
| AHTN Code 3104.30.00 | Potassium sulphate |
| AHTN Code 3104.90.00 | Other |
| Hdg. No. 31.05 | Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium; other fertilizers; goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10kg. |
| AHTN Code 3105.10 | Goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10kg: |
| AHTN Code 3105.10.10 | - Superphosphates and calcined phosphatic fertilizers |
| AHTN Code 3105.10.20 | - Mineral or chemical fertilizers containing two or three of the fertilizing elements nitrogen, phosphorus and potassium |
| AHTN Code 3105.10.90 | Other |
| AHTN Code 3105.20.00 | Mineral or chemical fertilizers containing the three fertilizing elements nitrogen, phosphorus and potassium |
| AHTN Code 3105.30.00 | Diammonium hydrogenorthophosphate (monoammonioum phosphate) |
| AHTN Code 3105.40.00 | - Ammonium dihydrogenorthophosphate (monoammonium phosphate) and mixtures thereof with diammoniumhydrogenorthophosphate (diammonium phosphate) Other mineral or chemical fertilizers containing the two fertilizing elements nitrogen and phosphorus |
| AHTN Code 3105.51.00 | - Containing nitrates and phosphates |
| AHTN Code 3105.59.00 | - Other |
| AHTN Code 3105.60.00 | Mineral or chemical fertilizers containing the two fertilizing elements phosphorus and potassium |
| AHTN Code 3105.90.00 |
Q3. The system applies to goods originating in and coming from which countries?
The requirement applies to goods originating from all countries and the prospective importers decide from what country they wish to import goods.
Q4. Is the licensing intended to restrict the quantity or value of imports, and if not, what are its purposes? Have alternative methods of accomplishing the purposes been considered and if so which? Why have they not been adopted?
With increasing market demand, a wide range of products are provided through continued production of new grades, brands and types of locally-produced and imported fertilizers. Licensing of handlers and registration of these commercially processed fertilizers are therefore needed to give greater assurance that the quality of each brand is being maintained at the specified standards.
Q5. Cite the law, regulation and/or administrative order under which the licensing is maintained. Is the licensing statutorily required? Does the legislation leave designation of products to be subjected to licensing to administrative discretion? Is it possible for the government (or the executive branch) to abolish the system without legislative approval?
Pursuant to Presidential Decree No. 1144, the FPA is mandated to rationalize the manufacture and marketing of fertilizer for the purpose of assuring the agricultural sector of adequate supply of fertilizers at reasonable prices. No person shall be allowed to engage in the business of importing, producing, storing, distributing, marketing, and exporting any fertilizer except under a license issued by the FPA.
Procedures
Q6. For products under restriction as to the quantity or value of imports (whether applicable globally or to a limited number of countries or whether established bilaterally or unilaterally):
Q6.I. Is information published, and where, concerning allocation of quotas and formalities of filing applications for licences? If not, how is it brought to the attention of possible importers? Of governments and export promotion bodies of exporting countries and their trade representatives? Is the overall amount published? The amount allocated to goods from each country? The maximum amount allocated to each importer? How to request any exceptions or derogations from the licensing requirement?
Q6.II. How is the size of the quotas determined: on a yearly, six-monthly or quarterly basis? Are there cases where the size of quota is determined on a yearly basis but licences are issued for imports on a six-monthly or quarterly basis? In the latter case, is it necessary for importers to apply for fresh licence on a six-monthly or quarterly basis?
Q6.III. Are licences allotted for certain goods partly or only to domestic producers of like goods? What steps are taken to ensure that licences allocated are actually used for imports? Are unused allocations added to quotas for a succeeding period? Are the names of importers to whom licences have been allocated made known to governments and export promotion bodies of exporting countries upon request? If not, for what reason? (Indicate products to which replies relate.)
Q6.IV. From the time of announcing the opening of quotas, as indicated in I above, what is the period of time allowed for the submission of applications for licences?
Q6.V. What are the minimum and maximum lengths of time for processing applications?
Q6.VI. How much time remains, at a minimum, between the granting of licences and the date of opening of the period of importation?
Q6.VII. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Q6.VIII. If the demand for licences cannot be fully satisfied, on what basis is the allocation to applicants made? First come, first served? Past performance? Is there a maximum amount to be allocated per applicant and, if so, on what basis is it determined? What provision is made for new importers? Are applications examined simultaneously or on receipt?
Q6.IX. In the case of bilateral quotas or export restraint arrangements where export permits are issued by exporting countries, are import licences also required? If so, are licences issued automatically?
Q6.X. In cases where imports are allowed on the basis of export permits only, how is the importing country informed of the effect given by the exporting countries to the understanding between the two countries?
Q6.XI. Are there products for which licences are issued on condition that goods should be exported and not sold in the domestic market?
Q7. Where there is no quantitative limit on importation of a product or on imports from a particular country:
Q7.a. How far in advance of importation must application for a licence be made? Can licences be obtained within a shorter time-limit or for goods arriving at the port without a licence (for example, owing to inadvertency)?
Application form for registration should be duly accomplished and submitted in duplicate copies. It shall be screened for completeness and if it is incomplete, it will be returned to the applicant. Filing fee shall be collected when all the registration documents are submitted. The application forms shall be logged in into the registration tracking system and will be forwarded to the Technical Consultants.
Reviewers/technical consultants are expected to complete the review of the data within 2-4 weeks. Irrespective of the results of the review, the FPA will notify the applicant, in writing, of the status of review and registration. Applicants should comply as soon as possible.
Q7.b. Can a licence be granted immediately on request?
Depending on the urgency of the request, licenses could be granted immediately.
Q7.c. Are there any limitations as to the period of the year during which application for licence and/or importation may be made? If so, explain.
Applications may be filed on any working day of the year.
Q7.d. Is consideration of licence applications effected by a single administrative organ? Or must the application be passed on to other organs for visa, note or approval? If so, which? Does the importer have to approach more than one administrative organ?
Licensing applications are filed to the Fertilizer Regulatory Division (FRD) of Fertilizer and Pesticide Authority, FPA Building, BAI Compound, Visayas Avenue, Diliman, Quezon City, Philippines.
These can be filed also at the FPA Regional Office where the applicant’s address is located.
Q8. Under what circumstances may an application for a licence be refused other than failure to meet the ordinary criteria? Are the reasons for any refusal given to the applicant? Have applicants a right of appeal in the event of refusal to issue a licence and, if so, to what bodies and under what procedures?
Are the reasons for any refusal given to applicants?
In the event of denial or disapproval by the pertinent administrative body of an application for import license, the applicant is informed of the reason for such disapproval
Have applicants a right of appeal in the event of refusal to issue a licence?
In the event of denial or disapproval by the pertinent administrative body of an application for import license, the applicant is given the right to make a written appeal for reconsideration of the decision.
Eligibility of Importers to Apply for Licence
Q9. Are all persons, firms and institutions eligible to apply for licences: (If not, is there a system of registration of persons or firms permitted to engage in importation? What persons or firms are eligible? Is there a registration fee? Is there a published list of authorized importers?) a) under restrictive licensing systems? b) under non-restrictive systems?
The licensing system is under the non-automatic licensing system, where only persons, firms and institutions duly registered as bona fide importers are eligible to apply for licenses.
Documentational and Other Requirements for Application for Licence
Q10. What information is required in applications? Submit a sample form. What documents is the importer required to supply with the application?
What information is required in applications?
In the licensing of importers, the information required in Application Form No. FPA-FRD-F03 (http://fpa.da.gov.ph/images/FPAfiles/DATA/FertilizerAppsForm/2018/LicensetoOPERATE-FErt-Handler.pdf) are the following: Company Information (Name of Company, Tin No., Business address, Head office address, Regional/provincial office address, and Type of Ownership);Board of Directors and Management (Names and Position); Capitalization; List of Foreign Suppliers Represented in the Philippines; List of Distributors and Dealers; Enumeration of fertilizer materials imported; List of Physical Properties Owned or Rented (Plants, Warehouse or Stores); and Employee Breakdown (Departments and their Number of Personnel).
For product registration, data to be supplied on the Application Form FPA-FRD-F02 (http://fpa.da.gov.ph/images/FPAfiles/DATA/FertilizerAppsForm/2018/Imported-Prod-Registration.pdf) shall include: Information About the Fertilizer Product (Brand Name, Type, Composition, Size/Type of Packaging, Country of Origin, Name of Manufacturer, Supplier, and Trader); Company Information; Target Users/Crops; FPA Accredited Researcher Handling the Experiment/Field Test; and Cost Component and Prices.
The list of requirements for product registration are:
a) For Full Registration of Traditional fertilizers
1. Duly accomplished and notarized Application Form (FPA-FRD-02) with documentary stamp
2. Passed confirmatory analysis
3. Sack/label
4. Certificate of Analysis (COA) from the manufacturer
5. Material Safety Data Sheet (MSDS)
6. Registration and Filing Fee
b) For Full/Provisional Registration of Non-Traditional Fertilizers
1. Duly accomplished and notarized Application Form (FPA-FRD-02) with documentary stamp
2. Passed confirmatory analysis
3. Production Process Flowchart
4. Sack/label
5. Certificate of Analysis (COA) from the Manufacturer
6. Material Safety Data Sheet (MSDS)
7. Photocopy of the approved Experimental Use Permit (EUP)
8. Second Endorsement of bioefficacy data from the FPA Regional or Provincial Officer
9. Two bioefficacy data for the same crop
10. Registration fee and Filing Fee
What documents is the importer required to supply with the application?
Upon application for license, importers are required to submit/accomplish the following:
a) For New Applications
1. Duly accomplished and notarized Application Form (FPA-FRD-F03) with documentary stamp
2. For:
• Corporation/Partnership – copy of Security & Exchange Commission (SEC)registration and Articles of Incorporation
• Cooperative – copy of Cooperative Development Authority (CDA) Registration
• Single proprietorship – copy of certificate of business name registration with Department of Trade & Industry (DTI)
3. Photocopy of Certificate of Capitalization
4. Photocopy of Distributorship Agreement/Certificate from Mother Company
5. Inspection Report by the FPA officers
6. Recommendation from the FPA Regional/Provincial Officer on the area of coverage
7. Warehouse Risk Appraisal Report
8. Registration of Fertilizer Warehouse
9. Fees: license fee and filing fee based on paid up capital
b) For renewal of license
1. Duly accomplished and notarized Application Form (FPA-FRD-F03) with documentary stamp
2. Photocopy of Financial Statement
3. Inspection Report by the FPA officers
4. Recommendation from the FPA Regional/Provincial Officer on the area of coverage
5. Warehouse Risk Appraisal Report
6. Registration of Fertilizer Warehouse
7. Fees: license fee based on paid up capital plus retained earnings
For VAT Exemption, Application Form FPA-FRD-F06 (http://fpa.da.gov.ph/images/FPAfiles/DATA/FertilizerAppsForm/2018/VAT-Exemption.pdf) requires the following: Applicant Information (Business name and address), Importation Details, and Product Details. The supplementary documents for submission are:
1. Duly accomplished and notarized Application Form with documentary stamp
2. Bill of Lading
3. Commercial Invoice
4. Packing List
5. Photocopy of Certificate of Product Registration (CPR)
6. Laboratory Analysis from Third Party Laboratory
7. PNP Permit (for Nitrates only)
8. Disposition report (for Nitrates only)
9. Filing Fee – Php 600.00
Q11. What documents are required upon actual importation?
In line with the liberalization policy, importation of fertilizer shall no longer require FPA clearance prior to the opening of letter of credit (L/C). Please take note, however, that the product/s to be imported must be registered with the FPA and the company must have an FPA license to import.
Q12. Is there any licensing fee or administrative charge? If so, what is the amount of the fee or charge?
Below is the list of licensing fees or administrative charges imposed on fertilizer importers:
| Licence Fee | Filing Fee based on per activity (New Applicant) | |
|---|---|---|
| Over P5M capitalization | 1st activity | P8,400 |
| Succeeding Activity | P4,800 | |
| Over P1M to P5M capitalization | 1st activity | P5,400 |
| Succeeding Activity | P3,600 | |
| Over P500T to P1M capitalization | 1st activity | P3,600 |
| Succeeding Activity | P1,800 | |
| P500T and below capitalization | 1st activity | P1,800 |
| Succeeding Activity | P8,50 |
Full registration of imported products would entail the following fees:
| Type of Product | Amount (Php) |
|---|---|
| New | |
| Filing fee | 600 |
| Registration fee | |
| Inorganic fertilizer | 6,000 |
| Soil conditioner | 4,200 |
| Raw material | 4,200 |
| Plant Growth Promoter | 4,200 |
| Speciality fertilizer | 4,200 |
On the other hand, provisional product registration would cost:
| Type of Product | Amount (Php) |
|---|---|
| New | |
| Filing fee | 600 |
| Registration fee | |
| Inorganic fertilizer | 1,800 |
| Soil conditioner | 1,800 |
| Plant Growth Promoter | 1,800 |
| Speciality fertilizer | 1,800 |
Q13. Is there any deposit or advance payment requirement associated with the issue of licences? If so, state the amount or rate, whether it is refundable, the period of retention and the purpose of the requirement.
There is no deposit or advance payment requirement associated with the issuance of licenses.
Conditions of Licensing
Q14. What is the period of validity of a licence? Can the validity of a licence be extended? How?
For fertilizer importers, approved license shall be valid for one year. Renewal for such shall be filed three months before its expiry date. Application for renewal filed within one month after its expiry date shall be subject to a 50% surcharge while those filed after the said period shall be subject to a 100% surcharge.
Full Registration of a product shall be effective for three years from date of issuance. Application for renewal of registration should be filed within three months before its expiry date. Application for renewal after its expiry date and renewal of inactive full registration maybe allowed only in cases of force majeure or fortuitous event which shall be indicated in a notarized petition of the applicant and subject to evaluation by the FPA. If ever the petition is granted, the same is provided hereunder.
Provisional Registration of a product shall expire one year from date of issuance. Renewal of the same status for a maximum of two renewals may be allowed only to comply with the requirements to convert to full registration. Any application for renewal of registration shall be subject to a 50% surcharge, if it is filed within one month after the expiry date and to a 100% surcharge if filed beyond one month after expiry date.
Q15. Is there any penalty for the non-utilization of a licence or a portion of a licence?
There is no penalty for the non-utilization of a license subject to quota or a portion of it.
Q16. Are licences transferable between importers? If so, are any limitations or conditions attached to such transfer?
Licenses are made in the name of the applicant-importer only and are non-transferable.
For products, the Third Party Authorization (TPA) is accepted provided that the product being applied is fully registered and the following requirements are satisfactorily complied with:
(a) Application form duly accomplished and notarized
(b) Duly notarized TPA letter
(c) Copy of the Certificate of Product Registration (CPR) of the primary registrant
(d) Proposed label
The TPA is an agreement or contract between two companies, the original registrant and the party who received a TPA. The validity of the TPA depend on the expiry date of the CPR of the primary registrant. It is non-transferable and limited to ten (10) TPAs only and can be issued by the primary registrant only. The receiving third party cannot issue the same to another company.