Title
EXECUTIVE ORDER NO. 537
Date
May 24, 1979
Ferdinand E. Marcos establishes the Garments and Textile Export Board to oversee the equitable allocation of export quotas and ensure compliance with international trade agreements, promoting the growth of the textile and garment industry while generating foreign exchange.
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Law Summary

Introduction

Executive Order No. 537, issued on May 24, 1979, establishes the Garments and Textile Export Board in the Philippines. This order outlines the Board's powers, functions, funding provisions, and operational guidelines to enhance the country's textiles and garments export sector.

Creation of the Garments and Textile Export Board

  • Legal Basis: The Board is established under the directive of the President of the Philippines, Ferdinand E. Marcos, by virtue of his constitutional powers.
  • Composition:
    • The Board is chaired by the Minister of Trade or a representative.
    • Members include the Minister of Industry and the Commissioner of the Bureau of Customs or their representatives.
  • Abolition of Previous Board: The Garments and Textile Export Board created under Presidential Decree No. 1440 is abolished, with its powers, functions, and assets transferred to the new Board.
  • Administrative Affiliation: The Board operates under the Office of the President.

Statement of Policies

  • Quota Administration:
    • No monopolistic control over quotas by individuals or firms.
    • New manufacturers must receive fair quota allocation.
  • Performance Assessment:
    • Evaluation based on manufacturers' in-plant capacities; sub-contractors may compete for quotas if justified.
  • Restrictions on Quota Allocation:
    • No allocations to middlemen or traders.
    • Prohibition on the importation of partially finished products labeled as Philippine goods.
  • Inspection Authority: The Board can examine textile shipments and imports relevant to export manufacturing.

Powers and Functions of the Board

  • Oversight Responsibilities:
    • Implementation and administration of international textiles agreements and quotas.
  • Approval and Licensing:
    • Authority to approve quota allocations, issue export licenses, and expedite processing.
  • Information Provision:
    • Regular reporting of data related to textile exports for monitoring.
  • Rulemaking Power:
    • Authority to create rules and regulations ensuring compliance with international agreements.
  • Fee Collection:
    • Right to collect fees for quota and licensing services.

Secretariat

  • Establishment: The Board can create a Secretariat for operational support, based in the Ministry of Trade.
  • Leadership:
    • An Executive Director, appointed by the President upon the Chairman's recommendation, will lead the Secretariat.
  • Personnel Status: Secretariat staff will hold permanent, career positions.

Powers and Functions of the Chairman

  • Supervisory Role: The Chairman oversees the Secretariat and has authority to appoint and discipline personnel.
  • Meeting Management: Responsible for setting meeting agendas and presiding over Board meetings.
  • Acting Officer: Designation of an Officer-in-Charge during vacancies or incapacitation.

Appropriations

  • Initial Funding: An appropriation of One Million Pesos (₱1,000,000.00) is designated for the Board's 1979 operational expenses, with future funding to be incorporated into annual appropriations.

Per Diems

  • Compensation for Board Members: Each member is entitled to a per diem of Two Hundred Fifty Pesos (₱250.00) per meeting, capped at One Thousand Pesos (₱1,000.00) monthly.

Penalties

  • Enforcement Authority: The Board can impose penalties for violations of its rules and regulations.

Repealing Clause

  • Revocation: This Order repeals Presidential Decree No. 1440 and any inconsistent laws or rules.

Effectivity

  • Immediate Effect: The Order takes effect immediately upon issuance.

Key Takeaways

  • The Garments and Textile Export Board is established to enhance the Philippines' textiles and garments export sector, ensuring equitable quota allocations and compliance with international agreements.
  • The Board is empowered with significant oversight, regulatory authority, and the ability to impose penalties for non-compliance.
  • Initial funding is provided, with mechanisms for ongoing financial support through annual appropriations.
  • The structure includes a dedicated Secretariat to support the Board's functions, emphasizing the importance of fair practices in quota allocation and performance assessment within the industry.

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