EXECUTIVE ORDER NO. 565
EXECUTIVE ORDER NO. 565 - CREATING
THE BONDED EXPORT MARKETING BOARD
WHEREAS,
the demonstrated capability of the bonded manufacturing system to
provide the appropriate operating conditions for export-oriented
enterprises with imported in-puts to production, justifies its
extension under such modified terms of application as may be necessary,
to a wider range of products with export potential;
WHEREAS, it is a matter of urgent necessity to reverse the current
trade deficits by further improving the performance of the external
sector, through the innovative applications and adoption of all the
requisite tools and instruments available for that purposes;
WHEREAS, to attain the above objective, it is imperative that all
governmental undertakings directed at the installation, expansion and
regulation of export productive capacity by synchronized, coordinated
and integrated with parallel efforts to identify, and promote export
products in which the Philippines has or can develop absolute or
comparative advantage in the international market, which task is best
entrusted to an inter-ministerial agency specifically created for that
purposes;
WHEREAS, under Presidential Decree No. 1416, the President is given the
authority to reorganize the National Government;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution and pursuant
to the authority vested in me by Presidential Decree 1416, do hereby
order and ordain:
Section 1. Declaration of Policy. — It is hereby
declared to be the policy of Government to adopt as the operational
basis for the implementation of the national export strategy a
market-oriented, rather than a primarily resource-based export trade
development program, the objective of which shall be to attain an
optimum level of the correspondence between international market
opportunities, on the one hand, and product development on the other,
in order that the existing or emerging comparative advantage of the
Philippine export industry, with respect to specific products,
attributable to labor cost, market proximity, level of available
skills, terms of market entry, and other determinants of competitive
position may be fully exploited.
Sec. 2. Creation of the Bonded Export Marketing
Board. — There is hereby created a Bonded Export Marketing Board,
hereinafter referred to as the Board, which shall be under the direct
supervision and control of the Office of the President and which shall
assume primary responsibility for the formulation of the underlying
projects and programs intended to implement the above declared policy.
Sec. 3. Locus of Responsibility and Authority. —
The authority and responsibility for exercising the functions and
discharging the duties of the Board is hereby vested in a Governing
Board to be composed of the Minister of Trade, as Chairman, and the
following as members: The Minister of Industry, the Commissioner of
Customs, a representative of the Central Bank of the Philippines with a
rank not lower than deputy governor and the Presidential Assistant on
Economic Affairs and Development.
Sec. 4. Powers and Functions. — In line with its
primary responsibility, the Board shall exercise the following powers
and functions:
a.
To study and analyze the international market for specific products in
which the Philippines has or can develop absolute or relative
advantage, given its labor costs, its actual or potential level of
technology, production capability, power rates, market leverage for
such products, and other determinants of production, pricing practices
and marketing strategies;
b. On the
basis of its findings, to submit, from time to time, to the President
of the Philippines for approval a list of export products in which the
Philippines presently has or can develop a relative or comparative
advantage in the international market and for which it has existing or
potential productive capacity and competitive efficiency;
c. To
encourage the installation or expansion of productive export capacity
for processing, manufacturing, or fabricating the products included in
the list approved by the President of the Philippines, and the promote
the same to the extent necessary to achieve optimum entry into target
markets;
d. To endorse
to the Board of Investments, any project proposal for export products
under a bonded manufacturing facility whenever such project qualifies
for incentives under the Export Incentives act, the Investment
Incentive Act and/or other applicable laws;
e. In
consultation and coordination with the Bureau of Customs, to regulate
and administer all bonded manufacturing sites, established by virtue
hereof, with the end in view of insuring operational efficiency, and
preventing the diversion of imported components of export products to
the domestic markets;
f. To identify
and designate the specific sites which export bonded manufacturing
facilities shall be located and, in connection therewith, to formulate
and adopt, in so far as may be practicable, a regional dispersal policy
for the export industry;
g. To
recommend and indorse for assistance to the Philippine National Bank,
the Development Bank of the Philippines, and other government-owned or
controlled financial institutions, specific export projects and
ventures found to be viable;
h. To initiate
studies on the development or maintenance of the absolute or
comparative advantage of export products, included in the list approved
by the President of the Philippines, in relation to wage structure,
power rates, terms of trade for imported components, re-export values,
shipping cost, labor productivity, levels of technology used, and other
significant factors essential to the determination of marketability and
competitive position;
i. To design
and implement an informational and feed back system which will
adequately monitor the inflow and outflow of goods in terms of volume,
prices, value added, mark-ups, intensiveness of labor in-puts,
percentage of local content, and specific international markets;
j. To
undertake such studies as may be required to formulate recommendations
on the feasibility of utilizing indigenous materials as substitutes for
imported in-puts to production of Philippine export goods; or the local
fabrication of manufacturing equipment; and, for this purpose, to
initiate studies or enter into other arrangements with private or
public research institutions under such terms of engagement as may be
required;
k. To
promulgate rules and regulations which will facilitate the export of
products covered by this Executive Order and achieve sound competitive
practices in the import-re-export trade on products subject to the
provisions hereof;
l. To monitor
compliance with bilateral treaties, if any, affecting products
manufactured under the bonded warehouse manufacturing system and to
distribute quotas or export authorizations in accordance with a fair,
reasonable, and orderly framework of allocation to be prescribed by the
Board; and
m. To
promulgate and enforce such rules and regulations as may be necessary
to administer the provisions hereof.
Sec. 5. Secretariat. — The Board shall be assisted
by a Secretariat to be formed in accordance with such organizational
framework and guidelines as the Board may prescribe.
Sec. 6. Personnel. — In recognition of the highly
technical nature of the functions of the Board, and its need to engage
the services of experts and consultants under varying terms of
engagement, as well as the ad hoc character of some of its work
requirements, appointments to positions in the Board shall be exempt
from the provisions of the Civil Service Law and regulations of the
Office of Compensation and Position Classification (OCPC). The Board
may likewise enter into contract with individuals or organizations of
recognized competence in their fields of specialization for the
performance of any undertaking related to its functions.
Sec. 7. Detail of Personnel. — All personnel
detailed to the Board by other governmental agencies shall be deputized
by it and shall be under its administrative supervision.
Sec. 8. Appropriation. — There is hereby
appropriated out of the funds of the National Treasury, not otherwise
appropriated the sum of Two Million Pesos (P2,000,000) for the use of
the Board.
Sec. 9. Effectivity. — This Order shall take
effect immediately.
DONE in the City of Manila,
this 16th day of October, in the year of Our Lord, nineteen hundred and
seventy-nine.
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Since 19.07.98.