Republic of the Philippines NATIONAL POLICE COMMISSION PHILIPPINE NATIONAL POLICE DRUG ENFORCEMENT GROUP Camp 8Gen Rafael T Crame, Quezon City PDEG(O}-230428-0693 MEMORANDUM To See Distribution FROM CS, PDEG SUBJECT : DILG Memorandum Circular No. 2023-061 DATE : April 28, 2023 1, Reference: Memorandum from TDO with subject same as above dated April 27, 2023. 2. This pertains to the DILG Memorandum Circular No. 2023-061 dated April 48, 2023 with subject: Support to the Department of Agriculture (DA) in Combatting Agricultural Smuggling and Price Manipulation of Agricultural Products. 3. In this regard, you are hereby directed to disseminate the attached copy of the DILG MC to all your personnel. 4. For widest dissemination and strict compliance. RONALD T BRIONES Pojice Colonel Distribution: ARMD IFLO PD DRED uD SOUs 1-13, CAR, BAR, and NCR ‘Life is Beautifu...Kaligtasan Nyo, Sagot Ko. Tulong-tulong Tayo.”Republic ofthe Philippines NATIONAL POLICE COMMISSION NATIONAL HEADQUARTERS, PHILIPPINE NATIONAL POLICE DIRECTORATE FOR OPERATIONS Camp BGen Rafael T Crame, Quezon City oW.)-230424-0001 MEMORANDUM TO : See Distribution FROM TDO SUBJECT : DILG Memorandum Circular No. 2023-061 DATE 1. Reference: Department of Interior and Local Government Memorandum Circular No. 2023-061 dated April 18, 2023 with subject: Support to the Department of Agriculture (DA) in Combatting Agricultural Smuggling and Price Manipulation of Agricultural Products. 2. Per above reference, please be advised that the PNP shall extend assistance to the Local Government Units in the implementation of the Memorandurn Circular. Your utmost compliance is hereby required whenever requested. Attached is the copy of the DILG MC for ready reference. 3. For compliance, information and widest dissemination. Police Major Distribution: D, NOSUs RD, PROs “Life is Beautiful...Kaligtasen Nyo, Sagot Ko. Tulong-tulong Tayo.” A soar" Bigg we JENT ON py Ps} sg” OFFICIAL *h, FRELEARSEOS & Signature, Republic of the Philippines Z Date DEPARTMENT OF THE INTERIOR AND LOCAL GOVERNMEN#!" DILG-NAPOLCOM Center, EDSA cor, Quezon Avenue, West Triangle, QuezoflGay"2>°>* 4 ian4 MEMORANDUM, CIRCULAR No. 2023-, TO : ALL PROVINCIAL GOVERNORS, CITY MAYORS, AND MUNICIPAL MAYORS THE CHIEF, PHILIPPINE NATIONAL POLICE ALL DILG REGIONAL DIRECTORS AND THE BARMM. MINISTER OF THE INTERIOR AND LOCAL GOVERNMENT SUBJECT =: SUPPORT TO THE DEPARTMENT OF AGRICULTURE (DA) IN COMBATTING AGRICULTURAL SMUGGLING AND PRICE MANIPULATION OF AGRICULTURAL PRODUCTS DATE + APR 18 2023 1, INTRODUCTION AND LEGAL BASES 1.4. Article 2 of Republic Act No. 7394, otherwise known as the Consumer Act of the Philippines, provides that it is the policy of the State to protect the interests of the consumer, promote his general welfare, and to establish standards of conduct for business and industry 1.2, Article 24 of the RA 7394 likewise underscores the regulation of unprocessed food by local government units. It states that the provincial, municipal, and city governments shall regulate the preparation and sale of meat, fresh fruits, poultry, milk, fish, vegetables, and other foodstuff for public consumption, pursuant to the Local Government Code.* 1.3. Section 5 of Republic Act No. 7581 or the Price Act provides for the illegal acts of price manipulation. It provides that it shall be unlawful for any person habitually engaged in the production, manufacture, importation, storage transport, distribution, sale, or other methods of disposition of goods to engage in acts of price manipulation of any basic necessity or prime commodity, which includes: (1) hoarding; (2) profiteering; and (3) cartel. Section 1 of Republic Act No. 10623, amending R.A. No. 7581, defines * Under Sections 447(5-v) and 458(5-) of Republic Act No. 7180 or the Local Government Code, the Sangguniang Bayan and the Sangguniang Paniungsod, respectively, shall regulate the preparation and sele of meat, poultry, Fsh, veetabes fake tess dairy products, and other foodstuffs for publ consumption ““Matino, Mahusay at Maaasahan” Trunkline No, (02) 8876 3454“basic necessities” as goods vital to the needs of consumers for their ‘sustenance and existence. 1.4. Under Sections 3 and 10 of RA 7581, the Department of Agriculture (DA) is the implementing agency with reference to agricultural crops, fish and other marine products, fresh meat, fresh poultry and dairy products, fertilizers, and other farm inputs, which has the authority to conduct investigations of any violation of said Act; and to reprimand, censure, suspend, revoke or cancel any permit, license, authority or registration, or order the permanent closure of any establishment violating the provisions of said Act. 1.5. Inline with said authority, DA Administrative Circular No. 1, series of 2021 requires the mandatory accreditation of cold storage warehouses (CSWs), defined therein as an establishment used for the storage of local and/or imported agricultural and fishery products intended for commercial Purposes. This includes: (1) meat and meat products; (2) fish and aquatic products; (3) fruits, vegetables, and other plant products; (4) milk and derivatives of milk and eggs; and (5) animal feeds. Further, Section 3.8 of said issuance defines “commercial purposes” as the use by any corporation, association, society, organization, or individual for any fare, fee, charge or other consideration, directly or indirectly with any business or other undertaking intended for profit, regardless of its quantity. 1.6. Section 3(g) of Republic Act No. 10845 classifies large-scale agricultural smuggling as an act of economic sabotage, which is committed through transporting or storing agricultural products. 1.7. In his first State of the Nation Address (SONA), President Ferdinand R. Marcos, Jr. has outlined the improvement of agricultural productivity and protection of value chain as key long-term strategies to ensure food security. Similarly, the President has issued a directive to concerned government Officials to crack down on agricultural smuggling.? 2. PURPOSE 2.1. This Memorandum Circular (MC) is hereby issued to provide guidance to local government units (LGUs) regarding specific efforts they may undertake to assist in the Department of Agriculture's campaign against agricultural smuggling and price manipulation of agricultural products, and thereby contribute to ensuring food security in the country. 3. SCOPE AND COVERAGE 3.1. This issuance covers all local government units in the Philippines, as well as all operating units of the Philippine National Police (PNP). 4. POLICY CONTENT AND GUIDELINES. * hitpsifmanitastandard.neUinewa/314248776/bbm-stop-agh-emugging html Page 2 of 44.2. 43. 44. 4.4.1. 4.1.3, City and municipal governments, through their respective agricultural officers and permitting/licensing officers, are enjoined to make an inventory of cold storage warehouses (CSWs), as defined by the DA, operating in their respective areas of jurisdiction . In the said inventory, they shall determine which CSWs operating in their LGU has no business permit and/or proper accreditation from the DA as required by DA Administrative Circular No. 1, s. 2021 They shall then submit this inventory for proper action to the Regional Office of the DA, and/or to the proper regulatory offices having jurisdiction over certain CSWs as provided in the said Circular, such as the National Meat Inspection Service (NMIS) for CSWs storing meat and meat products; the Bureau of Fisheries and Aquatic Resources (BFAR) for CSW storing fish and aquatic products; the Bureau of Plant Industry (BPI) for CSW storing fruits, vegetables, and plant products; and the Bureau of Animal Industry (BAl) for CSWs storing animal feeds, milk, eggs, and their derivatives. Assistance in the Inspection of CSWs 4.241 42.2 LGUs shall extend assistance to the DA in the exercise of the latter's regulatory and visitorial powers over CSWs set forth in RA 7581, as amended, specifically during site visits or inspections. Likewise, LGUs shall extend assistance to the DA and other corlcerned agencies in the execution of search warrants issued against CSWs in their vicinity that are determined to have violated the provisions of RA 7581, RA 10845, and other related laws, Monitoring of Prices 43.4 4.3.2 4.3.3 Pursuant to DA-DTI-DOH-DILG-DENR Joint Memorandum Circular No. 03, series of 2020, the LGUs, through their Local Price Coordinating Councils (LPCCs), shall regularly conduct price and supply monitoring of agricultural products and other basic ‘commodities sold in local markets. ‘ LPCCs shall immediately report to the DA, for proper action and investigation, suspected cases of price manipulation (hoarding, profiteering, or cartel) of agricultural products, as defined in RA 7581 LGUs shall likewise provide support to the DA in the conduct of the latter's market surveillance and inspection activities through its enforcement and inspectorate units. Specific Roles of Provincial Governments Page 3 of 445. 4.6. ‘ 4.4.1, Provincial governments, through their supervisory powers over component LGUs, shall ensure the latter's support in the implementation of this issuance and other related laws, rules, and regulations. They may likewise initiate efforts to ensure coordination, harmony, and efficiency within and among component cities and municipalities, 4.4.2. Further, and with regard to its intra-provincial food supply chain. provincial governments may undertake activities and responsibilities prescribed herein to cities and municipalities. This may apply particularly in cases where acts of price manipulation or agricultural smuggling conducted in one component city or municipality affects markets in other component cities or municipalities of the province. Role of the Philippine National Police 4.5.1. The Philippine National Police (PNP) shall extend assistance to LGUs in the implementation of this Memorandum Circular. Roles of the DILG Regional Offices and the BARMM-MILG 4.6.1. DILG Regional Offices shall provide support to their counterparts in the DA in the determination of targeted efforts to ensure the functionality of LPCCs and the support of LGUs in efforts to combat agricultural smuggling, price manipulation, and other related activities in their respective areas of responsibility (AORs) 48.2/°Fubfier, they shall disseminate this issuance to all LGUs within their AORs. The BARMM Minister of the Interior and Local Government (MILG) is requested to conduct the same dissemination for the benefit of ea LGUs. 5. EFFECTIVITY 5.1. This Memorandum Circular shall take effect immediately. 6. FEEDBACK 6.1. Questions or con: jarding this issuance may be directed to the Bureau of Local jent Supervision (BLGS), this Department, at (02) 8876 3454 loc. 4: 2 7. APPROVING AUTHORITY ATTY. Secretary oadictiam = JAMIN C. ABALOS, JR. 6) Page 4 of 4