Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 252)
The official title of the law is the Philippine International Trading Corporation Law, enacted as Presidential Decree No. 252.
The primary purpose is to promote foreign trade and develop domestic industries by providing a formal institutional framework for activities such as foreign procurement, marketing, finance assistance, warehousing, shipping, and export promotions.
The Philippine International Trading Corporation is authorized to exist for a period of fifty years.
The authorized capital stock is twenty million pesos, with 60% (twelve million pesos) subscribed by the government and 40% (eight million pesos) offered to the public with restrictions on ownership and voting rights.
The voting power of all stock owned and controlled by the Republic of the Philippines is vested in the President of the Philippines or their designated person(s).
The Corporation can engage in foreign trade, organize production enterprises, provide warehousing and shipping services, act as insurance agents, borrow funds, provide financing, invest, acquire property rights and patents, among other related business activities.
Subject to presidential approval, the Corporation can compel exporters and importers of selected commodities to route their trading activities exclusively through the Corporation while such commodities remain listed by the Board and National Economic Development Authority.
The Board is composed of thirteen members from government and appointed private sectors. It exercises powers such as adopting bylaws, determining commodities for exclusive trading, approving appointments, and fixing remunerations.
They must be Filipino citizens, of good moral character and integrity, and possess considerable experience in foreign trading operations.
Violators may be fined up to ten thousand pesos or imprisoned for up to five years, or both.
No, these laws do not apply to the appointment and compensation of any officer or employee of the Corporation.
They are required to limit professional activities to their positions in the Corporation and may not accept other employment or remuneration.
An annual report is submitted to the President of the Philippines before February each year and published, covering the condition of the Corporation, policies adopted, economic and financial analysis, and financial statements.
Sixty percent of the profits assigned to government shares shall be used for the Corporation's objectives, and forty percent shall be paid to the Philippine Treasury for general funds.