September 8, 1995
DAR OPINION NO. 47-95
Ernesto P. Pangalangan
Legal Counsel
Chamber of Fisheries and
Aquatic Resources of the Philippines, Inc.
Suite 1094-1095 V.V. Soliven Shopping Complex
EDSA,. San Juan, Metro Manila
Sir:
This has reference to your letter, requesting for clarification on the following matters relative to RA 7881, to wit:
1. That the exemption of fishponds and prawn farms directly and exclusively used as such as of 12 March 1995 are, by legislative fiat, automatic, hence nothing is left to the judgment of the DAR.
2. That since the CARL exemption is automatic or by express provision of law no certificate of exemption is necessary. Moreover, DAR is bereft of power to impose rules and regulations that would render the exemption nugatory or difficult to obtain.
3. The operating procedures under par. 4 of DAR Administrative order No. 3, Series of 1995 should not be applicable to fishponds and prawn farms covered by the automatic exemption but only to those which can be converted under Section 5 of RA 7881, which inserts, Section 65-A to RA 6657.
You further request that the implementation of said DAR A.O. 03 be deferred or suspended as to the members of the Chamber of Fisheries and Aquatic Resources of the Philippines, Inc.
We are in full accord with your contention that lands directly and exclusively used for fishponds and prawn farms as of 12 March 1995 are by operation of RA 7881 exempt from CARP coverage. Indeed, this exemption is clearly provided in Section 2 of RA 7881 which amends Section 10 of RA 6657. However, we invite your attention to the conditions for said exemption which are expressly provided in the same Section 2 of RA 7881, namely:
1) That said prawn farms and fishponds should not have been distributed and no CLOA should have been issued to Agrarian Reform Beneficiaries under CARP; and
2) That the provision of Section 32-A of the same law on incentives should apply. Said Section 32-A mandates individuals or entities owning or operating fishponds and prawn farms to execute, within 6 months from the effectivity of RA 7881, an incentive plan with their regular fishpond or prawn farm workers or fishpond or prawn farm organizations, if any, in accordance with the conditions therein specified.
The DAR, as lead implementing agency of the Comprehensive Agrarian Reform Law, issued DAR Administrative Order No. 03, Series of 1995 in order to provide the guidelines implementing the aforecited provisions of RA 7881. The exemption from CARL coverage under RA 7881 indeed applies by operation of law, but this automatic exemption is limited to fishponds and prawn farms that satisfy the conditions specified in RA 7881 for said exemption (that is, that they have been directly and exclusively used as such as of 12 March 1995 and that they have not been, subjected to CARL coverage). Moreover, owners or operators of said lands are mandated to execute an incentive plan with their farmworkers within 6 months from 12 March 1995. DAR, as the agency principally tasked to implement CARL is mandated — hence empowered — to determine which lands fall within the exemption and enforce the conditions set by law pertaining to exempted fishponds and prawn farms. With specific reference to the prawn farms/fishpond of the members of the Chamber of Fisheries and Aquatic Resources of the Philippines Inc., DAR must first determine whether they fall within the exemption, and if so, the owners or operators thereof are mandated under RA 7881 to execute the incentive plan as required by said law within 6 months from its effectivity.
DAR AO No. 03, Series of 1995 was issued pursuant to RA 7881. We therefore find no legal basis for granting your request for suspension or deference of the application of the DAR guidelines on RA 7881 in favor of your members.
We hope to have clarified matters with you.
Very truly yours,
(SGD.) HECTOR D. SOLIMAN
Assistant Secretary Legal Affairs Office
Copy furnished:
OSEC
Doc. No. 95080619
Mr. Roy T. Balicas
General Manager
Negros Prawn Producers
Marketing Cooperatives, Inc.
Ground Floor, JTL Bldg., North Drive
Bacolod City
Dir. Felix R. Gonzales (Ret.)
Chamber of Fisheries and
Aquatic Resources of the Philippines, Inc.
Suite 1094-1095 V.V. Soliven Shopping Center
EDSA, San Juan, Metro Manila