Presidential Decree No. 488 (PD 488) — Further Amending Part IX of the Integrated Reorganization Plan by Creating a Department of Industry.
WHEREAS, there is a need to strengthen government efforts
towards industrial development to further accelerate economic growth;
and
WHEREAS, accelerated industrialization needs integrated
government assistance and guidance to bring about industry
diversification, dispersal, rationalization and continued growth.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution,
do hereby adopt; approve and make as part of the law of the land the
amendment to the provisions of Part IX of the Integrated Reorganization
Plan by creating a Department of Industry.
Creation of a Department of Industry.
SECTION 1. Creation of a Department of Industry.—There
is hereby created a Department of Industry, hereinafter referred to as
the Department, which shall be the primary policy, planning,
programming, coordinating, implementing and administrative entity of the
executive branch of the government in the development, expansion and
diversification of industry, in pursuance of the following objectives:
Guide the development and operation of industry along
directions most contributory to the national goals as domestic and
international conditions make appropriate and as denned from time to
time by the President and/or the National Economic and Development
Authority;
Improve linkages and inter-relationships of industry with the
development of the country's agriculture, natural resources, public
services and infrastructure, and reinforce and enhance the contributions
of these sectors, conjunctively with industry, to the national progress
and welfare;
Identify the needs, encourage and assist the achievement of
national self-sufficiency, without undue burdens to the end-consumers,
in essential industrial products, in accordance with the philosophy of
national self-reliance;
Improve the ownership structure of industry by promoting
broader ownership of large scale industrial enterprises, accelerate the
formation and growth of small-scale and medium-scale industrial
enterprises, and encourage and promote the dispersal of industry
throughout the country; and
Develop the capabilities of industry to increase the domestic
content of its products, to upgrade the quality of products according to
competitive international standards to reduce costs of production,
particularly those involving foreign exchange, and in coordination with
the Department of Trade, to export manufactures to the international and
regional markets.
Authority and Responsibility.
SEC. 2. Authority and Responsibility.—The authority
and responsibility for the exercise of the powers and discharge of the
functions of the Department shall be vested in the Secretary of
Industry, hereinafter referred to as the Secretary. The Secretary shall
be assisted by one Undersecretary.
Powers and Functions.
SEC. 3. Powers and
Functions.—The Department shall have the following powers and
functions:
Coordinate all activities of the government relative to
industry;
Encourage, guide and if necessary, regulate the establishment,
growth and expansion of large-scale industries and firms within these
industries;
Adopt guidelines, subject to the approval of the President, and
implement them for rationalization of certain industries whose continued
operation will result in the dislocation of and/or overcrowding in said
industries, thus, retarding economic growth; upon approval of said
guidelines by the President, the Department or the Board of Investments,
upon request of the Department, shall implement such guidelines and
may, in appropriate cases, after due notice and hearing restrict,
either totally or partially, the importation of any equipment or raw
materials for firms in the industry not conforming with the prescribed
guidelines;
Coordinate with the Board of Investments with respect to the
implementation of rationalization schemes adopted by the Board by virtue
of its powers under Sec. 16(1) of E. A. 5186;
Coordinate with other government agencies, particularly the
Department of Trade, for the increase in exports of recently established
lines of manufactured products;
Assist investors, foreign or domestic, in desirable industrial
projects, whether registrable with the Board of Investments or not, to
have their papers processed with dispatch by all government offices,
agencies, instrumentalities and financial institutions;
Promote cooperation in desirable industrial undertakings on
complementation basis in the Southeast Asian regions;
Encourage the establishment, growth and expansion of medium and
small-scale industries particularly in rural areas through effective
assistance and guidance in the manufacture of the industrial products
concerned;
Coordinate and integrate all technical, financial, marketing,
purchasing and promotional assistance of the government for medium and
small-scale industries;
Establish consultation on an institutionalized basis with the
private industrial sectors to encourage their participation in planning
and implementation for industrial development, in pursuance of
objectives established by the government;
Prescribe and enforce compliance with such rules and regulations
as may be necessary to implement the intent and provisions of this
Decree, which rules and regulations shall take effect immediately
following their publication in two newspapers of general circulation in
the Philippines;
Conduct investigation, hearing and inquiry and for this purpose,
issue subpoena and subpoena duces tecum to compel the attendance of
witnesses and the production of the necessary papers and documents;
Require any person or entity to submit to it such report, data,
information, paper, or document it may deem necessary in the exercise of
its powers and functions;
Establish, in accordance with pertinent laws, such advisory
committee as may be appropriate for purposes of consultation and advice
to the Department in the performance of its functions;
Perform such other functions as may be necessary to carry into
effect the provisions of this Act; and
Perform such other functions as may be provided by law.
Staff Services.
SEC. 4. Staff Services.—The Department shall have an
Administrative Service, a Planning Service, a Legal Service, and a
Financial and Management Service in conformity with Part II of the
Integrated Reorganization Plan.
Bureau of Industrial Coordination.
SEC. 5. Bureau of
Industrial Coordination.—There is hereby created in the Department a
Bureau of Industrial Coordination which shall, among others, coordinate
and guide industries and industry sectors (including enterprises within
such industries which are not registered with the Board of Investments)
to attain development objectives promulgated by the government,
maintain liaison with industry associations, keep informed of
developments in the various industries, supervise progress and
implementation of the various large-scale industry programs initiated by
the Department but not covered by any existing industrial authority,
and specifically perform the functions enumerated in Section 3-c, d,
e, f, g and J.
The Bureau of Industrial Promotion in the
Department of Trade is abolished and its pertinent functions are
transferred to the Bureau of Industrial Coordination together with
applicable appropriations, records, equipment, property and such
personnel as may be necessary.
The Board of Investments shall
continue to be responsible for the registration and supervision of
enterprises for investments and export incentives under its respective
priorities plans, and for licensing foreign investments under R.A.
5455.
Small and Medium Industries Commission.
SEC. 6. Small and Medium Industries Commission.—There
is hereby created in the Department a Commission on Small and Medium
industries which shall, among others, promote, assist and develop medium
and small-scale industries; undertake studies, surveys, researches and
technical assistance programs in connection therewith; coordinate and
integrate policies and programs for technical, financial, marketing,
purchasing and promotional assistance to medium and small-scale
industries rendered by the following government agencies:
Department of Local Government and Community Development
U.P. Institute of Small-Scale Industries
Development Academy of the Philippines
National Manpower and Youth Council
NEDA/CB Industrial Guarantee Loan Fund
Development Bank of the Philippines
Greater Manila Terminal Food Market
Philippine International Trading Corporation
Design Center Philippines
Bureau of Domestic Trade
National Cottage Industries Development Authority
The above-named agencies shall nominate one (1) representative each
to the Commission for purposes of coordination, consultation and
liaison. This Commission small (replace the National Council for Medium
and Small-Scale Industries. The Commission shall be headed by the
Undersecretary of the Department. He shall be assisted by an Executive
Director, and such other regional officers deemed necessary, who shall
be appointed by the Secretary.
Bureau of Industrial Information and Programs.
SEC. 7. Bureau of
Industrial Information and Programs. —There is hereby created in the
Department a Bureau of Industrial Information and Programs which shall
among others, receive from industries and analyze statistical
information relating to production, sales, inventories, imports of
major materials, levels of receivables and expansion plans to enable the
Department to monitor and measure industry performance, anticipate
problems and provide guidance to industry. It shall also formulate
development programs for various industry sectors.
SEC. 8.
Board of Investments.—The Board of Investments is transferred
from the National Economic and Development Authority and attached to the
Department for program and policy implementation. The Secretary of
Industry shall be concurrently Chairman of the Board of Investments. The
Vice-Chairman of the Board who shall be appointed by the President
shall concurrently be its Managing Head.
Personnel.
SEC. 9. Personnel.—Except for such technical
positions as the Secretary may recommend to and be approved by the
President, all positions therein shall be subject to the provisions of
the Civil Service Law and the rules and regulations of the Wage and
Position Classification Office (WAPCO).
Attached Agencies.
SEC. 10. Attached Agencies.—The following agencies
are hereby attached to the Department: Iron and Steel Authority,
Fertilizer Industry Authority, Cement Industry Authority, and
Presidential Advisory Committee on the Copper Industry.
The Department shall coordinate with other government agencies,
particularly the Department of Trade, for the export promotion
activities of the foregoing attached authorities.
SEC. 11.
Appropriation.—To carry out the purposes of this Decree, there
is hereby appropriated, out of any funds in the National Treasury not
otherwise appropriated, the sum of Four Million Pesos (P4,000,000) for
the fiscal year nineteen hundred and seventy-four to nineteen hundred
and seventy-five (1974-1975) and the sum of Two Hundred Thousand Pesos
(P200.000) for the remainder of fiscal year nineteen hundred and
seventy-three to nineteen hundred and seventy-four (1973-1974).
Thereafter, the appropriations for the Department of Industry shall be
included in the Annual General Appropriation Act.
Repeal.
SEC. 12. Repeal.—Any and all acts, statutes,
decrees, rules, regulations or parts thereof inconsistent herewith are
hereby repealed or modified accordingly.
The Department of Trade shall perform all the functions, except
those pertaining to industry, of the Department of Trade and Tourism
pursuant to the applicable provisions of the Integrated Reorganization
Plan, as amended by Presidential Decree No. 189.
Effectivity.
SEC. 13. Effectivity.—This
Decree shall take effect immediately.
Done in the City of Manila, this 21st day of June in the year of
Our Lord, nineteen hundred and seventy-four.
(Sgd.)
FERDINAND E. MARCOS
President of the Philippines
By the President:
(Sgd.)
ALEJANDRO MELCHOR
Executive Secretary
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
