Presidential Decree No. 579 (PD 579) — Rationalizing and Stabilizing the Export of Sugar and for Other Purposes
WHEREAS, the current worldwide shortage of sugar has brought
about an increasingly speculative interest in sugar which has further
induced uncertainty in its price especially in the world market;
WHEREAS, the uncertain fluctuations in the price of sugar
will expose the export of sugar to risky speculation which will depress
prices adversely affecting the profitability of the sugar industry and
the foreign exchange earnings of the country;
WHEREAS, in the interest of the national objective to
promote public welfare, the government should take a direct and active
role to protect the sugar industry and our national economy from the
deleterious effects of speculative ventures with respect to sugar;
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:
SECTION 1. The Sugar Quota Administration shall from time to
time and commencing from the crop year 1973-1974, re-allocate such
portion of the total sugar production per crop year for export to the
United States and world markets as may be necessary to safeguard the
sugar industry and the national economy against contingencies brought
about by the speculative interests in sugar. In addition to its powers
under existing laws, the Sugar Quota Administration shall have the power
to issue authorization for the export of sugar in accordance with the
re-allocations provided for in the preceding paragraph.
SEC. 2. To carry out the objective of the Decree, the
Philippine Exchange Company, Inc. may be authorized by the President of
the Philippines to purchase sugar allocated for export to the U.S. and
world markets in a quantity and at price to be fixed in accordance with
the rules and regulations that shall be established by the Sugar Quota
Administration, the Philippine National Bank, and the Department of
Trade and approved by the President of the Philippines.
SEC. 3. The Philippine National Bank shall finance these
purchases of sugar from the following sources of funds:
Foreign borrowings that the Bank is hereby authorized to
obtain, for and in behalf of the Philippine Exchange Company, Inc.;
Its available loanable funds that it shall lend to the
Philippine Exchange Company, Inc.; or
Proceeds from the rediscounting of loans or notes with the
Central Bank of the Philippines.
SEC. 4. To effectively implement the provisions of the
preceding section, loans or advances by the Philippine National Bank to
the Philippine Exchange Company, Inc. for the purpose directed in this
Decree shall be exempt from the loan limits imposed in the charter of
the said Bank.
The Central Bank of the Philippines shall
rediscount the loans or notes referred to in paragraph (c) of the of the
preceding section and shall grant the authorization or approval for the
foreign borrowings that may be contracted by the Philippine National
Bank authorized under paragraph (a) thereof.
Foreign borrowings
obtained under these provisions shall be exempt from any and all taxes,
including withholding tax.
SEC. 5. The Department of Trade
and the Sugar Quota Administration shall extend full cooperation and
assistance to the government agencies and entities herein mentioned in
order to attain the objectives of this Decree and shall furnish them
with such data and information as may be necessary for the effective
international marketing of sugar.
SEC. 6. The sugar so purchased by the Philippine Exchange
Company, Inc. shall not be disposed of without the prior approval of the
President of the Philippines. The Philippine Exchange Company, Inc.
shall handle the export and shipment of such sugar to the U.S. and world
markets.
SEC. 7. The proceeds of the sugar trading operations of
the Philippine Exchange Company, Inc. shall be used to pay its
liabilities to the Philippine National Bank, or to the foreign creditors
of the Philippine National Bank from whom financing has been obtained.
The Philippine Exchange Company, Inc. shall charge a commission
of two and one-half (2 1/2%) per cent of gross sales, of which one (1%)
per cent shall cover all its overhead expenses and the balance of one
and one-half (1 1/2%) per cent shall be set aside as a fund for the
"Sugar Development Program" of the Philippine National Bank.
After deducting its commission of two and one-half (2-1/2%) per cent of
gross sales, the balance of the proceeds of sugar trading operations for
every crop year shall be set aside by the Philippine Exchange Company,
Inc. as profits which shall be paid to a special fund of the National
Government subject to the disposition of the President for public
purposes.
SEC. 8. The profits realized by the Philippine
Exchange Company, Inc. from the sugar trading operations authorized
under this Decree shall be exempt from any and all taxes imposed by the
National Government and its political subdivisions.
SEC. 9. All laws, executive orders or administrative
orders, rules and regulations inconsistent with the foregoing provisions
are hereby repealed or amended accordingly.
SEC. 10. This Decree shall take effect immediately.
Done in the City of Manila, this 12th day of November, 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).
