Creating the Bonded Export Marketing Board

Case Overview and Summary

Summary of Executive Order No. 565

Declaration of Policy (Section 1):
- Adopt a market-oriented export trade development program to optimize correspondence between international market opportunities and product development.
- Exploit the Philippines' comparative advantage in specific export products based on labor cost, market proximity, skills, terms of market entry, and other determinants.

Creation of the Bonded Export Marketing Board (Section 2):
- Establishes the Bonded Export Marketing Board under the Office of the President.
- Responsible for formulating projects and programs to implement the declared policy.

Composition of the Governing Board (Section 3):
- Chaired by the Minister of Trade.
- Members include the Minister of Industry, Commissioner of Customs, a representative from the Central Bank, and the Presidential Assistant on Economic Affairs and Development.

Powers and Functions of the Board (Section 4):
- Study and analyze international markets for products with Philippine advantage (Section 4a).
- Submit a list of export products with Philippine advantage to the President for approval (Section 4b).
- Encourage installation or expansion of productive export capacity for approved products (Section 4c).
- Endorse project proposals for bonded manufacturing facilities to the Board of Investments (Section 4d).
- Regulate and administer bonded manufacturing sites to prevent diversion to domestic markets (Section 4e).
- Identify and designate specific sites for bonded manufacturing facilities and formulate a regional dispersal policy (Section 4f).
- Recommend and endorse viable export projects to government financial institutions (Section 4g).
- Conduct studies on maintaining comparative advantage of export products (Section 4h).
- Implement an informational and feedback system to monitor import-export flows (Section 4i).
- Study the feasibility of using indigenous materials as substitutes for imported inputs (Section 4j).
- Promulgate rules and regulations to facilitate exports and achieve sound competitive practices (Section 4k).
- Monitor compliance with bilateral treaties and distribute export quotas (Section 4l).
- Promulgate and enforce necessary rules and regulations (Section 4m).

Secretariat (Section 5):
- The Board shall be assisted by a Secretariat.

Personnel (Section 6):
- Appointments to the Board are exempt from Civil Service Law and OCPC regulations.
- The Board may contract with experts and consultants.

Detail of Personnel (Section 7):
- Personnel detailed to the Board from other agencies shall be deputized and under the Board's supervision.

Appropriation (Section 8):
- Two Million Pesos (₱2,000,000) is appropriated from the National Treasury for the use of the Board.

Effectivity (Section 9):
- The Order takes effect immediately.