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PRESIDENTIAL DECREE NO. 1319
PRESIDENTIAL DECREE NO. 1319 -
PROVIDING FOR THE DEVELOPMENT AND ACCREDITATION OF CERTAIN TRADING
COMPANIES AND PRESCRIBING INCENTIVES THEREFOR
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WHEREAS,
the sound and balanced development of the economy requires the
expansion and sustained growth of export trade, the attainment of which
necessitates the trading sector's assumption of a leading and more
innovative role in improving the country's export performance; chanroblesvirtualawlibrary
WHEREAS, this role requires that trading firms develop and extend their
functional coverage to include expanded bulk trading, adequate and
reliable sources of supply, worldwide market networks, trade and
production financing, risk absorption, and other innovative functions
needed to improve trade leverage;chanroblesvirtualawlibrary
WHEREAS, this lead role further requires that trading firms provide the
vehicle for developing the markets for non-traditional export products
particularly of small and medium-scale industries;chanroblesvirtualawlibrary
WHEREAS, the undertaking of these functions and activities require that
trading firms be organized with a sufficiently large capital base, and
be geared towards large-scale and integrated trading operations;chanroblesvirtualawlibrary
WHEREAS, to accelerate and assist the organization and development of
such trading firms, there is need to prescribe performance-based
incentives and provide institutional support for their operations.
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 promote and encourage
the organization and development of large-scale and integrated trading
companies that can positively assist, develop, expand and diversify the
production base and export markets of Philippine non-traditional export
products particularly of small and medium scale industries, in order to
attain a rising level of production and employment, increase foreign
exchange earnings, and accelerate the economic development of the
nation.
Section 2. Definition of Terms. — For purposes of
this Decree:cralaw:red
(a) "Governing Council" shall mean the Governing
Council of the Philippine Export Council created under P.D. 941;chanroblesvirtualawlibrary
(b) "Committee" shall mean the Committee on
Accredited Trading Companies created under this Decree;chanroblesvirtualawlibrary
(c) "Accredited Trading Companies" shall mean
corporations duly incorporated, organized and existing under Philippine
Laws, of which at least 60% of the capital stock outstanding and
entitled to vote is owned and held by Filipino citizens, and duly
accredited in accordance with this Decree;chanroblesvirtualawlibrary
(d) "Non-Traditional Export Products" shall refer to
export products the total F.O.B. Philippine Port Value of the export of
which did not exceed five million U.S. dollars (US $5,000,000) in
1968. chanroblesvirtualawlibrary
Section 3. Qualifications of Applicants. — In
addition to satisfying the citizenship requirements provided for in
Section 2 (c) of this Decree, an applicant must meet the annual
eligibility requirements prescribed by the Committee at planning
intervals of not less than three years, taking into account the
combination of any or all of the following criteria:cralaw:red
(a) Sufficient capital base for large-scale and
integrated trading operations;chanroblesvirtualawlibrary
(b) Annual export targets in terms of value,
diversity of non-traditional export products traded, and diversity of
foreign markets serviced;chanroblesvirtualawlibrary
(c) Linkage with small and medium-scale export
producers in terms of value and number of sources tapped and financing
assistance provided;chanroblesvirtualawlibrary
(d) Such other criteria as may be recommended by the
Committee and approved by the Governing Council.
Section 4. Incentives to Accredited Trading
Companies. — A duly accredited trading company shall be granted such
specific incentives as may be necessary to achieve the purposes and
intent of this Decree within the purview of the following general list
of incentives, subject to applicable laws and rules and regulations
prescribed by each agency having jurisdictional authority and
responsibility therefor:cralaw:red
(a) Export financing privileges and/or preferential
treatment;chanroblesvirtualawlibrary
(b) Facilitation of procedures for the importation of
raw materials for use in the manufacture of export products;chanroblesvirtualawlibrary
(c) Preference in the grant of government loans;chanroblesvirtualawlibrary
(d) Availment of incentives under the Export
Incentives Act (RA 6135);chanroblesvirtualawlibrary
(e) Availment of simplified export procedures under
Executive Order No. 286;chanroblesvirtualawlibrary
(f) Operation of bonded warehouse facilities; and
(g) Facilities assistance in trading operations.
Section 5. Committee on Accredited Trading Companies.
— A committee on Accredited Trading Companies, which shall be
responsible for administering and coordinating the implementation of
this Decree, is hereby created within the Philippine Export Council.
The Governing Council shall appoint the members of the Committee, which
shall be composed of one senior official each nominated by the
respective Department/Agency Heads of the Department of Trade,
Department of Industry or Board of Investments, Department of Finance,
Central Bank of the Philippines, and the Philippine Export Council. The
appointed nominee of the Department of Trade shall be the Chairman of
the Committee.
The Governing Council shall prescribe the organizational framework and
guidelines under which the Committee shall operate, drawing upon, to
the maximum extent possible, the technical staff expertise of
government agencies concerned to assist the Committee in effectivity
carrying out its functions and duties under this Decree. The guidelines
shall contain provisions giving due encouragement to the organizations
and other forms of joint export marketing groups by producers either as
accredited trading companies or to be supported by the activities of
accredited trading companies.
Section 6. Functions and Duties. — Subject to policy
and operating guidelines which the Governing Council shall prescribe,
the Committee shall have the following functions and duties:cralaw:red
(a) Formulate policies and strategies for the
development and regulation of large-scale and integrated trading
companies, which policies and strategies shall be in accordance with
approved national development plans;chanroblesvirtualawlibrary
(b) Draw up annual eligibility requirements for
accreditation for a planning period of not less than three years,
taking into account the criteria provided for under Section 3 of this
Decree;chanroblesvirtualawlibrary
(c) Promulgate rules and regulations as may be
necessary to implement the intent and provisions of this Decree, which
rules and regulations shall take effect thirty (30) days after their
publication in two (2) newspapers of general circulation in the
Philippines;chanroblesvirtualawlibrary
(d) Process and evaluate imposing such terms and
conditions as it may deem necessary to promote the objectives of this
Decree, applications for accreditation, and issue proper certificates
of accreditation upon payment of reasonable fees as it may deem
necessary to prescribe;chanroblesvirtualawlibrary
(e) Periodically check and verify, either by
inspection of the books or requiring submission of regular reports, the
compliance by accredited trading companies with the provisions of this
Decree, the rules and regulations promulgated under this Decree, the
terms and conditions and annual eligibility requirements for
accreditation promulgated pursuant to this Decree, and the citizenship
requirement prescribed in Section 2 (a) of this Decree;chanroblesvirtualawlibrary
(f) Coordinate, liaise, facilitate the promulgation
by agencies concerned of the specific incentives to be granted under
Section 4 of this Decree, and the availment of said incentives by
accredited trading companies;chanroblesvirtualawlibrary
(g) Require accredited trading companies to list
their shares of stock in any stock exchange, or directly offer a
portion of their capital stock to the public and/or their employees in
accordance with a time-phased plan that it shall draw up therefor;chanroblesvirtualawlibrary
(h) Suspend the enjoyment of incentives and/or after
due notice and hearing, cancel the accreditation of accredited trading
companies for failure to attain and/or maintain the qualification
and/or annual eligibility requirements established under this Decree,
or for willful or grossly negligent violation of any provision of this
Decree and/or the rules and regulations promulgated thereunder and/or
the terms and conditions of their accreditation;chanroblesvirtualawlibrary
(i) Whenever deemed appropriate, recommend for
consideration of the President of the Philippines amendments to the
general list of incentives provided under Section 4 of this Decree; and
(j) Within four (4) months after the close of the
fiscal year, submit thru the Governing Council an annual report to the
President of the Philippines on the implementation of this
Decree. chanroblesvirtualawlibrary
Section 7. Appropriation. — There is hereby
appropriated the sum of one million pesos (P1,000,000) out of the funds
of the National Treasury not otherwise appropriated for the initial
organizational and operating expenses of the Committee up to the end of
Fiscal Year 1978. Thereafter, its budget shall be provided for by
contributions from the agencies represented in the Committee, the
respective amounts of which shall be determined by the Governing
Council.
Section 8. Penal Provision. — Violation of any
provision of this Decree or the rules and regulations promulgated
pursuant thereto or of the terms or conditions of accreditation, or any
act of abetting ording in any manner any such violation, shall be
punished by a fine in the amount of not more than fifty thousand pesos
(P50,000.00) or imprisonment for not more than three (3) years, or
both, at the discretion of the Court.
If the offense be committed by a juridical entity, the present and/or
other officials responsible therefor shall be subject to the penalty
described above. If the official be an alien, he shall be deported
after serving the sentence, without need of further proceedings for
deportation. If the offender is a naturalized citizen, he shall be
automatically denaturalized from the date his sentence becomes final.
Section 9. Separability Clause. — The provisions of
this Decree are hereby declared to be separable, and in the event one
or more of such provisions are held unconstitutional, the validity of
other provisions shall not be affected.
Section 10. Repealing Clause. — Any and all acts,
statutes, decrees, orders, rules and regulations or parts thereof
inconsistent with this Decree are hereby repealed or modified
accordingly.
Section 11. This Decree shall take effect upon its
approval.
Done in the City of Manila,
this 29th day of March, in the year of Our Lord, nineteen hundred and
seventy-eight.
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