SOP Library

SOP NO: PS-CF02

Mission: (none)

Title: Marketing Scheme Under LC 106

Date Approved/Issued: 08/01/84

Date Effective: 08/01/84

Digest:

The Kilusang Kabuhayan at Kaunlaran has been envisioned to be a national collective

efforts towards sef-reliance through the spurred development of small and medium scale
industries while ensuring adequate markets for their products. Under Letter-Circular No.
106, the link between the government and private efforts has been forged, with G.O. 47
corporations providing the marketing arbitrage for the Movement.

The herein procedural guidelines are hereby drawn guidelines of all concerned.

This SOP aims t oestablish guidelines to assits. G.O. 47 coverd corporations complying
thru LC 106 under Marketing Scheme.
The guidelines shal govern the participation of G.O. 47 covered corporations on KKK as
markets under Scheme A of Letter Circular No. 106.

NFA Letter-Circular No. 105 Executive Order No. 737 KKK Memorandum Circular No. 007
LC 106 SOP on PS-CF01

1. All G.O. 47 covered and registered corporations intending to participate in the Programs
as KKK markets shall comply with the necessary accredition requirements under Letter-
Circular No. 106 per SOP No. PS-CF01.

2. The G.O.47 corporation as market of the KKK enterprise shall purchase from the latter
an availment value of at least one percent (1%) of the corporations net sales
corresponding to the first five (5) years of the corporations participation under the
Scheme.

2.1 The consideration in the marketing agreement between the corporation and the
enterprise shall be based upon the corporation's needs as well as the capacity of
the enterprise to produce.

2.2 The extent to which the corporation has purchased shall, therefore, be determined
not on a per marketing agreement basis, but on the aggregate value of agreements
entered value of agreements entered into under the KKK scheme.

3. The G.O. 47 corporation as market of the KKK enterprise shall bear the costs and
responsibility of transporting the produce form the enterprise's premises to the place of
storage and shall likewise be determined by the corporation.

4. Prior to contract formulation between the corporation and the enterprise, preliminary
meetings shall be held between the parties, and a marketing startegy shall be prepared
and submitted by the corporation to the Authority.
 5. The contract between the corporation and enterprise shall follow the standard provisions
of a marketing agreement (Exh.B). The same contract shall be approved by the Authority
and the National Marketing Coordinating Center (NMCC).

6. All meetings between the corporation and the enterprise shall be attended by NFA
and/or NMCC representatives and the minutes of meeting accordingly furnished the
same parties.

7. All contract/agreements as may be entered into by the corporation relative to the KKK
project shall be made known to and copy furnished the NFA and NMCC.

8. A Certificate of Compliance shall be granted to the corporation annually, based on the

KKK project operations as subjected to the regular audit and inspection of the NFA and
NMCC.

9. The corporation shall submit a LC 106 Compliance Status Report to the NFA on the third
month after commencement of operations and every third month thereafter. The reports
shall follow the format as presented in Exh. C.

DETAILED OPERATING PROCEDURES

Responsibility Action

G.O. 47 Covered Corporations 1. Complies with the initial accreditation

requirements per SOP No. PS-CF01
Outlines contract preferences (Exh. A1) and attaches the same to the Letter of
Intent. If with identified chosen enterprise to tie-up with,
holds preliminary talks/meeting with
the same and lays down contract preferences, submits
Letter of Intent to the Authority with KKK enterprise named.

NFA-PSD 2. Undertakes accreditation Processing:

2.1 Evaluation
2.2 Endorsements (to NMCC/MHS)
2.3 Registration under LC 106 (See LC
106 SOP No. PS-CF01)

NMCC 3. Evaluates application/papers for

accreditation of corporation as endorsed by
NFA-PSD. Idnetifies the KKK enterprise which more or less meet the needs
 preferences of the corporation (Exh.A1), communicates with
the corporation the listing of prospective
KKK producers and the recommended match.

NFA-PSD 4. Communicates with the corporation

accordingly Arranges/facilites meetings of
the enterprise with the corporation; coordinates with NMCC (venue; NMCC
Offices)

NMCC 5. Communicates with the enterprise

accordingly. Arranges/facilities meeting of
the enterprise with the corporation; coordinates with NFA-PSD (venue; NMCC
offices).

G.O. 47 Covered Corporation/ 6. Meet on the marketing agreement; draw down

contract preferences, with the KKK Enterprise NFA pro-
porma contract as a guide.

G.O. 47 Covered Corporation 7. Prepares and submits to NFA a marketing

strategy for the tie-up with the
enterprise and a draft of the marketing agreement.

NFA-PSD 8. Makes preliminary evaluation of the marketing

strategy and contract. Endorses the
same to NMCC.

NMCC 9. Makes final evaluation of the market

strategy and contract and approves the
same.

NFA-PSD 10. Communicates with the corporation the final

approval of the markiting tie-up.
Arranges contract signing at NMCC; coordinates with NMCC. Witnesses the
contract-signing.

NMCC 11. Arrangess and witness contract-

signing.

G.O. 47 Covered Corporation/ 12. Formalize and sign contract in the

thepresence of NFA and NMCC KKK Enterprise
representative.

KKK Enterprise 13. Implements project per contract. Prepares

and submits the reporting
requirements of KKK, NMCC and NFA, if any.
G.O. 47 Corporation 14. Implements project per contract.
Conducts regular visits to the Enterprise.
Transports or shoulder transport costs of produce from the Enterprise.
Storages/uses/sells produce. Prepares and submits the
reporting requirements of KKK,
NMCC and NFA (LC 106 SOP No. PSCF01)

NFA-PSD 15. Conducts regular visits to/inspection of the

Enterprise and corporation
(storage facilities). Monitors/audits corporate investments in the tie-up.

16. Grants Certificate of Compliance based

on KKK project operations as
subjected to the regular audit and inspection of the NFA & NMCC.