MALACAÑANG
M a n i l aPRESIDENTIAL DECREE No. 1319
PROVIDING FOR THE DEVELOPMENT AND ACCREDITATION OF CERTAIN TRADING COMPANIES AND PRESCRIBING INCENTIVES THEREFOR
WHEREAS, the sound and balanced development of the economy requires the expansion and sustained growth of export trade, the attainment of which necessitates the trading sector's assumption of a leading and more innovative role in improving the country's export performance;
WHEREAS, this role requires that trading firms develop and extend their functional coverage to include expanded bulk trading, adequate and reliable sources of supply, worldwide market networks, trade and production financing, risk absorption, and other innovative functions needed to improve trade leverage;
WHEREAS, this lead role further requires that trading firms provide the vehicle for developing the markets for non-traditional export products particularly of small and medium-scale industries;
WHEREAS, the undertaking of these functions and activities require that trading firms be organized with a sufficiently large capital base, and be geared towards large-scale and integrated trading operations;
WHEREAS, to accelerate and assist the organization and development of such...
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Presidential Decrees
Providing For The Development And Accreditation Of Certain Trading Companies And Prescribing Incentives Therefor
Presidential Decree No. 1319
Summary of Presidential Decree No. 1319
Declaration of Policy (Section 1):
- Promote and encourage large-scale and integrated trading companies to assist, develop, expand and diversify production and export markets of Philippine non-traditional export products, particularly from small and medium-scale industries.
- Aims to increase production, employment, foreign exchange earnings, and economic development.
Definitions (Section 2):
- "Governing Council" refers to the Governing Council of the Philippine Export Council.
- "Committee" refers to the Committee on Accredited Trading Companies created under this Decree.
- "Accredited Trading Companies" are corporations incorporated in the Philippines, with at least 60% of voting capital stock owned by Filipino citizens, and duly accredited under this Decree.
- "Non-Traditional Export Products" are export products with total F.O.B. Philippine Port Value not exceeding US $5,000,000 in 1968.
Qualifications of Applicants (Section 3):
- Must satisfy citizenship requirements (at least 60% Filipino-owned).
- Must meet annual eligibility requirements prescribed by the Committee at intervals of not less than three years, based on:
- Sufficient capital base for large-scale and integrated trading operations. (Section 3a)
- Annual export targets in terms of value, diversity of non-traditional export products traded, and diversity of foreign markets serviced. (Section 3b)
- Linkage with small and medium-scale export producers in terms of value, number of sources tapped, and financing assistance provided. (Section 3c)
- Other criteria recommended by the Committee and approved by the Governing Council. (Section 3d)
Incentives to Accredited Trading Companies (Section 4):
- Export financing privileges and/or preferential treatment.
- Facilitation of procedures for importing raw materials for export products.
- Preference in the grant of government loans.
- Availment of incentives under the Export Incentives Act (RA 6135).
- Availment of simplified export procedures under Executive Order No. 286.
- Operation of bonded warehouse facilities.
- Facilities assistance in trading operations.
Committee on Accredited Trading Companies (Section 5):
- Responsible for administering and coordinating the implementation of this Decree.
- Composed of one senior official each from the Departments of Trade, Industry/Board of Investments, Finance, Central Bank of the Philippines, and the Philippine Export Council.
- The Department of Trade nominee shall be the Chairman.
- Organizational framework and guidelines prescribed by the Governing Council.
- Encourages joint export marketing groups by producers.
Functions and Duties of the Committee (Section 6):
- Formulate policies and strategies for developing and regulating large-scale and integrated trading companies, in accordance with national development plans. (Section 6a)
- Draw up annual eligibility requirements for accreditation for a planning period of not less than three years, based on criteria in Section 3. (Section 6b)
- Promulgate rules and regulations to implement the Decree, effective 30 days after publication in two newspapers of general circulation. (Section 6c)
- Process and evaluate applications for accreditation, and issue certificates of accreditation upon payment of reasonable fees. (Section 6d)
- Periodically check and verify compliance by accredited trading companies with the Decree, rules, terms and conditions, and citizenship requirements. (Section 6e)
- Coordinate, liaise, and facilitate the promulgation and availment of incentives by accredited trading companies. (Section 6f)
- Require accredited trading companies to list shares in stock exchange or offer to public/employees according to a time-phased plan. (Section 6g)
- Suspend incentives and/or cancel accreditation for failure to meet requirements or willful/grossly negligent violation of the Decree, rules, or terms and conditions. (Section 6h)
- Recommend amendments to the general list of incentives to the President. (Section 6i)
- Submit an annual report to the President on the implementation of the Decree. (Section 6j)
Appropriation (Section 7):
- P1,000,000 appropriated from the National Treasury for the initial organizational and operating expenses of the Committee up to Fiscal Year 1978.
- Thereafter, budget to be provided by contributions from agencies represented in the Committee, as determined by the Governing Council.
Penal Provision (Section 8):
- Violation of the Decree, rules, or terms and conditions shall be punished by a fine of not more than P50,000 or imprisonment for not more than three years, or both.
- If committed by a juridical entity, responsible officials shall be penalized.
- If the official is an alien, they shall be deported after serving the sentence.
- If the offender is a naturalized citizen, they shall be automatically denaturalized upon finality of sentence.
Separability Clause (Section 9)
Repealing Clause (Section 10)
Effectivity (Section 11)
Declaration of Policy (Section 1):
- Promote and encourage large-scale and integrated trading companies to assist, develop, expand and diversify production and export markets of Philippine non-traditional export products, particularly from small and medium-scale industries.
- Aims to increase production, employment, foreign exchange earnings, and economic development.
Definitions (Section 2):
- "Governing Council" refers to the Governing Council of the Philippine Export Council.
- "Committee" refers to the Committee on Accredited Trading Companies created under this Decree.
- "Accredited Trading Companies" are corporations incorporated in the Philippines, with at least 60% of voting capital stock owned by Filipino citizens, and duly accredited under this Decree.
- "Non-Traditional Export Products" are export products with total F.O.B. Philippine Port Value not exceeding US $5,000,000 in 1968.
Qualifications of Applicants (Section 3):
- Must satisfy citizenship requirements (at least 60% Filipino-owned).
- Must meet annual eligibility requirements prescribed by the Committee at intervals of not less than three years, based on:
- Sufficient capital base for large-scale and integrated trading operations. (Section 3a)
- Annual export targets in terms of value, diversity of non-traditional export products traded, and diversity of foreign markets serviced. (Section 3b)
- Linkage with small and medium-scale export producers in terms of value, number of sources tapped, and financing assistance provided. (Section 3c)
- Other criteria recommended by the Committee and approved by the Governing Council. (Section 3d)
Incentives to Accredited Trading Companies (Section 4):
- Export financing privileges and/or preferential treatment.
- Facilitation of procedures for importing raw materials for export products.
- Preference in the grant of government loans.
- Availment of incentives under the Export Incentives Act (RA 6135).
- Availment of simplified export procedures under Executive Order No. 286.
- Operation of bonded warehouse facilities.
- Facilities assistance in trading operations.
Committee on Accredited Trading Companies (Section 5):
- Responsible for administering and coordinating the implementation of this Decree.
- Composed of one senior official each from the Departments of Trade, Industry/Board of Investments, Finance, Central Bank of the Philippines, and the Philippine Export Council.
- The Department of Trade nominee shall be the Chairman.
- Organizational framework and guidelines prescribed by the Governing Council.
- Encourages joint export marketing groups by producers.
Functions and Duties of the Committee (Section 6):
- Formulate policies and strategies for developing and regulating large-scale and integrated trading companies, in accordance with national development plans. (Section 6a)
- Draw up annual eligibility requirements for accreditation for a planning period of not less than three years, based on criteria in Section 3. (Section 6b)
- Promulgate rules and regulations to implement the Decree, effective 30 days after publication in two newspapers of general circulation. (Section 6c)
- Process and evaluate applications for accreditation, and issue certificates of accreditation upon payment of reasonable fees. (Section 6d)
- Periodically check and verify compliance by accredited trading companies with the Decree, rules, terms and conditions, and citizenship requirements. (Section 6e)
- Coordinate, liaise, and facilitate the promulgation and availment of incentives by accredited trading companies. (Section 6f)
- Require accredited trading companies to list shares in stock exchange or offer to public/employees according to a time-phased plan. (Section 6g)
- Suspend incentives and/or cancel accreditation for failure to meet requirements or willful/grossly negligent violation of the Decree, rules, or terms and conditions. (Section 6h)
- Recommend amendments to the general list of incentives to the President. (Section 6i)
- Submit an annual report to the President on the implementation of the Decree. (Section 6j)
Appropriation (Section 7):
- P1,000,000 appropriated from the National Treasury for the initial organizational and operating expenses of the Committee up to Fiscal Year 1978.
- Thereafter, budget to be provided by contributions from agencies represented in the Committee, as determined by the Governing Council.
Penal Provision (Section 8):
- Violation of the Decree, rules, or terms and conditions shall be punished by a fine of not more than P50,000 or imprisonment for not more than three years, or both.
- If committed by a juridical entity, responsible officials shall be penalized.
- If the official is an alien, they shall be deported after serving the sentence.
- If the offender is a naturalized citizen, they shall be automatically denaturalized upon finality of sentence.
Separability Clause (Section 9)
Repealing Clause (Section 10)
Effectivity (Section 11)