FURTHER AMENDING PART IX OF THE INTEGRATED REORGANIZATION PLAN BY RECONSTITUTING THE DEPARTMENT OF TRADE.

• Number: Presidential Decree No. 721
• Sections: 16

Preamble

WHEREAS, it is the declared policy of the government to

strengthen the socio-economic development in the field of commercial

activities by vigorous export promotion to generate foreign exchange and

by effective domestic trade and marketing program;

WHEREAS, with the creation of a separate Department of

Tourism and a Department of Industry, the role and scope of activities

of the Department of Trade necessitate a redefinition; and

WHEREAS, there is an urgent need to realign government

efforts toward export and trade promotion for greater effectiveness.

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 reconstituting the Department of Trade.

Accordingly, Part IX of the Integrated Reorganization Plan is

hereby amended to read as follows:

Section 1 Department Proper.

SECTION 1. Department Proper.—The Department of

Trade, hereinafter referred to in this Decree as the Department, shall

be responsible for the promotion, development, expansion, regulation and

control of foreign and domestic trade and in pursuance of this

responsibility shall be empowered and authorized to issue such rules and

regulations and adopt such measures as to:

consolidate and/or coordinate all functions and efforts

pertaining to the promotion of exports in particular and development of

foreign trade in general;

maintain reasonable allocation/distribution as between domes

tic and export market through export retentiom, export allocation,

export subsidy, pricing, export ban and other schemes and measures to

ensure price stability and supply availabilities of essential

commodities in the local market;

regulate the import of essential consumers and

producers' items with a view to enhancing availability at fair and

competitive prices to end-producers; and

promote and regulate domestic trade, marketing and

distribution to ensure the rational, economical and steady flow

of commodities from producing and/or marketing centers to

areas in short-supply through the support of centralized buying

operations, terminal markets and large-scale and economical distribution

systems organized by the public or private sector.

Authority and responsibility for the Department is vested in the

Secretary of Trade, hereinafter referred to as the Secretary. He shall

be assisted by only one Undersecretary.

The following are created

in the Department Proper: (1) Planning Service; (2) Financial and

Management Service; (3) Administrative Service; and (4) Legal Service.

Section 2 Bureau of Domestic Trade.

SEC. 2. Bureau of Domestic Trade.—The Bureau of Domestic

Trade shall, among others, consolidate functions pertaining to local

commerce and the protection of the consuming public.

There are

created the following divisions in the Bureau of Domestic Trade:

Trade Nationalization Division which shall implement

the provisions of Republic Act Numbered One Thousand Three Hundred

Eighteen, Republic Act Numbered One Thousand One Hundred Eighty and all

such laws relating to the regulation of retail trade and other business

of Filipino citizens;

Domestic Trade Promotion Division which shall

stimulate domestic commerce, establish trade relationship among

businessmen and encourage the organization of merchant groups among

Filipinos engaged in different lines of business;

Brokers Division which shall administer the licensing of

commercial brokers and real estate brokers and appraisers, excluding

brokers for stocks and securities;

Consumer Protection Division which shall administer

the registration of business names, private merchants, and bulk sales

documents; and enforce laws on monopolies and trade practices

in restraint of trade, mislabeling and product misrepresentation,

other unfair trade practices and consumer protection in general,

in this last regard for which it shall coordinate with the Food and

Drug Administration of the Department of Health; and

Field Operations Division which shall extend the services and

functions of the Bureau to the different regions, provinces

and district of the country.

Section 3 Bureau of Foreign Trade.

SEC. 3. Bureau of Foreign Trade.—The Bureau of

Foreign Trade shall, among others, consolidate all functions and efforts

pertaining to the promotion of exports in Particular and development of

foreign trade in general.

The following divisions are created in

the Bureau:

Foreign Trade Promotion Division which shall, among others,

conduct researches and studies on the promotion and expansion

of Philippine exports. It shall also provide necessary information to

interested persons and businessmen on foreign trade development

and prospects.

Export Service Coordination Division which shall, among others,

coordinate all activities and functions of government agencies involved

in the processing of export papers. It shall also update, improve or

simplify the administrative procedures involved in the processing of

export papers.

Foreign Trade Relations Division which shall, among others,

deal with Philippine commercial relations with other

countries. It shall gather information on other countries' economies and

economic and commercial policies and shall encourage

Philippine participation in international trade fairs and

expositions.

All commercial attaches shall be appointed by, and placed under

the control of the Secretary and under the supervision of the Director

of the Bureau of Foreign Trade, except when actually assigned to

missions abroad, in which case the provisions of Paragraph 3, Article

IV, Part XVIII of the Integrated Reorganization Plan shall prevail.

Section 4 Securities and Exchange Commission.

SEC. 4. Securities and Exchange Commission.—The

Securities and Exchange Commission shall, among others, encourage the

formation of partnership and corporate ventures with widely and publicly

held equity, and protect the investing public from deceptions and

frauds in securities marketing.

The following divisions are retained in the Securities and

Exchange Commission:

Stock Brokers and Exchange Division which shall,

among others, handle the regulation of activities of securities,

exchanges, brokers, dealers and their salesmen; and

Examiners and Appraisers Division which shall, among others,

handle the financial and accounting phase of the visitorial functions of

the Commission.

The Legal Enforcement Division is renamed Corporate Division. It

shall, among others, handle the processing of corporation papers and

by-laws, articles of association and partnership agreements, the

registration and licensing of securities, and the investigation of

corporations.

The Securities and Exchange Commission shall be

converted into a collegial body composed of a full-time Chairman and two

full-time members who shall serve for a term of six years for which the

corresponding positions are created. In the initial appointments of

Chairman and members, one shall be appointed to service for six years,

one for four years, and one for two years. The positions of Commissioner

and Deputy Commissioner are hereby abolished: Provided, That the

incumbent Commissioner shall continue to serve the

Commission in accordance with Paragraph 13, Article 1, Chapter 1, Part

XXIII of the Integrated Reorganization Plan.

Section 5 Philippines Bureau of Products Standards.

SEC. 5. Philippines Bureau of Products Standards.—The

Bureau of Standards is renamed Philippines Bureau of Products Standards

which shall, among others, be responsible for establishing standards

for commodities, inspection and certification of products for exports

and local distribution, and inspection and certification of products

imported by the country.

Section 6 Philippines Patent Office.

SEC. 6. Philippines Patent Office.—The

Philippines Patent Office shall, among others, be responsible for the

promotion of scientific research and inventions; and for the protection

of owners of industrial property rights.

In addition to the General Organic Chemistry Division;

Chemical Technology Division; Mechanical Division; Electrical, Design

and Utility Model Examining Division; and the Trademark Examining

Division, the following divisions are created:

Legal Service Division which shall, among others,

render legal advise to the Director of Patents and to hear and

decide interparte cases, oppositions, cancellations,

interferences, public use proceedings and matters dealing with

compulsory licensing.

Research and Information Division which shall, among others, be

responsible for the conduct of researches on various subjects, act

as custodian of all scientific and legal books of the Office and shall

perform library service functions, and product and disseminate

information pertaining to office and court decisions on patent and

trademark case.

Section 7 Bureau of Fiber Inspection Service.

SECTION 7. Bureau of Fiber Inspection Service.—The

Bureau of Fiber Inspection Service is renamed Bureau of Fiber

Development and Inspection Service, which shall, among others, be

responsible for the maintenance and enforcement of a uniform standard

classification of abaca and other Philippine fibers intended for export

and for domestic consumption.

Section 8 ECAFE Unit.

SEC. 8. ECAFE Unit.—The ECAFE Unit is renamed

ESCAP (Economic and Social Commission for Asia and the Pacific) Unit.

The ESCAP Unit of the Philippine Committee on ESCAP matters is retained

in the Department and its functions shall include, among others, to act

as liaison agency for securing quick exchange of in-formation between

the ESCAP Secretariat and the Philippine Government and the various

governments in the ESCAP region and to work for the implementation of

resolution or studies approved or undertaken by the Commission and ESCAP

Secretariat, respectively.

Section 9 UNCTAD Unit.

SEC. 9. UNCTAD Unit.—The UNCTAD Unit of the

Philippine Committee on UNCTAD matters is maintained in the Department

and its functions, shall include, among others, to act as liason agency

in the various areas of economic and trade development between the

United Nations Conference on Trade and Development (UNCTAD) and the

Philippine Government in the various trade aspects of international

economic cooperation and to undertake the implementation of resolution

and studies recommended and approved by the inter-agency committee

involved.

Section 10 Government-Owned or Controlled Corporation and Agencies attached to the Department of Trade.

SEC. 10. Government-Owned or Controlled Corporation

and Agencies attached to the Department of Trade.— The following

agencies are attached to the Department: (a) Philippine Export Credit

Insurance and Guarantee Corporation; (b) Permanent Committee for the

Implementation of the Philippine Indonesian Agreement on Economic and

Technical Cooperation; (c) Philippine International Trading Corporation;

(d) Design Center Philippines; (e) Metric System Board; (f) Philippine

Shippers' Council; (g) Cottage Industry Development Council (CIDC); (h)

Cottage Industry Development Enterprise (CIDE); (i) National Cottage

Industries Development Authority (NACIDA); and (3) Nacida Bank.

Section 11 Price Control Council.

SEC. 11. Price Control Council.—The Price Control

Council is renamed Price Stabilization Council and placed under the

administrative supervision of the Department.

Section 12 Trade Assistance Centers.

SEC. 12. Trade Assistance Centers.—The putting up

of trade assistance centers with an appropriation of four million five

hundred thousand pesos (P4,500,000) under the current Annual General

Appropriation Decree is hereby transferred from the Bureau of Domestic

Trade to the Office of the Secretary. To carry out the purposes of the

trade assistance centers, the sum of two million two hundred fifty

thousand pesos (P2,250,000) is hereby appropriated for the remainder of

Fiscal year nineteen hundred and seventy-four to nineteen hundred and

seventy five (1974-1975).

Section 13 Personnel.

SEC. 13. Personnel.—Except for such technical

positions as the Secretary may recommend to and be approved by the

President, all positions in the Department shall be subject to the

provisions of the Civil Service Law and the rules and regulations of the

Wage and Position Classification Office (WAPCO).

Section 14 Repeal.

SEC. 14. Repeal.—Any and all existing statutes,

decree, rules and regulations, or parts thereof inconsistent herewith

are repealed or modified accordingly.

Section 15 Effectivity.

SEC. 15. Effectivity.—This Decree shall take

effect immediately.

Done in the City of Manila, this 2nd day of June, in the year

of Our Lord, nineteen hundred and seventy-five.

(Sgd.)

FERDINAND E. MARCOS

President

Republic of the Philippines

By the President:

(Sgd.)

ALEJANDRO MELCHOR

Executive Secretary