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PRESIDENTIAL DECREE NO. 894
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PRESIDENTIAL DECREE NO. 894 -
REQUIRING GOVERNMENT OFFICES, AGENCIES, INSTRUMENTALITIES AND
GOVERNMENT OWNED OR CONTROLLED CORPORATIONS, PERSONS AND ENTITIES
ENJOYING TAX EXEMPTION, INCENTIVE OR SUBSIDY FROM THE GOVERNMENT TO
UTILIZE IN INTERNATIONAL TRANSPORTATION THE SERVICES OF THE PHILIPPINE
FLAGR CARRIER AND SHIPPING LINES AND FOR OTHER PURPOSES
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WHEREAS, it
is necessary for our national economic development that every effort is
exerted by all to save and conserve our foreign exchange
reserves; chanroblesvirtualawlibrary
WHEREAS, payment of transportation fares to foreignrlines and shipping
lines, even if made in Philippine Currency, constitutes a heavy drain
to our foreign exchange reserves in view of the fact that such
foreignrlines and shipping lines remit abroad their receipts in excess
of their local expenses;chanroblesvirtualawlibrary
WHEREAS, the Philippine flagr carrier and shipping lines operating
international transportation perform transportation services of vital
importance to the foreign commerce and trade of the Philippines
including its balance of payments, to the Postal Service, and to the
national security and defense;chanroblesvirtualawlibrary
WHEREAS, in most countries of the World, the policy and practice of
granting preference to the national flagr carrier and shipping lines
over foreignr carriers and shipping lines with respect to
transportation of Government financed passengers and property has
either been adopted and implemented or is in the process of being
adopted and implemented;chanroblesvirtualawlibrary
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 as follows:cralaw:red
Section 1. Whenever any branch, department, agency,
instrumentality or office of the Government including local governments
and corporations and institutions owned and controlled by the
Government, shall procure, contract for, or otherwise obtain, directly
or indirectly any transportation of persons or property byr or water
between the Philippines and a place outside thereof or between two
places both of which are outside the Philippines, the payment for which
is made directly or indirectly from funds of the Republic of the
Philippines, the appropriate agency or agencies and public officials
concerned shall take such steps as may be necessary to assure that such
transportation is provided by the Philippine flagr carrier or shipping
lines to the maximum extent service by such carrier and shipping lines
is available.
Section 2. Any person, partnership, association or
corporation, contractor and subcontractor, granted and enjoying any tax
exemption, subsidy or incentive from the Government, or with an
outstanding loan from or whose existing obligation is guaranteed by the
Government or by any Government owned or controlled corporation and
financial institution, or awarded any contract by the Government or any
of its agencies and instrumentalities, requiring any transportation of
persons and property byr or water between the Philippines and a place
outside thereof or between two places both of which are outside the
Philippines, the payment for which is made directly or indirectly from
the funds of such person, partnership, association, corporation,
contractor or subcontractor, shall cause suchr or water transportation
to be provided by the Philippine flagr carrier or shipping lines to the
maximum extent service by suchr carrier or shipping lines is available:
Provided, That any such person, partnership, association, corporation,
contractor or subcontractor may procure the services of foreignr
carriers or shipping lines to the extent that service by the Philippine
flagr carrier or shipping lines is not available, only upon prior
certification by the Civil Aeronautics Board or by the Board of
Transportation, as the case may be.
Section 3. The Auditor General shall disallow any
expenditure from appropriated funds of the Government for payment of
passenger or cargo transportation on foreign flagr carriers and
shipping lines in the absence of satisfactory proof of the clear
necessity therefor.
Section 4. Any violation of the provisions of Section
2 shall cause the withdrawal, revocation, cancellation, or acceleration
of payment, as the case may be, of the tax exemption, subsidy,
incentive, loan, guarantee and contract of such person, partnership,
association or corporation. chanroblesvirtualawlibrary
Section 5. All laws, decrees, orders, rules and
regulations or part thereof inconsistent with this Decree are hereby
repealed or modified accordingly.
Section 6. This Decree shall take effect immediately.
Done in the City of Manila,
this 26th day of February, in the year of Our Lord, nineteen hundred
and seventy-six.
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