Providing for a Philippine Foreign Trade Service Corps in the Ministry of Trade and for Other Purposes

Case Overview and Summary

Summary of Executive Order No. 540

Establishment of a Foreign Trade Service Corps
- A Foreign Trade Service Corps shall be established in the Ministry of Trade, which shall be career in nature. (Section 1)

Functions and Duties of the Corps
- Explore and develop potentials of Philippine products in different export markets. (Section 2a)
- Assist Philippine businessmen, producers, and exporters in establishing business connections with importers and business communities abroad. (Section 2b)
- Monitor commercial, industrial, economic, and non-economic conditions affecting Philippine products in export markets. (Section 2c)
- Encourage inflow of foreign investments into priority investment areas. (Section 2d)
- Represent for reduction/elimination of tariff and non-tariff barriers affecting entry of Philippine products in export markets. (Section 2e)
- Participate in international forums related to international trade and trade policies. (Section 2f)
- Facilitate export of Philippine products in particular markets abroad. (Section 2g)

Foreign Trade Service Board
- A Foreign Trade Service Board is created, composed of the Deputy Minister of Trade as Chairman, a representative from the Civil Service Commission, and the Director-General for Administration of the Ministry of Foreign Affairs. (Section 3)

Functions of the Board
- Prescribe and implement guidelines for recruitment of Foreign Trade Service Officers, including receiving and certifying applications, conducting examinations, etc. (Section 4a)
- Recommend appointment and promotion of qualified persons in the Foreign Trade Service Corps. (Section 4b)
- Evaluate performance of Corps members according to set standards. (Section 4c)
- Prescribe policies and procedures for administration, career development, and personnel management of the Corps. (Section 4d)

Categories of Personnel
- The Corps shall be composed of three categories: Special Trade Representative (Class I), Trade Service Officer (Class II, Grades 1-4), and Trade Service Staff Officer (Class III, Grades 1-3). (Section 5)
- Classification guidelines shall be prescribed by the Board and approved by the Civil Service Commission. (Section 5)

Salaries and Other Compensation
- Salary and compensation scheme shall be equivalent to rates fixed for Foreign Service personnel under PD 905 and Letter of Implementation 63, and other applicable orders and rules. (Section 6)
- Assimilated ranks of the Corps are specified, conferring corresponding diplomatic rank for protocol purposes. (Section 6)
- No Corps member shall serve as acting principal officer of any consulate, consulate general, or embassy, or precede in rank any Foreign Service Officer performing such functions. (Section 6)

Admission into the Corps
- No person shall be eligible for appointment as a Foreign Trade Service Officer unless possessing the required qualifications specified. (Section 7)

Qualifications for Admission
- Philippine citizen, aged 21-35 years. (Section 8a)
- Holder of a Bachelor's degree from a recognized college or university, at least. (Section 8b)
- Willing and physically able to accept assignments anywhere in the world. (Section 8c)
- Knowledgeable in the cultural, political, and economic realities of the Philippines. (Section 8d)
- Possesses the required eligibility prescribed by the Civil Service Commission. (Section 8e)
- Persons already performing official commercial representation abroad prior to this Order may be eligible, subject to rules and regulations by the Board. (Section 8, proviso)

Appointments and Promotions
- The Minister shall recommend to the President, upon certification of the Board, appointments to positions of Special Trade Representative and Trade Service Officer. (Section 9)
- All other officers of the Corps shall be appointed by the Minister of Trade, upon recommendation of the Board. (Section 9)

Assignment Abroad
- Assignment abroad of Corps members shall be made by the Minister of Trade with concurrence of the Minister of Foreign Affairs, based on qualifications and criteria such as trade potential, presence of international organizations, export financing availability, technology transfer centers, transshipment centers, trade policy centers, new export markets, and strategic import centers. (Section 10)
- Officers shall serve in a post of assignment for a period of not less than two years and not more than six years. (Section 10)
- While abroad, officers shall be given appropriate designation by the Ministry of Foreign Affairs and shall be under supervision of the Head of Mission as provided under Ministry of Foreign Affairs Order No. 22-68 and Ministry of Trade Administrative Order No. 2. (Section 10)

Supplementary Rules and Regulations
- The Minister, with approval of the President/Prime Minister, shall issue necessary rules and regulations to implement the provisions of this Order. (Section 11)

Repeal Clause
- All Acts, Decrees, Executive Orders, rules and regulations, or parts thereof, inconsistent with any provisions of this Order are repealed or amended accordingly. (Section 12)

Effectivity Clause
- This Order shall take effect immediately. (Section 13)