EXECUTIVE ORDER NO. 574 - PROVIDING FOR THE RE-STRUCTURING OF THE ORGANIZATIONAL FRAMEWORK OF THE MINISTRY OF TRADE AND, FOR THE PURPOSE, AMENDING PRESIDENTIAL DECREE NUMBERED SEVEN HUNDRED TWENTY-ONE AND OTHER RELATED LAWS

WHEREAS, far reaching developments in the world economy have necessitated a re-emphasis by the government of its priorities in its efforts to support the growth and development of foreign and domestic trade in order to achieve the national objectives of accelerated economic growth and development;

WHEREAS, for such programs to succeed, the capabilities of the nation to expand and diversify its export markets and secure more advantageous terms and trade for its commodities and services must be more vigorously mobilized;

WHEREAS, for such programs to succeed and, in particular, to achieve a continuing favorable balance of payments the imports of the nation must be marshalled and directed according to an operational framework incorporating a clear-cut and positive character to respond for each new external economic pressure;  

WHEREAS, the Ministry of Trade is the primary instrumentality of the government for discharging its functions related to trade; and as such, it is the natural focus of lines of responsibility and authority necessary to develop a consolidated, integrated and coherent approach to the search for solutions to trade related problems and to the identification of opportunities in the generation of foreign currency earnings;

WHEREAS, in order to discharge its responsibilities, the Ministry of Trade must be provided with the organizational structure, the financial support, and the manpower capabilities commensurate with the scope of its tasks; and

WHEREAS, under Presidential Decree No. 1416, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing circumstances and new developments.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, and the authority vested in me by Presidential Decree No. 1416, do hereby order and ordain:

Section 1. Declaration of Policy. — It is hereby declared to be the policy of the government to promote and develop its domestic and foreign trade, and through a more effective Ministry of Trade; expand export and domestic trade activities and provide measures designed to facilitate trade and minimize cost increasing inefficiencies, disincentives and regulatory restraints in the market, for purposes of achieving the national objectives of efficiently providing essential commodities to the people, attaining favorable foreign trade balances, full employment, and accelerated industrialization.

Sec. 2. The Ministry of Trade. — The primary responsibility for the development, promotion, rationalization, and regulation of commerce and trade, both domestic and foreign, is hereby lodged in the Ministry of Trade, hereinafter referred to as the Ministry, which is constituted as the principal governmental instrumentality for policy-making, planning programming, implementation, and inter-agency coordination for all domestic and foreign trade matters and activities.

Sec. 3. Authority and Responsibility. — The responsibility and authority for the exercise of the powers and the discharge of the functions of the Ministry shall be vested in a Minister of Trade who shall be assisted by two Deputy Ministers.

The Minister of Trade is hereby authorized to determine and assign the respective functional areas of responsibilities of the two deputy ministers provided that such delineation of responsibilities shall be limited to the substantive functions and operations of the Ministry. A deputy minister shall not be assigned to be responsible for purely administrative matters.

Sec. 4. Powers and Functions. — The Ministry shall have the following powers and functions:

a. Formulate and implement policies, plans, programs and projects, consistent with the policy declared in Section 1 hereof and based on approved national development plans, priorities and guidelines;

b. Supervise and coordinate governmental activities concerning trade, including the regulation thereof and the enforcement of laws relating thereto, in order not only to insure fair dealing and to protect property and consumer rights but to facilitate and promote trade through the removal of barriers to and distortions in trade by such means as may be found effective and expeditious, including deregulation and further simplification and integration of trade processes and procedures; and, in connection with the enforcement of laws on patents, fair trade, and other related statutes, the extension of government assistance and protection, where appropriate and in accordance with law, to, among others, Philippine distributors franchise holders, and beneficiaries of compulsory patent licensing;  

c. Design and administer a comprehensive and integrated program of promotions, research, training, and consultancy assistance, intended to develop, expand, and diversify export markets and induce patronage of Philippine-made products and services in the domestic market; and, in connection therewith, develop an adequate system of registration for trading companies, especially those engaged in exports, in order to further develop the export potentials and capabilities of such companies and provide them with government assistance and support where called for and in accordance with law;

d. Collect and disseminate market intelligence data to appropriate entities, including Philippine exporters, and identify opportunities, for effecting foreign exchange savings in overseas sourcing of raw materials and the intermediate and capital goods requirements of export and import-substitution industries;

e. Develop inter-agency cooperation and coordination for monitoring and assessing the impact on the balance of trade of imports and non-merchandise expenditures and receipts;

f. Represent the Government, together with such other government offices as may also be concerned, in trade conferences, meetings and negotiations; and discharge such responsibilities of the government relating to trade aspects as may arise from bilateral or multilateral treaties, agreements, and other commitments to which the Philippine is a signatory;

g. Promulgate standards and guidelines, as well as appropriate rules and regulations for their enforcement, in coordination with specialized governmental agencies and offices, for commodities, products, and services deemed vital to domestic or external trade;

h. Institute and administer an export product classification system adequate for product and market planning and for undertaking export promotion and diversification activities;

i. Maintain a registry of exporters and importers including individual firms as well as associations to facilitate the dissemination of trade information and the assembly of statistical date on the import and export industries suitable for market planning, and for this purpose, where necessary, require such firms and associations to submit periodic reports containing the requisite information;

j. Develop, install, and maintain a responsive and effective management information and performance evaluation system at all levels and stages of planning, execution, coordination, monitoring and control of the activities, programs and projects of the Ministry;

k. Establish and institutionalize a mechanism, for consultation, liaison, cooperation, and for formulating and implementing programs of assistance, with the business sectors and consumer groups;

l. Promulgate such rules and regulations as may be necessary to attain its objectives; and  

m. Perform such other functions as may be provided by law.

Sec. 5. Organization of the Ministry. — The Ministry shall include the Ministry proper, composed of the Office of the Minister, the Planning Service, the Financial and Management Service, the Legal Service, and the Administrative Service.

The Bureau of Export Promotion, the Bureau of International Trade Relations, the Bureau of Domestic Trade Promotion, and the Bureau of Consumer Affairs which are hereby created, and the Philippines Bureau of Products Standards, the Philippines Patent Office and the Bureau of Fiber and Inspection Service which are retained in the Ministry shall be under the supervision and control of the Ministry.

The Metric System Board, Design Center Philippines, Accreditation Boards for Service and Repair Enterprises and the Foreign Trade Service Board shall be under the administrative supervision of the Ministry.

The Philippine International Trading Corporation and the Philippine Shipper’s Council shall be attached to the Ministry.

Sec. 6. Functions of the Minister. — The functions of the Minister shall be as follows:

a. Advise the President on matters relative to foreign and domestic trade;

b. Establish the policies and standards for the implementation of the plans and programs of the Ministry consistent with declared national policies on domestic and foreign trade;

c. Promulgate rules and regulations necessary to attain the objectives, implement the policies, and perform the functions of the Ministry;  

d. Exercise supervision and control over all offices and bureaus under the Ministry, and, in the case of agencies attached to or under the administrative supervision of the Ministry exercise such appropriate authority as prescribed under pertinent provisions of Part II and Part XI of the Integrated Reorganization Plan, as amended;

e. Except as otherwise provided by law, delegate authority for the performance of any function to such personnel or offices as he may deem best able to discharge the same; and

f. Perform such other functions as may be provided by law and Presidential instructions and directives.

Sec. 7. Functions of the Staff Services in the Ministry Proper. — The functions of the Planning Service, Financial and Management Service and Administrative Service shall be those stated in the appropriate provisions of Part II of the Integrated Reorganization Plan, as amended, except that the functions of the Administrative Service pertaining to legal and other related matters shall be performed by the Legal Service of the Ministry.

Sec. 8. Bureau of Export Promotion. — The Bureau of Export Promotion shall assist and advise the Minister in the formulation of policies and programs related to the expansion of established markets for Philippine export products, in the provision of assistance to private exporters, as well as in the identification and development of new international outlets for Philippine export products.

The Foreign Trade Service Corps established in the Ministry under Executive Order No. 540 shall be under the supervision and control of the Director of Export Promotion who shall determine all matters related to the assignment abroad of the members of the Corps, including the scope shall be under such administrative supervision of the head of the Philippine mission in the country of their assignment as is provide for in existing applicable laws and rules and such memorandum of understanding which may be entered into between the Ministry of the Ministry of Foreign Affairs and revised from time to time as necessary.  

Sec. 9. Bureau of International Trade Relations. — The Bureau of International Trade Relations shall assist and advice the Minister in the performance of the export facilitation functions of the Ministry, which functions include the promulgation and enforcement of regulations on export trade, the registration of export producers, traders, and associations of exporters for statistical and other purposes, the conduct of country and commodity research, the overall coordination of the simplification and integration of export procedures adopted by the Ministry and other agencies of the government, and the servicing of bilateral and multilateral trade relations in cooperation with the Ministry of Foreign Affairs and other ministries concerned.

Sec. 10. Bureau of Consumer Affairs. — The Bureau of Consumer Affairs shall, among other functions, advise and assist the Minister in all matters relative to the enforcement of all laws, rules and regulations concerning domestic trade, including measures intended to protect consumers and prevent the establishment of combinations in restraint of trade, as well as the use of misleading, deceptive or fraudulent schemes and devices to effect the sale and distribution of commodities. The Bureau shall likewise advise and assist the Minister in the discharge of the functions of the Ministry relating to real estate brokers, retail trade, and the registration of merchants, business names, and documents connected with the law on bulk sales.

Sec. 11. Bureau of Domestic Trade Promotion. — The Bureau of Domestic Trade Promotion shall, among other functions, advise and assist the Minister in the discharge of the Ministry’s functions relating to domestic trade promotion and development.

Sec. 12. Philippines Bureau of Products Standards. — The Philippines Bureau of Products Standards shall perform the same functions as those provided under existing applicable laws.  

Sec. 13. Philippines Patent Office. — The Philippines Patent Office shall perform the same functions as those provided under existing applicable laws.

Sec. 14. Bureau of Fiver and Inspection Service. — The Bureau of Fiver and Inspection Service shall perform the same functions as those provided under existing applicable laws.

Sec. 15. Export Facilitation Functions. — To provide the appropriate balancing factor in the enforcement of regulatory, and licensing laws administered by other ministries and agencies of government, the Ministry shall, within the framework of a market oriented program:

1. Assist in the further simplification of procedures adopted by other ministries and agencies of government for regulating export activities; assist in granting fiscal and/or financial incentives or accrediting or registering export enterprises, and, through effective liaison with such ministries and agencies, assist in the facilitation of the processing of applications for registration, or accreditation, the issuance of licenses and permits, and availment of incentives;

2. Assist in obtaining clarification of or in rendering more efficient the existing regulatory framework governing importations by export industries with imported inputs to production, including those applicable to bonded manufacturing, export drawback, and margin deposits; and

3. Assist in inducing the inflow of investment or the transfer of appropriate technology to export industries by coordinating or establishing working relationship with government agencies whose functions involved the regulation, encouragement or support of programs and projects intended to increase the capital base or upgrade the technological capability of industrial enterprises.  

Sec. 16. Field Organizational Structure of the Ministry. — Within 180 days from the date of the effectivity of this Executive Order, the Minister of Trade shall effect the consolidation and integration of the Ministry’ field operations, including those of its bureaus, either under any existing regional or field unit he may designate or under ministry-wide regional offices to be established in accordance with Article I, Chapter III, Part II of the Integrated Reorganization Plan, as amended. The Minister of Trade shall likewise issue the necessary implementing order effecting such consolidation which may include the abolition of existing field offices of the bureaus and offices under the Ministry, the transfer of resources and such personnel as may be necessary either to the field unit designated by the Minister or to the regional offices as may be established, and the organizational relationships between central and field offices consistent with national policies and guidelines.

Sec. 17. Transferred Agencies. —

1. The Export Promotion Project in the National Economic and Development Authority shall be transferred to, and placed under the appropriate unit in the Ministry as may be determined by the Minister of Trade. The transfer shall include applicable appropriations, records, equipment, property and such personnel as may be necessary. The Minister of Trade, at his direction, may constitute an inter-agency committee consisting of representatives of concerned ministries and agencies to manage the project.  

2. The National Cottage Industries Development Authority (NACIDA) shall be transferred and attached to the Ministry of Industry, together with its functions, applicable appropriations, records, equipment, property and such personnel as may be necessary: Provided, That those functions and programs of NACIDA which may be primarily concerned with trade matters shall be transferred to the Ministry of Trade or to an appropriate agency attached to or under the administrative supervision of the Ministry, together with applicable appropriations, records, equipment, property and such personnel as may be necessary: Provided, further, That the actual transfer of NACIDA to the Ministry of Industry may be deferred but not beyond the end of 1980, to enable the Minister of Trade to complete the implementation of NACIDA programs with close linkage with the Ministry: Provided, finally, That such arrangements shall be undertaken by mutual agreement between the Minister of Trade and the Minister of Industry.

Sec. 18. Abolished Agencies. —

1. The Bureau of Foreign Trade is hereby abolished and its functions, together with applicable appropriations, records, equipment, property and such personnel as may be necessary are transferred as appropriate to the Bureau of Export Promotion and the Bureau of International Trade Relations.

2. The Bureau of Domestic Trade is hereby abolished and its functions, together with applicable appropriations, records, equipment, property and such personnel as may be necessary are transferred as appropriate to the Bureau of Domestic Trade Promotion and the Bureau of Consumer Affairs.  

3. The Cottage Industry Development Council and the Cottage Industry Development Enterprises are hereby abolished and their functions, together with applicable appropriations, records, equipment, property and such personnel as may be necessary are transferred to the National Cottage Industries Development Authority.

4. The National Cottage Industries Bank created under Republic Act No. 3756 is abolished, and the Central Bank shall arrange for the liquidation of the Bank; Provided, That after the satisfaction of all claims against the Bank, any remaining assets shall be turned over to the National Cottage Industries Development Authority: Provided, further, That the liquidation may be undertaken judicially or otherwise by the Central Bank.

5. The Philippine Export Credit Insurance and Guarantee Corporation is hereby abolished and its functions, as appropriate, are transferred to the Philippine Export and Foreign Loan Guarantee Corporation.

Sec. 19. Permanent Committees on Philippine Trade Agreements. — The Permanent Committees for the implementation of Philippine Trade agreements with foreign countries are to be chaired by the Minister or his designee.

Sec. 20. Personnel Matters. — All positions in the Ministry shall be subject to the Civil Service Law and the rules and regulations of the Office of Compensation and Position Classification except as may be provided for by law or Presidential directives.

Sec. 21. Contractual Services. — In accordance with existing applicable law and rules or Presidential directive, the Ministry is hereby authorized to engage the services of experts and consultants, whether individual persons or institutions on a contractual basis and for such compensation as may be deemed reasonable whenever necessary for the following purposes:

1. To undertake studies and reviews of bilateral and multilateral treaties; and prepare supportive position papers with respect thereto;

2. To represent the Ministry, under special conditions, in international conferences, meetings, and negotiations;  

3. To evaluate the performance of bureaus, offices, and units within the Ministry, as well as the agencies, councils, and corporations attached or otherwise linked to the Ministry for purposes of improving coordination and aligning programs and activities;

4. To coordinate export promotion programs, particularly those related to the activities of the commercial attach network of the Ministry and those involving private sector participation;

5. To design and implement specific short-period gestation projects and programs of urgent and/or special concern to the Ministry;

6. To provide specialized research and trade consultancy services to the private sector;

7. To assist in other highly technical or policy determining activities of the Ministry, particularly those involving international trade relations and the promotion of export trade.

Sec. 22. Personnel Development. — Except as otherwise provided by law, the Minister may, for the purpose of personnel development, adopt a program of cross posting at all levels within the Ministry and, pursuant to the requirements thereof and the exigencies of the service, re-assign or transfer any employee of the Ministry from one office or one position to another without prejudice to the maintenance of his salary and other emoluments.

Sec. 23. Separability Clause. — Should any provision hereof be declared unconstitutional, no other provision hereof shall be affected thereby.

Sec. 24. Repealing Clause. — All provisions of Presidential Decree Numbered Seven Hundred and Twenty-One and of other laws, rules and regulations which are inconsistent herewith are hereby repealed, amended and/or modified accordingly. Likewise, Letter of Instructions Numbered Seven Hundred Eighty-Six, designating a Presidential Action Officer on Trade Facilitation is hereby modified accordingly.  

Sec. 25. Effectivity. — This Executive Order shall take effect immediately.

DONE in the City of Manila, this 7th day of December, in the year of Our Lord, Nineteen Hundred and Seventy-Nine.
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Since 19.07.98.