EXECUTIVE ORDER NO. 823 August 19, 1982
FURTHER AMENDING EXECUTIVE ORDER NO. 537 DATED MAY 24, 1979 CREATING THE GARMENTS AND TEXTILE EXPORT BOARD, ABOLISHING THE EMBROIDERY AND APPAREL CONTROL AND INSPECTION BOARD, AND FOR OTHER PURPOSES
WHEREAS, the bonded manufacturing system in the garments industry is regulated by different agencies with different policies and procedures;
WHEREAS, to sustain the rapid growth of the country's garment exports, particularly in the light of growing protectionism among importing countries, there is a needed to integrate and rationalize government efforts, policies and procedures on garment exports;
WHEREAS, such integration and rationalization will result in greater economy and efficiency and will provide an effective monitoring mechanism that will ensure the reexportation of imported raw materials in processed form and thereby prevent smuggling;
WHEREAS, implementation of the Textile Modernization Program requires the rationalization of the bonded manufacturing system in the garments industry;
WHEREAS, under Presidential Decree No. 1416, as amended, the President is empowered to undertake such organizational and related improvements as may be appropriate in the light of changing...
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Executive Orders
Further Amending Executive Order No. 537 Dated May 24, 1979 Creating the Garments and Textile Export Board, Abolishing the Embroidery and Apparel Control and Inspection Board, and for Other Purposes
Executive Order No. 823
EXECUTIVE ORDER NO. 823
Summary of Provisions:
• Board Composition (Sec. 1):
- The Garments and Textile Export Board (GTEB) is composed of the Minister of Trade and Industry as Chairman, Deputy Minister of Finance as Vice-Chairman, Deputy Minister of Trade and Industry, Vice-Chairman of the Board of Investments, and Commissioner of the Bureau of Customs as members.
• Powers and Functions of the GTEB (Sec. 2):
- Negotiate, conclude and implement garments and textile agreements, approve quota allocations and export authorizations, issue export licenses. (Sec. 2a)
- Issue licenses for the establishment and operation of bonded garment manufacturing warehouses, authorize importation of textile fabrics, accessories, chemicals, packages, brands, labels and other supplies without taxes and duties but under re-export bond. (Sec. 2b)
- Provide information and statistics relating to the administration of garments and textile export quotas and the flow of garments and textile exports. (Sec. 2c)
- Inspect and examine books, records, shipments, importations or inventories of textile fabrics, accessories, chemicals and supplies of all garments and textile exporters for compliance with rules and regulations. (Sec. 2d)
- Maintain a data bank on statistics regarding world trade in garments and textiles for monitoring purposes and to obtain maximum benefits from textile negotiations. (Sec. 2e)
- Undertake the development and promotion of garments and textile exports. (Sec. 2f)
- Fix and collect fees: for issuance of licenses to operate bonded garment manufacturing warehouses, a fee not exceeding five thousand pesos (P5,000.00); for issuance of quota allocations and export authorizations, a fee not exceeding fifty (P0.50) centavos per square yard equivalent of the quantity allocated; and for issuance of other licenses and related services, a fee not exceeding one fifth of one percent of the gross value of the goods to be imported or exported. (Sec. 2g)
- Cancel or suspend quota allocations, export authorizations and licenses for the operation of bonded garment manufacturing warehouses in case of violations of rules and regulations. (Sec. 2h)
- Impose fines: in an amount not exceeding fifty (P0.50) centavos per square yard equivalent of the quantity unshipped in cases of unutilized allocation; and not more than ten percent of the gross value of the goods to be exported in case of other violation of rules and regulations. (Sec. 2i)
- Promulgate and enforce rules and regulations, including rules in liquidation of bonded importations of textile fabrics, accessories and raw materials, provided that bonded importations shall be re-exported within a period of twelve months from date of importation, subject to modifications and extensions as the GTEB may authorize but in no case shall the total period exceed thirty months, and provided further that the bond to be filed by the importer shall not be less than one hundred percent nor more than two hundred percent of the amount of taxes, duties and other charges due thereon. (Sec. 2j)
• Audit and Inspection Unit (Sec. 3):
- The GTEB is authorized to create its own audit and inspection unit to enforce its rules and regulations.
- The unit shall conduct regular audit and inspection of all phases of operations of garment and textile exporters.
- Upon recommendation of this unit, the GTEB may refer to the Ministry of Justice or to the proper fiscal's office the prosecution of those found violating any law relating to the bonded importation of textile fabrics, accessories and related materials.
• Abolition of Embroidery Board and Transfer of Certain Functions (Sec. 4):
- The Embroidery and Apparel Control and Inspection Board created pursuant to Republic Act No. 3137 is abolished.
- Its functions and powers are transferred to the GTEB, except as otherwise provided.
- The functions of the Board of Investments with respect to the regulation of raw material importations of registered enterprises engaged in the manufacture or exportation of garments or textiles are transferred to the GTEB.
• Transfer of Appropriations, Properties and Records (Sec. 5):
- The applicable appropriations, records and property of the Embroidery and Apparel Control and Inspection Board and the Board of Investments are transferred to the GTEB.
- Applicable appropriations, records and property pertaining to warehouse storekeeping of firms registered with the Embroidery and Apparel Control and Inspection Board shall be transferred to the Bureau of Customs.
• Transfer of Personnel (Sec. 6):
- Personnel of the Embroidery and Apparel Control and Inspection Board as the GTEB may deem necessary and as its Chairman may reappoint within sixty (60) days from the date of this Executive Order are transferred to the GTEB.
- Warehouse storekeepers of the Embroidery and Apparel Control and Inspection Board whom the Commissioner of Customs may reappoint within sixty (60) days from date of this Executive Order shall be transferred to the Bureau of Customs.
- Personnel not transferred or reappointed are deemed terminated and shall be entitled to all benefits and gratuities provided for under existing laws.
- Personnel who are retirable shall be allowed to retire with full benefits and gratuities under existing laws.
• Critical Agency (Sec. 7):
- The GTEB is declared a critical government agency pursuant to P.D. No. 985.
- All income from fees, fines, penalties, and other charges imposed by it are deemed corporate income and shall be directly used by the GTEB to provide additional financial incentives to all its employees according to criteria to be determined by the GTEB.
- Such income may also be directly used by the GTEB to defray expenses of its negotiators in bilateral and multilateral textile negotiations as well as to defray other expenses that the GTEB may authorize to be incurred.
• Transition Phase (Sec. 8):
- All present incumbents in the abolished Embroidery and Apparel Control and Inspection Board shall continue to exercise their usual functions, duties and responsibilities pending issuance by the GTEB of the appropriate orders to implement this Executive Order which shall not be later than thirty (30) days from date hereof.
- Existing licensed bonded manufacturing warehouses engaged in the garments or textile business shall continue to operate but shall register with the GTEB within three months from date of this Executive Order under rules and regulations to be promulgated by the GTEB.
• Repealing Clause (Sec. 9):
- All laws, presidential issuances, administrative rules and regulations inconsistent with this Executive Order are repealed or modified accordingly.
• Separability Clause (Sec. 10):
- If any provisions of this Executive Order is declared invalid, such declaration shall not have the effect of nullifying the other provisions of this Executive Order, provided that such remaining provisions can still be given effect in their entirety to accomplish the objectives of this Executive Order.
• Effectivity (Sec. 11):
- This Executive Order shall take effect immediately.
Summary of Provisions:
• Board Composition (Sec. 1):
- The Garments and Textile Export Board (GTEB) is composed of the Minister of Trade and Industry as Chairman, Deputy Minister of Finance as Vice-Chairman, Deputy Minister of Trade and Industry, Vice-Chairman of the Board of Investments, and Commissioner of the Bureau of Customs as members.
• Powers and Functions of the GTEB (Sec. 2):
- Negotiate, conclude and implement garments and textile agreements, approve quota allocations and export authorizations, issue export licenses. (Sec. 2a)
- Issue licenses for the establishment and operation of bonded garment manufacturing warehouses, authorize importation of textile fabrics, accessories, chemicals, packages, brands, labels and other supplies without taxes and duties but under re-export bond. (Sec. 2b)
- Provide information and statistics relating to the administration of garments and textile export quotas and the flow of garments and textile exports. (Sec. 2c)
- Inspect and examine books, records, shipments, importations or inventories of textile fabrics, accessories, chemicals and supplies of all garments and textile exporters for compliance with rules and regulations. (Sec. 2d)
- Maintain a data bank on statistics regarding world trade in garments and textiles for monitoring purposes and to obtain maximum benefits from textile negotiations. (Sec. 2e)
- Undertake the development and promotion of garments and textile exports. (Sec. 2f)
- Fix and collect fees: for issuance of licenses to operate bonded garment manufacturing warehouses, a fee not exceeding five thousand pesos (P5,000.00); for issuance of quota allocations and export authorizations, a fee not exceeding fifty (P0.50) centavos per square yard equivalent of the quantity allocated; and for issuance of other licenses and related services, a fee not exceeding one fifth of one percent of the gross value of the goods to be imported or exported. (Sec. 2g)
- Cancel or suspend quota allocations, export authorizations and licenses for the operation of bonded garment manufacturing warehouses in case of violations of rules and regulations. (Sec. 2h)
- Impose fines: in an amount not exceeding fifty (P0.50) centavos per square yard equivalent of the quantity unshipped in cases of unutilized allocation; and not more than ten percent of the gross value of the goods to be exported in case of other violation of rules and regulations. (Sec. 2i)
- Promulgate and enforce rules and regulations, including rules in liquidation of bonded importations of textile fabrics, accessories and raw materials, provided that bonded importations shall be re-exported within a period of twelve months from date of importation, subject to modifications and extensions as the GTEB may authorize but in no case shall the total period exceed thirty months, and provided further that the bond to be filed by the importer shall not be less than one hundred percent nor more than two hundred percent of the amount of taxes, duties and other charges due thereon. (Sec. 2j)
• Audit and Inspection Unit (Sec. 3):
- The GTEB is authorized to create its own audit and inspection unit to enforce its rules and regulations.
- The unit shall conduct regular audit and inspection of all phases of operations of garment and textile exporters.
- Upon recommendation of this unit, the GTEB may refer to the Ministry of Justice or to the proper fiscal's office the prosecution of those found violating any law relating to the bonded importation of textile fabrics, accessories and related materials.
• Abolition of Embroidery Board and Transfer of Certain Functions (Sec. 4):
- The Embroidery and Apparel Control and Inspection Board created pursuant to Republic Act No. 3137 is abolished.
- Its functions and powers are transferred to the GTEB, except as otherwise provided.
- The functions of the Board of Investments with respect to the regulation of raw material importations of registered enterprises engaged in the manufacture or exportation of garments or textiles are transferred to the GTEB.
• Transfer of Appropriations, Properties and Records (Sec. 5):
- The applicable appropriations, records and property of the Embroidery and Apparel Control and Inspection Board and the Board of Investments are transferred to the GTEB.
- Applicable appropriations, records and property pertaining to warehouse storekeeping of firms registered with the Embroidery and Apparel Control and Inspection Board shall be transferred to the Bureau of Customs.
• Transfer of Personnel (Sec. 6):
- Personnel of the Embroidery and Apparel Control and Inspection Board as the GTEB may deem necessary and as its Chairman may reappoint within sixty (60) days from the date of this Executive Order are transferred to the GTEB.
- Warehouse storekeepers of the Embroidery and Apparel Control and Inspection Board whom the Commissioner of Customs may reappoint within sixty (60) days from date of this Executive Order shall be transferred to the Bureau of Customs.
- Personnel not transferred or reappointed are deemed terminated and shall be entitled to all benefits and gratuities provided for under existing laws.
- Personnel who are retirable shall be allowed to retire with full benefits and gratuities under existing laws.
• Critical Agency (Sec. 7):
- The GTEB is declared a critical government agency pursuant to P.D. No. 985.
- All income from fees, fines, penalties, and other charges imposed by it are deemed corporate income and shall be directly used by the GTEB to provide additional financial incentives to all its employees according to criteria to be determined by the GTEB.
- Such income may also be directly used by the GTEB to defray expenses of its negotiators in bilateral and multilateral textile negotiations as well as to defray other expenses that the GTEB may authorize to be incurred.
• Transition Phase (Sec. 8):
- All present incumbents in the abolished Embroidery and Apparel Control and Inspection Board shall continue to exercise their usual functions, duties and responsibilities pending issuance by the GTEB of the appropriate orders to implement this Executive Order which shall not be later than thirty (30) days from date hereof.
- Existing licensed bonded manufacturing warehouses engaged in the garments or textile business shall continue to operate but shall register with the GTEB within three months from date of this Executive Order under rules and regulations to be promulgated by the GTEB.
• Repealing Clause (Sec. 9):
- All laws, presidential issuances, administrative rules and regulations inconsistent with this Executive Order are repealed or modified accordingly.
• Separability Clause (Sec. 10):
- If any provisions of this Executive Order is declared invalid, such declaration shall not have the effect of nullifying the other provisions of this Executive Order, provided that such remaining provisions can still be given effect in their entirety to accomplish the objectives of this Executive Order.
• Effectivity (Sec. 11):
- This Executive Order shall take effect immediately.