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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 1386
PRESIDENTIAL DECREE NO. 1386 -
REVISING PRESIDENTIAL DECREE NO. 941, CREATING THE PHILIPPINE EXPORT
COUNCIL, DEFINING ITS POWERS AND DUTIES, AND APPROPRIATING FUNDS
THEREFOR
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chanroblesvirtualawlibrary
I,
FERDINAND E. MARCOS, President of the Philippines, by virtue of the
powers vested in me by the Constitution, do hereby order and decree the
revision of Presidential Decree No. 941, dated 29 May 1976, which shall
henceforth read in its entirety as follows:cralaw:red
WHEREAS, national economic growth demands a sustained contribution in
foreign exchange generation by the export sector;chanroblesvirtualawlibrary
WHEREAS, there is a need to develop and implement a national export
strategy designed to achieve a significant increase in export earnings;chanroblesvirtualawlibrary
WHEREAS, since the private sector bears the actual task of generating
export earnings, there is a need to establish a mechanism for the
direct and continuing involvement of that sector in the formulation and
implementation of a national export strategy;chanroblesvirtualawlibrary
WHEREAS, such a mechanism can be achieved thru the creation of a
semi-government institution to serve as the local point for government
and private sector cooperation in the development and promotion of
Philippine products and services for export;chanroblesvirtualawlibrary
WHEREAS, the effective implementation of a national export strategy
requires that such an institution be capable of flexible and dynamic
action and be vested with appropriate authority to operate under a high
degree of autonomy;chanroblesvirtualawlibrary
WHEREAS, such an institution will provide the country with a
competitive and responsive export trade mechanism, as has been
demonstrated in other countries that have adopted similar institutions
designed to optimize their export strategy and performance thru the
encouragement and stimulation of joint government and private sector
action for export expansion.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree. chanroblesvirtualawlibrary
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of the government to encourage, promote,
expand and diversity exports to existing and prospective markets in
order to generate employment and income, improve the balance of
payments, and hasten the economic development of the nation.
It is hereby further declared to be the policy of the government to
assist and support private sector producers and traders in the
development and promotion of Philippine commodities, products, and
services for export, and to optimize direct private sector
participation in the formulation and implementation of government
export development and promotion programs.
Section 2. The Philippine Export Council. — There is
hereby created a semi-government self-government institutions to be
known as the Philippine Export Council, hereinafter referred to as the
Export Council. The Export Council shall be directly under the office
of the President of the Philippines.
Section 3. Responsibilities of the Export Council. —
The Export Council shall be responsible for the formulation and
monitoring of the National Export Strategy, which shall be consistent
with existing national economic policies and approved national
development plans; for studying and recommending to the
department/agency Heads concerned, and/or to the Board of the National
Economic and Development Authority, and/or directly to the President of
the Philippines policy measures and/or policy changes pertaining to
export development and promotion, to include implementing plans and/or
programs of action relative thereto; and, for coordinating government
and private sector programs and efforts to develop, promote and enhance
earnings from exports of Philippine commodities, products, and selected
services.
Section 4. Powers and Functions of the Export
Council. — The powers, functions, and duties of the Export Council
shall include the following: chanroblesvirtualawlibrary
a) To formulate and submit annually for approval of
the President of the Philippines a National Export Strategy that is
consistent with existing national economic policies and approved
national development plans; which shall, among other elements which the
Governing Council may prescribe, specifically include annual and
five-year term developmental and promotional objectives and qualified
performance targets, taking into account the production capacity of
Philippine industries and the opportunities present in export markets.
The strategy formulation process of the Export Council shall be
coordinated and interfaced closely with, among others:cralaw:red
1) The budget preparation process of the Budget
Commission;chanroblesvirtualawlibrary
2) The National development planning process of the
National Economic and Development Authority;chanroblesvirtualawlibrary
3) The formulation by the Board of Investments of
relevant Priorities Plans prescribed by law;chanroblesvirtualawlibrary
4) The formulation of plans and strategies of
particularly concerned agencies and industry authorities, such as, the
Bureau of Foreign Trade, the Overseas Construction Board, the
Philippine Sugar Commission, the Philippine Export and Foreign Loan
Guarantee Corporation, the Philippine Cement Corporation, the
Philippine Coconut Authority, the Export Processing Zone Authority, etc.
b) To recommend to the President of the Philippines
the assignment to government, semi-government and private institutions
such functions and responsibilities as are necessary to effectively
implement the specific plans and programs of action contained in the
National Export Strategy, and, in coordination with the Budget
Commission, to determine and recommend for approval budget allocations
as are required to fund such assigned functions and responsibilities;chanroblesvirtualawlibrary
c) To monitor and submit periodic reports, including
an annual report, to the President of the Philippines on the
implementation of the approved National Export Strategy;chanroblesvirtualawlibrary
d) To undertake such research, developmental and/or
promotional programs or activities as are assigned to it by the
approved National Export Strategy or by other relevant development
plans of the government; and, subject to the approval of the President
of the Philippines, as may be determined by the Governing Council to be
inadequately, ineffectively, or improperly implemented by the agency or
organization to which the particular program or activity was originally
assigned; provided that, the Export Council shall not engage directly
in actual trading;chanroblesvirtualawlibrary
e) To coordinate, with authority to institute and
oversee a consolidated planning, programming and implementing system,
as well as to serve, if necessary, as a channel for budgetary releases
and actual expenditures for those activities of government agencies
pertaining specifically to export marketing and promotion, foreign
trade information and publications, and related assistance and training
activities;chanroblesvirtualawlibrary
f) To identify obstacles to the export of specific
products, commodities and services, and to study and recommend
appropriate measures for the removal of these obstacles, to include
specific government assistance measures that will encourage increased
production and will enable exportable commodities and selected services
to become more competitive in international markets;chanroblesvirtualawlibrary
g) To assess policies and programs of government
agencies and private sector organizations engaged or involved in
activities allied to or affecting Philippine International trade, such
as financing, transportation, forwarding, brokerage, packaging,
insurance, warehousing, quality control, etc.; and to recommend trade
facilitation and other measures that would improve their contribution
to increased competitiveness of Philippine exports in world markets;chanroblesvirtualawlibrary
h) To encourage and promote the organization of
integrated trading organizations and other forms of cooperative or
joint marketing arrangements by producers/exporters to attain increased
leverage in international marketing;chanroblesvirtualawlibrary
i) To initiate and/or participate in the formation
of appropriate juridical entities or to participate in such existing
organizations, domestic or foreign, designed to facilitate or enhance
the development and promotion of the country's international trade; to
hold interest or equity therein and be presented in the management
thereof;chanroblesvirtualawlibrary
j) To establish local regional as well as overseas
offices of the Export Council as may be deemed necessary by the
Governing Council;chanroblesvirtualawlibrary
k) To undertake or cause to be undertaken by
appropriate agencies or organizations any relevant programs or
activities as may be essential to the achievement of the objectives and
intent of this decree;chanroblesvirtualawlibrary
l) To promulgate such rules and regulations as may
be necessary to implement and attain the objectives and intent of this
decree, as well as to revise and amend the same, and
m) To exercise such other powers and undertake such
other functions and duties as may be assigned to the Export Council by
the President of the Philippines.
Section 5. Governing Council. — The powers,
functions and duties of the Export Council shall be exercised thru a
Governing Council, which shall be composed of fifteen (15) members as
follows:cralaw:red
a) The President of the Export Council. — The
President of the Export Council shall concurrently be the Chairman of
the Governing Council. Whenever the President of the Export Council is
unable to attend a meeting of the Governing Council, he shall designate
the Executive Vice-President or a Vice-President of the Export Council
to attend as his alternate, who shall not however preside unless
elected as Presiding Officer in accordance with the pertinent provision
prescribed elsewhere in this Section.
b) The Secretary of Trade. — The Secretary of Trade
shall preside over the meetings of the Governing Council in the absence
of the Chairman. Whenever the Secretary of Trade is unable to attend a
meeting of the Governing Council, he shall designate an Undersecretary
or Assistant Secretary to attend as his alternate, who shall not
however preside when the Chairman is also absent unless elected as
Presiding Officer in accordance with the pertinent provision prescribed
elsewhere in this Section.
c) The Secretary of Industry. — Whenever the
Secretary of Industry is unable to attend a meeting of the Governing
Council, he shall designate an Undersecretary or Assistant Secretary or
a Governor of the Board of Investments to attend as his alternate.
d) The Director-General of the National Economic and
Development Authority. — Whenever the Director-General of the Authority
is unable to attend a meeting of the Governing Council, he shall
designate a Deputy Director-General or an Assistant Director-General of
the Authority to attend as his alternate.
e) The Secretary of Foreign Affairs. — Whenever the
Secretary of Foreign Affairs is unable to attend a meeting of the
Governing Council, he shall designate an Undersecretary or Assistant
Secretary to attend as his alternate.
f) The Secretary of Finance. — Whenever the
Secretary of Finance is unable to attend a meeting of the Government
Council, he shall designate an Undersecretary or Assistant Secretary or
the Commissioner of Customs to attend as his alternate.
g) The Governor of the Central Bank of the
Philippines. — Whenever the Governor of the Central Bank is unable to
attend a meeting to the Governing Council, he shall designate the
Senior Deputy Governor or a Deputy Governor of the Central Bank to
attend as his alternate.
h) The Secretary of Agriculture. — Whenever the
Secretary of Agriculture is unable to attend a meeting of the Governing
Council, he shall designate an Undersecretary or Assistant Secretary to
attend as his alternate.
i) The Secretary of Natural Resources. — Whenever
the Secretary of Natural Resources is unable to attend a meeting of the
Governing Council, he shall designate an Undersecretary or Assistant
Secretary to attend as his alternate.
j) The President of the Philippine International
Trading Corporation. — Whenever the President of the Philippine
International Trading Corporation is unable to attend a meeting of the
Governing Council, he shall designate the Executive Vice-President, or
a Vice-President of the Corporation to attend as his alternate.
k) Five (5) Representatives from the Private Sector.
— A private sector member of the Governing Council shall have no
alternate, and shall be considered absent whenever he is unable to
attend a meeting of the Governing Council, provided that, a private
sector member who cannot attend a meeting of the Governing Council may
designate a personal representative to sit as an observer during the
meeting. chanroblesvirtualawlibrary
Except for the five (5) representatives from the private sector, the
members shall sit in the Governing Council on an ex-officio basis.
Representatives from the private sector shall each be appointed by the
President of the Philippines for a term of three (3) years from among
qualified candidates recommended by the Export Advisory Board in
accordance with appropriate criteria which the Governing Council shall
prescribe, provided however that, for initial appointments to the
Governing Council, one (1) representative shall be appointed for a term
of one (1) year, two (2) representatives for a term of two (2) years,
and two (2) representatives for a term of three (3) years, after which
all succeeding appointments shall be for a term of three (3) years.
The full time President of the Export Council, who is concurrently the
Chairman of the Governing Council, shall preferably be drawn from the
private sector, and shall be appointed by the President of the
Philippines for a term of five (5) years.
The presence of eight (8) members and/or authorized alternates during
each meeting of the Governing Council shall constitute a quorum.
Whenever both the President of the Export Council and the Secretary of
Trade are unable to attend a meeting of the Governing Council, the
members and/or authorized alternates present shall elect a Presiding
Officer for that particular meeting, provided however, that, for as
long as at least one regular member is present during a meeting of the
Governing Council, no authorized alternate shall be eligible for
election as Presiding Officer for that meeting. chanroblesvirtualawlibrary
The Governing Council may constitute, from among its members, an
Executive Committee and any other functional committees as may be
necessary for it to effectively carry out the powers and functions of
the Export Council. The provisions herein on alternate representation
in the Governing Council shall apply to these committees; provided
that, at least one (1) private sector member of the Governing Council
shall always be included in the membership of any committee so created.
Section 6. Export Advisory Board. — There shall be
created a permanent Export Advisory Board composed of qualified
individuals from the private sector who shall provide the advice,
guidance, and insight essential to pursuing the activities of the
Export Council, and who shall collectively represent private sector
views. Among other responsibilities which the Governing Council may
define, the Export Advisory Board shall serve as the forum for
synthesizing problems and recommendations of common interest to the
various Permanent Committees created under Section 7 hereof, or to the
Export community in general.
The Export Advisory board shall be chaired by the President of the
Export Council. Its members shall include each of the Chairman of the
Permanent Committees created under Section 7 hereof, and may include
additional members who shall be appointed by the Governing Council from
among qualified individuals from the private sector. chanroblesvirtualawlibrary
The Export Advisory Board may constitute, from among its members, an
Executive Committee and any other functional committees, or any
appropriate aggrupation of Chairmen of Permanent Committees created
under Section 7 hereof, as may be necessary for it to effectively
advice and assist the Export Council in carrying out its powers and
functions.
The Governing Council shall prescribe the rules for alternate
representation in the Export Advisory Board, as well as in any of the
latter's committees or aggrupations of Permanent Committee Chairmen.
Section 7. Permanent Committees. — There shall be
created Permanent Committees, to be composed principally of private
sector membership, which shall be organized and oriented towards market
development and the development and promotion of specific products,
product groups, commodities, and selected services, to include the
functional aspects allied to the conduct of export trade. Meetings of
these Committees shall, upon request trade or notification, be attended
by officials at the level of Bureau Directors and/or senior technical
officials from line departments and agencies directly concerned with
the respective areas of interest of the Committees.
Among other responsibilities which the Governing Council may define,
these Committees shall work closely with and provide export advise to
the Export Council Staff on such matters as the determination of
performance targets, the formulation of policy recommendations, the
preparation of position papers, the gathering and dissemination of
trade information, and the design of essential development and
promotional measures affecting their respective areas of interest.
Policy and/or strategy recommendations of the Permanent Committees
shall be submitted to the Governing Council for approval and
appropriate implementing action, or for further recommendatory action
to the proper decision making authority. chanroblesvirtualawlibrary
The members of each of the Permanent Committees shall be appointed by
the Governing Council from among qualified nominees of concerned
private sector national business organizations; industry, commerce, and
trade-related associations; and from the senior staff of relevant
government agencies that have continuing involvement in the Committees'
respective areas of interest. Each Committee shall elect a Chairman
from among its private sector membership, subject to the confirmation
of the Governing Council.
The Governing Council shall prescribe rules for alternate
representation in the Permanent Committees created hereunder.
Section 8. Management. — The management of the
Export Council shall be vested in the President of the Export Council,
who shall be the Chief Executive of the Export Council. A full-time
Executive Vice-President who shall be the Chief Operating Officer of
the Export Council, shall be appointed by the President of the
Philippines; provided that, when the exigencies of the service so
require, the President of the Export Council is hereby empowered to
appoint the Executive Vice-President on a contractual basis, subject to
prior approval of the President of the Philippines.
The Executive Vice-President shall perform the functions and duties of
the President of the Export Council in the absence of incapacity of the
latter, except that he shall not preside over meetings of the Governing
Council unless elected as Presiding Officer in accordance with Section
5 hereof. He shall, at any time, perform such functions and duties as
may be delegated to him by the President of the export Council.
With the confirmation of the Governing Council, the President of the
Export Council is hereby empowered to appoint, on a regular or
contractual basis, such Vice-Presidents as he may deem necessary to
assist him and the Executive Vice-President effectively manage the
affairs and activities of the Export Council; provided that, the number
of incumbents appointed in accordance herewith shall not exceed five
(5) Vice-Presidents at any given time, and any appointment in excess
thereof shall require prior approval of the President of the
Philippines. chanroblesvirtualawlibrary
Section 9. Functions and Duties of the President of
the Export Council. — The President of the Export Council shall
exercise such powers and functions as are authorized by this decree.
With the confirmation of the Governing Council, he shall carry out the
following specific tasks and duties:cralaw:red
a) To approve for submission to the Budget
Commission the annual lump-sum appropriations to be provided for the
Export Council;chanroblesvirtualawlibrary
b) To approve contracts and other agreements which
the Export Council may enter into in furtherance of its authorized
programs and activities;chanroblesvirtualawlibrary
c) To devise, organize, and reorganize, insofar as
may be necessary, the organization and staff of the Export Council;chanroblesvirtualawlibrary
d) To review and approve the operations and
activities of the Export Council;chanroblesvirtualawlibrary
e) To organize and/or participate in committees and
other working groups representing government and/or private entities
for the purpose of identifying impediments to export expansion, and
developing programs, projects and other recommendations designed to
overcome such obstacles and support increased export earnings;chanroblesvirtualawlibrary
f) To negotiate and conclude with appropriate
private sector groups or organizations such suitable and equitable
arrangements as may be mutually agreed upon to gradually effect private
sector sharing in the funding of the activities and operations of the
Export Council;chanroblesvirtualawlibrary
g) To receive and utilize, for furtherance of the
Export Council's authorized programs and activities, funds, materials
and services from sources other than the Government's annual grant to
the Export Council;chanroblesvirtualawlibrary
h) To request or caused to be furnished thru
directives, circulars, memoranda or instructions from the Governing
Council to government agencies and or private organizations concerned
such relevant data, information and statistics as may be required by
the Export Council to effectively carry out its functions and duties
with respect to export strategy formulation, planning, programming and
monitoring.
Section 10. Compensation, Per Diem and Other
Emoluments. — The Chairman and Members of the Governing Council or
their authorized alternates shall receive per diems and reimbursement
for transportation and representation expenses for each meeting
actually attended in such amounts as may be determined by the Governing
Council, which in no case shall exceed One Thousand Pesos (P1,000) a
month each for per diems and One Thousand Pesos (P1,000) a month each
for transportation and representation expenses, regardless of the
number of meetings attended; provided that, the Governing Council shall
meet regularly at least one during the third Thursday of each month.
The per diems and reimbursement of transportation and representation
expenses herein authorized shall be paid of the actual attendees of
each Governing Council meeting.
The President and Executive Vice-President of the Export Council shall
each receive an annual compensation in an amount to be determined by
the President of the Philippines. With the confirmation of the
Governing Council, the annual compensation of Vice-President shall be
determined by the President of the Export Council on a case-to-case
basis, which in no case shall exceed the annual compensation of the
Executive Vice-President. chanroblesvirtualawlibrary
With the confirmation of the Governing Council, the President of the
Export Council is hereby empowered to draw up and prescribe the
compensation schedule and the grant of appropriate and reasonable
allowances and/or emoluments for the executives and staff of the Export
Council, as well as for persons serving with the Export Council on an
ad-hoc or detail basis. Funding requirements therefor shall be provided
in the annual budget of the Export Council.
Section 11. Staff Organization. — There shall be
organized a Staff of the Export Council which shall perform the work
required for the execution of the powers, functions and duties of the
Export Council and shall render technical, administrative and
secretariat support to the Governing Council, the Export Advisory
Board, the Permanent Committees, and other working groups/committees
that are established in accordance with the provisions, purposes and
intent of this decree.
The Governing Council shall prescribe the organizational framework and
guidelines under which the Export Council shall be organized and
operate. To facilitate inter-governmental coordination, the Governing
Council may, at any time, draw upon the technical staff expertise of
government agencies concerned for liaison and/or individually detailed
personnel, or to organize ad-hoc inter-agency committees or task groups
that shall work with and assist the Export Council Staff in carrying
out its functions and duties. chanroblesvirtualawlibrary
Section 12. Appropriations. — There is hereby
initially the sum of five million pesos (P5,000,000) from the funds of
the National Treasury not otherwise appropriated, for the
organizational and operational expenses of the Export Council for a
period of one year. Thereafter, an annual lump-sum appropriation shall
be provided for the Export Council, the amount of which may be
determined in relation to the annual export performance of the country
and which may be included under any appropriate Fund provided in the
General Appropriations Act.
Section 13. Personnel. — Subject only to the
organizational framework and guidelines prescribed by the Governing
Council, the President of the Export Council shall draw up and
implement the staffing pattern of the Export Council, provided that, in
the filling of positions therein, such personnel as may be necessary,
appropriate and qualified from the Bureau of Foreign Trade of the
Department of Trade, the Institute of Export Development of the Board
of Investments, and the National Economic and Development Authority,
and such personnel from the foregoing government agencies who have been
detailed to the RP/UNDP Export Promotion Project shall be given
priority of consideration for recruitment. chanroblesvirtualawlibrary
All positions in the Export Council are hereby declared policy
determining, highly technical and/or primarily confidential and shall
be exempt from Career Executive Service, OCPC, and Civil Service
eligibility rules and regulations; provided that, consistent with their
individual employment status, the personnel of the Export Council shall
be entitled to the appropriate benefits and privileges normally
accorded to the government employees of similar employment status, such
as GSIS insurance and retirement benefits, Medicare, leave, and other
similar benefits; provided further that, personnel services contributed
to or contracted by the Export Council which are actually paid for by
private sector entities or organizations shall not fall under the
coverage of the immediately preceding provisions.
Section 14. Repealing Clause. — Any and all acts,
statutes, decrees, orders, rules, regulations or parts thereof
inconsistent herewith are hereby repealed or modified accordingly.
Section 15. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 25th day of May, in the year of Our Lord, nineteen hundred and
seventy-eight.
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