Pursuant to the authority of the Film Development Council of the
Philippines (FDCP) under Section 19 of R.A. 9167, otherwise known as
the "Law Creating the Film
Development Council," the following Rules and Regulations are
hereby promulgated:
Article
1
General
Provision
Section 1. Statement of Policy and Objectives. - The State guarantees
freedom of expression. Towards this end, the State shall promote and
support the development and growth of the domestic film industry,
recognizing its role as an effective medium to uplift aesthetic,
historical, cultural and social values and better understand and
appreciate the Filipino identity.
Article
2
Definition
of Terms
Sec. 2. Definition of Terms. – As used in these Rules, the following
terms are defined as follows:
(a)
"The Act" - An Act
Creating the Film Development Council of the Philippines, Defining its
Powers and Functions, Appropriating Funds Therefor, and for Other
Purposes (Republic Act No. 9167)
(b) "Council" - The Film Development
Council of the Philippines (FDCP) created by Republic Act 9167
(c) "Board" - The Cinema Evaluation
Board (CEB), which shall evaluate and grade films submitted to the
Council.
(d) "Feature Film" - The principal
motion picture shown on a program with other pictures
(e) "Highly Urbanized Cities" - Cities
with a minimum population of two hundred thousand (200,000)
inhabitants, as certified by the National Statistics Office, and with
the latest annual income of at least Fifty Million Pesos
(P50,000,000.00) based on 1991 constant prices, as certified by the
city treasurer, and as defined in the Local Government Code of 1991
(f) "Independent Component Cities" -
Those component cities whose charters prohibit their voters from voting
for provincial elective officials, as defined in the Local Government
Code of 1991
(g) "Amusement Tax"- Tax collected from
the proprietors, lessees, or operators of theaters, cinemas, concert
halls, circuses, boxing stadia, and other places of amusement at a rate
of not more than thirty percent (30%) of the gross receipts from
admission fees.
(h) "Theater or Cinema" - An
establishment devoted exclusively to the exhibition of motion pictures
(i) "Producer" - A business executive
engaged in the production of motion pictures, usually exercising final
authority over all activities entailed in the making thereof.
Article
3
The Film
Development Council
Sec. 3. Meetings. - The Council shall meet regularly at least once a
month or as often as necessary at the call of the Chairperson or a
majority of the members. In the absence of the Chairperson, the members
present constituting a quorum may choose a presiding officer from among
themselves. A majority of the members of the Council shall constitute a
quorum to do business and to carry out its functions.
Sec. 4. Voting. - The Council shall act as a collegial body. In the
conduct of meetings, the Chairperson shall not vote except to break a
tie.
Sec. 5. Specific Powers and Functions.
(a)
To establish and implement a Cinema Evaluation System applying the
criteria under Section 11 of the Act;
(b) To develop and implement an
incentive and reward system for producers based on merit to encourage
the production of quality film;
(c) To establish, organize,
operate and maintain domestic and international film festivals,
exhibitions and similar activities.
(d) To encourage and undertake
activities that will promote the growth and development of the domestic
film industry and promote its participation in both domestic and
foreign markets;
(e) To develop and promote
programs to enhance the skills and expertise of Filipino talents
necessary for quality film production;
(f) To prescribe procedures for
the exercise of its powers and functions as well as the performance of
its duties and responsibilities;
(g) To determine the Council's
organizational structure and staffing pattern and appoint officers and
employees consistent with existing laws;
(h) To acquire, manage and hold
such real and personal property as may be necessary to carry out the
purposes and objectives of the Act;
(i) To invest funds and other
assets in activities designed to promote the development of the film
industry and the production of films;
(j) To ensure the establishment
of a film archive for the preservation of film negatives and/or prints;
and,
(k) To perform such other
functions as may be necessary to carry out the provisions of this Act.
Sec. 6. Composition of the
Council.
(a)
Chairperson - The
Chairperson, with the rank and salary of an Undersecretary, shall be
the Chief Executive Officer of the Council. He/she shall exercise
administrative supervision to ensure the implementation of the policies
of the Council and execute the functions provided under Sec. 9 of
the Act. The Chairperson is appointed by the President for a term of
three (3) years unless sooner removed by the President. He/she shall be
eligible for reappointment but shall not serve for more than two (2)
consecutive terms.
(b) Regular Members (3) - There shall
be three (3) regular members each representing respectively (i) legally
constituted filmmakers association; (ii) legally constituted theater
owners association; and, (iii) academe. They shall be appointed by the
President for a term of three (3) years unless sooner removed by the
President. They shall be eligible for reappointment but shall not serve
for more than two (2) consecutive terms.
(c) Ex-Officio Members (7) - There
shall be seven (7) members sitting in an ex-officio capacity composed
of the following: (i) Secretary of the Department of Trade and Industry
or his/her duly designated representative; (ii) Secretary of the
Department of Education or his/her duly designated representative;
(iii) Chairperson of the Film Academy of the Philippines; (iv)
President of the Cultural Center of the Philippines; (v)
Commissioner/Head of the Committee on Cinema of the National Commission
on Culture and the Arts; (vi) President of the League of City Mayors or
his/her duly designated representative; and, (vii) Chairperson of the
Metro-Manila Development authority or his/her duly designated
representative.
Sec. 7. Succession to Vacant Position. - any person who succeeds to
a position left vacant by a member shall serve only for the unexpired
portion of the vacated term. Service of the unexpired portion shall not
be counted as a term.
Sec. 8. Honoraria. - Each member of the Council or his / her duly
designated representative shall receive an honorarium for each meeting
actually attended, the amount of which will be determined by the
Council based on government rules and regulations.
Article
4
Secretariat
Sec. 9. Executive Director. - The Chairperson shall be assisted by
an Executive Director to be appointed by the Council upon
recommendation of the Chairperson. His/her term of office shall be
co-terminus with the Chairperson unless sooner removed for cause.
He/She shall receive a salary comparable to that of equivalent rank
under the Revised Compensation and Position Classification System.
Section 10. Functions of the Executive Director. - The Executive
Director shall head the Secretariat of the Council and exercise such
duties and responsibilities as may be assigned by the Chairperson.
Section 11. Support Staff. - The Secretariat shall have such operating
units and personnel as the Council may find necessary for the proper
performance of its functions.
Section 13. Functions of the Secretariat. - The functions of the
Secretariat shall include the following:
(a)
To manage and administer the day-to-day operations of the Council under
the supervision of the chairperson;
(b) To facilitate communications
and linkages with the Cinema Evaluation Board and the different
government offices, non-governmental agencies and the public, as well
as with domestic and international film festivals and markets;
(c) To provide secretariat and
record-keeping services to the Council; and
(d) To perform such other duties
as may be assigned by the Council.
Article
5
Cinema
Evaluation Board (CEB)
Section 14. Composition of the Board.
(a)
Chairperson - The Board
shall have a Chairperson who shall serve for a term of two (2) years
and shall be eligible for reappointment for a second term.
(b) Film Industry Members (20) - There
shall be twenty (20) members of the Board who shall come from the film
industry. These members shall serve for two (2) years and shall be
eligible for reappointment for a second term.
(c) Arts, Academe, Business and Other Sectors
(10) - There shall be ten (10) members of the Board who shall come from
the field of arts, the academe, business and such other sectors as the
Council may choose or identify. These members shall serve for two (2)
years and shall be eligible for reappointment for a second term.
Section 15. Initial Appointments
to the Board. - In the initial appointments, the Board Chairperson and
the first fifteen (15) members shall hold office for two (2) years and
the next fifteen (15) for one (1) year. The President shall appoint the
members of the Board from among forty (40) nominees submitted by the
Council.
Section 16. Succession to Vacant Position. - Any person who succeeds to
a position left vacant by a member shall serve only for the unexpired
portion of the term, unless re-appointed. Service of the unexpired
portion shall not be counted as a term. A successor shall be appointed
from among the list of nominees recommended by the Council.
Section 17. Vice-Chairperson. - The Council, upon recommendation of the
Board Chairperson, shall designate a Board Vice- Chairperson from among
the members of the Board.
Section 18. Meetings. - The Board shall determine its own rules and
procedures, including the regular date, time and venue of their
meetings subject to the approval of the Council; provided, that the
presence of the Chairperson or his/her duly designated representative
who is also a Board member, and at least eleven (11) members, will
suffice to constitute a quorum for the purpose of transacting business;
Provided further, that the Board Chairperson will not vote unless to
break a tie.
Section 19. Specific Powers and Functions. - The Board shall undertake
the following tasks:
(a)
Evaluate and grade films submitted to the Council subject to Section 12
of the Act;
(b) Formulate and establish a
set of standards and criteria and procedures for the Cinema Evaluation
System primarily based on the categories enumerated in Section 11(a)-(h) of the Act, subject to the approval of the Council; and,
(c) Such other functions which
the Council may assign from time to time.
Sec. 20. Cinema Evaluation
System. - The Cinema Evaluation System, subject to the approval of the
Council, shall be based on but not limited to the following:
1.
Direction - effective, focused and insightful integration of the
different cinematic arts and crafts involved in a production, utilizing
the unique strengths of the medium to dynamically depict the film's
meaning and intent.
2. Screenplay - a detailed
scenario containing dialogue, actions, and general atmosphere to be
incorporated into the finished motion picture. A superior screenplay
contains a blueprint in words of an intense and imaginative vision of
the world.
3. Cinematography - creative use
of key elements of the film medium's visual language - lighting,
composition, movement, camera techniques - to dynamically depict
conflict, theme, story and character as they relate to the production's
significant intent.
4. Editing - the creative use of
tempo, transitions, tonal changes and other editing techniques to
provide the movie with the unique visual energy and style it needs to
develop its plot and theme in cinematic terms.
5. Production Design - the
effective, appropriate and imaginative representation of locale,
period, atmosphere, costumes, make-up, hairstyles and props as they
relate to character, story and style to actualize the film's
significant objective.
6. Music Score - the creative
and appropriate use of music to enhance emotion, mood and atmosphere,
help define character, and establish rhythm and pacing, in furtherance
of the film's creative intent.
7. Sound - the effective and
creative interplay of dialogue, music, natural sound and recorded sound
effects to give the film the aural values to generate audience empathy.
8. Performance - the clear,
honest and stylistically consistent depiction of character, emotion,
motivation, and personal and societal relationships, resulting in the
creation onscreen of people whom viewers can understand and empathize
with.
Sec. 21. Honoraria. - Each
Board member shall receive an honorarium for each film actually
evaluated, the amount of which shall be approved by the Council based
on government rules and regulations.
Sec. 22. Prohibition and Disqualification. - Every member of the
Board shall conduct himself/herself with utmost honesty and integrity
at all times. No member of the Board shall participate in the grading
of a film in which he/she or any member of his/her family or any
relative within the fourth degree of consanguinity or affinity shall
have financial or any other interest in the subject film. Such member
has the duty to disclose fully in writing, at the time of his/her
inhibition, the nature of his/her interest, including actual or
potential conflict of interest and the reasons for his/her inhibition,
the nature of his/her interest, including actual or potential conflict
of interest and the reasons for his/her inhibition. Failure to do so
shall be subject to formal investigation without prejudice to sanction.
Article
6
Application
for Grading of Films
Sec. 23. Pre-qualification Requirements for Feature Films. - Any
feature film subject to grading must comply with the following:
(a)
The film must be intended for theatrical and other forms of exhibition
in the Philippines that will charge admission fees and are subject to
amusement tax;
(b) The film must have a total
running time of at least eighty (80) minutes;
(c) The premiere commercial
screening of the film must be held in the Philippines; and
(d) The film should not have had
any previous commercial theatrical release, free television broadcast,
cable broadcast or video release in any commercial medium anywhere in
the world; provided, that films shown publicly in venues and theaters
outside post-production laboratories, and whose premiere nights or
advanced screenings like sneak previews / midnight screenings in
commercial theaters are charging admission fees, shall not be qualified
for application and grading; Provided, further, that notwithstanding
any previous release, the following films shall not be disqualified for
application and grading: (i) those shown privately in venues and
theaters extended for free use; (ii) special technical previews for
investors and production people whose work is germane to the films,
wherein admission is by invitation; and, (iii) screenings which have
academic discussions or open fora.
Sec. 24. Procedures for
Grading.
(a)
The applicant producer or his/her duly authorized representative should
fill-up an application form available at the Secretariat;
(b) The properly filled-up
application form together with the required screening fee determined by
the Council should be submitted to the CEB-FDCP at least seven (7)
calendar days before its scheduled playdate;
(c) The film will be reviewed,
evaluated and graded by the Board within five (5) working days after
submission of the application and shall transmit its decision to the
Council within twenty-four (24) hours from the rendering of the
decision. The grading submitted by the Board en banc to the Council
shall be final;
(d) The film subject of review
should be submitted in its entirety by 10:00 a.m. on the day of the
scheduled viewing;
(e) In the event the producer or
his/her duly authorized representative fails to deliver the film on
time for the scheduled review, the producer shall be liable for the
expenses incurred related to the scheduled review, including the costs
of food, venue and honoraria of authorized viewers;
(f) No producer and/or his/her
duly authorized representative nor any member of the cast, staff or
crew shall be allowed to stay inside the preview room/venue(s) during
the screening and deliberations;
(g) No gifts from any party
involved in the production will be accommodated or received;
(h) If any applicant producer or
his/her duly authorized representative fails to submit a scheduled film
for review for three (3) consecutive times, the Board will not
entertain his/her future application for that particular film;
(i) The Council shall inform the
applicant producer of the Board's decision not later than twenty-four
(24) hours upon receipt thereof;
(j) The applicant producer will
be furnished with the Board's decision and reviews, including a list of
members present and the date, time and place of screening/grading;
(k) The Board and the Council
shall not be allowed to cut, delete, shorten or modify in any manner
films being graded by the Board, nor shall they be allowed to suggest
cuts or deletions or any other form of modification to the film-makers
and pre-requisites for earning the Board grading;
(l) The CEB-quality graded film,
which is submitted to the Movie and Television Review and
Classification Board (MTRCB) for audience classification after the film
has been graded by the CEB, and for which changes are done on the film
(i.e. re-editing to shorten scenes, re-mixing, etc.) may require a
resubmission of said film to the Board to ensure that the film
maintains its "A" or "B" grading; Provided, that the resubmission only
seeks to maintain its first grading subject to a fee determined by the
Council. Provided, further, that members of the Board who will review
the resubmitted film will be composed of members who voted and graded
the film in its first review. Tampering with graded film will result in
cancellation of tax rebate; and
(m) Any action taken by the
Board on the film submitted for evaluation and grading may be
reconsidered upon motion to the Board en banc within twenty-four (24)
hours from receipt of notice of said action, and the Board en banc
shall render its decision within forty-eight (48) hours from its
receipt of the motion for reconsideration. The Board en banc must be
composed of at least majority of the members of the Board; Provided,
that an action for reconsideration shall be limited only to upgrading
from "B" to "A", subject to a fee determined by the Council.
Article
7
Privileges
of Graded Films
Sec. 25. Privileges. - Films which have obtained an "A" or "B"
grading from the Council pursuant to Section s 11 and 12 of this Act
shall be entitled to the following privileges:
Amusement
Tax Reward. - A grade "A" or "B" film shall entitle its producer to an
incentive equivalent to the amusement tax imposed and collected on the
graded films by cities and municipalities in Metro Manila and other
highly urbanized and independent component cities in the Philippines
pursuant to Section s 140 and 151 of Republic Act No. 7160 at the
following rates:
1.
For grade "A" films - One hundred percent (100%) of the amusement tax
collected on such films; and,
2. For grade "B" films -
Sixty-five percent (65%) of the amusement tax collected on such films.
The remaining thirty-five (35%) shall accrue to the funds of the
Council.
Article
8
Amusement
Tax Deductions and Remittances
Sec. 26. Memorandum of Agreement. - The Council shall execute a
Memorandum of Agreement with proprietors, operators and lessees of
theaters or cinemas in Metropolitan Manila and highly urbanized and
independent component cities in the provinces as well as with movie
producers on the system and procedures to follow in the collection,
remittance and monitoring of the amusement tax collected on CEB-graded
films. The Council will have the option to determine whether a general
procedure/process shall be adopted by all proprietors, operators and
lessees of theaters or cinemas or an individualized system.
The Memorandum of Agreement shall also include arrangements on
information sharing between and among the Council, the proprietors,
operators and lessees of theaters or cinemas and the movie producers on
matters related to the CEB-graded film.
The mode of remitting the deducted amusement tax to the Council shall
be specified in the Memorandum of Agreement. Such mode of payment may
be through electronic transfer, fund-to-fund, or check payment.
The amusement tax collection, remittances and monitoring system shall
be reviewed annually to improve the system.
Sec. 27. Obligation to deduct and withhold.
(a)
All proprietors, operators and lessees of theaters or cinemas where
graded films are exhibited are hereby mandated to deduct and withhold
the amusement tax on such graded film, which would otherwise accrue to
the cities and municipalities within Metro Manila, and highly urbanized
and independent component cities outside Metro Manila pursuant to
Section 140 of the Local Government Code during the period the graded
film is exhibited.
(b) All proprietors, operators
and lessees of theaters or cinemas where graded films will be exhibited
shall notify in writing, by fax or e-mail, the concerned city or
municipality of the scheduled exhibition of graded films and duration
of the same. They shall likewise inform in writing the city or
municipality concerned of the fact that the corresponding amount of
amusement tax has been withheld and forwarded to the Council.
(c) Proprietors, operators and
lessees of theaters or cinemas who fail to notify the city or
municipality concerned shall be required to pay the amusement tax in
accordance with the local revenue ordinance of the local government
unit concerned.
(d) Remittance to Council. - The
proprietors, operators or lessees shall remit the amusement tax so
deducted and withheld to the Council within thirty (30) days from the
termination of the exhibition.
(e) Remittance to Producers. -
Within fifteen (15) days from receipt thereof, the Council shall remit
the corresponding amusement tax to the producers of the graded film, in
accordance with Section 13(a) (1) and Section 13 (a) (2) of R.A. 9167
and Article 7 thereof.
(f) Effects of Failure to Remit
- Proprietors, operators and lessees of theaters or cinemas who fail to
remit the amusement tax proceeds within the prescribed period shall pay
to the Council a surcharge equivalent to five percent (5%) of the
amount due for each month of delinquency.
Article
9
Enforcement
Measures
Sec. 28. Plenary Powers of the Council. - For purposes of
implementing the provisions of Article 8 above and Section 14 of the
Act, the Council may:
(1)
Impose administrative fines and penalties of not more than One Hundred
Thousand (P100,000.00) Pesos for the violation of any provision of the
Act and/or these Implementing Rules and Regulations;
(2) Cause or initiate the
criminal or administrative prosecution of violators thereof;
(3) Cause the closure of any
theater or cinema that fails or unreasonably refuses to remit the tax
collected on a graded film for a period not exceeding fifteen (15)
days. After such period, the closure order shall automatically be
lifted without prejudice to the right of the Council to cause or
initiate criminal or administrative prosecution against the erring
theater or cinema owners pursuant to paragraph 2, Section 15 of the Act
and the rules implementing the same;
(4) Call upon representatives of
the different governmental agencies and other various associations in
the movie industry to help ensure compliance with the Act and these
Rules;
(5) Deputize any law enforcement
agency and instrumentality of the government for assistance in the
implementation and enforcement of its functions and orders.
(6) To effectively cause or
initiate criminal and/or administrative prosecution as above
stipulated, the Council is hereby empowered to issue subpoena duces
tecum and enlist the assistance of the Department of Justice or the
Office of the Solicitor General, especially inter alia, for the
issuance of subpoena ad testificandum and conducting the proper
investigation of the violation and the subsequent prosecution therefor.
(7) For purposes of all the
forgoing, the Council may constitute Local Regulatory Council or
Councils in the cities and municipalities throughout the country. The
local council or councils shall be composed of representatives from the
government and from the private sector, who shall all serve without
compensation and only for such period as the Chairperson of the Council
shall determine.
Article
10
Budget and
Utilization of Funds
Sec. 29. Fund Utilization. - The Council shall first deposit the
collected amusement taxes and other fees and charges with the Bureau of
the Treasury as Special Account in the General Fund (SAGF), which shall
be treated as automatically appropriated. Availment of these
collections from amusement taxes and other fees and charges shall be in
accordance with existing budgeting, accounting and auditing rules and
regulations.
Article
11
Authority to
Accept Donations
Sec. 30. Authority to Accept Donations. - The Council may accept
donations, contributions, grants, bequests or gifts, in cash or in
kind, from various sources, domestic or foreign, except from domestic
movie producers and distributors, for purposes relevant to its
functions.
Sec. 31. Use of Cash Donations. - Cash donations shall not be used
to fund the personal services requirements of the Council. However,
cash donations may be used for project hires, which include such
expenses as honoraria and other fees.
Article
12
Annual Report
Sec. 32. Annual Report. - The Council shall, within ninety (90) days
after the end of every fiscal year, submit to the President and to
Congress an annual report on its compliance with, or accomplishments
under these Rules, together with its plans and recommendations to
improve and develop its capability to enforce the provisions of these
Rules, and a complete accounting of transactions with respect to any
funds received under these Rules.
Article
13
Final
Provisions
Sec. 33. Separability Clause. - If, for any reason, any provision of
these Rules, or any part thereof, is declared invalid or
unconstitutional, all other sections or provisions not affected thereby
shall remain in force and effect.
Sec. 34. Effectivity. - These Rules shall take effect fifteen (15)
days after their publication in two (2) newspapers of general
circulation, except those, which pertain to self-executing provisions
of these Rules.
Approved: Film Development
Council of the Philippines, September 05, 2003
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