Thursday, November 23, 2023

11 Commonly Asked Questions About Acquiring NFA License

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Rice is a staple food of Filipinos and needless to say, engaging in selling or trading rice supplies can be a stable business. With the government agency, the National Food Authority, providing alternative, usually cheaper supplies of rice so retailers can provide more affordable supply to the public.

But before one can sell NFA rice or corn supply, a license is required. In fact, even those selling commercial rice are required to obtain such license.

What are the requirements to apply for NFA license?

Documentary and facility requirements depend upon the business activity. (downloadable forms).

What other business activities that require application of NFA license?
The NFA also requires the registration of the following facilities aside from the license on the activities mentioned in the list.

  • motor vehicles used or intended to be used in transport/hauling of palay/ rice/corn whether for exclusive use or for hire except public utility vehicles franchised by proper government agencies not principally used for transporting rice/palay/corn;
  • warehouses, threshers and sellers for own produce;
  • mechanical dryers for owner’s/operators’ exclusive use;
  • packaging machines for owner’s/operators’ exclusive use;
  • institutions/establishments securing their rice/corn requirements from the NFA;
  • poultry and hog raisers securing by-products from the NFA;
  • manufacturers/importers/dealers and distributors of rice/corn post-harvest facilities;
  • non-operating mills and other post-harvest facilities. In this case, registration is done only once.
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Registration is done at the office of the NFA that has jurisdiction over the location of the principal business of the applicant. Registration fees see separate from that of the license fees.

What should I do with my NFA license/registration certificate if I decide to discontinue my business?
Surrender your license/registration certificate to the NFA office that issued it together with a written notice of discontinuance. Otherwise, In case you reapply, you would be charged with the fees for the entire period that you have not applied for renewal.

What does Bonded Activities mean?
A: Bonded activities mean third party stocks are deposited in your facilities, for storage, milling, threshing, corn shelling or mechanical drying. Operators/owners of facilities accepting third-party stocks are required to post a bond as well as fire insurance to safeguard the stocks of the third party.

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What activities in the Rice/Corn Industry are required to have a License from NFA?
All businesses engaged in the following activities are required to have a license, to wit:

  • retailing
  • wholesaling
  • milling
  • warehousing
  • corn shelling
  • processing/manufacturing
  • threshing
  • exporting
  • importing
  • indenting
  • packaging
  • mechanical drying

How many licenses should I apply if I have several establishments / branches that sell NFA rice?
The owner/operator should file a license for all outlets at the NFA office where his principal place of business is located. Additional outlets are treated as branches.

How do we apply for an NFA license?
For new applicants, follow this procedure:

  • Secure application form from the licensing officer upon payment of application fee;
  • Accomplish and file an application with complete requirements to the licensing officer who in turn checks the documents and determines corresponding license fee;
  • Pay the license fee to the cashier and get a copy of official receipt;
  • Prepare the facilities/equipment requirements for inspection by NFA Investigators;
  • After inspection of establishments, present notice of inspection to the licensing officer, official receipt and proof of compliance with deficiencies, if any;
  • Licensing officer issues license if the application is found to be in order; applicants should display the license in their establishments.

For NFA license renewals:

  • Secure application form from licensing officer upon payment of application fee;
  • Accomplish and file an application with complete requirements together with the previous year’s license to the licensing officer;
  • Licensing officer checks the completeness of requirements and determines license fee to be paid;
  • Pay the license fee to the cashier and present the official receipt to licensing officer;
  • Licensing officer issues renewal sticker and sticks it to the appropriate portion of the license if the application is found to be in order;
  • Applicants display licensing conspicuous place in their establishments.

How long do new applicants we have to wait for the approval of license application?
License should be approved within 15 working days after filing of the application.

How much does an NFA license cost?
Upon securing an application, a new or renewal application for license and/or registration shall pay an application fee of P110 if he is engaged or intending to engage in a single line of activity; but if the applicant is engaged or intending to engage in two or more lines of activity in the rice and/or corn industry, he shall pay an application fee of P165.

Who are required to secure license from NFA?
All who are engaging or intending to engage in the rice and/or corn business whether commercial or NFA rice/corn.

When should securing an NFA license be made?
Before the start in any of the business activity, the proprietor or operator should first secure a license from NFA. For those already licensed, holders should renew their annual license on any day within their scheduled month as issued by the NFA.

Where do we apply for an NFA license?
Application may be filed at the NFA office that has jurisdiction over the location of the principal business of the applicant. See list of NFA offices here.


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