WHEREAS,
recent adverse developments in the world market situation have
threatened the viability of the coconut industry and affected the
livelihood of more than six million farmers and workers;chanroblesvirtualawlibrary
WHEREAS, in immediate response to these developments, the President
created under Executive Order No. 747 dated 19 November 1981, the
Special Committee on the Philippine Coconut Industry, composed of the
members of Cabinet and of the Batasang Pambansa, both from the majority
and minority parties, to review and reassess existing policies,
practice and institutions relative to the Philippine coconut industry,
which in turn created a Sub-Committee to study these matters;chanroblesvirtualawlibrary
WHEREAS, this Sub-Committee of the Special Committee has now submitted
its recommendations to effect a more realistic system of determining
the amount of assessment of coconuts and its products in order to
provide urgent relief to coconut farmers while at the same time
ensuring continued financial support to on-going socio-economic and
developmental programs for coconut farmers.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of
the Philippines, by virtue of the powers vested in me by the
Constitution, do hereby decree and order the following: chanroblesvirtualawlibrary
Section 1. Sections 1 and 2, Article III of
Presidential Decree No. 1468, as amended by Presidential Decree No.
1841 are hereby further amended to read as follows:cralaw:red
"Sec. 1. Coconut Industry Stabilization Fund. — To
ensure the viability and stability of the coconut industry as a whole,
the copra exporters, the oil millers, the refiners, the desiccators and
other end-users of copra or its equivalent in other coconut products
are hereby assessed an amount equivalent to a specific percentage of
the prevailing copra equivalent of the world market price of coconut
oil which shall be imposed on copra resecada or its equivalent in other
coconut products delivered to and/or purchased by them. This specific
percentage shall be equal to the average percentage assessment derived
in the immediately preceding quarter as determined by the Philippine
Coconut Authority in accordance with the following
schedule: chanroblesvirtualawlibrary
World Market Price Percentage
of Coconut Oil Assessment
(USc/lb) (%)
Below 20 0
20 to 29 11
30 to 34 12
35 to 39 14
40 to 44 16
45 to 49 19
50 and above 23
Provided, however, that no assessment shall be imposed and collected if
the average world market price of coconut oil for the immediately
preceding quarter falls below US twenty (20c) cents per pound.
The assessment shall be collected by the Philippine Coconut Authority
and shall constitute the Coconut Industry Stabilization Fund."
"Sec. 2. The collections of the Coconut Industry
Stabilization Fund shall be utilized to support socio-economic and
developmental programs for the benefit of the coconut farmers, in
particular, and the coconut industry, as a whole, in a manner to be
determined by the Philippine Coconut Authority subject to the approval
of the President."
Section 2. A new section to be designated as Section
2-A is hereby added after Section 2, Article III of the same Decree to
read as follows:cralaw:red
"Sec. 2-A. Coconut Reserve Fund. — To ensure
continued financial support to critical socio-economic and
developmental programs mentioned in Section 1 hereof in times of
depressed world prices for coconut, a Coconut Reserve Fund is hereby
constituted from assessments in excess of P50 per on hundred (100)
kilos of copra resecada or its equivalent in other coconut products,
provided, however, that no disbursements therefrom may be made unless
the applicable assessment in specific percentage falls to eleven
percent (11%) or below as defined and computed in Section 1 hereof.
"The use and application of disbursements from the Coconut Reserve Fund
shall be made in a manner to be determined by the Philippine Coconut
Authority subject to the approval of the President." chanroblesvirtualawlibrary
Section 3. Repealing Clause. — All laws, executive
and administrative orders, rules and regulations inconsistent with the
foregoing provisions are hereby repealed or amended accordingly.
Section 4. Separability Clause. — If any provision of
this Decree is held unconstitutional, the same shall apply only to that
provision and the remainder hereof remains valid.
Section 5. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 16th day of January, in the year of Our Lord, nineteen hundred and
eighty-two.
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