Presidential Decree No. 817 (PD 817) — Amending Certain Sections of Republic Act No. 3470, as Amended, Entitled "An Act Creating the National Cottage Industries Development Authority (Nacida), Under the Department of Commerce and Industry, Prescribing Its Duties, Powers and Functions, and Appropriating Funds Therefor."
WHEREAS, there is an imperative need to amend the NACIDA Law
in order to update its provisions and make it attuned with the modern
trends in the production and trading of cottage industry products;
WHEREAS, cottage industry products now rank as the
No. 6. dollar earner among the commodity exports of the
nation and deserve to be accorded more incentives for growth and
viability;
WHEREAS, it is necessary to encourage the establishment and
promotion of cottage industries in order to generate more employment
opportunities.
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 the amendment of Republic Act No. 3470, as
amended by Republic Act No. 5326.
SECTION 1.—Section 1 of Republic Act No. 3470 is hereby
amended to read as follows:
"SECTION 1.—Within thirty days after the approval of this
Act, the President of the Philippines shall create a board known as the
National Cottage Industries Development Authority, hereinafter referred
to as the Board, under the Department of Trade, which shall be composed
of a chairman and three members, one of whom shall be a representative
of the private sector to be nominated by at least two (2) existing
recognized cottage industry chambers or associations: Provided,
That no person who is a candidate for a public elective office at the
time of his appointment or was such a candidate at the general or
special elections immediately preceding the same shall be eligible for
appointment as administrator, deputy administrator or member of the
board of directors. The Chairman and members of the Board, who shall be
appointed by the President of the Philippines, shall hold office for a
term of six years unless sooner removed or otherwise separated from the
service for causes provided by law, in which case a successor may be
appointed for the unexpired term. The chairman and members of the Board
shall be entitled to a per diem of P200.00 for each cession actually
attended by them: Provided, however, That in no case shall a
regular or special session exceed ten cessions monthly and that their
per diems shall not exceed P2,000 per month. They shall likewise receive
commutable transportation and representation expenses not exceeding
P1,000.00 monthly. The President of the Philippines shall appoint an
administrator and a deputy administrator cf the Board with a
compensation of P33,000.00 and P30,000.00 per annum, respectively. The
other officers and personnel of the Board shall be appointed by the
Administrator with the approval of the Board of Directors in accordance
with the Civil Service Law: Provided, That all such officers and
personnel shall be exempt from WAPCO rules and regulations, and
provided, further, that they shall receive, in addition to their regular
compensation, an incentive nay equivalent to ore month's salary for
every year of meritorious service rendered."
SEC. 2.—Section 2, paragraph (d) of Republic Act No. 3470 is
hereby amended to read as follows:
"(d) To promote the standardization of cottage industries
products, prescribe rules and regulations governing the grading,
classifying and inspecting of cottage industries products especially
those for export: Provided, That notwithstanding the provisions
of any law, decree, letter of instructions or executive order, the
NACIDA shall establish an Accreditation Committee which shall be charged
with regulating and supervising the activities of persons, firms or
corporations engaged in the production or manufacture, trading locally
or exporting of cottage products or raw materials thereof."
SEC. 3.—Section 4 of Republic Act No. 3470 is hereby
amended to read as follows:
"SECTION 4.—Powers and Duties of the Board of
Directors:
To fix the compensation and number of officers and employees
of the Board;
To approve the annual and/or supplemental budget of the Board
which may be submitted to it from time to time;
To administer the revolving marketing; fund; and
To enunciate the policies that shall guide the operations of
the Board;
SEC. 4.—Section 7, second paragraph is hereby amended to
read as follows:
"Each of these institutes shall be headed by a Cottage
Industries Manager who shall be assisted by an Assistant Cottage
Industries Manager, both of whom shall be appointed by the
Administrator upon the recommendation of the Board of Directors, with
compensation of eighteen thousand poses and twelve thousand pesos per
annum, respectively."
SEC. 5.—Section 11 of Republic Act No. 3470, as amended by
SEC. 6.—Section 16, paragraph 1, as amended, is hereby
further amended to read as follows:
"SECTION 16.—The production, manufacture and sale of
cottage industry products shall be exempt from all taxes, except
specific and income taxes, for a period of five years from the date of
registration of the person or firm engaged in the production or
manufacture of cottage Industry products with the Board; Provided,
That seventy-five per cent of the total cost of raw materials utilized
in the production or manufacture of cottage industry products consist of
raw materials of Philippine origin: Provided, further, That the
latter requirement as to raw materials shall not apply to embroidery,
piggery, poultry, livestock and metal craft industries: Provided,
furthermore, That no exemptions from the percentage taxes on sales
shall be enjoyed for all sales in excess of four hundred thousand pesos
each year: Provided, finally, That the provisions of the law on
cooperatives shall not be affected by this Act."
SEC. 7.—Such sums as may be necessary to carry out the
purposes of this Decree are hereby appropriated out of any funds in the
National Treasury not otherwise appropriated. Thereafter, the sum
necessary for said purposes shall be included in the annual General
Appropriations Decree.
SEC. 8.—All laws, decrees, rules and regulations
inconsistent herewith are hereby repealed or modified accordingly.
SEC. 9.—This Decree shall take effect immediately.
Done in the City of Manila, this 22nd day of October, 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
Section 1 of Republic Act No. 5326 paragraph 1, is hereby further
amended to read as follows:
"SECTION 11.—Definition.—The term "cottage industry" as
used in this Act shall mean an economic activity carried on in the homes
or in other places for profit, with a capitalization of rot exceeding
P100,000 at the time of registration. The term shall also include
economic activities carried on by students of public and private
schools, within school premises, as a cooperative effort, under
supervision of a teacher or other person approved by and acting under
the supervision and control of school authorities, either as part of or
in addition to ordinary vocational training, provided all profits shall
accrue to the students working therein. It shall include the following:
(1) fiber crafts, such as making of abaca ropes and twines, buntal fiber
extracting and buri leaf braiding; (2) woodcraft such as making of
wooden slices, wooden fans, walking sticks (cares) and wood carving; (3)
hat weaving such as calasiao. buri, raffia, karagomoy, buntal and
bamboo hats, salakot and helmet; (4) mat weaving such as doormats,
sleeping mats made of buri, pandan, balilan, and salutan and other
similar materials; (5) metal craft such as making of jewelries, knives,
bolces, scissors, razors, silverwares, and brassworks; (6) ceramics such
as making of potteries, hallow blocks, tiles, firebricks, clay stoves
and other ceramic products; (7) shell craft such as making sea shell
buttons and coconut shell products; (8) bamboo and rattan crafts such as
making of hammocks, basketry, making of sawali and other bamboo and
rattan furniture and articles; (9) small agricultural hand tools such as
plow points; (10) toy craft such as making of dolls and toys; (11)
embroidery, dressmaking and tailoring industries; (12) needle craft
(including knitting and crocheting); (13) loom weaving such as making of
fish nets; making of mosquito nets, weaving of Ilocano cloth, Igorct
weaving, piña 'barong Pilipino' jusi and sinamay; (14) machine parts
manufacture such as wheels and stone mortars; (15) poultry including
duck raising and 'balut' making; (16) piggery; (17) home cigar making;
(18) food preservation and canning, including the making of vinegar
wine, lambanog, 'bagoong', pili or peanuts confectionery or coconut
candy (bucayo); (19) other related crafts such as making of brooms,
pandan, nito and buri bags, 'Karagomoy' bags, bead making,
guitar and other musical instruments; and (20) such other industries
done in the home with the aid of electrical gadgets and/or by hand
manipulations. All cottage industries shall be owned and operated by
Filipino citizens or by a corporation, partnerships or cooperative, at
least seventy-five per cent of the capital or investment of which is
owned by Filipino citizens. All members of its Board of Directors shall
be Filipino citizens.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
