Preamble
WHEREAS, sustained national economic growth calls for a secure position in the growing world market for international trade; WHEREAS, efforts at strengthening the external trade sector have been weakened by the continued inability to provide an organized body that can take advantage of economies of scale in bulk purchases, widescale shipping, marketing, centralized financing assistance and other export promotions services; WHEREAS, existing trade assistance bodies in the private sector continue to operate on a small scale for a limited number of export products without regard to a larger rationalization of the national export industry called for by the national development program; WHEREAS, while previous attempts have been made to provide a central body in aid of international trading for local producers, these bodies have not achieved their primary objectives by reason of their limited operations or other basic defects or weaknesses in their conception or organization; WHEREAS, while developed economies have long relied on large trading houses either on a competitive basis or on an exclusive and monopolistic stale franchise, our economy has yet to adopt and benefit from such a trade assistance scheme; WHEREAS, developing economies, especially within the neighboring Southeast Asian region, that have established government trade companies have acquired a significant advantage over Philippine trade in the world market; WHEREAS, in view of the latest trends in the international market, it is imperative that the Philippines be sufficiently supported by such institutions and/or agencies that can endow her with the needed competitive capacity; and WHEREAS, such an institution is a government-controlled international trading corporation that shall derive support and patronage from industry groups, warehouse/port facility owners, insurance companies, investment banks, commercial banks and individual exporters and importers; NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, as Commander-in-Chief of all the Armed Forces of the Philippines, in recognition of the foregoing premises, do hereby order and decree into law the following: This Decree shall be known as the Philippine International Trading Corporation Law. International Trading Corporation There is hereby created a body corporate and politic to be known as the Philippine International Trading Corporation, hereinafter referred to as the Corporation, which shall be governed by the provisions of this Act. The Corporation shall have its principal place of business in the City of Manila and shall exist for a period of fifty years. The initial authorized capital stock of the Corporation shall be twenty million (P20,000,000.00) pesos and shall be subscribed and paid up as follows: (a) 60 per centum thereof or twelve million (P12,000,000.00) pesos shall be subscribed by the Republic of the Philippines and shall be paid for as follows: (1) The amount of six million (P6,000,000.00) pesos shall be paid by the Republic of the Philippines. The sum of six million (P6,000,000.00) pesos is hereby set aside and appropriated for the purpose from the proceeds of the General Fund not otherwise appropriated. (2) The amount of six million (P6,000,000.00) pesos shall be paid in three equal parts by the following government financial institutions: Central Bank of the Philippines - two million P2,000,000.00) pesos. Philippine National Bank — two million (P2,000,000.00) pesos. Development Bank of the Philippines - two million (P2,000,000.00) pesos. (b) 40 per centum thereof, or eight million (P8,000,000.00) pesos shall be offered for subscription and payment to the public, subject to the following conditions: That the shares of stock shall be sold at not less than the uniform par value of one hundred (Pl00.00) pesos. That such disposition of shares of stock shall result in the equal distribution thereof, among individuals or organized traders, representing specific industries or products, without anyone stockholder owning more than 5 per centum of the 40 per centum of the authorized capital stock. Each share of stock shall represent one vote and any agreement, contract, arrangement, scheme or plan that shall transfer voting rights to any person other than the stockholder is prohibited. The voting power of all the stock of the Corporation owned and controlled by the Republic of the Philippines, shall be vested in the President of the Philippines, or in such person or persons as he may from time to time designate. The Corporation is hereby vested with the following purposes and powers: The Chairman of the Commission on Audit shall appoint a representative who shall be the auditor of the Corporation. He shall likewise appoint the necessary personnel to assist said representative in the performance of his duties. The salaries of the auditor and his staff shall be fixed by the Chairman of the Commission on Audit with the advice of the Board of Directors and said salaries, and other expenses for the auditor's office shall be paid by the Corporation. The auditor of the Corporation and personnel under him may be removed only by the Chairman of the Commission on Audit. The auditor must be a certified public accountant with at least ten years experience as certified public accountant. No relative of any member of the Board of Directors or the Chairman of the Commission on Audit within the fourth degree of consanguinity and affinity shall be appointed as such representative. Before the end of February of each year, the Corporation shall submit to the President of the Philippines and shall publish an annual report on the condition of the Corporation and a review of the policies and measures adopted by the Board during the past year and an analysis of the economic and financial circumstances which gave rise to said policies and measures. The annual report shall also include a statement of the financial conditions of the Corporation. Sixty (60) percent of the profits assigned to the shares of the Republic of the Philippines shall he expended for the expressed objectives of the Corporation. Forty (40) percent thereof shall be paid into the Treasury of the Philippines for the general funds thereof. and Position Classification Law The provisions of the Civil Service Law and the Wage and Position Classification Law shall not apply to the appointment and compensation of any officer or employee of the Corporation. Officers and employees in the Corporation, including all members of the Board of Directors shall not engage directly or indirectly in partisan activities or take part in any election except to vote. Any director, officer, employee or agent of the Corporation, who violates or permits the violation of any of the provisions of this Decree, or any person who violates or aids in or abets the violation of any of the provisions of this Decree shall be punished by a fine not to exceed ten thousand pesos or by imprisonment of not more than five years or both such fine and imprisonment. All acts, decrees, rules, regulations and other official issuances or parts thereof, inconsistent or incompatible with the provisions of this Decree are hereby repealed. Owing to practical exigencies of organizing a corporation of this magnitude and because of the sensitivity of the initial operating years, the first President of the Corporation shall enjoy a tenure of 3 years, which is renewable subsequently for tenure of only 2 years as provided for in Section 7, Article IV of this Decree. This Decree shall take effect upon its approval. The Secretary of the Department of Trade in his capacity as presiding officer of the Board of Directors shall call for an organizational meeting of the Board within fifteen (15) days from the time all the appointive members thereof are appointed by the President of the Philippines. Done in the City of Manila, this 21st day of July, in the year of Our Lord, nineteen hundred and seventy-three. (Sgd.) FERDINAND E. MARCOS President Republic of the Philippines By the President: (Sgd.) ROBERTO V. REYES Assistant Executive Secretary