Presidential Decree No. 941




M a n i l a

PRESIDENTIAL DECREE No. 941 May 29, 1976


WHEREAS, national economic growth demands a sustained contribution in foreign exchange generation by the export sector;

WHEREAS, there is a need to develop and implement a national export strategy designed to achieve a significant increase in export earnings;

WHEREAS, there is a need to establish a mechanism for the direct and continuing involvement of the private sector in the formulation and implementation of the government export strategy;

WHEREAS, there is a need to establish an institution to serve as the focal point for government and private sector cooperation in the promotion of Philippine products;

WHEREAS, the effective implementation of an export promotion strategy requires that such an institution be capable of flexible and dynamic action and be vested with appropriate authority to operate under a high degree of autonomy;

WHEREAS, such an institution will provide the mechanism to compete with other countries, which have adopted similar institutions designed to optimize their export strategy through encouraging and stimulating joint government and private sector action for export expansion.

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following, to form part of the laws of the land:

Section 1. Declaration of Policy. It is hereby declared to be the policy of the government to encourage, promote, expand and diversify exports to existing and prospective markets in order to generate employment and income, improve the balance of payments, and hasten the economic development of the nation.

It is further declared to be the policy of government to encourage and support private sector producers and traders in the promotion of Philippine commodities and products in international markets and; based on national economic policies and consistent with fiscal policy, to maximize direct private sector participation in the implementation of government export assistance.

Sec. 2. Creation of the Philippine Export Council. There is hereby created the Philippine Export Council, hereinafter called the Export Council, which shall be responsible for the formulation and the monitoring of the national export strategy; for recommending to the President policy measures pertaining to export expansion and devising plans and programs of action; and for the coordination of government and private sector efforts to develop, promote, and enhance earnings from commodities and products of export.

The Export Council shall be directly under the Office of the President.

Sec. 3. Responsibilities of the Council. The Export Council shall prepare a national export strategy which shall include an identification of performance targets consistent with existing economic policies and as embodied in the approved national development plan. The Export Council shall monitor and report to the President periodically including an annual report on the implementation of the national export strategy. It shall undertake or cause to be undertaken by appropriate agencies or organizations such research, developmental and promotional activities as are necessary in support of the policy defined in this decree but shall not engage directly in trade or selling.

Sec. 4. Powers and Functions of the Export Council. The powers, functions, and duties of the Export Council established under the provisions of this decree shall include the following:

(a) To develop a national export strategy to be approved by the President of the Philippines that is based on national economic policies and which reflects both immediate and medium-term objectives defined by specified performance targets;

(b) As a component of the national export strategy, to develop annual, medium-term, and long-term programs of developmental and promotional activities designed to achieve the objectives of the national export strategy, taking into account the production capacity of Philippine industries and the opportunities present in export markets;

(c) To recommend to the President, the assignment to other government, semi-government and private institutions functions and responsibilities defined in the approved national export strategy; to determine and recommend for approval budget allocations required to fund such assigned functions and responsibilities in order to assure the successful implementation of approved programs of action;

(d) To study and recommend specific government assistance measures that will encourage increased production and will enable exportable commodities to become more competitive in international markets;

(e) To identify obstacles to the export of specific products and commodities in world markets, and to recommend appropriate measures for the removal of these obstacles;

(f) To assist producers, exporters, and government agencies including export and industry authorities, government and private trading organizations, and Philippine missions abroad in the promotion of Philippine products and commodities;

(g) To assess policies and programs of government agencies and private sector organizations engaged or involved in activities allied to or affecting Philippine international trade, such as forwarding, brokerage, shipping, insurance, warehousing, financing; and to recommend or adopt measures to improve their contribution to increasing competitiveness of Philippine exports in world markets;

(h) To encourage the organization of cooperative trading organizations and other forms of joint export marketing by producers/exporters to attain increased leverage in international marketing;

(i) To undertake or cause to be undertaken any other activities essential to the achievement of the objectives and intent of this decree; and

(j) To exercise such other powers and undertake such other functions as may be assigned to the Export Council by the President of the Philippines.

Sec. 5. Governing Council. The powers and functions of the Export Council shall be exercised by a Governing Council which shall be composed of the following:

The Secretary, Department of Trade;

The Secretary, Department of Industry;

The Director-General, National Economic and Development Authority;

The Secretary, Department of Agriculture;

The Secretary, Department of Natural Resources;

The Secretary, Department of Foreign Affairs;

The Secretary, Department of Finance;

The Governor, Central Bank of the Philippines;

The President, Philippine International Trading Corporation:


The President, Philippine Export Council.

The members shall sit in the Governing Council on an ex-officio basis. In case of any disability of any of such officials to attend meetings of the Governing Council, the designated representative or the official next in rank shall sit in place of such official unable to attend.

The Chairman of the Governing Council will concurrently be the full-time President of the Export Council. He will be preferably drawn from the private sector and shall be appointed by the President of the Philippines for a term of three (3) years.

In the absence or incapacity of the Chairman, the Secretary of Trade shall preside over the meetings of the Governing Council.

Sec. 6. Export Advisory Board. There shall be created a permanent Export Advisory Board composed of qualified individuals from the private sector who shall provide the advice, guidance, and insight essential to pursuing the activities of the Export Council, and who shall collectively represent private sector views.

The Advisory Board shall be chaired by the President of the Export Council. Its members shall include each of the chairman of the Permanent Committees as described in section 7 and may include additional members who shall be appointed by the Governing Council from among qualified members of the private sector.

Sec. 7. Permanent Committees. There shall be established permanent committees, to be composed principally of private sector membership, and that are oriented toward the development and promotion of specific products, product groups and commodities as well as the functional aspects of export trade expansion. Meetings of these committees shall be attended by officials at the level of Bureau directors or appropriate technical levels from line departments directly concerned with the product groups or commodities towards which the committee is oriented. Among other responsibilities to be defined by the Governing Council, these committees will suggest to the Export Council Staff activities relating to the determination of performance targets, the formulation of policy recommendations, and the design of essential developmental and promotional measures affecting their respective export industries and related services. The findings and recommendations of the permanent committees shall be submitted to the Governing Council for approval and shall be incorporated in the national export strategy.

The members of each of the permanent committees shall be appointed by the Governing Council from among the qualified nominees of concerned private sector national business organizations, industry, commerce, and trade-related associations, and from the staff of the relevant government agencies, Each committee shall elect a chairman from among its private sector membership, subject to confirmation by the Governing Council.

Sec. 8. Management. The management of the Export Council shall be vested in the President who is also Chairman of the Governing Council. A full-time Vice-President shall be appointed by the President of the Philippines. He shall perform the duties and functions of the President in the absence or incapacity of the latter as well as perform such other duties and functions as may be delegated to him by the President at any time.

Sec. 9. Functions and Duties of the President of the Export Council. The President of the Export Council shall exercise such powers and functions as may be authorized by this decree. With the confirmation of the Governing Council, he shall carry out the following task and duties;

(a) To approve for submission to the Budget Commission the annual budget of the Export Council;

(b) To promulgate such rules and regulations as may be essential in order to attain the objectives and intent of this decree, as well as to revise and amend the same;

(c) To devise, organize, and reorganize, insofar as necessary, the organization and staff of the Export Council;

(d) To review and approve the operations and activities of the Export Council;

(e) To organize and participate in committees and other working groups representing government and private entities for the purpose of identifying impediments to export expansion and for the development of programs, projects and other recommendations designed to overcome such obstacles and to support increased export earnings;

(f) To receive and utilize, for furtherance of the Export Council's activities, funds, materials and services from sources other than the Council's appropriations;

(g) To request and cause to be furnished through directives, circulars, memoranda or instructions from the Governing Council, such relevant data, information and statistics as may be required in the performance of its functions related to export strategy formulation, planning, programming and monitoring;

(h) Generally, to undertake such other functions and duties as may be necessary to carry out the objectives and purposes of this decree.

Section 10. Compensation, Per Diem and Other Emoluments of the Governing Council. The members of the Governing Council except the Chairman-President shall receive a per diem for each meeting actually attended in such amount as may be determined by the Governing Council which shall in no case exceed one thousand pesos (P1,000) a month regardless of the number of meetings attended. Per diems herein authorized shall be paid to the actual attendee of the Governing Council meeting. Reimbursement of transportation and representation expenses not exceeding one thousand pesos (P1,000) a month is herein likewise authorized.

The full-time Chairman-President and Vice-President shall receive an annual compensation in an amount to be determined by the President of the Philippines.

Section 11. Organization. There shall be organized a staff of the Export Council which shall perform the work required for the execution of the powers and functions of the Export Council and shall render technical, administrative and secretariat support to the Governing Council, the Export Advisory Board, the Permanent Committees, and other working groups/committees to be established in accordance with the purposes and intent of this decree. The Governing Council shall devise an appropriate organizational structure which may include an administrative division and such research and operational divisions as may be necessary.

Section 12. Appropriation. There is hereby appropriated initially the sum of five million (P5M) pesos from the funds of the National Treasury not otherwise appropriated, for the organizational and operational expenses of the Export Council for a period of one year from the issuance of this decree. Henceforth, the Export Council's budget for subsequent years may be adjusted by an amount which reflects the change in total export performance.

Section 13. Staffing. The President of the Export Council shall prepare a staffing pattern for the Export Council's activities; Provided, That in the filling of positions therein, such personnel as may be necessary, appropriate and qualified from the Bureau of Foreign Trade of the Department of Trade, the Institute of Export Development of the Board of Investments, and the National Economic and Development Authority and such personnel from the foregoing government agencies who have been detailed to the RP/UNDP Export Promotion Project shall be given priority of consideration for recruitment. The regular professional and technical personnel of the Export Council shall be permanent and career in status, but upon approval of the President of the Philippines, may be exempt from WAPCO and Civil Service rules and regulations; Provided, that the personnel shall be entitled to the benefits and privileges normally accorded to government employees such as retirement, GSIS insurance, leave and similar matters.

Section 14. Repeal. Any and all acts, statutes, decrees, orders, rules, regulations or parts thereof inconsistent herewith are hereby repealed or modified accordingly.

Section 15. Effectivity. This Decree shall take effect immediately.

Done in the City of Manila, this 29th day of May, in the year of Our Lord, nineteen hundred and seventy-six.

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