EXECUTIVE ORDER NO. 292 [BOOK IV] (TITLE X)

Title X

TRADE AND INDUSTRY

CHAPTER 1

GENERAL PROVISIONS

Section 1. Declaration of Policy. - The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos. It recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.

The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. It shall protect Filipino enterprises against unfair foreign competition and trade practices.

In pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations shall be encouraged to broaden the base of their ownership.

The State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity.

The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed. The state shall protect consumers from trade malpractices and from substandard or hazardous products.

Section 2. Mandate. - The Department of Trade and Industry shall be the primary coordinative, promotive, facilitative and regulatory arm of the Executive Branch of government in the area of trade, industry and investments. It shall promote and develop an industrialization program effectively controlled by Filipinos and shall act as catalyst for intensified private sector activity in order to accelerate and sustain economic growth through: (a) comprehensive industrial growth strategy, (b) a progressive and socially responsible liberation program, (c) policies designed for the expansion and diversification of trade, and (d) policies to protect Filipino enterprises against unfair foreign competition and trade practices.

Section 3. Powers and Functions. - The Department of Trade and Industry, shall:

• (1) Formulate and implement policies, plans and programs relative to the development, expansion, promotion and regulation of trade, industry, and investments;

• (2) Consolidate and coordinate all functions and efforts pertaining to the promotion of exports, diversification and decentralization of industries, and development of foreign trade;

• (3) Encourage and promote the growth and expansion of industries which make full use of human and natural resources and which are competitive in domestic and foreign markets;

• (4) Adopt and implement measures to protect Filipino enterprises against unfair foreign competition and trade practices.

• (5) Provide incentives to broaden the base of ownership of large-scale industrial enterprises and accelerate the formulation and growth of small and medium-scale enterprises;

• (6) Regulate the importation of essential consumer and producer items to maintain their fair and competitive prices to end-users;

• (7) Protect consumers from trade malpractices and from substandard or hazardous products;

• (8) Adopt and implement measures to prohibit combinations in restraint of trade and unfair competition;

• (9) Develop the capabilities of industry to increase the domestic content of its products and upgrade the quality of products according to competitive international standards;

• (10) Encourage and support the formation of People's Economic Councils at regional, provincial and municipal levels as well as other trade, industry and consumer protection institutions or associations;

• (11) Upgrade and develop the manufacture of local capital goods and precision machinery components;

• (12) Formulate the appropriate mechanics to guide and manage the transfer of appropriate industrial technology in the country;

• (13) Formulate country and product export strategies which will guide the export promotion and development thrusts of the government; and implement programs and activities geared towards the overseas promotion of Philippine exports in overseas markets;

• (14) Take the primary role in negotiating and reviewing existing international trade agreements, particularly those affecting commodity quotas limiting existing exports of Philippine products to determine programs for renegotiations of more favorable terms;

• (15) Administratively adjudicate and impose reasonable fines and penalties for violation of existing trade and industry laws;

• (16) Prepare, for consideration of the Monetary Board, proposed programs in the commercial banking sector for directing commercial lending facilities towards priority areas of commercial and industrial development, as well as coordinate government direct funding and financial guarantee programs to achieve trade and industry growth;

• (17) Issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of the necessary information, papers and documents which it may deem necessary in the exercise of its powers and functions;

• (18) Prescribe and enforce compliance with such rules and regulations as may be necessary to implement the intent and provisions of this Code, which rules and regulations shall take effect fifteen (15) days following their publication in the Official Gazette; and

• (19) Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Code and as may be provided by law.

Section 4. Organizational Structure. - The department shall consist of the offices of the secretary, undersecretaries and assistant secretaries, national service centers, regional offices, and line corporate agencies and government entities.

CHAPTER 2

DEPARTMENT PROPER

Section 5. Office of the Secretary. - The Office of the Secretary shall consist of the Secretary, his immediate staff, the Undersecretary for Policy Planning and Support Services, and the Offices and Services directly supportive of the Office of the Secretary. The functions of the foregoing shall be as follows:

• (1) The Undersecretary for Policy Planning and Support Services shall supervise the Office of Policy Research, the Office of Operational Planning, the Office of Legal Affairs, the Human Resource Development Service, the General Administrative Service, the Management Information Service, the Financial Management Service and the Public Relations Office;

• (2) The Office of Policy Research shall coordinate and help formulate general trade and industry policies for the Department; evaluate the effectiveness of trade and industry programs as such, as their implementation by the Department's Line Operating Units; and research on trade and industry issues for policy analysis and formulation;

• (3) The Office of Operational Planning shall develop operating plans, programs and projects of the Department as such; supervise the Annual Trade and Industry Development Planning Conferences between government and the private sector; evaluate the cost-effectiveness of various projects and activities of the Department; coordinate the updating of the Department's operating plans in response to relevant environment changes; review the Department's performance against standards and targets previously established; and provide staff services related to the development, monitoring, reporting and assessment of foreign assisted projects of the Department;

• (4) The Office of Legal Affairs shall provide the Secretary with legal advise on all policies, programs, and operational matters of the Department, serve as Counsel for the Department in cases in which it is a party; handle administrative cases against Department personnel and submit recommendations pertaining thereto; and review legislative proposals;

• (5) The Human Resource Development Service shall design and implement human resource development plans and programs for the personnel of the Department; provide for present and future manpower needs of the organization; and maintain high morale and favorable employee attitudes towards the organization through the continuing design and implementation of employee development programs;

• (6) The Financial Management Service shall formulate and manage a financial program to ensure availability and proper utilization of funds; and provide for an effective monitoring system of the financial operations of the Department;

• (7) The General Administrative Service shall provide services relative to procurement and allocation of supplies and equipment, transportation, messengerial work, cashiering, payment of salaries and other Department obligations, office maintenance, property safety and security, and other utility services; and comply with government regulatory requirements in the areas of performance appraisal, compensation and benefits, employment records and reports;

• (8) The Management Information Service shall design and implement a comprehensive management information system, both computerized and manual, for the Department; provide technical assistance to the various information generating units within the Department; and establish data exchange linkages with public and private agencies whenever feasible;

• (9) The Public Relations Office shall perform The Department's public relations function: provide a two-way flow of information between the Department and its constituencies; and coordinate the Secretary's regular press conferences and the Department's relations with the mass media;

• (10) The Trade and Investment Information Center shall, as the primary information arm of the Department, design and operate a computerized system of collection, documentation, storage, retrieval, and timely dissemination of comprehensive and relevant information on trade, industry, and investment for use by other government agencies and the business sector; coordinate and monitor the information campaigns on the Department's services, programs, and projects; develop a communications programs to promote Philippine investment opportunities and the country's export products which shall be directed at foreign audiences; and provide creative services to other units of the Department in support of their own information programs;

• (11) The National Industrial Manpower Training Council shall act as the umbrella agency to coordinate and operate the Cottage Industry Technology Center, the Construction Manpower Development Foundation, and the Construction Manpower Development Center and perform other functions such as initiating specialized industrial training centers and identifying supply-demand factors and industrial skills subject to the direction formulated by the National Manpower and Youth Council; and

• (12) There is hereby created in the Office of the Secretary the Office of Special Concerns to attend to matters that require special attention, whether involving a matter that crosses several functional areas, demands urgent action, or otherwise necessitates, in the Secretary's opinion, attention by a special group.

Section 6. Undersecretaries. - The Secretary shall be assisted by five (5) Undersecretaries. They shall exercise supervision over the offices, services, operating units and individuals under their authority and responsibility.

The Secretary may designate any Undersecretary to supervise the bureaus, offices, and agencies, including the attached entities, consistent with the mandate of the department.

Section 7. Assistant Secretaries. - The Secretary shall also be assisted by five (5) Assistant Secretaries who shall be appointed by the President upon the recommendation of the Secretary. The Secretary is hereby authorized to delineate and assign the respective areas of functional responsibility of the Assistant Secretaries. Within his functional area of responsibility, an Assistant Secretary shall assist the Secretary and the Undersecretaries in the formulation, determination and implementation of laws, policies, plans, programs and projects on trade and industry and shall oversee the day-to-day administration of the constituent units of the Department.

Section 8. Staff Bureaus and Services. - The Bureaus and Service Units shall be responsible for research, formulation of policy, development of standards, framing of rules and regulations, program formulation and program monitoring, related to the concerns covered by the Department's mandate, powers and functions. Implementation of such policies, standards, rules and regulations, and programs shall be the responsibility of the Department's Line Operating Units.

Section 9. Department Line Operating Units. - The Department Line Operating Units shall be composed of the following:

• (1) Regional Offices. These are offices which shall be located in the National Capital Region and each of the twelve (12) other administrative regions of the country. They shall be operated and maintained on a Department-wide basis, acting as implementing arms in the regions under their jurisdiction, of the Department's policies, programs, rules and regulations as well as those laws which the Department is mandated to enforce.

• (2) Line Corporate Agencies and Government Entities. These are the government entities and the government-owned or controlled corporations under the administrative supervision of the Department which are deemed to be integral parts of the Department structure notwithstanding their organizational form, and which perform a focal and implemental role in the Department's programs for the development of trade, industry and investments.

CHAPTER 3

OFFICE OF THE UNDERSECRETARY FOR DOMESTIC TRADE

Section 10. Office of the Undersecretary for Domestic Trade. - The Office of the Undersecretary for Domestic Trade shall include all the staff bureaus and services involved in policy formulation, standards development, regulatory, and service delivery programs pertinent to domestic trade and commerce being implemented by the Department's line operating units. The Undersecretary for Domestic Trade shall supervise the following:

• (1) Bureau of Trade Regulations and Consumer Protection. This Bureau shall formulate and monitor the implementation of programs for the effective enforcement of laws, correct interpretation and adoption of policies on monopolies and restraint of trade, mislabelling, product misrepresentation and other unfair trade practices; monitor the registration of business names and the licensing and accreditation of establishments and practitioners; protect and safeguard the interest of consumers and the public, particularly the health and safety implications of intrinsic products features, product representation, and the like; and establish the basis for evaluating consumer complaints and product utility failures.

• (2) Bureau of Domestic Trade Promotion. This Bureau shall prepare and monitor the implementation of plans and programs directed at the promotion and development of domestic trade, particularly in the area of efficiency, fairness and balance in the distribution of essential products and services and in the strengthening of the domestic base for export activities; conceptualize, monitor, and evaluate programs, plans and projects intended to create awareness of domestic marketing opportunities for new projects, new technologies and investments.

• (3) Bureau of Patents, Trademarks, and Technology Transfer. This Bureau shall examine applications for grant of letters, patent for inventions, utility models and industrial designs, and the subsequent grant or refusal of the same; register trademarks, tradenames, service marks and other marks of ownership; hear and adjudicate contested proceedings affecting rights to patents and trademarks; receive, process for registration and evaluate technology transfer arrangements as to their appropriateness and need for the technology or industrial property rights, reasonableness of the technology payment, and for the prohibition of restrictive business clauses, and comply with all its statutory publication requirements by publishing the same in a newspaper of general circulation or in the Official Gazette.

• (4) Bureau of Product Standards. This Bureau shall review the products contained in the critical imports list in accordance with established national standards or relevant international standards and buyer-seller specifications; promulgate rules and regulations necessary for the country's shift to the international system of units; study and carry out research on the various reference materials to be used as basis for the start of whatever analysis or evaluation is demanded by the products under examination or investigation; establish standards for all products of the Philippines for which no standards have as yet been fixed by law, executive order, rules and regulations and which products are not covered by the standardization activities of other government agencies; participate actively in international activities on standardization, quality control and metrology; ensure the manufacture, production, and distribution of quality products for the protection of consumers; test and analyze standardized and unstandardized products for purposes of product standard formulation and certification; extend technical assistance to producers to improve the quality of their products; check length, mass and volume measuring instruments; and maintain consultative liaison with the International Organization for Standardization, Pacific Area Standards Congress, and other international standards organizations.

• (5) Video Regulatory Board. This Board shall regulate videogram establishments; prevent unfair practices, unfair competition, pirating of legitimately produced video products, and other deceptive, unfair and unconscionable acts and practices to protect the viewing public and the general public.

CHAPTER 4

OFFICE OF THE UNDERSECRETARY FOR INTERNATIONAL TRADE

Section 11. Office of the Undersecretary for International Trade. - The Office of the Undersecretary for International Trade shall include all the units involved in policy formulation, standards development, program monitoring of the development, regulatory, and service delivery programs of the Department pertinent to international trade and commerce being implemented by the Department's line operating units. The Undersecretary for International Trade shall supervise the following:

• (1) Bureau of International Trade Relations. This Bureau shall be the primary agent responsible for all matters pertaining to foreign trade relations, whether bilateral, regional or multilateral, especially market access and market access related matters; formulate positions and strategies for trade negotiations, consultations and conferences as well as supervise trade negotiations, consultations and conferences; coordinate with other Departments and agencies of the Philippine government with the view of assuring consistency in the government's positions in trade negotiations and on other activities pertaining to foreign trade relations; consult with industry groups and provide technical advice and information on the above matters and activities; identify tariff and non-tariff barriers affecting products of export interest to the Philippines, and negotiate measures for liberalizing them at bilateral, regional and multilateral form; and evaluate and submit recommendations on existing and proposed commercial policies of the Philippines.

• (2) Bureau of Export Trade Promotion. This Bureau shall formulate and monitor programs, plans, and projects pertinent to the development, promotion, and expansion of the foreign trade of the Philippines; formulate country and product export strategies; conduct research on new product development and adaptation opportunities in the export markets, as well as identify the domestic supply base for such products, prepare situation reports on all export production; prepare and update country and regional market profiles; maintain an integrated information system on all aspects of the products and commodities relevant to export marketing; formulate, plan, supervise, coordinate and monitor the implementation of both private and official incoming and outgoing missions, and review the results of such; promote and coordinate international subcontracting arrangements between and among foreign and Philippine investors whereby production operations and facilities may be located in the Philippines; formulate and monitor the implementation of policies and guidelines for the registration and certification of bona fide exporters eligible for the various export incentive programs of the Philippines; and review and identify appropriate measures to minimize or deregulate export-import procedures and other foreign trade laws necessary to stimulate the international marketing of Philippine products.

• (3) Foreign Trade Service Corps. This Corps shall assist Philippine businessmen, producers, and exporters with marketing information, project development support, and liaison with foreign government agencies; develop marketing and commercial intelligence for dissemination to Philippine businessmen through the Trade and Investment Information Center; provide direct support to the Department's overseas promotional programs; assist Philippine businessmen handle trade complaints against foreign firms and governments; support Department units in import and export administration, monitoring of trade agreements, and investments promotion; and be accountable for establishment of foreign investment and export targets for their respective areas of responsibility.

  • In addition to the existing Foreign Trade Service Corps. the President may appoint Trade Commissioners with the rank of Assistant Secretary to coordinate trade and investment matters in the various continents to which they are assigned for the purpose of increasing trade and investments.

• (4) Bonded Export Marketing Board. This Board shall promote the establishment of bonded manufacturing and trading facilities for the re-export of those products where a clear net value added may be generated based on the emerging comparative advantage of the Philippine export industry; study and analyze the international market for specific products where the Philippines has or can develop a comparative advantage; recommend to the Bureau of Customs the licensing of bonded manufacturing facilities and monitor all bonded manufacturing sites, with the objective of ensuring operational efficiency; identify and designate sites where export bonded manufacturing sites shall be located with a view of dispersal to the regions; and initiate studies on the development and maintenance of the country's competitive advantage in export products.

• (5) Philippine Shippers' Council. This Council shall represent Philippine shippers in international liner conferences and negotiate in their behalf, for more favorable freight and shipping rates; evaluate and issue waivers to the use of Philippine flag carriers; and provide assistance and information to Philippine shippers, specially exporters, in matters related to shipping.

• (6) Philippine Trade Training Center. This Center shall develop training modules on export and import techniques and procedures; raise the level of awareness of Philippine businessmen of export opportunities and the availability of alternative sources of import products or diversified markets for exports; offer specialized courses for specific industry groups directed at overcoming barriers to overseas market penetration; and conduct training programs in international trade practices, inspection techniques and exhibitions mounting.

• (7) Product Development and Design Center of the Philippines. This Center shall provide product identification, research, and development services to the private sector; conduct seminars and workshops on product design and development; set up design exhibitions; publish product design related materials; and conduct continuing research on product and product packaging design trends and processing technologies.

CHAPTER 5

OFFICE OF THE UNDERSECRETARY FOR INDUSTRY AND INVESTMENTS

Section 12. Office of the Undersecretary for Industry and Investments. - The Office of the Undersecretary for Industry and Investments shall supervise all agencies involved in the formulation and implementation of programs and projects pertinent to the development of domestic industries and the promotion of investments in activities or enterprises critical to the Department's trade and industry development program.

• (1) Bureau of Small and Medium Business Development. This Bureau shall formulate and monitor development programs for private institutions involved in assisting the trade and industry sector, delivery mechanisms and linkages for marketing, financial and subcontracting services, and development programs for livelihood and micro, small and medium enterprises.

• (2) Board of Investments, whose functions are defined below.

• (3) Export Processing Zone Authority, whose functions are defined below.

• (4) Bureau of Import Services. This Bureau shall monitor import levels and prices, particularly liberalized items; analyze and forecast import levels; analyze and publish import return statistics; perform annual reviews of the substantive components of the Philippine Tariff System and submit recommendations thereon; perform such other functions on import transactions as the President or the Central Bank of the Philippines shall delegate or authorize; and ensure that the Department's views on goods under the jurisdiction of other Departments are taken into consideration.

• (5) Iron and Steel Authority.

• (6) Construction Industry Authority of the Philippines.

CHAPTER 6

OFFICE OF THE UNDERSECRETARY FOR REGIONAL OPERATIONS

Section 13. Office of the Undersecretary for Regional Operations. - The Office of the Undersecretary for Regional Operations shall exercise supervision and control over the Department's Regional Offices, described in Section 9, par. 1 hereof. It shall be responsible for the field operations of the Department, ensuring full compliance with Department policies, rigorous implementation of Department and regulations, and proper implementation of Department plans and programs by the Regional Offices in their respective administrative jurisdictions.

Section 14. Regional Offices. - The Department is hereby authorized to establish, operate and maintain a Department-wide regional office in each of the country's administrative regions. Each Regional Office shall be headed by a Regional Director who shall be assisted by an Assistant Regional Director. A Regional Office shall have, within its administrative region, the following functions:

• (1) Implement pertinent laws, and the rules, regulations, policies, plans, programs and projects of the Department;

• (2) Provide efficient and effective service to the people;

• (3) Coordinate with the regional offices of other departments, offices and agencies in the region;

• (4) Coordinate with the local government units; and

• (5) Perform such other functions as may be provided by law or appropriately assigned by the Secretary.

CHAPTER 7

ATTACHED AGENCIES

Section 15. Line Corporate Agencies and Government Entities. - The following are the Line Corporate Agencies and Government Entities that will perform their specific regulatory functions, particular developmental responsibilities, and specialized business activities in a manner consonant with the Departments' mandate, objectives, policies, plans, and programs:

• (1) National Development Company. This Company shall promote investments in or establish enterprises for the express purposes of encouraging the private sector to follow suit by proving the financial viability of such enterprises; or of filling critical gaps in the input-output structure of Philippine commerce and industry when the private sector is unwilling or unable to engage in such enterprises because of the magnitude of investments required or the risk complexion of the undertaking.

• (2) Garments and Textile Export Board. This Board, which shall be supervised by the Undersecretary for International Trade, shall oversee the implementation of the garment and textile agreements between the Philippines and other countries, particularly garments and textiles quotas; approve quota allocations and export authorizations; issue export licenses and adopt appropriate measures to expedite their processing; provide the necessary information and statistics relating to the administration of garments and textiles export quotas and the flow of garments and textiles exports for monitoring purposes and for negotiations with other countries; implement rules and regulations for the administration of all international textile agreements entered into between the Philippines and importing countries; and fix and collect reasonable fees for the issuance of export quotas, export authorizations, export licenses, and other related services, in accordance with the Department policies, rules and regulations.

• (3) International Coffee Organization-Certifying Agency. This Agency, which shall be supervised by the Undersecretary for International Trade, shall oversee the implementation of the coffee agreements between the Philippines and other countries, particularly coffee quotas.

• (4) Philippine International Trading Corporation. This Corporation, which shall be supervised by the Undersecretary for International Trade, shall only engage in both export and import trading on new or non-traditional products and markets not normally pursued by the private business sector; provide a wide range of export oriented auxiliary services to the private sector; arrange for or establish comprehensive system and physical facilities for handling the collection, processing, and distribution of cargoes and other commodities; monitor or coordinate risk insurance services for existing institutions; promote or organize, whenever warranted, production enterprises and industrial establishments and collaborate or associate in joint venture with any person, association, company, or entity, whether domestic or foreign, in the fields of production, marketing, procurement, and other related businesses; and provide technical, advisory, investigatory, consultancy, and management services with respect to any and all of the functions, activities, and operations of the corporation.

• (5) Board of Investments. This Board, which shall be supervised by the Undersecretary for Industry and Investments shall be responsible for coordinating the formulation and implementation of short, medium and long term industrial plans as well as promoting investments in the Philippines in accordance with national policies and priorities; register, monitor, and grant investment incentives to individual enterprises; formulate policies and guidelines aimed at creating an environment conducive to the expansion of existing investments or attracting prospective investments in the Philippines, Provided, That the Board shall place primary emphasis on its promotive functions.

• (6) Export Processing Zone Authority. This Authority which shall be supervised by the Undersecretary for Industry and Investments, shall develop and manage export processing zones, in consonance with Department policies and programs.

• (7) The Center for International Trade Expositions and Missions, Inc. is hereby merged with the Philippine Trade Exhibition Center. The latter shall be the surviving entity and is hereby renamed "Center for International Trade Expositions and Missions."