Title
Creation of Ministry of Trade and Industry
Law
Executive Order No. 709
Decision Date
Jul 27, 1981
Ferdinand E. Marcos establishes a Ministry of Trade and Industry to unify and enhance the Philippines' industrial and trade efforts, abolishing previous ministries and transferring their functions to streamline economic development and promote both domestic and international markets.
A

Ministerial Authority and Structure

  • The Ministry is headed by a Minister of Trade and Industry, appointed by the President.
  • Deputy Ministers may be appointed to assist; their functional responsibilities are assigned by the Minister.
  • Deputy Ministers shall not primarily handle administrative matters.

Composition of the Ministry Proper

  • Composed of:
    • Office of the Minister,
    • Planning Service,
    • Financial and Management Service,
    • Administrative Service,
    • Legal Service.
  • Deputy Ministers are part of the Office of the Minister.

Supervision Over Bureaus and Offices

  • Ministry supervises newly created bureaus:
    1. Bureau of Domestic Trade (assumes abolished Bureau of Domestic Trade Promotion and Bureau of Consumer Affairs).
    2. Bureau of Foreign Trade (assumes abolished Bureaus of Export Promotion and International Trade Relations).
    3. Bureau of Industrial Development (assumes abolished Bureaus of Industrial Coordination and Industrial Information and Programs).
    4. Bureau of Small and Medium Industries (assumed from abolished entity of the same name).
    5. Philippine Patent Office (continuation from abolished entity).
    6. Product Standards Agency (assumes abolished Philippine Bureau of Product Standards and Metric System Board).

Administrative Supervision of Government Entities

  • Ministry exercises administrative supervision over:
    • Board of Investments,
    • Cement Industry Authority,
    • Commission for Heavy Engineering Industries,
    • Construction Industry Authority of the Philippines,
    • Design Center Philippines,
    • Garments and Textile Export Board,
    • Iron and Steel Authority,
    • Philippine Textile Research Institute,
    • Presidential Advisory Committee on the Copper Industry,
    • Price Stabilization Council,
    • Technology Transfer Board.
  • Board of Investments responsible for company evaluation, registration, and incentives.
  • Bureau of Industrial Development and Bureau of Small and Medium Industries handle industry-wide promotional activities.
  • Alignment of functions and staffing among Board of Investments and relevant bureaus mandated.

Attachment of Corporations for Policy Coordination

  • The following corporations attached for policy and program coordination:
    1. Export Processing Zone Authority,
    2. Metals Industry Research and Development Center,
    3. National Cottage Industries Development Authority,
    4. National Development Company,
    5. Philippine International Trading Corporation,
    6. Philippine Shippers Council.

Abolition and Transfer of Certain Entities

  • Abolished:
    1. Accreditation Boards for Service and Repair Enterprises,
    2. Metric System Board,
    3. Foreign Trade Service Board,
    4. Philippine Export Advisory Council,
    5. Small and Medium Industries Council.
  • Their functions and resources transferred to appropriate Ministry units as deemed suitable by the Minister.

Creation of Fiber Development Authority

  • Merged Bureau of Fiber and Inspection Service and Abaca Industry Development Authority into the new Fiber Development Authority.
  • Authority placed under administrative supervision of Minister of Agriculture.
  • Integration of functions, appropriations, records, equipment, property, and personnel executed by the Minister of Agriculture.

Appointment of Special Presidential Representative

  • President authorized to appoint a Special Presidential Representative for Trade Negotiations with Cabinet rank.
  • Organizational support, including funding, personnel, and equipment, to be provided for effective performance.

Board Membership Assumption

  • Minister of Trade and Industry shall assume ex officio positions previously held by Ministers of Industry or Trade on various boards or bodies.

Regional and Foreign Offices

  • Ministry authorized to maintain regional offices under the Office of the Minister.
  • Offices or representatives abroad may also be established as necessary.

Implementation and Staffing Provisions

  • Minister empowered to issue implementing orders, rules, and regulations.
  • Ministry of Budget approval required for staffing patterns, salaries, and organizational structure.
  • Qualified personnel from abolished Ministries may be appointed to the new Ministry; those not appointed deemed laid off.

Lay-Off and Reappointment Provisions

  • Presidential appointees of abolished Ministries and their bureaus/entities laid off unless reappointed.
  • Career Executive Service Officers either reappointed or reassigned by the President upon Minister's recommendation.
  • Career Executive Service Officers assigned to the Career Executive Service Board receive salaries while seeking appropriate placement.
  • Officers not placed within six months considered laid off.

Entitlement to Benefits Upon Lay-Off

  • Laid off employees are entitled to benefits and gratuities under existing laws.

Continuity of Functions

  • Present incumbents of abolished Ministries continue their duties pending issuance of implementing orders.

Repeal and Modification of Inconsistent Laws

  • Existing laws, decrees, orders, and similar provisions inconsistent with the Executive Order are repealed or modified accordingly.

Separability Clause

  • Unconstitutional portions of the Executive Order do not nullify the remaining provisions if those can still be effectively implemented.

Effectivity

  • The Executive Order takes immediate effect upon issuance.

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