WHEREAS,
national interest and security require that an adequate supply of iron
and steel products at reasonable cost be readily available at all times
for the country's needs;chanroblesvirtualawlibrary
WHEREAS, there have been recurrent imbalances between demand and
supply of iron and steel products that necessitate the orderly
regulations of the market;chanroblesvirtualawlibrary
WHEREAS, excess capacity in several sectors of the iron and steel
industry while other sectors suffers from a deficiency of
investment;chanroblesvirtualawlibrary
WHEREAS, the recurrent shortage and the spiralling cost of steel
products in international markets and excessive dependence of the
country on imports for its steel supplies render it imperative to
explore the backward integration of the steel industry;chanroblesvirtualawlibrary
WHEREAS, the advance of industrialization in the country is dependent
in the development and the promotion of a strong iron and steel
industry and the increased availability of low- cost steel;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines and
pursuant to Proclamation No. 1081 dated September 21, 1972, and General
Order No. 1, dated September 22, 1972, as amended, do hereby order and
decree the creation of the Iron and Steel Authority designed to
stimulate the growth and regulate the orderly development of the iron
and steel industry, as follows:cralaw:red
Section 1. Composition. — The Iron and Steel
Authority shall be composed of the Chairman of the Board of
Investments, as Chairman, the Secretary of National Defense, the
Secretary of Finance, the Secretary of Trade, the Central Bank
Governor, and the Chairman of the Development Bank of the Philippines
or their duly designated permanent representatives, and two
representatives from the private sector, one of whom shall represent
the primary steel manufacturers and the other to represent the
secondary manufacturers of steel products, to be appointed by the
President, as members. The Secretariat of the Authority shall be
provided by the Board of Investments.
The Authority shall constitute itself immediately and shall exist for a
period of five years from the date of this decree.
Section 2. Objectives. — The Authority shall have
the following objectives:cralaw:red
a) to strengthen the iron and steel industry of
the Philippines and to expand the domestic and export markets for
the products of the industry;chanroblesvirtualawlibrary
b) to promote the consolidation, integration and
rationalization of the industry in order to increase industry
capability and viability to service the domestic market and to complete
in international markets;chanroblesvirtualawlibrary
c) to rationalize the marketing and distribution of
steel products in order to achieve a balance between demand and supply
of iron and steel products for the country and to ensure that industry
prices and profits are at levels that provide a fair balance between
the interests of investors, consumers, suppliers, and the public at
large;chanroblesvirtualawlibrary
d) to promote full utilization of the existing
capacity of the industry, to discourage investment in excess capacity,
and in coordination with appropriate government agencies to encourage
capital investment in priority areas of the industry;chanroblesvirtualawlibrary
e) to assist the industry in securing adequate and
low-cost supplies of raw materials and to reduce the excessive
dependence of the country on imports of iron and steel.
Section 3. Sectors Covered. — For the purpose of
carrying out the foregoing objectives, the following sectors of iron
and steel industry shall be subject to whatever regulations the
Authority may deem to impose:cralaw:red
a) the import and export of iron and steel products
and major raw materials;chanroblesvirtualawlibrary
b) the accumulation and distribution of iron and
steel scrap;chanroblesvirtualawlibrary
c) all forms of primary iron-and-steel-making,
including blast furnace/basic oxygen furnace operations, electric and
furnace and open hearth operations and direct reduction
processing;chanroblesvirtualawlibrary
d) with respect to capacity installation only, of
foundries for all types of iron and steel; steel fabrication and
welding operations; steel forming operations, steel forging and
die-stamping or pressing operations, machining and metal-cutting of
iron and steel products;chanroblesvirtualawlibrary
e) the manufacture and supply of fluxes, additions
and alloying elements used in iron-and-steel-making, such as ferrous
alloys, welding electrodes;chanroblesvirtualawlibrary
f) all rolling mill operations for steel products,
including hot and cold reduction mills, blooming and bar mills and
structural mills;chanroblesvirtualawlibrary
g) finishing operations for steel products such as
galvanizing, tinning, and drawing, pipe-and-tube-forming, slitting and
shearing, cold forming;chanroblesvirtualawlibrary
h) all marketing and distribution operations of the
above sectors.
Section 4. Powers and Functions. — The Authority
shall have the following powers and functions:cralaw:red
a) to require firms to obtain its approval before
entering into any commitments to expand, modernize and/or modify
facilities for iron and steel making and/or processing when the
expenditure involved may exceed P1 million and in coordination with
appropriate government agencies to require firms within the industry to
register commitments which would involve foreign currency
expenditures of more than $50,000; chanroblesvirtualawlibrary
b) to make recommendations on import and export
limitations, tariffs, taxes, subsidies or anti-dumping measures
affecting the industry;chanroblesvirtualawlibrary
c) under conditions of acute market shortage or
surplus of steel products, plan the establishment and enforcement of
sales quotas, distribution areas and such other marketing regulations
as it may deem necessary 1) to reestablish a balance between demand and
supply on the domestic or export markets; 2) to allocate demand in an
equitable, orderly and efficient manner among the firms servicing the
market; and 3) to maintain stability until such time as the market
imbalance is corrected;chanroblesvirtualawlibrary
d) to assist in the setting up of marketing outlets
for steel products and other related construction materials;chanroblesvirtualawlibrary
e) whenever price adjustments for raw materials or
products of iron and steel cause undue hardships or disagreements among
sectors of the industry, their consumers or suppliers, to call together
representatives of the affected parties and government agencies
concerned in order to arrive at a satisfactory consensus; if it deems
so necessary, to establish fair and reasonable selling prices at
different levels of distribution and to call on the appropriate
government agencies for assistance in enforcing the established prices;chanroblesvirtualawlibrary
f) to require the firms in the industry to conform to
established standards, including standards on weights and measures,
product quality control, and pollution control; chanroblesvirtualawlibrary
g) to require any firm in the industry to secure its
approval before acquiring or negotiating a loan or a guarantee from a
government financial institution, the Philippine Government or any of
its agencies;chanroblesvirtualawlibrary
h) to recommend to the appropriate authorities such
policies and measures as may be necessary to stimulate the expansion of
the market for the industry;chanroblesvirtualawlibrary
i) to negotiate, and when necessary, to enter into
contracts for and in behalf of the government, for the bulk
purchase of materials, supplies or services for any sectors in the
industry, and to maintain inventories of such materials in order to
insure a continuous and adequate supply thereof and thereby reduce
operating costs of such sector; chanroblesvirtualawlibrary
j) to initiate expropriation of land required for
basic iron and steel facilities for subsequent resale and/or lease to
the companies involved if it is shown that such use of the State's
power is necessary to implement the construction of capacity which is
needed for the attainment of the objectives of the Authority;chanroblesvirtualawlibrary
k) to plan, organize, implement and control the
backward integration of the steel industry;chanroblesvirtualawlibrary
l) to organize and implement programs for manpower
development to benefit the industry, in coordination with the
appropriate government agencies, public or private educational
institutions, and private firms;chanroblesvirtualawlibrary
m) to negotiate with its counterparts in other ASEAN
countries for the rationalization, complementation and integration of
the iron and steel industry in the region;chanroblesvirtualawlibrary
n) to organize and/or implement programs in
coordination with appropriate government agencies for the surveying,
exploration and development of iron ore, coal and other deposits that
are utilized as raw materials for the industry; to negotiate with
sources from other countries to secure for the industry adequate, high-
grade, and long-term supplies of such materials at the lowest cost and
most advantageous terms possible;chanroblesvirtualawlibrary
o) to promote product development, new uses and new
applications for iron and steel products; to arrange for financial and
technical support for product research and commercial development of
iron and steel products undertaken by firms in the industry and other
entities;chanroblesvirtualawlibrary
p) to inspect inventories of firms in the industry
and, during periods of market shortage, to regulate or confiscate
inventories in order to alleviate the shortage;chanroblesvirtualawlibrary
q) whenever necessary to achieve its objectives and
to carry out its functions, to require firms in the industry to submit
data on costs, sales, production, deliveries and inventories;chanroblesvirtualawlibrary
r) to conduct studies on the status and problems of
the industry and to maintain comprehensive statistical records and for
this purpose, to require any person or entity to submit to it such
data, information, papers or documents it may deem necessary;chanroblesvirtualawlibrary
s) to prescribe and enforce in compliance with such
rules and regulations as may be necessary to implement the intent and
provisions of the Decree, which rules and regulations shall take
effect immediately following their publication in two newspapers of
general circulation in the Philippines;chanroblesvirtualawlibrary
t) to conduct investigation, hearing and inquiry and
for this purpose, to issue subpoena and subpoena duces tecum to compel
the attendance of witnesses and the production of the necessary papers
and documents;chanroblesvirtualawlibrary
u) to perform such other acts as may be necessary or
conducive to the exercise of its functions and powers and the discharge
of its duties under this Decree.
Section 5. Power to Require Assistance. — The
Authority may require the assistance of any government agency or any
entity or association within the industry in order to ensure the
effective implementation of the powers and functions of the Authority.
Section 6. Affected Parties. — A party adversely
affected by a decision or any order of the Authority may, within a
period of seven days from receipt of said decision or order, appeal in
writing to the National Economic and Development Authority which shall
have authority and jurisdiction to review, reverse, modify or amend the
same. The decision of the National Economic and Development Authority
shall be appealable to the President in writing within a period of five
days from receipt of the said decision or order. The decision of the
President shall be final.
Section 7. Penal Clause. — Any person who wilfully
gives false or misleading data or information or conceals or falsifies
any material fact in any investigation, hearing, inquiry or study
conducted pursuant to this Decree or commit any violation of the
provisions of this Decree shall be punished by a fine not to exceed
fifty thousand pesos (P50,000.00) or imprisonment for not more than
five (5) years or both, at the discretion of the court: Provided,
however, where such violation is committed by a corporation,
partnership or other juridical entity, the penalty provided herein
shall be imposed on the responsible officers or directors of such
entity; Provided, further, That if the false or misleading data or
information shall have been given under oath, the maximum penalty for
false testimony under the Revised Penal Code shall be imposed.
Section 8. Repealing Clause. — Any provision of law,
decrees, or executive orders, instructions, rules and regulations or
circulars inconsistent with this decree is hereby repealed or modified
accordingly: Provided, That all the powers and functions of the
Presidential Steel Committee are hereby transferred to the Authority.
This Decree shall take effect immediately after its publication.
Done in the City of Manila,
this 9th day of August, in the year of Our Lord, nineteen hundred and
seventy-three.
|