Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 414)
The main purpose of Presidential Decree No. 414 is to further amend Presidential Decree No. 232 to unify and systematize the management of funds derived from the coconut industry, implement a price stabilization scheme for coconut products, and support the coconut industry's development programs.
A new paragraph (d) was added to Section 2, which states: 'To formulate and implement a price stabilization scheme for coconut products and coconut-based consumer goods.'
Paragraph (j) was deleted and replaced with new paragraphs (j) to (n) which include determining the base price of raw materials for subsidies, reviewing and revising levy amounts, establishing monitoring systems with subpoena powers, recommending lifting or suspension of the coconut consumer stabilization fund, and entering into contracts necessary for achieving its objectives.
The Coconut Consumers Stabilization Fund, established under Section 3-A, is a fund derived from levies on every first sale of coconut products. Its purposes include providing subsidies for coconut-based products, refunding any premium export duty collected, and setting aside funds for investments in processing plants, research, development, and extension services for the coconut industry.
The Coconut Consumers Stabilization Fund is administered by the Board, empowered to impose levies and manage the fund's utilization as per the provisions of the decree.
The collection of the levy shall be suspended automatically when the price of copra equals the authorized base price.
The body can establish monitoring systems, ascertain steady supply and distribution at socialized prices, and issue subpoenas and subpoena duces tecum for effective monitoring and investigation.
One representative each from the Department of Finance and the Board of Investments were added to the Board under Section 4.
The premium duty serves as a form of price stabilization, helping absorb price subsidies and maintaining reasonable domestic prices without eliminating export earnings or reducing farmers' incomes.
Presidential Decree No. 414 took effect immediately upon its signing on April 18, 1974.