EXECUTIVE ORDER NO. 133
EXECUTIVE ORDER NO. 133 -
REORGANIZING THE DEPARTMENT OF TRADE AND INDUSTRY, ITS ATTACHED
AGENCIES, AND FOR OTHER PURPOSES
WHEREAS,
under Article II, Section 1, of the Provisional Constitution, as
adopted in Proclamation No. 3 dated March 25, 1986, the President shall
give priority to measures to achieve the mandate of the people to
completely reorganize the government;
WHEREAS, Article XVIII, Section 16, of the 1987 Constitution recognizes
that the reorganization of the government shall be continued even after
the ratification of the Constitution;
WHEREAS, under Article XVIII, Sec. 6, of the 1987 Constitution, the
President shall continue to exercise legislative powers until the first
Congress is convened;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by
virtue of the powers vested in me by the Constitution, do hereby order
the following:
Section 1. Declaration of Policy.—It shall be the
national policy to pursue a private sector based growth strategy,
centered on a socially responsible program to deregulate business in a
manner that shall encourage private initiative and create dynamically
competitive economic environment, but assure equal opportunity to all
members of the business community, whether small or large, and whether
rural urban.
Government shall provide institutional services to the private sector,
such as: investment and export promotion, market information, product
research and development, technological assistance, manpower training,
infrastructure support, fiscal incentives, and such other services that
shall facilitate increased international trade, improve national
productivity and accelerate industrialization.
Pursuant to this policy, the State shall:
(a)
Uphold the business enterprise as the basis of economic growth,
expansion and change;
(b) Encourage
and support private sector initiative, not compete with it;
(c) Encourage
and support the establishment of-and protect-trade, industry and
consumer protection institutions that will harmonize and safeguard
their members’ interests, free from pernicious restraints and practices;
(d)
Institutionalize advisory councils with compositions that are
representative of those affected in the concerned industry, for the
purpose of private sector participation in trade and industry policy
formulation, program implementation and evaluation;
(e) Assist the
private sector in creating just and viable socio-economic structures in
trade and industry conducive to greater productivity and higher incomes
through cooperative systems of production, processing, marketing,
distribution and credit services where applicable, especially among
small and medium-scale enterprises;
(f) Support
the development of timely, affordable and appropriate financing schemes
for its constituencies;
(g) Undertake
a thorough study of all trade and industry related laws and regulations
for streamlining, simplification and reorganization towards increased
entrepreneurial activity and improved industrial productivity.
Sec. 2. Mandate. — The Department of Trade and
Industry, hereinafter referred to as Department shall be the primary
coordinative, promotive, facilitative and regulatory arm of government
for the country’s trade, industry and investment activities. It shall
act as catalyst for intensified private sector activity in order to
accelerate and sustain economic growth through: (a) a comprehensive
industrial growth strategy, (b) a progressive and socially responsible
liberalization and deregulation program, and (c) policies designed for
the expansion and diversification of trade, both domestic and foreign.
Sec. 3. Powers and Functions. — To fulfill its
mandate the Department is hereby authorized to perform the following
powers and functions:
(a)
Plan, implement and coordinate activities of the government related to
trade, industry and investments;
(b) Promote,
initiate, or conduct Annual Trade and Industry Development Planning
Conferences between government and the private sector, to be held at
the beginning of the third quarter of the budget year;
(c) Build up
and maintain the currency of the trade and industry data base of the
Department’s information system through a continuing and well
coordinated program of data search and information processing;
(d) Develop
and maintain an integrated computerized marketing information system
for trade, industry and investments with a domestic and international
scope;
(e) Encourage
and support the formation of People’s Economic Councils at regional,
provincial and municipal levels as well as other trade, industry and
consumer protection institutions or associations;
(f) Formulate
and implement programs to strengthen industries adversely affected by
the economic crisis, particularly those that have a good probability of
attaining financial viability;
(g) Formulate
plans and programs that shall encourage projects which effect dispersal
of industries to the rural areas, promote manufactured goods for
export, and develop small and medium scale industries;
(h) Upgrade
and develop the manufacture of local capital goods and precision
machinery components;
(i) Formulate
and administer policies and guidelines for the investment priorities
plan and the delivery of investment incentives;
(j) Assist the
investment one-stop action center in pursuing the latter’s objective of
providing under one roof all investment assistance services of the
government, in accordance with established policies and guidelines;
(k) Coordinate
efforts in formulating long term industry sectoral plans with the
private sector;
(l) Formulate
the appropriate mechanics to guide and manage the transfer of
appropriate industrial technology in the country;
(m) Formulate
country and product export strategies which will guide the export
promotion and development thrusts of the government;
(n) Implement
programs and activities geared towards the overseas promotion of
Philippine exports in overseas markets;
(o) Take the
primary role in negotiating and reviewing existing international trade
agreements, particularly those affecting commodity quotas limiting
existing exports of Philippine products to determine programs for
renegotiations of more favorable terms;
(p) Promote
domestic trade, marketing and distribution to ensure the rational,
economical and steady flow of commodities from producing and/or
marketing centers to areas in short supply;
(q) Promote,
develop, regulate and accredit repair and service enterprises in
accordance with existing laws, Executive Order No. 709 (1981)
notwithstanding;
(r) Formulate
and implement regulations for the protection of industrial property
rights and in particular, patents and trademarks;
(s) After due
notice and hearing, establish orderly marketing arrangements for
locally produced and imported manufactured goods, and for raw materials
used by manufacturing and construction;
(t)
Administratively adjudicate and impose reasonable fines and penalties
for violation of existing trade and industry laws;
(u) Prepare,
for consideration of Monetary Board, proposed programs in the
commercial banking sector for directing commercial lending facilities
towards priority areas of commercial and industrial development, as
well as coordinate government direct funding and financial guarantee
programs to achieve trade and industry growth;
(v) Create, in
cooperation and coordination with the Department of Labor and
Employment, a center which will provide assistance to the public
relative to industrial relations;
(w) Issue
subpoena and subpoena duces tecum to compel the attendance of witnesses
and the production of necessary information, papers and documents which
it may deem necessary in the exercise of its powers and functions;
(x) Prescribe
and enforce compliance with such rules and regulations as may be
necessary to implement the intent and provisions of this Executive
Order, which rules and regulations shall take effect immediately
following their publication in newspapers of general circulation in the
Philippines;
(y) Perform
such other functions as may be necessary or incidental in carrying into
effect the provisions of this Executive Order and as may be provided by
law.
Sec. 4. Secretary of Trade and Industry.—The
authority and responsibility for the exercise of the mandate of the
Department and for the discharge of its powers and functions are hereby
vested in the Secretary of Trade and Industry, hereinafter referred to
as Secretary, who shall be appointed by the President.
There is hereby created in the Office of the Secretary, the Office of
Special Concerns to attend to matters that require special attention,
whether involving a matter that crosses several functional areas,
demands urgent action, or otherwise necessitates, in the Secretary’s
opinion, attention by a special group. To enable the Secretary to
accomplish said authority and responsibility and exercise said
supervision and control, he shall perform the following functions:
(a)
Advise the President of the Philippines on matters related to trade,
investments, and Industry, and on the promulgation of Department
orders, rules, regulations and other issuances related to trade,
industry and investments;
(b) Establish
policies and standards for the effective, efficient, and economical
operations of the Department in accordance with the programs of
government;
(c) Promulgate
rules and regulations necessary to carry out Department objectives,
policies, plans, programs, and projects;
(d) Exercise
supervision and control over all offices, functions and activities of
the Department;
(e) Delegate
authority for the performance of any administrative or substantive
function to any Undersecretary or other officials of rank at the
Department;
(f)
Considering the compities involved in matters of trade and industry,
ensure the clear delineation of the functions of the personnel and
constituent units of the Department, including agencies attached to it,
so as to prevent duplications or overlapping thereof;-
(g) Perform
such other functions as may be provided by law or appropriately
assigned by the President.
Sec. 5. Undersecretary.—The Secretary shall be
assisted by five (5) Undersecretaries, who shall all be appointed by
the President upon the recommendation of the Secretary, by performing
the following functions within the respective area of responsibilities:
(a)
Advise the Secretary in the promulgation of Department orders,
administrative orders, and other issuances;
(b) Exercise
supervision over the offices, services, operating units and individuals
under their authority and responsibility;
(c) Formulate
office rules and regulations, consistent with those of the Department
policies, that will effectively implement the activities of operating
units under their authority and responsibility;
(d) Coordinate
the functions and activities of the units under their authority with
those of the other Undersecretaries;
(e) Exercise
delegated authority on substantive and administrative matters related
to the functions and activities of agencies under their office to the
extent granted by the Secretary through administrative issuances;
(f) Perform
other functions as may be provided by law or appropriately assigned by
the Secretary.
Sec. 6. Assistant Secretaries.—The Secretary shall
also be assisted by five (5) Assistant Secretaries who shall be
appointed by the President upon the recommendation of the Secretary.
The Secretary is hereby authorized to delineate and assign the
respective areas of functional responsibility of the Assistant
Secretaries. Within his functional area of responsibility, an Assistant
Secretary shall assist the Secretary and the Undersecretaries in the
formulation, of laws, policies, plans, programs and projects on trade
and industry determination and implementation and shall oversee the
day-to-day administration of the constituent units of the Department.
Sec. 7. Structural Organization.— The Department
shall consist of the Department Proper, National Service Centers,
Regional Offices and Line Corporate Agencies and Government Entities.
Sec. 8. Staff Bureaus and Services.—The Bureaus
and Service Units shall be responsible for research, formulation of
policy, development of standards, framing of rules and regulations,
program formulation and program monitoring, related to the concerns
covered by the Department’s mandate, powers, and functions.
Implementation of such policies, standards, rules and regulations, and
programs shall be the responsibility of the Department’s Line Operating
Units.
Sec. 9. Department Line Operating Units. — The
Department Line Operating Units shall be composed of the following:
(a)
Regional Offices. These are offices which shall be located in the
National Capital Region and each of the twelve (12) other
administrative regions of the country. They shall be operated and
maintained on a Department-wide basis, acting as implementing arms in
the regions under their jurisdiction, of the Department’s policies,
programs, rules and regulations as well as those laws which the
Department is mandated to enforce.
(b) National
Service Centers. These are organic units of the Department, as well as
government-owned and controlled corporations under the administrative
supervision of the Department which are deemed to be integral parts of
the Department structure notwithstanding their organizational form, and
which perform extension or assistance services to the private sector,
the benefits which transcend the boundaries of regional jurisdictions.
(c) Line
Corporate Agencies and Government Entities. These are the government
entities and the government-owned or controlled corporations under the
administrative supervision of the Department which are deemed to be
integral parts of the Department structure notwithstanding their
organizational form, and which perform a focal and implemental role in
the Department’s programs for the development of trade, industry and
investments.
Sec. 10. Department Proper. —Department Proper
shall be composed of the following Offices, Bureaus, and Services:
(a)
Office of the Secretary: Office of Policy Research; Office of
Operational Planning; Office of Legal Affairs; Human Resource
Development Service; General Administrative Service; Management
Information Service; Financial Management Service Public Relations
Office; Trade and Investment Information Center and National Industrial
Manpower Training Council. The aforementioned Offices and Services
within the Office of the Secretary shall be supervised by the
Undersecretary for Policy Planning and Support Services;
(b) Office of
the Undersecretary for Industry and Investments: Board of Investments;
Export Processing Zone Authority; Bureau of Small and Medium Business
Development; Bureau of Import Services; Iron and Steel Authority;
Construction Industry Authority of the Philippines;
(c) Office of
the Undersecretary for Domestic Trade: Bureau of Patents, Trademarks,
and Technology Transfer; Bureau of Trade Regulation and Consumer
Protection; Bureau of Domestic Trade Promotion; Bureau of Product
Standards; Videogram Regulatory Board;
(d) Office of
the Undersecretary for International Trade: Bureau of Export trade
Promotion; Bureau of International Trade Relations; Philippine
International Trading Corporation; Garments and Textile Export Board;
International Coffee Organization—Certifying Agency; Foreign Trade
Service Corps; Center for International Trade Expositions and Missions;
Bonded Export Marketing Board; Philippine Shippers’ Council; Philippine
Trade Training Center; Product Development and Design Center of the
Philippines;
(e) Office of
the Undersecretary for Regional Operations: Office for Luzon
Operations; Office for Visayas Operations; Office for Mindanao
Operations.
Sec. 11. Office of the Secretary.— The Office of
the Secretary shall consist of the Secretary, his immediate staff, the
Undersecretary for Policy Planning and Support Services, and the
Offices and Services directly supportive of the Office of the
Secretary. The functions of the foregoing shall be:
(a)
The Undersecretary for Policy Planning and Support Services shall
supervise the Office of Policy Research, the Office of Operational
Planning, the Office of Legal Affairs, the Human Resource Development
Service, the General Administrative Service, the Management Information
Service, the Financial Management Service and the Public Relations
Office.
(b) The Office
of Policy Research shall coordinate and help formulate general trade
and industry policies for the Department; evaluate the effectiveness of
trade and industry programs as such, and their implementation by the
Department’s Line Operating Units; and research on trade and industry
issues for policy analysis and formulation;
(c) The Office
of Operational Planning shall develop operating plans, programs and
projects of the Department as such: supervise the Annual Trade and
Industry Development Planning Conferences between government and the
private sector; evaluate the cost-effectiveness of various projects and
activities of the Department; coordinate the updating of the
Department’s operating plans in response to relevant environment
changes; review the Department’s performance against standards and
targets previously established; and provide staff services related to
the development, monitoring, reporting and assessment of foreign
assisted projects of the Department;
(d) The Office
of Legal Affairs shall provide the Secretary with legal advice on all
policy, program, and operational matters of the Department serve as
Counsel for the Department in cases in which it is a party; handle
administrative cases against Department personnel and submit
recommendations pertaining thereto; and review legislative proposals;
(e) The Human
Resource Development Service shall design and implement human resource
development plans and programs for the personnel of the Department;
provide for present and future manpower needs of the organization;
maintain high morale and favorable employee attitudes towards the
organization through the continuing design and implementation of
employee development programs;
(f) The
Financial Management Service shall formulate and manage a financial
program to ensure availability and proper utilization of funds; provide
for an effective monitoring system of the financial operations of the
Department;
(g) The
General Administrative Service shall provide services relative to
procurement and allocation of supplies and equipment, transportation,
messengerial work, cashiering, payment of salaries and other Department
obligations, office maintenance, property safety and security, and
other utility services; and comply with government regulatory
requirementsn the areas of performance appraisal, compensation and
benefits, employment records and reports;
(h) Management
Information Service shall design and implement a comprehensive
management information system, both computerized and manual, for the
Department; provide technical assistance to the various information
generating units within the Department; and establish data exchange
linkages with public and private agencies whenever feasible;
(i) The Public
Relations Office shall perform the Department’s public relations
function; provide a two-way flow of information between the Department
and its constituencies; and coordinate the Secretary’s regular press
conferences and the Department’s relations with the mass media;
(j) The Trade
and Investment Information Center shall, as the primary information arm
of the Department, design and operate a computerized system of
collection, documentation, storage, retrieval, and timely dissemination
of comprehensive and relevant information on trade, industry, and
investment for use by other government agencies and the business
sector; coordinate and monitor the information campaigns on the
Department’s services, programs, and projects; develop a communications
program to promote Philippine investment opportunities and the
country’s export products which shall be directed at foreign audiences;
and provide creative services to other units of the Department in
support of their own information programs;
(k) The
National Industrial Manpower Training Council shall act as the umbrella
agency to coordinate and operate the Cottage Industry Technology
Centers, the Construction Manpower Development Foundation, and the
Construction Manpower Development Center and perform other functions
such as initiating specialized industrial training centers identifying
supply-demand factors and industrial skills subject to the direction
formulated by the National Manpower and Youth Council.
Sec. 12. Office of the Undersecretary for Domestic
Trade. —The Office of the Undersecretary for Domestic Trade shall
include all the staff bureaus and services involved in policy
formulation, standards development, programs development, and program
monitoring of the development, regulator and service delivery programs
pertinent to domestic trade and commerce being implemented by the
Department’s line operating units, The undersecretary for Domestic
Trade shall supervise the following:
(a)
Bureau of Trade Regulation and Consumer Protection. This Bureau review
the products contained in the critical imports list in accordance with
established national standards or relevant international standards and
buyer-seller specifications; promulgate rules and regulations necessary
for the country’s shift to the international system of units; formulate
and monitor the implementation of programs for the effective
enforcement of laws, correct Interpretation and adoption of policies on
monopolies and restraint of trade mislabelling, product
misrepresentation and other unfair trade practices; monitor the
registration of business names and the licensing and accreditation of
establishments and practitioners; protect and safeguard the interest of
consumers and the public particularly the health and safety
implications of intrinsic product features, product representation, and
the like; and establish the basis for evaluating consumer complaints
and product utility failures.
(b) Bureau of
Domestic Trade Promotion. This Bureau shall prepare and monitor the
implementation of plans and programs directed at the promotion and
development of domestic trade, particularly in the area of efficiency,
fairness and balance in the distribution of essential products and
services and in the strengthening of the domestic base for export
activities; conceptualize, monitor, and evaluate programs, plans and
projects intended to create awareness of domestic marketing
opportunities for new projects, new technologies and investments.
(c) Bureau of
Patents, Trademarks, and Technology Transfer. This Bureau shall examine
applications for grant of letters, patent for inventions, utility
models and industrial designs, and the subsequent grant or refusal of
the same; register trademarks, tradenames, service marks and other
marks of ownership; hear and adjudicate contested proceedings affecting
rights to patents and trademarks; receive, process for registration and
evaluate technology transfer arrangements as to their appropriateness
and need for the technology or industrial property rights,
reasonableness of the technology payment, and for the prohibition of
restrictive business clauses; and publish regularly in its own
publication the patents and trademarks issued and approved by it.
(d) Bureau of
Product Standards. This Bureau shall study and/or research on the
various reference materials to be used as basis for the start of
whatever analysis or evaluation is demanded by the products under
examination or investigation; establish standards for all products of
the Philippines for which no standards have as yet been fixed by law,
executive order, rules and regulations and which products are not
covered by the standardization activities of other government agencies;
participate actively in international activities on Standardization,
quality control and metrology; ensure the manufacture, production, and
distribution of quality products for the protection of consumers; test
and/or analyze standardized and unstandardized products for purposes of
product standard formulation and certification; extend technical
assistance to producers to improve the quality of their products; check
length, mass and volume measuring instruments; and maintain
consultative liaison with the International Organization for
Standardization, Pacific Area Standards Congress, and other
international standards organizations.
(e) Videogram
Regulatory Board. This Board shall regulate videogram establishments;
prevent unfair practices, unfair competition, pirating of legitimately
produced video products, and other deceptive, unfair and unconscionable
acts and practices to protect the viewing public and the general public.
Sec. 13. Office of the Undersecretary for
International Trade. — The Office of the Undersecretary for
International Trade shall include all the units involved in policy
formulation, standards development, program development, and program
monitoring of the development, regulatory, and service delivery
programs of the Department pertinent to international trade and
commerce being implemented by the Department’s line operating units.
The Undersecretary for International Trade shall supervise the
following:
(a)
Bureau of International Trade Relations. This Bureau shall be the
primary agent responsible for all matters pertaining to foreign trade
relations, whether bilateral, regional or multilateral, especially
market access and market access related matters; formulate positions
and strategies for trade negotiations, consultations and conferences as
well as supervise trade negotiations, consultations and conferences;
coordinate with other Departments and agencies of the Philippine
government with the view of assuring consistency in the government’s
positions in trade negotiations and on other activities pertaining to
foreign trade relations; consult with industry groups and provide
technical advice and information on the above matters and activities;
identify tariff and non-tariff barriers affecting products of export
interest to the Philippines, and negotiate measures for liberalizing
them at bilateral, regional and multilateral fora; and evaluate and
submit recommendations on existing and proposed commercial policies of
the Philippines;
(b) Bureau of
Export Trade Promotion. This Bureau shall formulate and monitor
programs, plans, and projects pertinent to the development, promotion,
and expansion of the foreign trade of the Philippines; formulate
country and product export strategies; conduct research on new product
development and adaptation opportunities in the export markets, as well
as identify the domestic supply base for such products; prepare
situation reports on all export production; prepare and update country
and regional market profiles; maintain an integrated information system
on all aspects of the products and commodities relevant to export
marketing; formulate, plan, supervise, coordinate and monitor the
implementation of both private and official incoming and outgoing
missions, and review the results of such; promote and coordinate
international subcontracting arrangements between and among foreign and
Philippine investors whereby production operations and facilities may
be located in the Philippines; formulate and monitor the implementation
of policies and guidelines for the registration and certification of
bona fide exporters eligible for the various export incentive programs
of the Philippines; and review and identify appropriate measures to
minimize or deregulate export-import procedures and other foreign trade
laws necessary to stimulate the international marketing of Philippine
products;
(c). Foreign
Trade Service Corps. Corps shall assist Philippine businessmen,
producers, and exporters with marketing information, project
development support, and liaison with foreign government agencies;
develop marketing and commercial Intelligence for dissemination to
Philippine businessmen through the Trade and Investment Information
Center; provide direct support to the Department’s overseas promotional
programs; assist Philippine businessmen handle trade complaints against
foreign firms and governments; support Department units in import and
export administration, monitoring of trade agreements, and investments
promotion; and be accountable for established foreign investment and
export targets for their respective areas of responsibility;
(d) Center for
International Trade Expositions and Missions. This Center shall
organize official participation in foreign trade fairs, exhibitions,
and expositions, in accordance with the trade promotion program of the
Department; prepare, review, and approve the exhibit plans and designs
for official participation in foreign trade fairs, expositions, and
exhibitions and where necessary, contract professional consulting
services such as display designers and advertising; supervise the
selection, collection, and shipment of display products and materials
for use in such official participation; implement Department policies
and guidelines for servicing all incoming missions and the conduct of
all outgoing missions that are related to international trade fairs and
exhibitions; organize official outgoing missions related to
international trade fairs and exhibitions; and assist privately
organized outgoing missions related to international trade fairs and
exhibitions;
(e) Bonded
Export Marketing Board. This Board shall promote the establishment of
bonded manufacturing and trading facilities for the re-export of those
products where a clear net value added may be generated based on the
emerging comparative advantage of the Philippine export industry; study
and analyze the international market for specific products where the
Philippines has or can develop a comparative advantage; recommend to
the Bureau of Customs the licensing of bonded manufacturing facilities
and monitor all bonded manufacturing sites, with the objective of
ensuring operational efficiency; identify and designate sites where
export bonded manufacturing sites shall be located with a view of
dispersal to the regions; and initiate studies on the development and
maintenance of the country’s competitive advantage in export products;
(f )
Philippine Shippers’ Council. This Council shall represent Philippine
shippers in international liner conferences and negotiate in their
behalf, for more favorable freight and shipping rates; evaluate and
issue waivers to the use of Philippine flag carriers, and provide
assistance and information to Philippine shippers, specially exporters,
in matters related to shipping;
(g) Philippine
Trade Training Center. This Center shall develop training modules on
export and import techniques and procedures; raise the level of
awareness of Philippine businessmen of export opportunities and the
availability of alternative sources of import products or diversified
markets for exports; offer specialized courses for specific industry
group directed at overcoming barriers to overseas market penetration;
and conduct training programs in international trade practices,
inspection techniques and exhibition mounting;
(h) Product
Development and Design Center of the Philippines. This Center shall
provide product identification, research, and development services to
the private sector; conduct seminars and workshops on product design
and development; set up design exhibitions; publish product design
related materials; and conduct continuing research on product and
packaging design trends and processing technologies.
Sec. 14. Office of the Undersecretary for Industry
and Investments.— The office of the Undersecretary for Industry and
Investments shall supervise all agencies involved in the formulation
and implementation programs and projects pertinent to the development
of domestic industries and promotion of investments in activities or
enterprises critical to the Department’s trade and industry development
program. Such agencies are enumerated in Section 10 (b). The functions
of the two (2) bureaus are described below; while the functions and
organizations of the other agencies are respectively described and
treated in Section s 16 and 18 of this Executive Order.
(a)
Bureau of Small and Medium Business Development. This Bureau shall
formulate and monitor development programs for private institutions
involved in assisting the trade and industry sector, delivery
mechanisms and linkages for marketing, financial and sub-contracting
services, and development programs for livelihood and micro, small and
medium enterprises.
(b) Bureau of
Import Services. This Bureau shall monitor import levels and prices,
particularly liberalized items; analyze and forecast import levels;
analyze and publish import return statistics; perform annual review of
the substantive components of the Philippine Tariff System and submit
recommendations thereon; perform such other functions on import
transactions as the President and/or the Central Bank of the
Philippines shall delegate or authorize; and ensure that the
Department’s views on goods under the jurisdiction of other Departments
are taken into consideration.
Sec. 15. Office of the Undersecretary for Regional
Operations. — The Office of the Undersecretary for Regional Operations
shall exercise supervision and control over the Department’s Regional
Offices, described in Sec. 9 (a) of this Executive Order. It shall
be responsible for the field operations of the Department, ensuring the
full compliance with Department policies, rigorous implementation of
Department rules and regulations, and the proper implementation of
Department plans and programs by the Regional Offices in their
respective administrative jurisdictions.
Sec. 16. Line Corporate Agencies and Government
Entities.— The following are the Line Corporate Agencies and Government
Entities, defined in Sec. 9 (c) of this Executive Order that will
perform their specific regulatory functions, particular developmental
responsibilities, and specialized business activities in a manner
consonant with the Department’s mandate, objectives, policies, plans,
and programs;
(a)
National Development Company. This Company shall promote investments in
or establish enterprises for the express purposes of encouraging the
private sector to follow suit by proving the financial viability of
such enterprises; or of filling critical gaps in the input-output
structure of Philippine commerce and industry when the private sector
is unwilling or unable to engage in such enterprises because of the
magnitude of investments required or the risk compion of the
undertaking.
(b) Garments
and Textile Export Board. This Board which shall be supervised by the
Undersecretary for International Trade, shall oversee the
implementation of the garment and textile agreements between the
Philippines and other countries, particularly garments and textiles
quotas; approve quota allocations and export authorizations; issue
export licenses and adopt appropriate measures to expedite their
processing; provide the necessary information and statistics relating
to the administration garments and textiles export quotas and the flow
of garments and textiles exports for monitoring purposes for
negotiations with other countries; implement rules and regulations for
the administration of all international textile agreements entered into
between the Philippines and importing countries; and fix and collect
reasonable fees for the issuance of export quotas, export
authorizations export licenses, and other related services, in
accordance with the Department policies, rules and regulations.
(c)
International Coffee Organization—Certifying Agency. This Agency, which
shall be supervised by the Undersecretary for International Trade,
shall oversee the implementation of the coffee agreements between the
Philippines and other countries, particularly coffee quotas.
(d) Philippine
International Trading Corporation. This Corporation, which shall be
supervised by the Undersecretary for International Trade, shall only
engage in both export and import trading on new or nontraditional
products and markets not normally pursued by the private business
sector; provide a wide range of export oriented auxiliary services to
the private sector; arrange for or establish comprehensive systems and
physical facilities for handling the collection, processing, and
distribution of cargoes and other commodities; monitor or coordinate
risk insurance services for existing institutions; promote or organize,
whenever warranted, production enterprises and industrial
establishments and collaborate or associate in joint venture with any
person, association, company, or entity, whether domestic or foreign,
in the fields of production, marketing, procurement, and other related
businesses; and provide technical, advisory, investigatory,
consultancy, and management services with respect to any and all of the
functions, activities, and operations of the corporation.
(e) Board of
Investments. This Board, which shall be supervised by the
Undersecretary for Industry and Investments shall be responsible for
coordinating the formulation and implementation of short, medium and
long term industrial plans as well as promoting investments in the
Philippines in accordance with national policies and priorities;
register, monitor, and grant investment incentives to individual
enterprises; formulate policies and guidelines aimed at creating an
environment conducive to the expansion of existing investments or
attracting prospective investments in the Philippines: Provided, That
the Board shall place primary emphasis on its promotive functions.
(f) Export
Processing Zone Authority. This Authority which shall be supervised by
the Undersecretary for Industry and Investments, shall develop and
manage export processing zone in consonance with Department policies
and programs.
Sec. 17. Regional Offices.— The Department is
hereby authorized to establish, operate and maintain a Department-wide
regional office in each of the country’s administrative regions. Each
Regional Office shall be headed by a Regional Director who shall be
assisted by an Assistant Regional Director. A Regional Office shall
have, within its administrative region, the following functions:
(a)
Implement pertinent laws, and the rules, regulations, policies, plans,
programs and projects of the Department;
(b) Provide
efficient and effective service to the people;
(c) Coordinate
with the regional offices of other departments, offices and agencies in
the region;
(d) Coordinate
with the local government units;
(e) Perform
other functions as may be provided by law or appropriately assigned by
the Secretary.
Sec. 18. Organizational Changes.— The following
organizational changes shall apply to the various agencies enumerated
hereunder:
(a)
The Bureau of Industrial Development is hereby abolished and its powers
and functions transferred to the appropriate units of the Department.
(b) The
Philippine Cement Industry Authority, the Commission for Heavy
Engineering Industries, and the Presidential Advisory Committee on the
Copper Industry are hereby abolished. Their policy formulation and
planning functions are hereby transferred to the Board of Investments
and their implementing functions are transferred to the pertinent line
operating units of the Department.
(c) The
Construction Industry Authority of the Philippines and the Iron and
Steel Authority are hereby retained as attached agencies of the
Department: Provided, That these Authorities shall review annually the
capability and trustworthiness of the entities accredited by it.
(d) The
Construction Manpower Development Center and the Construction Manpower
Development Foundation are transferred to the National Industrial
Manpower Training Council.
(e) The
National Cottage Industries Development Authority is hereby reorganized
into the Cottage Industry Technology Center and its functions other
than technology development and training, are hereby transferred to the
Bureau of Small and Medium Business Development and relevant line
operating units of the Department.
(f) The Price
Stabilization Council is hereby abolished, but its powers and functions
may be exercised by the Secretary of Trade and Industry in emergency
situations as the Secretary deems appropriate.
(g) The
Philippine Patents Office is hereby converted into the Bureau of
Patents, Trademarks and Technology Transfer.
(h) The
Technology Transfer Board is hereby abolished and its powers and
functions transferred to the Bureau of Patents, Trademarks and
Technology Transfer and the appropriate line operating units of the
Department.
(i) The Bureau
of Domestic Trade hereby abolished and its appropriate powers and
functions are hereby transferred to the Bureau of Trade Regulation and
Consumer Protection and the Bureau of Domestic Trade Promotion,
respectively.
(j) The Bureau
of Foreign Trade is hereby abolished and its appropriate powers and
functions are hereby transferred to the Bureau of Export Trade
Promotion and the Bureau of Import Services, respectively.
(k) The Bureau
of Small and Medium Industries is hereby reorganized the Bureau of
Small and Medium Business Development.
(1) The Bureau
of Small and Medium Industries in hereby recognized as Trade and
Investment Information Center.
(m) The
Planning Service is hereby organized as the Office of Operational
Planning.
(n) The Legal
Service is hereby reorganized as the Office of Legal Affairs.
(o) The
Administrative Service is hereby reorganized as the General
Administrative Service.
(p) The
Financial and Management Service is hereby reorganized as Financial
Management Service.
(q) The
Product Standards Agency is hereby reorganized as the Bureau Product
Standards.
(r) The Public
Relations Office, the Human Resource Development Service and the
Management Information Service are hereby created.
(s) The
NDC—Nacida Raw Materials Corporation is hereby abolished, and its
powers and functions transferred to the appropriate units of the
Department.
(t) The Metals
Industry Research Development Center is hereby transferred to the
National Science Technology Authority: Provided, however, That
the transfer shall be covered by a memorandum of agreement defining the
relationship of the Department and the Center and the manner by which
equipment and resources shall be accessed, and that the investment and
trade promotion aspects pertaining to the metals industry are
recognized to be the functions of the Department in cooperation with
the National Science and Technology Authority.
(u) The
Philippine Textile Research Institute is hereby transferred to the
National Science and Technology Authority: Provided, however, That the
transfer shall be covered by a memorandum agreement defining the
relationship of the Department and the Institute and the manner by
which equipment and resources are accessed; Provided, further That the
investment and trade promotion aspects pertaining to the textile
industry are recognized to be the functions of the Department in
cooperation with the National Science and Technology Authority.
(v) The
Philippine Trade Exhibition Center is hereby merged with the Center for
International Trade Expositions and Missions, with the latter as the
surviving entity.
(w) The Trade
Policy Office is hereby reorganized as the Bureau of International
Trade Relations.
(x) The
Videogram Regulatory Board is hereby attached to the Department.
(y) The Design
Center of the Philippines is hereby reorganized into the Product
Development and Design Center of the Philippines.
Sec. 19. Transitory Provisions. —In accomplishing
the acts of reorganization herein prescribed, the following transitory
provisions shall be complied with, unless otherwise provided elsewhere
in this Executive Order.
(a)
The transfer of functions which results in the abolition of the
government unit that has exercised them shall include the
appropriations, funds, records, equipment, facilities, other assets and
personnel as may be necessary to the proper discharge of the
transferred functions. The abolished unit’s remaining appropriations
and funds, if any, shall revert to the General Fund and its remaining
assets, if any, shall be allocated to such appropriate units as the
Secretary shall determine or shall otherwise be disposed of in
accordance with the Government Auditing Code and other pertinent laws,
rules and regulations. Its liabilities, if any, shall likewise be
treated in accordance with the Government Auditing Code and other
pertinent laws, rules and regulations. Its personnel, shall, in a
hold-over capacity, continue to perform their duties and
responsibilities and receive the corresponding salaries and benefits:
Provided, That the personnel, whose positions are not included in the
Department’s new position structure and staffing pattern approved and
prescribed by the Secretary under Sec. 21 hereof or who are not
reappointed, shall be deemed separated from the service and shall be
entitled to the benefits provided for under the second paragraph of the
same Sec. 21.
(b) The
transfer of functions which does not result in the abolition of the
government unit that has exercised them shall include the
appropriations, funds, records, equipment, facilities, other assets and
personnel as may be necessary to the proper discharge of the
transferred functions. The liabilities, if any, that may have been
incurred in connection with the discharge of the transferred functions,
shall be treated in accordance with the Government Auditing Code and
other pertinent laws, rules and regulations. Its personnel shall, in a
hold-over capacity, continue to perform their respective duties and
responsibilities and receive the corresponding salaries and benefits:
Provided, That the personnel, whose position is not included in the
Department’s new position structure and staffing pattern approved and
prescribed by the Secretary under Sec. 21 hereof or who has not been
reappointed, shall be deemed separated from the service and shall be
entitled to the benefits provided for under the second paragraph of the
same Sec. 21.
(c) In case of
merger or consolidation of government units, the new or surviving unit
shall exercise the functions (subject to the reorganization herein
prescribed and the laws, rules and regulations, pertinent to the
exercise of such functions) and shall acquire the appropriations,
funds, records, equipment, facilities, other assets, liabilities if
any, and personnel of (1) the units that compose the merged unit or ( 2
) the absorbed unit, as the case may be. Its personnel shall, in a
hold-over capacity, continue to perform their respective duties and
responsibilities and receive the corresponding salaries and benefits:
Provided, That any personnel, whose position is not included in the
Department’s new position structure and staffing pattern approved and
prescribed by the Secretary under Sec. 21 hereof or who is not
reappointed, shall be deemed separated from the service and shall be
entitled to the benefits provided under the second paragraph of the
same Sec. 21.
(d) The
transfer of a government unit shall include the functions,
appropriations, funds, records, equipment facilities, if any, of the
transferred unit as well as the personnel thereof as may be necessary,
who shall, in a hold-over capacity, continue to perform their
respective duties and responsibilities and receive the corresponding
salaries and benefits: Provided, That the personnel of the transferred
unit whose positions are not included in the new position structure and
staffing pattern approved and prescribed by the Secretary or who are
not reappointed shall be deemed separated from the service and shall be
entitled to the benefits provided under the second paragraph of Sec. 21 hereof.
(e) In case of
termination of a function which does not result in the abolition of the
government unit which has performed such function, the appropriations
and funds intended to finance the discharge of such function shall
revert to the General Fund, while the records, equipment, facilities
choses in action, rights and other assets used in connection with the
discharge of such function shall be allocated to the appropriate units
as the Secretary shall determine or shall otherwise be disposed in
accordance with the Government Auditing Code and other pertinent laws,
rules and regulations. The personnel who have performed such functions,
whose positions are not included in the new position structure and
staffing pattern approved and prescribed by the Secretary under Sec. 21 hereof or who have not been reappointed, shall be deemed separated
from the service and shall be entitled the benefits provided under the
second paragraph of the same Sec. 21.
(f) In case of
the abolition of a government unit which does not result in the
transfer of its functions to another unit, the appropriations and funds
of the abolished unit shall revert to the General Fund, while the
records, equipment, facilities, choses in action, rights, and other
assets thereof shall be allocated to such appropriate units as the
Secretary shall determine. The liabilities of the abolished unit shall
be treated in accordance with the Government Auditing Code and other
pertinent laws, rules and regulations, while the personnel thereof,
whose position is not included in the Department’s new position
structure and staffing pattern approved and prescribed by the Secretary
under Sec. 21 hereof or who has not been reappointed, shall be
deemed separated from the service and shall be entitled to the benefits
provided under the second paragraph of the same Sec. 21.
Sec. 20. Funding.— Funds needed to carry out the
provisions of this Executive Order shall be taken from funds available
in the Department.
Sec. 21. New Structure and Pattern. — Upon
approval of this Executive Order, the officers and employees of the
Department and agencies attached to it, shall, in a hold-over capacity,
continue to perform their respective duties and responsibilities and
receive the corresponding salaries and benefits.
The new position structures and staffing pattern of the Department and
agencies attached to it, shall be approved and prescribed by the
Secretary within one hundred twenty (120) days from the approval of
this Executive Order and the authorized positions created thereunder
shall be filled with regular appointments by him or by the President,
as the case may be. Those incumbents whose positions are not included
therein or who are not reappointed shall be deemed separated from the
service. Those separated from the service shall receive the retirement
benefits to which they may be entitled under existing laws, rules and
regulations. Otherwise, they shall be paid the equivalent of one-month
basic salary for every year of service, or the equivalent nearest
fraction thereof favorable to them on the basis of highest salary
received but in no case shall such payment exceed the equivalent of
twelve (12) months salary.
Sec. 22. Periodic Performance Evaluation. — The
Secretary is hereby required to formulate and enforce a system of
measuring and evaluating periodically and objectively the performance
of the Department and submit the same annually to the President.
Sec. 23. Notice or Consent Requirement. — If any
reorganizational change herein authorized is of such substance or
materiality as to prejudice third persons with right recognized by law
or contract such as notice to or consent of creditors is required to be
made or obtained pursuant to any agreement entered into with any of
such creditors such notice or consent requirement shall be complied
with prior to the implementation of such reorganizational change.
Sec. 24. Prohibition Against Change. — No change
in the reorganization herein prescribed shall be valid except upon
prior approval of the President for the purpose of promoting efficiency
and effectiveness in the delivery of public services.
Sec. 25. Implementing Authority of the Secretary.
— The Secretary shall issue such rules, regulations and other issuances
as may be necessary to ensure the effective implementation of the
provisions of this Executive Order.
Sec. 26. Separability. — Any portion or provision
of this Executive Order that may be declared unconstitutional shall not
have the effect of nullifying other portions or provisions hereof as
long as such remaining portions or provisions can still subsist and be
given effect in their entirety.
Sec. 27. Repealing Clause. — All laws, ordinances,
rules, regulations, other issuances or parts thereof, which are
inconsistent with this Executive Order, are hereby repealed or modified
accordingly.
Sec. 28. Effectivity. — This Executive Order shall
take effect immediately upon its approval.
APPROVED in the City of Manila,
Philippines, this 27th day of January, in the year of Our Lord,
nineteen hundred and eighty-seven.
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