FURTHER AMENDING PRESIDENTIAL DECREE NO. 232, AS AMENDED

• Number: Presidential Decree No. 414
• Sections: 7

Preamble

WHEREAS, a Coconut Consumers Stabilization Fund was

established because of the abnormal situation in the world market for

fats and oils and is now administered by a Coconut Consumers

Stabilization Committee created pursuant to Presidential Decree No. 276;

WHEREAS, the creation of a Committee to administer the Fund

was at that time necessary because the Philippine Coconut Authority was

not yet as then formally organized;

WHEREAS, the viability, development programs and exigencies

of the coconut and other palm oil industry, require the integration and

assimilation of all facets of the program in the Philippine Coconut

Authority to avoid proliferation of agencies and overlapping of

functions, as originally envisioned when Presidential Decree No. 232 was

proclaimed;

WHEREAS, there is a need to maintain domestic prices of

coconut-based consumer products at reasonable levels without eliminating

the benefits of high export earnings and unduly reducing farmers'

incomes; and to redirect inflationary excess profits into developmental

investments by directly capitalizing industrial enterprises for and in

behalf of the mass producers;

WHEREAS, the premium duty imposed on coconut products is a

form of price stabilization and that the present levy is sufficient to

absorb both the price subsidy and the premium duty on coconut products

to a certain extent; and

WHEREAS, it is indispensable that the management of funds

derived from the coconut industry be unified and systematized to

adequately cope with both short-term crises and long-term

industrialization, research, production expansion, extension services

and similar programs;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the

Philippines, by virtue of the powers in me vested by the Constitution,

do hereby further amend Presidential Decree No. 232 in order to effect

the desired changes and objectives:

Section 1

SECTION 1. Section 2 of Presidential Decree No. 232, as

amended, is hereby amended by inserting a new paragraph to read as

follows:

"d. To formulate and implement a price stabilization scheme

for coconut products and coconut-based consumer goods."

Section 2

SEC. 2. Section 3 of Presidential Decree No. 232, as

amended, is hereby amended by deleting paragraph (j) and inserting in

lieu thereof the following new paragraphs:

"j. Determine the base price of the raw materials, on which

to set the subsidy;

"k. Review and revise when necessary the amount of the levy imposed: Provided,

That when the price of copra equals the authorized base price, the

collection of the levy shall be suspended automatically;

"l. Establish a monitoring system to ascertain that a steady and

adequate supply of the subsidized products is distributed at socialized

prices; and to issue subpoena and subpoena duces tecum whenever

required for effective monitoring and investigation as to compliance

with its promulgations;

"m. To recommend to the President of the Philippines the lifting,

suspension or termination of the collection of the Fund, and the refund

of such amounts of premium duty paid from February 17, 1974;

"n. To enter into, make and execute contracts of any kind as may be

necessary or incidental to the attainment of its purposes and,

generally, to exercise all the powers necessary to achieve the

purposes and objectives for which it is organized."

Section 3

SEC. 3. A new section, to be known as Section 3-A, is

hereby inserted to read as follows:

"SEC. 3-A. Coconut Consumers Stabilization Fund.

— To implement paragraph (d) of Section 2 hereof, the Board is

empowered to impose a levy on every first sale in accordance with the

mechanics established under Republic Act No. 6260, The proceeds of the

levy shall be deposited with the Philippine National Bank or any of the

authorized depositories for government funds to the account of the

Coconut Consumers Stabilization Fund.

"The Fund may be utilized as follows:

"1. To provide a subsidy for coconut-based products, depending

on the prices set by the Price Control Council;

"2. To refund wholly or in part any premium export duty collected. The

Board shall take into account the degree of processing of the coconut

product exported in refunding the premium export duty; and

"3. To set aside funds for investment in processing plants, research and

development, and extension services to the coconut industry."

Section 4

SEC. 4. Section 4 of Presidential Decree No. 232, as

amended, is hereby amended by inserting the following paragraph:

"One representative each from the Department of Finance and the

Board of Investments."

Section 5 Repealing Clause.

SEC. 5. Repealing Clause. — All laws, executive and

administrative orders, rules and regulations inconsistent with the

foregoing provisions are hereby repealed or amended accordingly.

Section 6

SEC. 6. This Decree shall take effect immediately.

Done in the City of Manila, this 18th day of April, in the

year of Our Lord, nineteen hundred and seventy-four.

(Sgd.) FERDINAND E.

MARCOS

President

Republic of the Philippines

By the President:

(Sgd.) ALEJANDRO

MELCHOR

Executive Secretary