EXECUTIVE ORDER NO. 913
EXECUTIVE ORDER NO. 913 -
STRENGTHENING THE RULE-MAKING AND ADJUDICATORY POWERS OF THE MINISTER
OF TRADE AND INDUSTRY IN ORDER TO FURTHER PROTECT CONSUMERS
WHEREAS, the broad and extensive functions
and responsibilities of the Ministry of Trade and Industry as regards
trade, industry, and investments are carried out through the
rule-making and adjudicatory powers, among others;
WHEREAS, the rule-making and adjudicatory powers of the Minister of
Trade and Industry are scattered in various laws pertaining to the
defunct Ministry of Trade, to the defunct Ministry of industry, and to
government agencies in general;
WHEREAS, certain aspects of such rule-making and adjudicatory powers
need urgent revision by restating and clarifying the legal provisions
embodying them, in order to prevent confusion and remove doubts as to
the nature and extent of such powers;
WHEREAS, the said laws provide for diverse, resource-draining, and
time-consuming processes of adjudication and thus it is necessary that
such processes be made uniform, economical and simple and that the
penalties imposable be made commensurate with the offense;
WHEREAS, at the same time such rule-making and adjudicatory powers
should be revitalized in order that the Minister of Trade and Industry
can more effectively protect consumers and apply more swift and
effective solutions and remedies to old and new problems related to
trade and industry which now exist or may hereinafter exist,
specifically the recent activities which have assumed the proportions
of economic sabotage, such as the hoarding, profiteering and price
manipulation of prime and essential commodities during critical periods
of price adjustments and other emergencies, the hoarding of cement
which upsets the timetable of the construction industry and the
government’s infrastructure program, the dumping of substandard,
imitated, hazardous and cheap goods in the country, the infringement of
internationally-known trade names and trademarks, the textile smuggling
which undermines the garments and textile industry, and the unfair
trade practices of business firms.
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and ordain:
ARTICLE
I
DEFINITION OF TERMS
Section 1. Definition of Terms. — When used in this
Executive Order, the term:
a.
“Minister” means the Minister of Trade and Industry.
b. “Ministry”
means the Ministry of Trade and Industry and/or any of its bureaus,
offices, or attached agencies, or any other office, unit or committee
by whatever name which is placed under or attached to the Ministry of
Trade and Industry.
c. “Trade and
industry law” means any act, Batas Pambansa, Presidential Decree,
General Order, Letter of Instructions, Executive Order, and other
similar issuances, which regulate trade and industry activities, the
violation of which subject the offender to criminal or administrative
penalties or civil liability, or does not subject the offender to any
penalty, sanction, or liability at all, and which laws or issuances are
subject to the implementation, administration, execution or enforcement
of the Ministry.
ARTICLE
II
RULE-MAKING POWER
Sec. 2. Implementing rules and regulations. — The
Minister may promulgate rules and regulations to implement the
provision and intent of “trade and industry laws.” This power shall
extend to the implementation of the objectives, policies, international
agreements, international grants, and the approved plans, projects, and
activities of the Ministry.
Sec. 3. Publication and effectivity. — The rules
and regulations promulgated by the Minister pursuant to this Executive
Order shall be published in full text in at least two newspapers of
general publication in the Philippines and shall take effect fifteen
days after such publication; Provided, That emergency rules as
determined by him take effect on a date fixed by him; and Provided,
further, That voluminous rules and regulations that will incur big
publication expenses need not be published in text but may be in the
form of a notice in such newspapers, giving the gist of the rules and
regulations and with a statement as to how and where to secure copies
of the full text thereof.
Should a particular set of rules and regulations be applicable only to
a certain city, municipality, province, region or other locality, the
Minister may limit the publication thereof to only one newspaper that
generally circulates in that locality, which shall take effect as
stated above, and if voluminous, the above provision may be
followed.
Additional publications in the Official Gazette of any of the
abovementioned rules and regulations shall be at the discretion of the
Minister.
ARTICLE
III
ADJUDICATORY POWER
Sec. 4. Arbitration, conciliation, and mediation
systems and procedures. — The Minister may establish arbitration,
conciliation, and mediation systems and procedures for the pacific
settlement of any trade and industry related disputes selected by him,
including such disputes where one of the parties is liable criminally
under a “trade or industry law,” in which case the compliance, payment
or the satisfaction of the award prescribed by the Minister in the said
systems and procedures shall be taken into account in any criminal
prosecution and conviction in court. The Minister may also provide for
compulsory arbitration of any trade and industry related dispute
involving critical trade and industry activities, such as export
activities.
Sec. 5. Formal investigation. — (a) Whenever the
Minister has verified that violation/s of “Trade and Industry Laws”
has/have been committed, he may motu propio charge said violator/s, and
thereafter proceed with a formal investigation, independent of the
corresponding criminal or civil action for the said violator/s. The
imposition of administrative penalties in the formal investigation is
without prejudice to the imposition of penalties in the criminal action
and/or judgment in the civil action, and vice versa, Provided, however,
That in deciding the case the Minister or the judge, as the case may
be, shall consider the decision of the other and impose further
penalties, or consider the penalties imposed by the other as already
sufficient, as his sense of justice dictates.
(b) The Minister may proceed to hear and determine
the violation in the absence of any party who has been served with
notice to appear in the hearing.
(c) The Minister shall use every and all reasonable
means to ascertain the facts of the case speedily and objectively
without regard to technicalities of law to procedure and strict rules
of evidence prevailing in courts of law and equity. The Minister shall
decide the case within thirty working days from the time the formal
investigation was terminated.
(d) The Minister shall have the same power to punish
direct and indirect contempts granted to superior courts under Rule 71
of the Rules of Court and the power to issue subpoena duces tecum.
(e) When the “trade and industry law” violated
provides for its own administrative procedure and penalties, including
a procedure where a Board, Council, Authority, or Committee takes part
as a body, the Minister shall have the option of selecting that
procedure and penalties or the procedure and penalties provided in this
Executive Order. If he opts for the latter, the approval of such Board,
Council, Authority, or Committee of the Minister’s decision shall not
be necessary.
Sec. 6. Administrative penalties. — After formal
investigation, the Minister may impose one or more of the following
administrative penalties:
(a)
The issuance of a cease and desist order.
(b) The
acceptance of a voluntary assurance of compliance or discontinuance
under such terms and conditions as may be imposed.
(c) The
condemnation or seizure of products which are the subject of the
offense.
(d) The
forfeiture of the paraphernalia and all properties, real or personal,
which have been used in the commission of the offense.
(e) The
imposition of administrative fines in such amount as deemed reasonable
by the Minister, which shall in no case be less than five hundred pesos
nor more than one thousand pesos for each day of continuing violation.
The fine imposed under this Section shall be regardless of the limits
of the criminal fine fixed in the “trade and industry law” violated.
(f) The
cancellation of any permit, license, authority, or registration which
may have been granted by the Ministry, or the suspension of the
validity thereof for such period of time as the Minister may deem
reasonable which shall not however exceed one year.
(g) The
withholding of any permit, license, authority, or registration which is
being secured by the respondent from the Ministry.
(h) The
assessment of damages.
(i) Censure.
(j) Other
analogous penalties or sanctions.
Sec. 7. Cease-and-desist order. — The
cease-and-desist order referred to in the preceding Section shall
specify the acts that the respondent shall cease and desist from and
shall require him to submit a report of compliance therewith within a
reasonable time which shall be fixed in the order.
Sec. 8. Voluntary assurance of compliance or
discontinuance. — The voluntary assurance of compliance or
discontinuance may include one or more of the following:
(a)
An assurance to comply with the provisions of the “trade and industry
law” violated.
(b) An
assurance to refrain from engaging in unlawful acts and practices or
unfair or unethical trade practices subject of the formal investigation.
(c) An
assurance to recall, replace, repair, or refund the money value of
defective products distributed in commerce.
(d) An
assurance to reimburse the complainant the expenses and the costs
incurred in prosecuting the case in the Ministry.
The Minister may also require the respondent to submit periodic reports
of compliance and file a bond to guarantee compliance with his
undertaking.
Sec. 9. Seizure. — The products seized under
Subsection (c), Sec. 6 of this Executive Order shall be disposed of
in such manner as may be deemed appropriate by the Minister, such as by
sale, donation to distressed local governments or to charitable or
relief institutions, exportation, recycling into other products, or any
combination thereof, under such guidelines as he may provide.
Sec. 10. Preliminary orders. — As soon as a formal
charge is instituted by the Minister, and even prior to the
commencement of the formal investigation, the Minister may, motu propio
or upon verified application of any person, issue a preliminary order
requiring a person to refrain from a particular act or to perform a
particular act, if the Minister is satisfied that the commission or
continuance of the act complained of during the formal investigation of
the non-performance thereof would probably work injustice to the
complainant; or that the respondent is doing, threatens, or is about to
do, or is procuring or suffering to be done, some act probably in
violation of the complainant’s rights respecting the subject of the
formal investigation and tending to render the judgment ineffectual.
The Minister shall provide by rules and regulations the other
qualifications, restrictions, and procedure for the issuance of such
preliminary orders.
Sec. 11. Preventive measures pending formal
investigation. — Likewise, as soon as a formal change is instituted by
the Minister, and even prior to the commencement of the formal
investigation, the Minister may order one or more of the following for
the purpose of preventing the disposition or tampering of evidence, the
continuation of the acts being complained of, and the flight of the
respondent, as the case may be:
(a)
The seizure of the goods which are the subject of the said
investigation or the padlocking of the warehouse, building, or
structure where the said goods are contained or stored; or the
withholding of such goods if for any reason the possession thereof has
passed to the Ministry.
(b) The
seizure of the paraphernalia, machines, vehicles and the like believed
to have been used in the commission of the offense or the padlocking of
the warehouse, building, or structure where the said paraphernalia are
contained or stored; or the withholding of such paraphernalia,
machines, vehicles and the like if for any reason the possession
thereof has passed to the Ministry.
(c) The
padlocking of the business establishment, warehouse, building, shop or
any other structure which was used in the commission of the offense;
(d) The
holding in port of any vessel or air craft which has been used in the
commission of the offense;
(e) The
prevention of the departure from the Philippines of the respondent,
regardless of citizenship; and
(f) Any other
preventive measures which are deemed necessary by the Minister to
achieve the purposes of this Section .
In the cases mentioned in Section s (d) and (e) of this Section , the
Minister shall issue a copy of the order to the Philippine Coast Guard,
Aviation Security Command, or Commission on Immigration and
Deportation, as the case may be, and the latter upon receipt thereof
shall without delay implement the order and submit a report of
compliance to the Minister.
Sec. 12. Execution of decisions. — The Minister
may deputize the Integrated National Police, the National Bureau of
Investigation, the National Intelligence and Security Authority, or any
other law enforcement or investigative agency of the government, or any
branch or service of the Armed Forces of the Philippines, or any public
officer, private person, or public or private entity, in the
enforcement of any of his decisions or orders.
Sec. 13. Finality of Order. — The decision of the
Minister shall become final and executory fifteen days after the
receipt of a copy thereof by the party adversely affected unless within
that period an administrative appeal to the President or judicial
review, if proper, has been perfected. One motion for reconsideration
may be filed, which shall suspend the running of the said period.
ARTICLE
IV
OTHER AUTHORIZATIONS AND
PROVISIONS
Sec. 14. Power to implement any “trade and
industry law” which is silent as to the implementing authority. — The
Minister has the authority to implement by rules and regulations among
others, any “trade and industry law” which is silent as to government
agency that shall implement it.
Sec. 15. Authority for other agencies to deputize
the Ministry to perform some functions. — All government bureaus,
offices, or agencies, including local governments and government-owned
or controlled corporations, including their subsidiaries, are hereby
authorized to deputize the Ministry upon the latter’s request, to
perform some of their functions which are related to trade and
industry. The deputations shall take effect only after the Memorandum
of Agreement thereon has been approved by the President of the
Philippines, unless there is an emergency necessitating immediate
action, in which event a report thereon shall be immediately submitted
to the President after such assumption, for his information.
Sec. 16. Delegation of powers. — The Minister may
delegate, preferably in writing, any of his powers under this Executive
Order to any officer or employee under his control or supervision, and
the acts of the delegate which are within the limits of the delegation
order shall have the same effect as when they are personally done by
the Minister.
Sec. 17. Prescriptive period. — The prescriptive
period for instituting the formal investigation of any violation
covered by this Executive Order shall be three years.
Sec. 18. Implementing rules and regulations. — The
Minister shall promulgate rules and regulations to implement this
Executive Order which shall take effect as provided under Sec. 2
hereof.
Sec. 19. Separability clause. — In the event any
provision of this Executive Order of the application of such provision
to any person or circumstance is declared invalid, the remainder of
this Executive Order shall not be affected by such declaration.
Sec. 20. Repealing clause. — All laws, Decrees,
Instructions, Executive Orders, rules or regulations, and other similar
issuances inconsistent herewith are hereby repealed or amended
accordingly.
Sec. 21. Effectivity. — This Executive Order shall
take effect upon its publications in a newspaper of general circulation
in the Philippines.
Done in the City of Manila,
this 7th day of October, in the year of Our Lord, Nineteen Hundred and
Eighty-Three.
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Since 19.07.98.