WHEREAS, it is to the national interest
that all installed industrial productive capacity be utilized fully in
order to hasten the economic development of the country;chanroblesvirtualawlibrary
WHEREAS, the cement industry in particular, in which the government has
investments and guarantees exceeding one billion pesos, has a
productive capacity far in excess of the present and expected domestic
requirements for cement in the next few years;chanroblesvirtualawlibrary
WHEREAS, there exists a substantial foreign market for cement which
could be tapped by the Philippine Cement Industry thus utilizing its
idle capacity and generating needed foreign exchange for the country;chanroblesvirtualawlibrary
WHEREAS, a concerted and determined effort is necessary in order to
expand the export market for Philippine cement;chanroblesvirtualawlibrary
WHEREAS, an orderly and stable domestic market is a desirable base for
the development and maintenance of a substantial export
market; chanroblesvirtualawlibrary
WHEREAS, the establishment of such domestic market and the expansion of
the export market can most expeditiously be accomplished through a
centralized government authority;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, Commander-in-Chief of all the
Armed Forces of the Philippines, pursuant to Proclamation No. 1081,
dated September 21, 1972, and General Order No. 1, dated September 2,
1972, as amended, do hereby create the Cement Industry Authority to
regulate the cement industry in the Philippines and to expand the
cement export market to the end that idle capacity be utilized, foreign
exchange generated and greater labor employment opportunities secured.
Section 1. The Cement Industry Authority shall be
composed of the Chairman of the Board of Investments, as Chairman, and
the heads of the Central Bank of the Philippines, Department of
Finance, Department of Trade and Tourism, and Development Bank of the
Philippines, or their representatives, as members. The secretariat of
the Authority shall be provided by the Board of Investments.
Section 2. The Cement Industry Authority shall
constitute itself immediately and shall exist for a period of three
years from the date of this decree.
Section 3. The Cement Industry Authority shall handle
all exports of Philippine cement and clinker. No cement nor clinker may
be exported from the Philippines without the express approval of the
Cement Industry Authority. To carry out its export functions, it shall
have the authority to:cralaw:red
1) Embark on a concerted and aggressive campaign to
export cement;chanroblesvirtualawlibrary
2) Negotiate and enter into contracts for the export
of cement and clinker under such terms and conditions as it may deem
reasonable, taking into account industry direct costs of production;chanroblesvirtualawlibrary
3) Negotiate and enter into contracts for shipping
facilities necessary for the export of cement and clinker including the
purchase and/or charter of vessels when necessary;chanroblesvirtualawlibrary
4) Establish and maintain advance depots or storage
facilities for Philippine cement in foreign markets whenever such
facilities are deemed necessary for the promotion of cement exports to
those markets;chanroblesvirtualawlibrary
5) Negotiate and enter into agreements with
counterpart Authorizing in cement exporting countries in order to
prevent unreasonable competition and maintain appropriate price levels
for cement and clinker exports;chanroblesvirtualawlibrary
6) Arrange the financing necessary to successfully
meet its export commitments; chanroblesvirtualawlibrary
7) Assign to and require any cement company to fill
any export contract entered into by the Authority;chanroblesvirtualawlibrary
8) Conduct inspections of export shipments to test
product quality and bag weights; require cement plants when necessary
and feasible, to alter products specifications to meet specific export
requirements;chanroblesvirtualawlibrary
9) Establish and administer a scheme that will insure
an equitable sharing among all the companies in the industry of the
benefits and burdens arising out of exports;chanroblesvirtualawlibrary
10) Make representations to the appropriate
government institutions or agencies, such incentives as may be
necessary to enable the cement companies to attain the export
objectives of the Authority;chanroblesvirtualawlibrary
11) Engage in such other activities as may be
necessary, to carry out the export objectives of the Authority;chanroblesvirtualawlibrary
Section 4. The Cement Industry Authority shall
regulate all phases of the distribution and marketing of cement for the
domestic and government market. No new cement plant shall be
established nor shall any existing cement plant be expanded without the
express approval of the Cement Industry Authority. To carry out its
regulatory functions in the domestic market, it shall have the
authority to:cralaw:red
1) Establish and enforce sales quotas, distribution
areas such other marketing regulations as it may deem necessary to (i)
allocate in an equitable, orderly and efficient manner and domestic and
government demand among all the cement companies, and (ii) maintain the
stability of the local market;chanroblesvirtualawlibrary
2) Advice the Price Control Council in establishing
and enforcing, in conjunction with appropriate government agencies,
uniform and reasonable selling prices of cement at the various levels
of distribution and within given marketing areas, taking into account
costs of production, transportation, handling and warehousing;chanroblesvirtualawlibrary
3) Conduct periodic inspections of all plants to (a)
test product quality and bag weights, (b) check inventories,
production, sales and delivery records, and (c) verify compliance with
the rules and regulations that it may promulgate in connection with the
domestic marketing cement;chanroblesvirtualawlibrary
4) Impose appropriate penalties on cement companies,
their distributors and dealers for violation of any rule, quota or
guideline established by the Authority;chanroblesvirtualawlibrary
5) Establish a reporting system and maintain
statistical records on the production, distribution and consumption of
cement by geographic areas to serve as the basis for the efficient and
economic distribution of cement;chanroblesvirtualawlibrary
6) Negotiate and enter into contracts for the bulk
purchase of materials and supplies common to all cement plants such as
craft paper, grinding balls, silica, etc., and maintain inventories of
such materials where necessary to reduce operating cost of the
industry.
Section 5. The Cement Industry Authority may delegate
such powers granted herein to such industry, association or company in
which all cement companies are represented as may presently exist or be
organized to assist the Authority in carrying out its functions.
This Decree shall take effect immediately.
Done in the City of Manila,
this 11th day of January, in the year of Our Lord, nineteen hundred and
seventy-three.
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