Title
Creation of Garments and Textile Export Board
Law
Executive Order No. 537
Decision Date
May 24, 1979
Ferdinand E. Marcos establishes the Garments and Textile Export Board to oversee the equitable allocation of export quotas, enhance the competitiveness of local manufacturers, and ensure compliance with international trade agreements in the textile and garment industry.
A

Questions (EXECUTIVE ORDER NO. 537)

Executive Order No. 537 created the Garments and Textile Export Board to oversee implementation of garments and textile international agreements—particularly the administration of export quotas and export authorizations for textiles and garments.

The Board is placed under the Office of the President.

The Board is composed of the Minister of Trade (or his representative) as Chairman, and the Minister of Industry and the Commissioner of the Bureau of Customs (or their representatives) as Members.

The Board created under Presidential Decree No. 1440 was abolished, and its powers, functions, funds, properties, records, and documents were transferred to the newly created Garments and Textile Export Board.

Among others: (1) quotas must be administered to prevent monopoly positions by any individual or firm (directly or indirectly, including affiliates); (2) new manufacturers must receive equitable and tangible shares in quota allocations; (3) quota allocations are based on in-plant capacity performance; (4) quotas must not be granted to middlemen or traders; (5) partly finished garments/worked textiles cannot be imported, tagged, and exported as Philippine products under quota/restraint levels.

It provides that no individuals or firms, directly or indirectly (through affiliates), shall hold monopoly positions in the allocation of export quotas and authorizations.

Performance must be assessed on the basis of the manufacturer’s in-plant capacities.

Performance that could justifiably be attributed to subcontractors may entitle subcontractors to compete for the quota.

They shall not be imported, tagged, and exported as Philippine products under quota/restraint levels.

They are tasked to cause the examination of textile shipments, including imports of raw materials and supplies intended for the manufacture of export products, under quota/restraint level.

Examples include: (1) overseeing implementation of garments and textile agreements, especially administration of quotas; (2) approving quota allocations and export authorizations, and issuing export licenses; (3) providing regular information and statistics to monitor flows and maximize benefits from textile negotiations; (4) promulgating rules to administer international textile agreements; (5) fixing and collecting reasonable fees for export quota/export authorization/export license and related services.

Yes. Under Section 3(e), the Board may fix and collect reasonable fees for issuance of export quotas, authorizations, licenses, and other related services, in accordance with guidelines specified in the rules and regulations.

The Board is authorized to create a Secretariat composed of technical and administrative staff as necessary. The Secretariat holds office in the Ministry of Trade.

The Executive Director is appointed by the President of the Philippines upon recommendation of the Board Chairman.

The Chairman exercises direct supervision and control over the Executive Director and the Secretariat, and has the power to appoint and discipline personnel of the Secretariat in accordance with law, subject to confirmation by the Board.

The Chairman may designate an Officer-in-Charge to act as Executive Director pending appointment and qualification of an Executive Director and/or where the incumbent Executive Director is physically and/or mentally incapacitated.

Section 6 appropriates P1,000,000.00 for organizational and operational expenses of the Board for calendar year 1979, and Section 7 grants the Chairman and Members a per diem of P250.00 each per meeting actually attended, capped at P1,000.00 per member per month.

Yes. Section 9 repeals Presidential Decree No. 1440 and all laws, orders, decrees, or rules inconsistent with the provisions of Executive Order No. 537.

It took effect immediately upon issuance, as stated in Section 10.


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