OFFENSES/VIOLA

TIONS USUALLY
COMMITTED BY
GRAINSBUSINESS
MEN AND THE
CORRESPONDIN
G SANCTIONS
 Imposition of
Administrative
Sanctions
1. Suspension/Cancellation of
license
2. Imprisonment
3. Both
 LEGAL BASES
1) PD 4 as amended;
2) Revised Rules on Grains
Business;
3) PGSP
4) Letter Circulars, other
related laws;
Orders; and Instructions
relevant to
the functions of NFA
 Classification of
Offenses and Penalties
1. Light Offenses (PD4)
a. Issuance by a warehouseman of warehouse receipt
showing an aggregate quantity of grains stock in excess of the
quantity permissible in his bond coverage;
b. Issuance by a warehouseman of warehouse receipt
showing an aggregate utility of grain stocks not covered by fire
insurance at full value as required by this Act;
c. Failure or refusal to give information required by the
Authority, provided such failure or refusal does not constitute a
higher offense as herein above provided;
 Light Offenses (PD4)....
d. Noncompliance with the rules, regulations,
decisions, orders, circulars, or directives lawfully
issued by the Authority, provided noncompliance
does not constitute a higher offense as herein
above provided;
e. Fraudulent misrepresentation by the applicant,
in or by any person in connection with, an
application for a production loan;
f. Selling or offering to sell to the Authority by
any person or palay or corn or other grains other
than that directly produced by him as farmer or
shared by him as tenant or landlord, knowingly
 Light Offenses (NFA Revised
Rules and Regulations)
a. Diversion of government stocks by NFA accredited
retailers/outlets authorized to sell NFA stocks;
-Unreasonable depletion of stocks;
-Selling or lending government stocks to another
grains businessmen;
-Selling or offering to sell the government stocks
beyond the maximum quantity allowed by NFA
-Storing and/or selling the government stocks in
places/ stalls other than duly authorized by the NFA;
-Unreasonable/intentional delay in the
delivery/unloading of withdrawn stocks.
b) Unauthorized re-bagging/re-sacking of
government stocks in commercial sacks; c)
Mislabeling of NFA and/or commercial stocks;
d) Unauthorized re-milling of government
stocks;
e) Admixture or adulteration of government
stocks with commercial rice;
f) Overpricing of NFA rice and/or corn grits;
g) Short-weighing or under-weighing in the
sale of NFA stocks and/or commercial
rice/corn grits;
h) No price tags;
i.) Improper display of NFA rice;
j) Refusal to sell NFA rice;
k) Storing or selling commercial stocks in the
same establishment/stalls authorized for NFA
stocks;
 Less Serious Offenses
a. Connivance in the concealment of a stock
shortage in a grain warehouse;
b. Knowingly submitting any report containing
false information or date;
c. Misrepresentation in connection with any
application for license to do business as grains
warehousemen, miller, exporter or importer or
trader, manufacturer or processor;
d. Failure or refusal of a warehouseman to allow
the inspection or examination of this grains
stocks to conceal shortages or to misrepresent
the quantity or quality of his grain stocks,
 Serious Offenses
1.Failure or refusal of a grains
warehouseman, without any lawful
excuse, to deliver grains deposited with
him: Provided, however that the
warehousemen shall be entitled to the
allowance authorized for depreciation of
the grains deposited.
2. Cornering or Hoarding of grains
resulting in artificial shortage or scarcity
of supply and increase of prices thereof in
any part of the country.
 OFFENSES PENALTY
1. Diversion of government stocks by NFA accredited
retailers/outlets authorized to sell NFA stock;
i. Unreasonable depletion of stocks;
ii. Selling or lending government stocks to other
grains businessmen;
iii. Selling or offering to sell government stocks of
more than one bag of 50 kgs.; Cancellation of Accreditation
iv. Storing and/or selling government stocks in and Blacklisting
other places/stalls other than that duly
authorized
2. Unreasonable/intentional delay in the
delivery/unloading of withdrawn stocks;
3. Unauthorized rebagging/rescaling of government
stocks in commercial sacks;
4. Overpricing of NFA rice
 OFFENSES PENALTY
● Selling or offering to sell government stocks beyond 5kgs but not more
than one bag of 50 kgs, otherwise it would constitute Diversion of
Government Stocks as enumerated under Item 1.iii above;
● Unauthorized remilling of government stocks;
● Admixture or adulteration of government stocks with commercial rice; 1st offense – Adm. Fine P1,000-
● Mislabeling of NFA stocks; P4,000
● Short-weighing in the sale of NFA stocks and/or commercial rice/corn
grits; 2nd offense - Adm. Fine P1,000-
● Improper display of NFA rice; P4,000 and 2-4 weeks suspension of
● Refusal to sell NFA rice; allocation
● Storing or selling commercial stocks in the same establishment/stall
authorized for exclusive sale of NFA stocks; 3rd offense - Cancellation of
● No price tag; Accreditation and Blacklisting
● Non-display of NFA license;
● Non-display/no authorized NFA signboard;
● Rice/corn boxes not painted white and/or with unauthorized
advertisement posters;
● Closure of rice outlet during market days;
● Closure of rice outlet from 7:00am to 12:00 noon and 2:00pm to
6:00pm;
● No responsible standby personnel manning the rice outlet
 Administrative Fines
Light Offenses – not less
than P1,000.00 nor more
than P4,000.00
Less Serious Offense – not
less than P4,000.00 nor
more than P8,000.00
Serious Offense – not less
Light Offenses – 1 mo. - 6
mo.
Less Serious Offense –
6mos., 1d - 4yrs
Serious Offense – 4yrs, 1
day - 6yrs
 Section 9. Execution
(Revised NFA Rules)

In the enforcement or
execution of the decision
or final order holding the
respondent liable for fine,
said respondent shall
surrender his license to
THANK YOU!