Title
Creation of Videogram Regulatory Board
Law
Presidential Decree No. 1987
Decision Date
Oct 5, 1985
Presidential Decree No. 1987 establishes the Videogram Regulatory Board (VRB) in the Philippines to regulate the videogram industry, including importation, production, distribution, and exhibition, with the power to grant permits, classify videograms, enforce regulations, and impose penalties for violations.
videogram industry
regulation
importation

Board composition and qualifications

  • The BOARD is composed of a Chairman, a Vice-Chairman, and eighteen (18) members.
  • All members are appointed by the President of the Philippines to serve for a term of one (1) year, unless removed earlier by the President “for any cause.”
  • Members are eligible for reappointment after their term expires.
  • A person appointed to fill a vacancy serves only for the unexpired portion of the term of the person replaced.
  • No appointment is allowed unless the appointee is a natural-born citizen of the Philippines, at least twenty-one (21) years of age, and of good moral character and standing in the community.
  • The President must give due consideration to qualifications producing a multi-sectoral combination of expertise in different areas of the videogram industry.
  • At least five (5) members must be members of the Philippine Bar.
  • The Chairman, Vice-Chairman, and members receive transportation, representation, and other allowances not exceeding Five Thousand Pesos (P5,000.00) per month.

BOARD powers and regulatory controls

  • The BOARD supervises, regulates, and grants, denies, or cancels permits for importation, exportation, production, copying, sale, lease, exhibition, or showing of videograms.
  • The BOARD approves or disapproves applications and may delete objectionable portions from and/or prohibit importation, exportation, production, copying, distribution, sale, lease, exhibition, or showing.
  • The BOARD applies contemporary Filipino cultural values as a basic standard in judging whether material is objectionable.
  • Objectionable videograms include those judged to be immoral, indecent, libelous, contrary to law or good customs, or injurious to the prestige of the Republic of the Philippines or its people, or with a dangerous tendency to encourage or fan hatred or encourage violence or wrongs or crime.
  • The BOARD may prohibit videograms that:
    • Tend to incite subversion, insurrection, rebellion, or sedition or otherwise threaten the economic and/or political stability of the State.
    • Tend to undermine faith and confidence in the government and/or duly constituted authorities.
    • Glorify criminals or condone crimes.
    • Are libelous or defamatory to the good name and reputation of any person (living or dead).
    • Serve no other purpose than to satisfy the market for excessive violence or hard-core pornography.
    • Tend to abet traffic in and use of prohibited drugs.
    • Commit direct or indirect contempt of any court of justice or quasi-judicial tribunal, whether litigation is pending or not.
  • The BOARD classifies videograms into categories such as “For General Patronage” and “For Adults Only”, or other categories it determines for the public interest.
  • The BOARD may close video theaters and similar establishments engaged in public exhibition or showing that violate this Decree or BOARD rules.
  • The BOARD levies, assesses, and collects, and periodically adjusts and revises, rates of fees and charges for review and examination and for issuance of licenses and permits.
  • The BOARD reviews and examines videograms and related publicity materials or advertisements for appropriate classification.
  • The BOARD may deputize representatives from government and industry associations to ensure compliance, and may constitute councils of representatives to implement the Decree.
  • The BOARD may call on law enforcement agencies for assistance in implementing and enforcing BOARD decisions, orders, and rules.
  • The BOARD causes the prosecution, on behalf of the People of the Philippines, of violators of this Decree and BOARD rules and regulations.
  • The BOARD promulgates necessary rules and regulations; such rules take effect fifteen (15) days after publication in newspapers of general circulation in the Philippines.
  • The BOARD prescribes internal systems and procedures, including creation and authorization of sub-committees for review, examination, classification, and related matters.

Chief executive officer and leadership

  • The Chairman is the Chief Executive Officer of the BOARD.
  • The Chairman executes, implements, and enforces BOARD decisions, orders, rules, and regulations.
  • The Chairman directs and supervises BOARD operations and internal affairs.
  • The Chairman establishes internal organization and procedures and recommends to the BOARD the appointment of necessary administrative and subordinate personnel.
  • The Chairman also exercises other powers and functions not specifically lodged in the BOARD.
  • The Chief Executive Officer is assisted by an Executive Director appointed by the President.
  • The Executive Director holds office for a term of one (1) year, unless removed earlier by the President for cause.
  • The Chief Executive Officer receives an annual salary of Seventy Two Thousand Pesos (P72,000.00).
  • The Executive Director receives an annual salary of Sixty Thousand Pesos (P60,000.00).

Registration and restrictions on handling videograms

  • No person—natural or juridical—may engage in the importation, exportation, production, reproduction, exhibition, showing, sale, lease, or disposition of videograms unless registered with and permitted by the BOARD.
  • BOARD registration and permit are a condition precedent for securing the required business permit or license from appropriate authorities.
  • No registered and permitted person may copy or reproduce any cinematographic art without the written consent or approval of the producer, importer, or licensee of the cinematographic art.
  • A cinematographic art may not be copied or reproduced within six (6) months after it is first released for theatrical exhibition, unless the producer, importer, or licensee agrees to a shorter period.
  • No videogram may be sold, leased, or otherwise disposed of unless first registered with the BOARD with the corresponding registration identification or seal in the form and manner provided by the BOARD.

Prosecution, penalties, and non-applicability of probation

  • Any person who violates any or all provisions of Sections 3, 6, 7, 8, and 10 of this Decree, or the BOARD rules and regulations issued pursuant thereto, commits an offense punishable upon conviction.
  • Liability covers a violator whether acting as principal, accomplice, or accessory.
  • The penalty is mandatory imprisonment of three (3) months and one (1) day to one (1) year, plus a fine of not less than Fifty Thousand Pesos (P50,000.00) but not more than One Hundred Thousand Pesos (P100,000.00).
  • If the offense is committed by a juridical person, the chairman, president, secretary, treasurer, or partner responsible is the person penalized.
  • Presidential Decree No. 968 (Probation Law) does not apply to violations of this Decree, including its implementing rules and regulations.

Tax on sale, lease, and disposition of videograms

  • A province collects a tax of thirty percent (30%) of the purchase price or rental rate for every sale, lease, or disposition of a videogram containing a reproduction of any motion picture or audio-visual program.
  • The tax proceeds are allocated as follows:
    • Fifty percent (50%) accrues to the province.
    • Fifty percent (50%) accrues to the municipality where the tax is collected.
  • In Metropolitan Manila, the tax is shared equally by the city/municipality and the Metropolitan Manila Commission.
  • The tax is due and payable within the first twenty (20) days of the month next following the month for which it is due, by the proprietor, seller, or lessor.
  • The tax is determined based on a true and complete return of the amount of gross receipts derived during the preceding month.
  • If the tax is not paid within the time fixed, the taxpayer is subject to surcharges, interests, and penalties prescribed by the Local Tax Code.
  • If there is wilful neglect to file the return and pay the tax within the required time, or if a fraudulent return is filed, the taxpayer is subject to a surcharge of fifty percent (50%) of the correct tax due, in addition to interest and penalties under the Local Tax Code.
  • A city may also levy and collect the taxes, fees, and other impositions that the province or municipality may levy and collect.

Assistance in enforcement and administration

  • The BOARD may deputize, for a fixed and limited period, the heads or personnel of designated government agencies and units to perform enforcement functions for the BOARD.
  • Government agencies and units exercising enforcement functions for the BOARD are subject, insofar as such functions are concerned, to the direction and control of the BOARD.
  • The BOARD determines its organizational structure and staffing pattern.
  • The BOARD may suspend or dismiss employees for cause and approve or disapprove appointment, transfer, or detail of employees.
  • The BOARD appoints a Secretary, who serves as official custodian of records of BOARD meetings and performs other duties as directed by the BOARD.
  • The BOARD and its officers and employees are subject to the Civil Service Law and its rules and regulations.
  • Technical personnel must be selected on the basis of merit and fitness, determined under policies and guidelines approved by the BOARD.

Auditing and reporting requirements

  • The Chairman of the Commission on Audit is the ex officio Auditor of the BOARD.
  • The Commission on Audit Chairman may appoint a representative auditor and necessary personnel to audit the BOARD.
  • The number and salaries of the auditor and personnel are determined by the Commission on Audit Chairman, subject to Commission on Audit rules.
  • The BOARD pays the auditor’s salaries and all expenses for maintaining the auditor’s office.
  • The Auditor submits an annual report to the BOARD as soon as practicable but not later than three (3) months after the accounts are submitted to audit.
  • The Auditor submits periodic or special reports as the BOARD deems necessary or proper.
  • The BOARD submits an annual report to the President within three (3) months after the end of every fiscal year.
  • The annual report includes a statement of the BOARD’s accomplishments and its plans and recommendations to improve and develop operations and supervision and regulation of the videogram industry.

Transitory registration period and proof

  • All videogram establishments in the Philippines are given a period of forty-five (45) days after effectivity to:
    • register with and secure a permit from the BOARD to engage in videogram business; and
    • register with the BOARD all inventories of videograms (including videotapes, discs, cassettes, or other technical improvements or variations).
  • Inventories must be registered before videograms may be sold, leased, or otherwise disposed of during the transitory period and thereafter.
  • After the forty-five (45) days period, possession of a videogram by a person engaged in videogram business without required BOARD proof of registration is prima facie evidence of violation, whether for private showing or public exhibition.

Appropriations, separability, and effectivity

  • Three Million Pesos (P3,000,000.00) from available National Treasury funds is appropriated for organizing the BOARD and its initial operations.
  • Sufficient funds to fully carry out the BOARD’s functions and objectives must be appropriated every fiscal year in the General Appropriations Act.
  • All fees, revenues, and receipts of the BOARD from any and all sources are used to augment BOARD funds for its expenditures in pursuing its purposes and objectives, exercising its powers and functions, and other purposes directed by the President.
  • If any provision of the Decree is declared invalid or unconstitutional, the validity of other provisions is not affected.
  • Inconsistent provisions of prior laws, decrees, executive orders, letters of instructions, or other rules and regulations are repealed, amended, or modified accordingly.
  • The Decree takes effect after fifteen (15) days following its publication in the Official Gazette.

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