An Act To Rationalize the Soap and Detergent Surfactant Industry and Thereby Promote and Expand the Utilization of Chemicals Derived From Coconut Oil and For Other Purposes

EXECUTIVE ORDER NO. 259 July 25, 1987

AN ACT TO RATIONALIZE THE SOAP AND DETERGENT SURFACTANT INDUSTRY AND THEREBY PROMOTE AND EXPAND THE UTILIZATION OF CHEMICALS DERIVED FROM COCONUT OIL AND FOR OTHER PURPOSES

WHEREAS, it is the policy of the State to encourage the establishment of commercial activities and industries geared towards the production of goods and services using indigenous raw materials and resources;

WHEREAS, it is likewise the policy of the State to ensure a clean and safe environment;

WHEREAS, there is a need to rationalize industries which are in a position to use indigenous raw materials;

WHEREAS, extensive utilization of coconut oil will be a great assistance to our coconut farms;

WHEREAS, in line with the above policy there is a need to amend and/or repeal certain provisions of the Presidential Decree 1863, which authorizes the establishment of a monopoly in favor of United Coconut Chemicals, Inc. (UNICHEM), centralizing the supply of surfactant raw materials in said enterprise;

NOW, THEREFORE, I, CORAZON C. AQUINO,...

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Title: An Act to Rationalize the Soap and Detergent Surfactant Industry and Promote Utilization of Coconut Oil

Objectives:
- Encourage industries using indigenous raw materials like coconut oil (Section 1)
- Ensure a clean and safe environment (Preamble)
- Rationalize industries that can use indigenous raw materials (Preamble)
- Assist coconut farmers through increased utilization of coconut oil (Preamble)

Key Provisions:
- Soap and detergent surfactant industry must increase local content usage of raw materials that do not endanger the environment to:
  - 20% minimum in the first year (Section 2)
  - 40% minimum in the second year (Section 2)
  - 60% minimum in the third year and thereafter (Section 2)
- Importation of raw materials and finished products may be restricted based on guidelines set by the Board of Investments (BOI) (Section 3)
- BOI is empowered to issue guidelines to implement this Executive Order (Section 4)
- Presidential Decree 1863, which authorized a monopoly for United Coconut Chemicals, Inc. (UNICHEM), is repealed (Section 5)
- This Executive Order takes effect immediately (Section 6)