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PRESIDENTIAL DECREE NO. 817
PRESIDENTIAL DECREE NO. 817
- AMENDING CERTAIN SectionS OF REPUBLIC ACT NO. 3470, AS AMENDED,
ENTITLED "AN ACT CREATING THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY (NACIDA), UNDER THE DEPARTMENT OF COMMERCE AND INDUSTRY,
PRESCRIBING ITS DUTIES, POWERS AND FUNCTIONS, AND APPROPRIATING FUNDS
THEREFOR"
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chanroblesvirtualawlibrary
WHEREAS,
there is an imperative need to amend the NACIDA Law in order to update
its provisions and make it attuned with the modern trends in the
production and trading of cottage industry products;chanroblesvirtualawlibrary
WHEREAS, cottage industry products now ranks as the No. 6 dollar earner
among the commodity exports of the nation and deserve to be accorded
more incentives for growth and viability;chanroblesvirtualawlibrary
WHEREAS, it is necessary to encourage the establishment and promotion
of cottage industries in order to generate more employment
opportunities.
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 the amendment of Republic Act No. 3470, as amended by
Republic Act No. 5326.
Section 1. Section 1 of Republic Act No. 3470 is
hereby amended to read as follows:cralaw:red
"Sec. 1. Within thirty days after the approval of
this Act, the President of the Philippines shall create a board known
as the National Cottage Industries Development Authority, hereinafter
referred to as the Board, under the Department of Trade, which shall be
composed of a Chairman and three members, one of whom shall be a
representative of the private sector to be nominated by at least two
(2) existing recognized cottage industry chambers or associations:
Provided, That no person who is a candidate for a public elective
office at the time of his appointment or was such a candidate at the
general or special elections immediately preceding the same shall be
eligible for appointment as administrator, deputy administrator or
member of the board of directors. The Chairman and members of the
Board, who shall be appointed by the President of the Philippines,
shall hold office for a term of six years unless sooner removed or
otherwise separated from the service for causes provided by law, in
which case a successor may be appointed for the unexpired term. The
chairman and members of the Board shall be entitled to a per diem of
P200.00 for each session actually attended by them: Provided, however,
That in no case shall a regular or special session exceed ten sessions
monthly and that their per diems shall not exceed P2,000 per month.
They shall likewise receive commutable transportation and
representation expenses not exceeding P1,000.00 monthly. The President
of the Philippines shall appoint an administrator and a deputy
administrator of the Board with a compensation of P38,000.00 and
P30,000.00 per annum, respectively. The other officers and personnel of
the Board shall be appointed by the Administrator with the approval of
the Board of Directors in accordance with the Civil Service Law:
Provided, That all such officers and personnel shall be exempt from
WAPCO rules and regulations, and provided, further, that they shall
receive, in addition to their regular compensation, an incentive pay
equivalent to one month's salary for every year of meritorious service
rendered."
Section 2. Section 2, paragraph (d) of Republic Act
No. 3470 is hereby amended to read as follows:cralaw:red
"(d) To promote the standardization of cottage
industries products, prescribe rules and regulations governing the
grading, classifying and inspecting of cottage industries products
especially those for export: Provided, That notwithstanding the
provisions of any law, decree, letter of instructions or executive
order, the NACIDA shall establish an Accreditation Committee which
shall be charged with regulating and supervising the activities of
persons, firms or corporations engaged in the production or
manufacture, trading locally or exporting of cottage products or raw
materials thereof."
Section 3. Section 4 of Republic Act No. 3470 is
hereby amended to read as follows:cralaw:red
"Sec. 4. Powers and Duties of the Board of
Directors:cralaw:red
(a) To fix the compensation and number of officers
and employees of the Board;chanroblesvirtualawlibrary
(b) To approve the annual and/or supplemental budget
of the Board which may be submitted to it from time to
time; chanroblesvirtualawlibrary
(c) To administer the revolving marketing fund; and
(d) To enunciate the policies that shall guide the
operations of the Board.
Section 4. Section 7, second paragraph is hereby
amended to read as follows:cralaw:red
"Each of those institutes shall be headed by a Cottage Industries
Manager who shall be assisted by an Assistant Cottage Industries
Manager, both of whom shall be appointed by the Administrator upon the
recommendation of the Board of Directors, with compensation of eighteen
thousand pesos and twelve thousand pesos per annum, respectively."
Section 5. Section 11 of Republic Act No. 3470, as
amended by Section 1 of Republic Act No. 5326 paragraph 1, is hereby
further amended to read as follows:cralaw:red
"Sec. 11. Definition. — The term "cottage industry"
as used in this Act shall mean an economic activity carried on in the
homes or in other places for profit, with a capitalization of not
exceeding P100,000 at the time of registration. The term shall also
include economic activities carried on by students of public and
private schools, within school premises, as a cooperative effort, under
supervision of a teacher or other person approved by and acting under
the supervision and control of school authorities, either as part of or
in addition to ordinary vocational training, provided all profits shall
accrue to the students working therein. It shall include the following:
(1) fiber crafts, such as making of abaca ropes and twines, buntal
fiber extracting and buri leaf braiding; (2) woodcraft such as making
of wooden shoes, wooden fans, walking sticks (canes) and wood carving;
(3) hat weaving such as calasiao, buri, raffia, karagomoy, buntal and
bamboo hats, salakot and helmet; (4) mat weaving such as doormats,
sleeping mats made of buri, pandan, balilan, and salutan and other
similar materials; (5) metal craft such as making of jewelries, knives,
boloes, scissors, razors, silverwares, and brassworks; (6) ceramics
such as making potteries, hollow blocks, tiles, firebricks, clay stoves
and other ceramic products; (7) shell craft such as making of sea shell
buttons and coconut shell products; (8) bamboo and rattan crafts such
as making of hammocks, basketry, making of sawali and other bamboo and
rattan furniture and articles; (9) small agricultural hand tools such
as plow points; (10) toy craft such as making of dolls and toys; (11)
embroidery, dressmaking and tailoring industries; (12) needle craft
(including knitting and crocheting); (13) loom weaving such as making
of fish nets; making of mosquito nets, weaving of Ilocano cloth, Igorot
weaving, piña 'barong Pilipino' jusi and sinamay; (14) machine
parts manufacture such as wheels and stone mortars; (15) poultry
including duck raising and 'balut' making; (16) piggery; (17) home
cigar making; (18) food preservation and canning, including the making
of vinegar wine, lambanog, 'bagoong', pili or peanuts confectionery or
coconut candy (bucayo); (19) other related crafts such as making of
brooms, pandan, nito and buri bags, 'Karagomoy' bags, bead making,
guitar and other musical instruments; and (20) such other industries
done in the home with thed of electrical gadgets and/or by hand
manipulations. All cottage industries shall be owned and operated by
Filipino citizens or by a corporation, partnerships or cooperative, at
least seventy-five percent of the capital or investment of which is
owned by Filipino citizens. All members of its Board of Directors shall
be Filipino citizens. chanroblesvirtualawlibrary
Section 6. Section 16, paragraph 1, as amended, is
hereby further amended to read as follows:cralaw:red
"Sec. 16. The production, manufacture and sale of
cottage industry products shall be exempt from all taxes, except
specific and income taxes, for a period of five years from the date of
registration of the person or firm engaged in the production or
manufacture of cottage industry products with the Board: Provided, That
seventy-five per cent of the total cost of raw materials utilized in
the production or manufacture of cottage industry products consist of
raw materials of Philippine origin: Provided, further, That the latter
requirement as to raw materials shall not apply to embroidery, piggery,
poultry, livestock and metal craft industries: Provided, furthermore,
That no exemptions from the percentage taxes on sales shall be enjoyed
for all sales in excess of four hundred thousand pesos each year:
Provided, finally, That the provisions of the law on cooperatives shall
not be affected by this Act."
Section 7. Such sums as may be necessary to carry
out the purposes of this Decree are hereby appropriated out of any
funds in the National Treasury not otherwise appropriated. Thereafter,
the sum necessary for said purposes shall be included in the annual
General Appropriations Decree.
Section 8. All laws, decrees, rules and regulations
inconsistent herewith are hereby repealed or modified accordingly.
Section 9. This Decree shall take effect
immediately.
DONE in the City of Manila,
this 22nd day of October, in the year of Our Lord, nineteen hundred and
seventy-five.
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