Presidential Decree No. 1386 (PD 1386) — Revising Presidential Decree No. 941, Creating the Philippine Export Council, Defining Its Powers and Duties, and Appropriating Funds Therefor.
I, FERDINAND E. MARCOS, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby order and
decree the revision of Presidential Decree No. 941, dated 29 May 1976, which
shall henceforth read in its entirety as follows:
WHEREAS, national economic growth demands a sustained
contribution in foreign exchange generation by the export sector;
WHEREAS, there is a need to develop and implement a national
export strategy designed to achieve a significant increase in export
earnings;
WHEREAS, since the private sector bears the actual task of
generating export earnings, there is a need to establish a mechanism for the
direct and continuing involvement of that sector in the formulation and
implementation of a national export strategy;
WHEREAS, such a mechanism can be achieved thru the creation
of a semi-government institution to serve as the focal point for government and
private sector cooperation in the development and promotion of Philippine
products and services for export;
WHEREAS, the effective implementation of a national export
strategy requires that such an institution be capable of flexible and dynamic
action and be vested with appropriate authority to operate under a high degree
of autonomy;
WHEREAS, such an institution will provide the country with a
competitive and responsive export trade mechanism, as has been demonstrated in
other countries that have adopted similar institutions designed to optimize
their export strategy and performance thru the encouragement and stimulation of
joint government and private sector action for export expansion.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by vitue of the powers vested in me by the Constitution do hereby
order and decree:
SECTION 1.—Declarion of Policy. It is hereby
declared to be the policy of the government to encourage, promote, expand and
diversify exports to existing and prospective markets in order to generate
employment and income, improve the balance of payments, and hasten the economic
development of the nation.
It is hereby further declared to be the policy of the government to assist
and support private sector producers and traders in the development and
promotion of Philippine commodities, products, and services for export, and to
optimize direct private sector participation in the formulation and
implementation of government export development and promotion programs.
SECTION 2.—The Philippine Export Council. There is
hereby created a semi-government self-governing institution to be known as the
Philippine Export Council, hereinafter referred to as the Export Council. The
Export Council shall be directly under the Office of the President of the
Philippines.
SECTION 3.—Responsibilities of the Export Council.
The Export Council shall be responsible for the formulation and monitoring of
the National Export Strategy, which shall be consistent with existing national
economic policies and approved national development plans; for studying and
recommending to the department/agency Heads concerned, and/or to the Board of
the National Economic and Development Authority, and/or directly to the
President of the Philippines policy measures and/or policy changes pertaining to
export development and promotion, to include implementing plans and/or programs
of action relative thereto; and, for coordinating government and private sector
programs and efforts to develop, promote and enhance earnings from exports of
Philippine commodities, products, and selected services.
SECTION 4.—Powers and Functions of the Export
Council. The powers, functions, and duties of the Export Council shall
include the following:
To formulate and submit annually for approval of the President of the
Philippines a National Export Strategy that is consistent with existing national
economic policies and approved national development plans; which shall, among
other elements which the Governing Council may prescribe, specifically include
annual and five-year term developmental and promotional objectives and
quantified performance targets, taking into account the production capacity of
Philippine industries and the opportunities present in export markets. The
strategy formulation process of the Export Council shall be coordinated and
interfaced closely with, among others:
The budget preparation process of the Budget Commission;
The national development planning process of the National Economic and
Development Authority;
The formulation by the Board of Investments of relevant Priorities Plans
prescribed by law;
The formulation of plans and strategies of particularly concerned agencies
and industry authorities, such as, the Bureau of Foreign Trade, the Overseas
Construction Board, The Philippine Sugar Commission, the Philippine Export and
Foreign Loan Guarantee Corporation, the Philippine Cement Corporation, the
Philippine Coconut Authority, the Export Processing Zone Authority,
etc.;
To recommend to the President of the Philippines the assignment to
government, semi-government and private institutions such functions and
responsibilities as are necessary to effectively implement the specific plans
and programs of action contained in the National Export Strategy; and, in
coordination with the Budget Commission, to determine and recommend for approval
budget allocations as are required to fund such assigned functions and
responsibilities.
To monitor and submit periodic reports, including an annual report, to the
President of the Philippines on the implementation of the approved National
Export Strategy;
To undertake such research, developmental and/or promotional programs or
activities as are assigned to it by the approved National Export Strategy or by
other relevant development plans of the government; and, subject to the approval
of the President of the Philippines, as may be determined by the Governing
Council to be inadequately, ineffectively, or improperly implemented by the
agency or organization to which the particular program or activity was
originally assigned; provided that, the Export Council shall not engage
directly in actual trading;
To coordinate, with authority to institute and oversee a consolidated
planning, programming and implementing system, as well as to serve, if
necetsary, as a channel for budgetary releases and actual expenditures for those
activities of government agencies pertaining specifically to export marketing
and promotion, foreign trade information and publications, and related
assistance and training activities;
To identify obstacles to the export of specific products, commodities and
services, and to study and recommend appropriate measures for the removal, of
these obstacles, to include specific government assistance measures that will
encourage increased production and will enable exportable commodities and
selected services to become more competitive in international markets;
To assess policies and programs of government agencies and private sector
organizations engaged or involved in activities allied to or affecting
Philippine international trade, such as financing, transportation, forwarding,
brokerage, packaging, insurance, warehousing, quality control, etc.; and to
recommend trade facilitation and other measures that would improve their
contribution to increased competitiveness of Philippine exports in world
markets;
To encourage and promote the organization of integrated trading
organizations and other forms of cooperative or joint export marketing
arrangements by producers/exporters to attain increased leverage in
international marketing;
To initiate and/or participate in the formation of appropriate juridical
entities or to participate in such existing organizations, domestic or foreign,
designed to facilitate or enhance the development and promotion of the country's
international trade; to hold interest or equity therein; and be represented in
the management thereof;
To establish local regional as well as overseas offices of the Export
Council as may be deemed necessary by the Governing Council;
To undertake or cause to be undertaken by appropriate agencies or
organizations any relevant programs or activities as may be essential to the
achievement of the objectives and intent of this decree;
To promulgate such rules and regulations as may be necessary to implement
and attain the objectives and intent of this decree, as well as to revise and
amend the same; and
To exercise such other powers and undertake such other functions and duties
as may be assigned to the Export Council by the President of the Philippines.
SECTION 5.—Governing Council. The powers, functions
and duties of the Export Council shall be exercised thru a Governing Council,
which shall be composed of fifteen (15) members as follows:
The President of the Export Council. The President of the Export
Council shall concurrently be the Chairman of the Governing Council. Whenever
the President of the Export Council is unable to attend a meeting of the
Governing Council, he shall designate the Executive Vice-President or a
Vice-President of the Export Council to attend as his alternate, who shall not
however preside unless elected as Presiding Officer in accordance with the
pertinent provision prescribed elsewhere in this Section.
The Secretary of Trade. The Secretary of Trade shall preside over
the meetings of the Governing Council in the absence of the Chairman. Whenever
the Secretary of Trade is unable to attend a meeting of the Governing Council,
he shall designate an Undersecretary or Assistant Secretary to attend as his
alternate, who shall not however preside when the Chairman is also absent unless
elected as Presiding Officer in accordance with the pertinent provision
prescribed elsewhere in this Section.
The Secretary of Industry. Whenever the Secretary of Industry is
unable to attend a meeting of the Governing Council, he shall designate an
Undersecretary or Assistant Secretary or a Governor of the Board of Investments
to attend as his alternate.
The Director-General of the National Economic and Development
Authority. Whenever the Director-General of the Authority is unable to
attend a meeting of the Governing Council, he shall designate a Deputy
Director-General or an Assistant Director-General of the Authority to attend as
his alternate.
The Secretary of Foreign Affairs. Whenever the Secretary of Foreign
Affairs is unable to attend a meeting of the Governing Council, he shall
designate an Undersecretary or Assistant Secretary to attend as his alternate.
The Secretary of Finance. Whenever the Secretary of Finance is
unable to attend a meeting of the Governing Council, he shall designate an
Undersecretary or Assistant Secretary or the Commissioner of Customs to attend
as his alternate.
The Governor of the Central Bank of the Philippines. Whenever the
Governor of the Central Bank is unable to attend a meeting of the Governing
Council, he shall designate the Senior Deputy Governor or a Deputy Governor of
the Central Bank to attend as his alternate.
The Secretary of Agriculture. Whenever the Secretary of Agriculture
is unable to attend a meeting of the Governing Council, he shall designate an
Undersecretary or Assistant Secretary to attend as his alternate.
The Secretary of Natural Resources. Whenever the Secretary of
Natural Resources is unable to attend a meeting of the Governing Council, he
shall designate an Undersecretary or Assistant Secretary to attend as his
alternate.
The President of the Philippine International Trading Corporation.
Whenever the President of the Philippine International Trading Corporation is
unable to attend a meeting of the Governing Council, he shall designate the
Executive Vice-President or a Vice-President of the Corporation to attend as his
alternate.
Five (5) Representatives from the Private Sector. A private sector
member of the Governing Council shall have no alternate, and shall be considered
absent whenever he is unable to attend a meeting of the Governing Council;
provided that, a private sector member who cannot attend a meeting of
the Governing Council may designate a personal representative to sit as an
observer during that meeting.
Except for the five (5) representatives from the private sector, the members
shall sit in the Governing Council on an ex-officio basis.
Representatives from the private sector shall each be appointed by the President
of the Philippines for a term of three (3) years from among qualified candidates
recommended by the Export Advisory Board in accordance with appropriate criteria
which the Governing Council shall prescribe; provided however that, for
initial appointments to the Governing Council, one (1) representative shall be
appointed for a term of one (1) year, two (2) representatives for a term of two
(2) years, and two (2) representatives for a term of three (3) years, after
which all succeeding appointments shall be for a term of three (3) years.
The full-time President of the Export Council, who is concurrently the
Chairman of the Governing Council, shall preferably be drawn from the private
sector, and shall be appointed by the President of the Philippines for a term of
five (5) years.
The presence of eight (8) members and/or authorized alternates during each
meeting of the Governing Council shall constitute a quorum. Whenever both the
President of the Export Council and the Secretary of Trade are unable to attend
a meeting of the Governing Council, the members and/or authorized alternates
present shall elect a Presiding Officer for that particular meeting;
provided however that, for as long as at least one regular member is
present during a meeting of the Governing Council, no authorized alternate shall
be eligible for election as Presiding Officer for that meeting.
The Governing Council may constitute, from among its members, an Executive
Committee and any other functional committees as may be necessary for it to
effectively carry out the powers and functions of the Export Council. The
provisions herein on alternate representation in the Governing Council shall
apply to these committees; provided that, at least one (1) private
sector member of the Governing Council shall always be included in the
membership of any committee so created.
SECTION 6.—Export Advisory Board. There shall be
created a permanent Export Advisory Board composed of qualified individuals from
the private sector who shall provide the advice, guidance, and insight essential
to pursuing the activities of the Export Council, and who shall collectively
represent private sector views. Among other responsibilities which the Governing
Council may define, the Export Advisory Board shall serve as the forum for
synthesizing problems and recommendations of common interest to the various
Permanent Committees created under Section 7 hereof, or to the export community
in general.
The Export Advisory Board shall be chaired by the President of the Export
Council. Its members shall include each of the Chairman of the Permanent
Committees created under Section 7 hereof, and may include additional members
who shall be appointed by the Governing Council from among qualified individuals
from the private sector.
The Export Advisory Board may constitute, from among its members, an
Executive Committee and any other functional committees, or any appropriate
aggrupation of Chairmen of Permanent Committees created under Section 7 hereof,
as may be necessary for it to effectively advice and assist the Export Council
in carrying out its powers and functions.
The Governing Council shall prescribe the rules for alternate representation
in the Export Advisory Board, as well as in any of the latter's committees or
aggrupations of Permanent Committee Chairmen.
SECTION 7.—Permanent Committees. There shall be
created Permanent Committees, to be composed principally of private sector
membership, which shall be organized and oriented towards market development and
the development and promotion of specific products, product groups, commodities,
and selected services, to include the functional aspects allied to the conduct
of export trade. Meetings of these Committees shall, upon request or
notification, be attended by officials at the level of Bureau Directos and/or
senior technical officials from line departments and agencies directly concerned
with the respective areas of interest of the Committees.
Among other responsibilities which the Governing Council may define, these
Committees shall work closely with and provide expert advice to the Export
Council Staff on such matters as the determination of performance targets, the
formulation of policy recommendations, the preparation of position papers, the
gathering and dissemination of trade information, and the design of essential
developmental and promotional measures affecting their respective areas of
interest. Policy and/or strategy recommendations of the Permanent Committees
shall be submitted to the Governing Council for approval and appropriate
implementing action, or for further recommendatory action to the proper
decision-making authority.
The members of each of the Permanent Committees shall be appointed by the
Governing Council from among qualified nominees of concerned private sector
national business organizations; industry, commerce, and trade-related
associations; and from the senior staff of relevant government agencies that
have continuing involvement in the Committees respective areas of interest. Each
Committee shall elect a Chairman from among its private sector membership,
subject to the confirmation of the Governing Council.
The Governing Council shall prescribe rules for alternate representation in
the Permanent Committees created hereunder.
SECTION 8.—Management. The management of the Export
Council shall be vested in the President of the Export Council, who shall be the
Chief Executive of the Export Council. A full-time Executive Vice-President, who
shall be the Chief Operating Officer of the Export Council, shall be appointed
by the President of the Philippines; provided that, when the exigencies
of the service so require, the President of the Export Council is hereby
empowered to appoint the Executive Vice-President on a contractual basis,
subject to prior approval of the President of the Philippines.
The Executive Vice-President shall perform the functions and duties of the
President of the Export Council in the absence of incapacity of the latter,
except that he shall not preside over meetings of the Governing Council unless
elected as Presiding Officer in accordance with Section 5 hereof. He shall, at
any time, perform such functions and duties as may be delegated to him by the
President of the Export Councils.
With the confirmation of the Governing Council, the President of the Export
Council is hereby empowered to appoint, on a regular or contractual basis, such
Vice-Presidents as he may deen necessary to assist him and the Executive
Vice-President effectively manage the affairs and activities of the Export
Council, provided that, the number of incumbents appointed, in
accordance herewith shall not exceed five (5) Vice-Presidents at any given time,
and any appointment in excess thereof shall require prior approval of the
President of the Philippines.
SECTION 9.—Functions and Duties of the President of the
Export Council. The President of the Export Council shall exercise such
powers and functions as are authorized by this decree. With the confirmation of
the Governing Council, he shall carry out the following specific tasks and
duties:
To approve for submission to the Budget Commission the annual lump-sum
appropriation to be provided for the Export Council;
To approve contracts and other agreements which the Export Council may enter
into in furtherance of its authorized programs and activities;
To devise, organize, and reorganize, insofar as may be necessary, the
organization and staff of the Export Council;
To review and approve the operations and activities of the Export Council;
To organize and/or participate in committees and other working groups
representing government and/or private entities for the purpose of identifying
impediments to export expansion, and developing programs, projects and other
recommendations designed to overcome such obstacles and support increased export
earnings;
To negotiate and conclude with appropriate private sector groups or
organizations such suitable and equitable arrangements as may be mutually agreed
upon to gradually effect private sector sharing in the funding of the activities
and operations of the Export Council;
To receive and utilize, for furtherance of the Export Council's authorized
programs and activities, funds, materials and services from sources other than
the Government's annual grant to the Export Council;
To request or cause to be furnished thru directives, circulars, memoranda or
instructions from the Governing Council to government agencies and or private
organizations concerned such relevant data, information and statistics as may be
required by the Export Council to effectively carry out its functions and duties
with respect to export strategy formulation, planning, programming and
monitoring.
SECTION 10.—Compensation, Per Diem and Other
Emoluments. The Chairman and members of the Governing Council or their
authorized alternates shall receive per diems and reimbursement for
transportation and representation expenses for each meeting actually attended in
such amounts as may be determined by the Governing Council, which in no case
shall exceed One Thousand Pesos (P1,000) a month each for per diems and One
Thousand Pesos (P1,000) a month each for transportation and representation
expenses, regardless of the number of meetings attended; provided that,
the Governing Council shall meet regularly at least once during the third
Thursday of each month. The per diems and reimbursement of transportation and
representation expenses herein authorized shall be paid to the actual attendees
of each Governing Council meeting.
The President and Executive Vice-President of the Export Council shall each
receive an annual compensation in an amount to be determined by the President of
the Philippines. With the confirmation of the Governing Council, the annual
compensation of each Vice-President shall be determined by the President of the
Export Council on a case-to-case basis, which in no case shall exceed the annual
compensation of the Executive Vice-President.
With the confirmation of the Governing Council, the President of the Export
Council is hereby empowered to draw up and prescribe the compensation schedule
and the grant of appropriate and reasonable allowances and/or other emoluments
for the executives and staff of the Export Council, as well as for persons
serving with the Export Council on an ad-hoc or detail basis. Funding
requirements therefor shall be provided in the annual budget of the Export
Council.
SECTION 11.—Staff Organization. There shall be
organized a Staff of the Export Council which shall perform the work required
for the execution of the powers, functions and duties of the Export Council and
shall render technical, administrative and secretariat support to the Governing
Council, the Export Advisory Board, the Permanent Committees, and other working
groups/committees that are established in accordance with the provisions,
purposes and intent of this decree.
The Governing Council shall prescribe the organizational framework and
guidelines under which the Export Council shall be organized and operate. To
facilitate inter-governmental coordination, the Governing Council may, at any
time, draw upon the technical staff expertise of government agencies concerned
for liaison and/or individually detailed personnel, or to organize ad hoc
inter-agency committees or task groups that shalls work with and assist the
Export Council Staff in carrying out its functions and duties.
SECTION 12.—Appropriations. There is hereby
appropriated initially the sum of five million pesos (P5,000,000) from the funds
of the National Treasury not otherwise appropriated, for the organizational and
operational expenses of the Export Council for a period of one year. Thereafter,
an annual lump-sum appropriation shall be provided, for the Export Council, the
amount of which may be determined in relation to the annual export performance
of the country and which may be included under any appropriate Fund provided in
the General Appropriations Act.
SECTION 13.—Personnel. Subject only to the
organizational framework and guidelines prescribed by the Governing Council, the
President of the Export Council shall draw up and implement the staffing pattern
of the Export Council; Provided that, in the filling of positions
through, such personnel as may be necessary, appropriate and qualified from the
Bureau of Foreign Trade of the Department of Trade, The Institute of Export
Development of the Board of Investments, and the National Economic and
Development Authority, and such personnel from the foregoing government agencies
who have been detailed to the RP/UNDP Export Promotion Project shall be given
priority of consideration for recruitment.
All positions in the Export Council are hereby declared policy determining,
highly technical and/or primarily confidential and shall be exempt from Career
Executive Service, OCPC, and Civil Service eligibility rules and regulations;
provided that, consistent with their individual employment status, the
personnel of the Export Council shall be entitled to the appropriate benefits
and privileges normally accorded to government employees of similar employment
status, such as GSIS insurance and retirement benefits, Medicare, leave, and
other similar benefits; provided further that, personnel services
contributed to or contracted by the Export Council which are actually paid for
by private sector entities or organizations shall not fall under the coverage of
the immediately preceding provisions.
SECTION 14.—Repealing Clause. Any and all acts,
statutes, decrees, orders, rules, regulations or parts thereof inconsistent
herewith are hereby repealed or modified accordingly.
SECTION 15.—Effectivity. This Decree shall take
effect immediately.
Done in the City of Manila, this 25th day of May, in the year of Our Lord,
nineteen hundred and seventy-eight.
(Sgd.) FERDINAND E. MARCOS
President of the
Philippines
By the President:
(Sgd.) JUAN C. TUVERA
Presidential Assistant
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
