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PRESIDENTIAL DECREE NO. 579
PRESIDENTIAL DECREE NO. 579 -
RATIONALIZING AND STABILIZING THE EXPORT OF SUGAR AND FOR OTHER PURPOSES
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WHEREAS,
the current worldwide shortage of sugar has brought about an
increasingly speculative interest in sugar which has further induced
uncertainty in its price especially in the world market; chanroblesvirtualawlibrary
WHEREAS, the uncertain fluctuations in the price of sugar will expose
the export of sugar to risky speculation which will depress prices
adversely affecting the profitability of the sugar industry and the
foreign exchange earnings of the country;chanroblesvirtualawlibrary
WHEREAS, in the interest of the general objective to promote public
welfare, the government shall take direct and active role to protect
the sugar industry and our national economy from the deleterious
effects of speculative ventures with respect to sugar;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers in me vested by the Constitution, do hereby
decree and order:cralaw:red
Section 1. The Sugar Quota Administration shall from
time to time and commencing from the crop year 1973-1974, reallocate
such portion and the total sugar production per crop year for export to
the United States and world markets as may be necessary to safeguard
the sugar industry and the national economy against contingencies
brought about by speculative interests in sugar.
In addition to its powers under existing laws, the Sugar Quota
Administration shall have the power to issue authorization for the
export of sugar in accordance with the reallocations provided for in
the preceding paragraph.
Section 2. To carry out the objective of the Decree,
the Philippine Exchange Company, Inc. may be authorized by the
President of the Philippines to purchase sugar allocated for export to
the U.S. and world markets in a quantity and at a price to be fixed in
accordance with the rules and regulations that shall be established by
the Sugar Quota Administration, the Philippine National Bank, and the
Department of Trade and approved by the President of the Philippines.
Section 3. The Philippine National Bank shall finance
these purchase of sugar from the following sources of funds:cralaw:red
a) Foreign borrowings that the Bank is hereby
authorized to obtain, for and in behalf of the Philippine Exchange
Company, Inc.;chanroblesvirtualawlibrary
b) Its available loanable funds that it shall lend to
the Philippine Exchange Company, Inc.; or
c) Proceeds from the rediscounting of loans or notes
with the Central Bank of the Philippines.
Section 4. To effectively implement the provisions of
the preceding section, loans, advances by the Philippine National Bank
to the Philippine Exchange Company, Inc. for the purpose directed in
this Decree shall be exempt from the loans limits imposed in the
charter of the said Bank.
The Central Bank of the Philippines shall rediscount the loans or notes
referred to in paragraph c) of the preceding section and shall grant
the authorization or approval for the foreign borrowings that may be
contracted by the Philippine National Bank authorized under paragraph
a) thereof.
Foreign borrowings obtained under these provisions shall be exempt from
any and all taxes, including withholding tax.
Section 5. The Department of Trade and the Sugar
Quota Administration shall extend full cooperation and assistance to
the government agencies and entities herein mentioned in order to
attain objectives of this Decree and shall furnish them with such data
and information as may be necessary for effective international
marketing of sugar.
Section 6. The sugar so purchased by the Philippine
Exchange Company, Inc. shall not be disposed of without the prior
approval of the President of the Philippines. The Philippine Exchange
Company, Inc. shall handle the export and such shipment of such sugar
to the U.S. and world markets.
Section 7. The proceeds of the sugar trading
operations of the Philippine Exchange Company, Inc. shall be used to
pay its liabilities to the Philippine National Bank, or to the foreign
creditors of the Philippine National Bank from whom financing has been
obtained.
The Philippine Exchange Company, Inc. shall charge a commission of two
and one-half (2-1/2%) per cent of gross sales, of which one (1%) per
cent shall cover all its overhead expenses and the balance of one and
one-half (1-1/2%) per cent shall be set aside as a fund for the "Sugar
Development Program" of the Philippine National Bank.
After deducting its commission of two and one-half (2-1/2%) per cent of
gross sales, the balance of proceeds of sugar trading operations for
every crop year shall be set aside by the Philippine Exchange Company,
Inc. as profits which shall be paid to a special fund of the National
Government subject to the disposition of the President for public
purposes. chanroblesvirtualawlibrary
Section 8. The profits realized by the Philippine
Exchange Company, Inc. from the sugar trading operations authorized
under this Decree shall be exempt from any and all taxes imposed by the
National Government and its political subdivisions.
Section 9. All laws, executive orders and
administrative orders, rules and regulations inconsistent with the
foregoing provisions are hereby repealed or amended
accordingly. chanroblesvirtualawlibrary
Section 10. This Decree shall take effect immediately.
DONE in the City of Manila,
this 12th day of November, in the year of Our Lord, nineteen hundred
and seventy-four.
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