WHEREAS,
there is a need strengthen government efforts towards industrial
development to further accelerate economic growth; and
WHEREAS, accelerated industrialization needs integrated
government assistance and guidance to bring about industry
diversification, dispersal, rationalization and continued
growth. chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
adopt; approve and make as part of the law of the land the amendment to
the provisions of Part IX of the Integrated Reorganization Plan by
creating a Department of Industry.
Section 1. Creation of a Department of Industry. —
There is hereby created a Department of Industry, hereinafter referred
to as the Department, which shall be the primary policy, planning,
programming, coordinating, implementing and administrative entity of
the executive branch of the government in the development, expansion,
diversification of industry, in pursuance of the following objectives:cralaw:red
a. Guide the development and operation of industry
along directions of most contributory to the national goals as domestic
and international conditions make appropriate and as defined from time
to time by the President and/or the National Economic and Development
Authority;chanroblesvirtualawlibrary
b. Improve linkages and inter-relationships of
industry with the development of the country's agriculture, natural
resources, public services, and infrastructure, and reinforce and
enhance the contribution of these sectors, conjunctively with industry,
to the national progress and welfare;chanroblesvirtualawlibrary
c. Identity the needs, encourage and assist the
achievement of national self-sufficiency, without undue burdens to the
end-consumers, in essential industrial products, in accordance with the
philosophy of the self-reliance; chanroblesvirtualawlibrary
d. Improve the ownership structure of industry to
promoting broader ownership of large-scale industrial enterprises,
accelerate the formation and growth of small-scale and medium-scale
industrial enterprises, and encourage and promote the dispersal of
industry throughout the country; and
e. Develop the capabilities of industry to increase
the domestic content of its products, to upgrade the quality of
products according to competitive international standards to reduce
costs of production, particularly those involving foreign exchange, and
in coordination with the Department of Trade, to export manufacturers
to the international and regional markets.
Section 2. Authority and Responsibility. — The
authority and responsibility for the exercise of the powers and
discharge of the functions of the Department shall be vested in the
Secretary of Industry, hereinafter referred to as the Secretary. The
Secretary shall be assisted by one Undersecretary.
Section 3. Powers and Functions. — The Department
shall have the following powers and functions:cralaw:red
a. Coordinate all activities of the government
relative to industry;chanroblesvirtualawlibrary
b. Encourage, guide and if necessary, regulate the
establishment, growth and expansion of large-scale industries and firms
within these industries;chanroblesvirtualawlibrary
c. Adopt guidelines, subject to the approval of the
President, and implement them for rationalization of certain industries
whose continued operation will result in the dislocation of and/or
overcrowding in said industries, thus, retarding economic growth; upon
approval of said guidelines by the President, the Department of the
Board of Investments, upon request of the Department, shall implement
such guidelines and may, in appropriate cases, after due notice and
hearing restrict, either totally or partially, the importation of any
equipment or raw materials for firms in the industry not conforming
with the prescribed guidelines;chanroblesvirtualawlibrary
d. Coordinate with the Board of Investments with
respect to the implementation of rationalization schemes adopted by the
Board by virtue of its powers under Sec. 16(1) of R.A. 5186;chanroblesvirtualawlibrary
e. Coordinate with other government agencies,
particularly of the Department of Trade, for the increase in
exports of recently established lines of manufactured products;chanroblesvirtualawlibrary
f. Assist investors, foreign or domestic, in
desirable industrial projects, whether registrable with the Board of
Investments or not, to have their papers processed with dispatch by all
government offices, agencies, instrumentalities and financial
institutions;chanroblesvirtualawlibrary
g. Promote cooperation in desirable industrial
undertakings on complementation basis in the Southeast Asian regions;chanroblesvirtualawlibrary
h. Encourage the establishment, growth and expansion
of medium and small-scale industries particularly in rural areas
through effective assistance and guidance in the manufacture of the
industrial products concerned;chanroblesvirtualawlibrary
i. Coordinate and integrate all technical, financial,
marketing, purchasing and promotional assistance of the government for
medium and small-scale industries;chanroblesvirtualawlibrary
j. Establish consultation on an institutionalized
basis with the private industrial sectors to encourage their
participation in planning and implementation for industrial
development, in pursuance of objectives established by the government;chanroblesvirtualawlibrary
k. Prescribed and enforce compliance with such rules
and regulations as may be necessary to implement the intent and
provisions of this Decree, which rules and regulations shall take
effect immediately following their publication in two newspapers of
general circulation in the Philippines;chanroblesvirtualawlibrary
l. Conduct investigation, hearing and inquiry and for
this purpose, issue subpoena and subpoena duces tecum to compel the
attendance of witnesses and the production of the necessary papers and
documents;chanroblesvirtualawlibrary
m. Require any person or entity to submit to it such
report, data, information, paper, or document it may deem necessary in
the exercise of its powers and functions;chanroblesvirtualawlibrary
n. Establish, in accordance with pertinent laws, such
advisory committee as may be appropriate for purposes of consultation
and advice to the Department in the performance of its functions;chanroblesvirtualawlibrary
o. Perform such other functions as may be necessary
to carry into effect the provisions of this Act; and
p. Perform such other functions as may be provided by
law.
Section 4. Staff Services. — The Department shall
have an Administrative Service, a Planning Service, a Legal Service,
and a Financial and Management Service in conformity with Part II of
the Integrated Reorganization Plan.
Section 5. Bureau of Industrial Coordination. — There
it is hereby created in the Department a Bureau of Industrial
Coordination which shall, among others, coordinate and guide industries
and industry sectors (including enterprises within such industries
which are not registered with the Board of Investments) to attain
development objectives promulgated by the government, maintain liaison
with industry associations, keep informed of developments in the
various industries, supervise progress and implementation of the
various large- scale industry programs initiated by the Department but
not covered by any existing industrial authority, and specifically
perform the functions enumerated in Section 3-c, d, e, f, g, and j.
The Bureau of Industrial Promotion in the Department of Trade is
abolished and its pertinent functions are transferred to the Bureau of
Industrial Coordination together with applicable appropriations,
records, equipment, property and such personnel as may be necessary.
The Board of Investments shall continue to be responsible for the
registration and supervision of enterprises for investment and export
incentives under its respective priorities plans, and for licensing
foreign investment under R.A. 5455.
Section 6. Small and Medium Industries Commission. —
There is hereby created in the Department a Commission on Small and
Medium Industries which shall, among others, promote, assist and
develop medium and smallscale industries; undertake studies, surveys,
researches and technical assistance programs in connection therewith;
coordinate and integrate policies and programs for technical,
financial, marketing, purchasing and promotional assistance to medium
and small-scale industries rendered by the following government
agencies: chanroblesvirtualawlibrary
1. Department of Local Government and Community
Development
2. U.P Institute of Small-Scale Industries
3. Development Academy of the Philippines
4. National Manpower and Youth Council
5. NEDA/CB Industrial Guarantee Loan Fund
6. Development Bank of the Philippines
7. Greater Manila Terminal Food Market
8. Philippine International Trading Corporation
9. Design Center Philippines
10. Bureau of Domestic Trade
11. National College Industries Development Authority
The above-named agencies shall nominate one (1) representative each to
the Commission for purposes of coordination, consultation and liaison.
This Commission shall replace the National Council of Medium and
Small-Scale Industries. The Commission shall be headed by the
Undersecretary of the Department. He shall be assisted by an Executive
Director, and such other regional officers deemed necessary, who shall
be appointed by the Secretary.
Section 7. Bureau of Industrial Information and
Programs. — There is hereby created in the Department Bureau of
Industrial Information and Programs which shall, among others, received
from industries and analyze statistical information relating to
production, sales, inventories, imports of major materials, levels of
receivables and expansions plans to enable the Department to monitor
and measure industry performance, anticipate problems and provide
guidance to industry. It shall also formulate development programs for
various industry sectors. chanroblesvirtualawlibrary
Section 8. Board of Investments. — The Board of
Investment is transferred from the National Economic and Development
Authority and attached to the Department for program and policy
implementation. The Secretary of Industry shall be concurrently
Chairman of the Board of Investments. The Vice- Chairman of the Board
who shall be appointed by the President shall concurrently be its
Managing Head.
Section 9. Personnel. — Except for such technical
positions as Secretary may recommend to and be approved by the
President, all positions therein shall be subject to the provisions of
the Civil Service Law and the rules and regulations of the Wage and
Position Classification Office (WAPCO).
Section 10. Attached Agencies. — The following
agencies are hereby attached to the Department: Iron and Steel
Authority, Fertilizer Industry Authority, Cement Industry Authority,
and Presidential Advisory Committee on the Copper Industry.
The Department shall coordinate with other government agencies,
particularly the Department of Trade, for the export promotion
activities of the foregoing attached authorities. chanroblesvirtualawlibrary
Section 11. Appropriations. — To carry out the
purposes of this Decree, there is hereby appropriated, out of any funds
in the National Treasury not otherwise appropriated, the sum of four
million pesos (P4,000,000) for the fiscal year nineteen hundred and
seventy-four to nineteen hundred and seventy-five (1974-1975) and the
sum of two hundred thousand pesos (P200,000) for the remainder of
fiscal year nineteen hundred and seventy-four (1973-1974). Thereafter,
the appropriations for the Department of Industry shall be included in
the Annual General Appropriation Act.
Section 12. Repeal. — Any and all acts, statutes,
decrees, rules, regulations or parts thereof inconsistent herewith are
hereby repealed or modified accordingly.
The Department of Trade shall perform all the functions, except those
pertaining to industry, of the Department of Trade and Tourism pursuant
to the applicable provisions of the Integrated Reorganization Plan, as
amended by Presidential Decree No. 189.
Section 13. Effectivity. — This Decree shall take
effect immediately.
Done in the City of Manila,
this 21st day of June in the year of Our Lord, nineteen hundred and
seventy-four.
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