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PRESIDENTIAL DECREE NO. 388
PRESIDENTIAL DECREE NO. 388 -
CREATING THE PHILIPPINE SUGAR COMMISSION
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WHEREAS,
the economic and social stability of the Philippines depend in large
measure upon the sustained growth and development of the sugar industry;chanroblesvirtualawlibrary
WHEREAS, due to chronic imbalance in production, the sugar industry is
barely able to meet the requirements of the domestic and United States
export markets while foregoing entirely new opportunities in the world
market, notwithstanding the large investments made in new milling
facilities in recent years with the government support;chanroblesvirtualawlibrary
WHEREAS, it has become necessary to organize a mechanism to give
sustained support to the sugar industry in all phases of its operation
and potentials, and moreover, to provide conditions needed for its
continued development and growth with the end in view of optimizing its
effectiveness as a factor for social and economic good; chanroblesvirtualawlibrary
WHEREAS, our sugar limitation laws when enacted were based on
conditions existing in the years 1933 and 1935 and may no longer be
realistic and adequate to promote the development and stability of the
sugar industry;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 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, and upon the
recommendation of the sugar planters, millers, and traders of the
Philippines through their associations and cooperatives, do hereby
decree and order the creation of the Philippine Sugar Commission as
follows:cralaw:red
Section 1. Title of this Decree. — This Decree shall
be known as the Philippine Sugar Commission Decree.
Section 2. Declaration of Policy. — It shall be the
policy of the state to promote the integrated development and
stabilization of the sugar industry so that it can properly discharge
its economic and social responsibilities and contribute its share in
the development of the national economy.
Section 3. Philippine Sugar Commission. — In order to
carry out the foregoing policy there is hereby created the
Philippine Sugar Commission hereinafter referred to as the Commission
which shall be organized within thirty (30) days after the issuance of
this Decree.
The Commission shall be composed of one Commissioner, who shall serve
as the Chairman and six (6) Associate Commissioners.
The Chairman and all the members of the Commission shall be appointed
by the President of the Philippines. The members of the Commission
shall be Filipino citizens, with sufficient experience in the sugar
industry, and of proven honesty, integrity and recognized competence.
The Chairman and members of the Commission shall hold office for a term
of four years unless sooner removed for cause.
The Commissioner shall receive an annual compensation of Fifty Thousand
(P50,000) Pesos and a commutable representation and transportation
allowance of One Thousand (P1,000) Pesos monthly. The Associate
Commissioners shall receive an annual compensation of Forty Thousand
(P40,000) Pesos and a commutable representation and transportation
allowance of One Thousand (P1,000) Pesos monthly. chanroblesvirtualawlibrary
The Commission shall meet in regular session twice a month. It may be
called by the Chairman to a special session as the need arises.
Section 4. Powers and Functions. — The Commission
shall have the following powers and functions: chanroblesvirtualawlibrary
(a) To establish policies pertaining to all phases of
the sugar industry; and to inquire into other aspects of the sugar
industry with a view to improving existing methods and systems;chanroblesvirtualawlibrary
(b) To enter into contracts, transactions, or
undertakings of whatever nature which are necessary or incidental to
its functions and objectives with any natural or juridical person and
with any foreign government, private corporations, partnerships,
institutions, or private individuals;chanroblesvirtualawlibrary
(c) To levy and collect charges, fees and
contributions to finance its operation, for social amelioration of the
workers in the industry, and for such other purposes as the Commission
may determine. The amount of the fees, charges and contributions shall
be subject to approval by the President.
(d) To act as the single buying and selling agency of
sugar on the quedan-permit level, in order to promote the effective
merchandising and distribution of sugar;chanroblesvirtualawlibrary
(e) To determine the floor-ceiling price of sugar
which will ensure the planters, millers, traders, wholesalers and
retailers a fair return on their investments; Provided, That such
floor-ceiling price of sugar for any crop year shall be the total
anticipated cost of production per picul of sugar as determined by the
Commission plus a corresponding reasonable margin of profit set by the
Price Control Council or any other government agency authorized to
regulate prices of commodities and services after taking into
consideration the effects of devaluation and other economic factors
affecting production, processing, marketing, transportation and other
related expenses including the minimum wage for agricultural and
industrial workers: Provided, further, That the floor-ceiling price
established by the Commission shall be adjusted in direct relation to
significant changes in the cost of production as determined by the
Commission and the Consumer Price Index prepared by the Central Bank of
the Philippines;chanroblesvirtualawlibrary
(f) To promulgate rules and regulations to carry into
effect the provisions of this Decree and impose penalties for the
violation thereof;chanroblesvirtualawlibrary
(g) To assume control and/or supervision of any sugar
mill or refinery that has failed to meet its financial and other
contracted obligations for two years or has become inefficient in its
operation;chanroblesvirtualawlibrary
(h) To organize cooperatives of sugar planters
throughout the Philippines; and
(i) To perform such other functions as are necessary
and incidental to its purposes and objectives.
The Commission shall submit to the President of the Philippines
periodic reports of its survey, studies and investigations together
with its recommendations, for appropriate action.
Section 5. Chief Executive Officer. — The Chairman of
the Commission shall be its Chief Executive Officer. The Chairman
shall, on behalf of the Commission, have the direction and control of
the business of the Commission.
Among others, as Executive Officer, the Chairman shall have the
following powers and duties: chanroblesvirtualawlibrary
(1) To prepare an organizational plan of the office
and plantilla of personnel subject to the approval of the Commission;chanroblesvirtualawlibrary
(2) To direct and manage the affairs and business of
the Commission subject to its supervision and control;chanroblesvirtualawlibrary
(3) To appoint necessary personnel and fix their
salaries, which shall be exempt from the provisions of laws, rules and
regulations on Wage and Position Classification except, clerical and
janitorial services, with the approval of the Commission. chanroblesvirtualawlibrary
In case of absence or temporary incapacity of the Chairman, the
Chairman shall designate from among the Commissioners an acting
Chairman.
Section 6. There shall be Social Welfare Office under
the Office of the Chairman.
Section 7. Capitalization, Special Fund of the
Commission, Development and Stabilization Fund. — There is hereby
established a fund for the Commission for the purpose of financing the
growth and development of the sugar industry and all the components,
stabilization of the domestic market including the foreign market to be
administered in trust by the Commission and deposited in the Philippine
National Bank derived in the manner herein below cited from the
following sources:cralaw:red
(a) Stabilization fund shall be collected as provided
for in the various provisions of this Decree.
(b) Stabilization fees shall be collected from
planters and millers in the amount of Two (P2.00) Pesos for every picul
produced and milled for a period of five years from the approval of
this Decree and One (P1.00) Peso for every picul produced and milled
every year thereafter, Provided: That fifty (P0.50) centavos per picul
of the amount levied on planters, millers and traders under Section
4(c) of this Decree will be used for the payment of salaries and wages
of personnel, fringe benefits and allowances of officers and employees
for the purpose of accomplishing the efficient performance of the
duties of the Commission, Provided, further: That said amount shall
constitute a lien on the sugar quedan and/or warehouse receipts and
shall be paid immediately by the planters and mill companies, sugar
centrals and refineries to the Commission. chanroblesvirtualawlibrary
Section 8. Audit Personnel. — The Chairman,
Commission on Audit shall appoint his representative to the
Commission and the necessary personnel to assist him. The salaries of
the auditor and his personnel shall be determined and paid by the
Commission. The affairs of the Commission shall be audited in
accordance with law and pertinent rules and regulations. A report of
audit for each fiscal year shall be submitted by the auditor to the
Chairman, Commission on Audit, to the Commission and the President of
the Philippines. chanroblesvirtualawlibrary
Section 9. Financing. — Until otherwise provided, the
Commission shall continue to receive the proceeds of revenues and other
impositions as are now granted by the law to the Philippine Sugar
Institute and the Sugar Quota Administration.
Section 10. Transitory Provisions. — The Philippine
Sugar Institute and the Sugar Quota Administration are hereby
abolished and absorbed effective upon organization of the Commission
and all their assets, liabilities and records shall be transferred to
the Commission. The Commission may retain the personnel of said
agencies as it may deem necessary. Those of the personnel who may not
be retained shall be entitled to retirement benefits, otherwise they
shall be granted gratuity to be determined by the Commission.
Section 11. Miscellaneous Provision. — All laws or
parts thereof inconsistent with the provisions of this decree are
hereby repealed or modified accordingly.
Section 12. Effectivity. — This decree shall take
effect immediately.
Done in the City of Manila,
this 2nd day of February, in the year of Our Lord, nineteen hundred and
seventy-four.
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