Creation of Garments and Textile Export Board

Section 1 creates the Garments and Textile Export Board (“the Board”).
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.
Section 1 abolishes the Garments and Textile Export Board created under Presidential Decree No. 1440.
Section 1 transfers to the new Board the predecessor Board’s powers and functions and its funds, properties, records and documents.
Section 1 places the Board under the Office of the President.

Section 2 directs that quota allocations must be administered so that no individuals or firms, whether directly or indirectly through affiliates, shall hold monopoly positions.
Section 2 requires that new manufacturers receive equitable and tangible shares in quota allocations.
Section 2 mandates that performance be assessed based on manufacturer’s in-plant capacities.
Section 2 states that performance that can be justifiably attributed to sub-contractors may entitle the sub-contractors to compete for quota.
Section 2 prohibits giving quota allocations to middlemen or traders.
Section 2 bars the importation of partly finished garments or worked textiles and their being tagged and exported as a Philippine product under quota/restraint level.
Section 2 authorizes the Board, through the Commissioner of Customs and/or any investigating agencies of the national government as warranted, to cause the examination of textile shipments, including imports of raw materials and supplies intended for manufacture of export products under quota/restraint level.

Under Section 3, the Board oversees implementation of garments and textile agreements between the Republic of the Philippines and other countries, including administration of garments and textile quotas.
Section 3 empowers the Board to:
- approve quota allocations and export authorizations,
- issue export licenses, and
- adopt measures to expedite the processing of these instruments.
Section 3 requires the Board to provide necessary information and statistics regularly on administration of garments and textile export quotas and the flow of exports, for monitoring and to obtain maximum benefits from textile negotiations with other countries.
Section 3 empowers the Board to promulgate and implement rules and regulations to administer all international textile agreements entered into by the Republic of the Philippines with importing countries, in pursuit of the policies in Section 2.
Section 3 authorizes the Board to fix and collect reasonable fees for the issuance of export quotas, export authorizations, export licenses, and other related services, guided by guidelines specified in the rules and regulations.

Section 4 authorizes the Board to create a Secretariat composed of technical and administrative staff necessary to carry out the Board’s responsibilities and functions.
Section 4 requires the Secretariat to hold office in the Ministry of Trade.
Section 4 provides that the Secretariat is headed by an Executive Director.
Section 4 provides that the Executive Director is appointed by the President of the Philippines, upon recommendation of the Chairman.
Section 4 provides that regular professional and technical personnel of the Secretariat are permanent and career in status.

Section 5 provides that the Executive Director and the Secretariat are responsible to the Board.
Section 5 requires that the Chairman, on behalf of the Board, exercises direct supervision and control over the Executive Director and the Secretariat.
Section 5 authorizes the Chairman to appoint and discipline Secretariat personnel in accordance with law, subject to confirmation by the Board.
Section 5 requires the Chairman to:
- approve the agenda for Board meetings,
- convene and preside over meetings, and
- perform other functions delegated by the Board.
Section 5 authorizes the Chairman to designate an Officer-in-Charge to act as Executive Director pending appointment and qualification of an Executive Director, and/or during physical and/or mental incapacitation of the incumbent Executive Director.

Section 6 appropriates One Million Pesos (P1,000,000.00) for calendar year 1979 to defray organizational and operational expenses of the Board.
Section 6 provides that sums necessary to support the Board’s operations must be included in the Annual Appropriations Acts.

Section 7 grants the Chairman and Members a per diem of Two Hundred Fifty Pesos (P250.00) for every meeting actually attended.
Section 7 caps the per diem any member may receive at One Thousand Pesos (P1,000.00) per month.

Section 8 authorizes the Board to prescribe appropriate penalties for violations of the rules and regulations it promulgates pursuant to the Order.

Section 9 repeals Presidential Decree No. 1440 and all laws, orders, decrees or rules inconsistent with any provision of the Order.
Section 10 states that the Order takes effect immediately.
The Order is signed on May 24, 1979 by FERDINAND E. MARCOS, with JACOBO C. CLAVE signing “By the President” as Presidential Executive Assistant.