Republic of the PhilippinesDEPARTMENT OF TRANSPORTATION AND COMMUNICATIONS

September 18, 2013

MEMORANDUM CIRCULAR NO. 2013-53

For UndersecretariesAssistant SecretariesHeads of Sectoral Offices and Attached Agencies

and CorporationsHead Executive AssistantService DirectorsRMC ChairmenDivision ChiefsThis Department

For your information and dissemination, transmitted herewith is:

NATURE

OP-Republic ActNo. 10623

ROWENA ~GUEDirector IIIgj2UJ(Administrative Service

DATE SUBJECT

September 10,2013 "AN ACT AMENDING CERTAINPROVISIONS OF REPUBLIC ACTNO. 7581, ENTITLED "AN ACTPROVIDING PROTECTION TOCONSUMERS BY STABILIZINGTHE PRICES OF BASICNECESSITIES AND PRIMECOMMODITIES AND BYPRESCRIBING MEASURESA GAINST UNDUE PRICEINCREASES DURING EMERGENCYSITUA TlONS AND LIKEOCCASIONS" AND FOR OTHERPURPOSES. "

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MALACANANG RECORDS OFFICE

Manila, September 10, 2013

HON. JOSE PH EMILIO A. ABAYASecretaryDepartment of Transportation and CommunicationsMandaluyong City

Sir:

i have the honor to transmit for your information and guidance,certified copy of Republic Act No. 10623 which was approved on September6, 2013 entitled "AN ACT AMENDING CERTAIN PROVISIONS OFREPUBLIC ACT NO. 7581, ENTITLED "AN ACT PROVIDINGPROTECTION TO CONSUMERS BY STABILIZING THE PRICES OF BASICNECESSITIES AND PRIME COMMODITIES AND BY PRESCRIBINGMEASURES AGAINST UNDUE PRICE INCREASES DURING EMERGENCYSITUATIONS AND LIKE OCCASIONS" AND FOR OTHER PURPOSES."

Thank you.

Very truly yours,

-====== ~MARIANITO M. Dl 'A"ANDALDirector IV

W (J."2> .e. 17Rm 101, Mabini Hall, Malacanang, Manila Trunkline 784-4286 loc. 4184/4008/4717

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Begun and held in Metro Manila, on Monday, the twenty-thirdday of July, two thousand twelve.

[REPUBLIC ACT NO. 10623 ]

AN ACT AMENDING CERTAIN PROVISioNS OF REPUBLICACT NO. 7581, ENTITLED "AN ACT PROVIDINGPROTECTION TO CONSUMERS BY STABILIZING THEPRICES OF BASIC NECESSITIES AND PRIMECOMMODITIES AND BY PRESCRIBING MEASURESAGAINST UNDUE··pRICE INCREASES DURINGEMERGENCY~m.rATI0NS AND'LIKE OCCASIONS"AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of thePhilippines in Congress assembled:

SECTION1. Section 3(1) of Republic Act No. 7581,otherwise known as the "Price Act", is hereby amended to read asfollows:

----------------------------~----------j,.

2 3

"SEC. 3. Definition of Terms. - For purposesof this Act, the term:

SEC. 3. Section 4 of Republic Act No. 7581 is herebyamended to read as follows:

"(1) 'Basic necessities' are goods vital to theneeds of consumers for their sustenance and existencein times of any of the cases provided under Section 6or 7 of this Act such as, but not limited to, rice, corn,root crops, bread; fresh, dried or canned fish and othermarine products; fresh pork, beef and poultry meat;fresh eggs; potable water in bottles and containers;fresh and processed milk; fresh vegetables and fruits;locally manufactured instant noodles; coffee; sugar;cooking oil; salt; laundry soap and detergents;firewood; charcoal; household liquefied petroleum gas(LPG) and kerosene; candles; drugs classified asessential by the Department of Health and such othergoods as may be included under Section 4 of this Act;"

. "SEC. 2. Section 3(8) of Republic Act No. 7581 is herebyamended to read as follows:

"SEC. 4. Inclusion or Exclusion from theCoverageof this Act. - Upon petition of the concernedparties 01' motu proprio action from the concernedagency of the Price Coordinating. Council and afterpublic hearing, the implementing agency, with theapproval of the Presidgnt, may include in the definitionof basic necessities or prime commodities types andbrands of the goods or may exclude from the coverageof this Act, types or brands of the goods included inthe definition of basic necessities and primecommodities, which may be deemed as nonessentialgoods or luxury goods: Provided, That, any type orbrand so excluded may be reinstated by theimplementing agency during occasions of acuteshortage in the supply of the basic necessity or primecommodity to which the excluded type or brand usedto belong."

•I)

"Unless sooner lifted by the President, pricecontrol of basic necessities under this section shallremain effective for the duration of the condition thatbrought it about, but not for more than sixty (60)days: Provided, That, in the case of basic necessitiesthat are wholly imported and deregulated underexisting laws such as, but not limited to, householdLPG and kerosene, price control thereon shall remaineffective for a period of not more than fifteen (15) days,taking into consideration the current inventory orsupply levels thereof. "

)

"SEC. 3. Definition of Terms. - SEC. 4. Section 6 of Republic Act No. 7581 is herebyamended to read as follows:

"x X X"SEC. 6. Automatic Price Control.

"(8) 'Prime Commodities' are goods notconsidered as basic necessities but are essential toconsumers in times of any of the cases provided underSection 7 of this Act such as, but not limited to, flour;dried, processed or canned pork, beef and poultrymeat; dairy products not falling under basicnecessities; onions, garlic, vinegar, patis, soy sauce;toilet soap; fertilizer, pesticides and herbicides;poultry, livestock and fishery feeds and veterinaryproducts; paper; school supplies; nipa shingles; sawali;cement; clinker; GI sheets; hollow blocks; plywood;plyboard; construction nails; batteries; electricalsupplies; light bulbs; steel wire; all drugs not classifiedas essential drugs by the Department of Health andsuch other goods as may be included under Section 4of this Act."

"x x x

4 5 \,

SEC.5. Section 11 of Republic Act No. 7581 is herebyamended to read as follows:

"(13) One (1) representative from themanufacturers'sector.

"SEC. 11. Price Coordinating Council.There is hereby created a Price Coordinating

Council, hereinafter referred to as the Council, to becomposedof the followingmembers:

"x x x."

SEC.'6. Section 12(2) of Republic Act No. 7581 is herebyamended to read as follows:

"(1) The Secretary ofTrade and Industry, aschairman;

"SEC.12. Functions of the Price CoordinatingCouncil. -

"(2) The Secretary ofAgriculture; "x x x

"(3) The Secretary ofHealth;

"(7) The Secretary ofJustice;

"(2) It shall report at least semi-annually tothe President and to the Congress ofthe Philippinesthe status and progress of the programs, projects,and measures undertaken by each implementingdepartment, agency or office as well as thecomprehensive strategies developedby the Counciltostabilize the prices of basic necessities and primecommodities. The report shall includegoodsthat havebeen included or excluded from the list of basicnecessities and prime commodities as provided forunder Section 4 of this Act;

"(4) The Secretary of Environment andNatural Reseurces;

"(5) The Secretary ofLocal Government;

"(6) The Secretary of Transportation andCommunications;

"(8) TheSecretary ofEnergy;"x X x."

"(10) One (1) representative from theconsumers' sector;

(

(

SEC.7. Implementing Rules and Regulations. - TheDepartment of Trade and Industry shall, in consultation withthe members of the Price Coordinating Counciland stakeholders,promulgate the necessary rules, regulations and procedures forthe effective implementation of this Act within ninety (90)daysupon its effectivity and shall monitor strict compliancetherewith.They shall also review the existing implementing rules andregulations of Republic Act No. 7581 and revise its provisions asmay be appropriate.

"(9) The Director General of the NationalEconomicand Development Authority;

"(11) One (1) representative from theagricultural producers' sector;

"(12) One (1) representative from the tradingsector; and

SEC.8. Repealing Clause. - Alllaws, decrees, executiveorders, issuances or regulations inconsistent with the provisionsofthis Act are hereby revised or amended accordingly.

6

SEC. 9. Separability Clause. - If any part of this Act isdeclared unconstitutional or invalid, such parts or provisionshereof not so declared shall remain valid and subsisting.

SEC. 10. Effectivity Clause. - This Act shall take effectfifteen (15)days after its publication in at least two (2)newspapersof general circulation in the country.

Approved,

~~MO;;;;R'Speaker of the House

of Representatives

This Act which originated in the House of Representativeswas finally passed by the House ofRepresentatives and the Senateon June 5, 2013.

t~l~I'-secretary of the Senate

<ki.R{1;;~.Secretary General

House of Representatives

Approved: SEP ~2013

r: ~)-v- .BENIdNO f,AQUfNO III

President of the Philippines

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