Objectives and Powers of the Corporation
- Promotion of foreign trade and development of domestic industries
- Engages in foreign procurement, marketing, and distribution to achieve economies of scale
- Operates warehousing, shipping, cargo collection, and distribution services
- Coordinates trade promotion and insurance protection
- Can organize production enterprises and joint ventures domestically and abroad
- Conducts dealership, brokerage, manufacture, and distribution of commodities and equipment
- Owns and operates transportation modes for goods by air, land, or sea
- Provides public and private warehousing services; issues warehouse receipts
- May compel exporters/importers of selected commodities to operate through the Corporation (with presidential approval)
- Acts as shipping agent, broker, and handles logistical services
- Authorized to borrow funds and arrange financial accommodations
- Acts as insurance agent/broker across various insurance classes
- May establish branches and act as representative agent for various commercial/financial services
- Conducts research, studies, surveys for business and market conditions
- Allowed to acquire interests, enter partnerships, amalgamations, and hold securities
- Permitted to own real estate and machinery necessary for operations
- May invest funds productively pending utilization
- Authorized to acquire patents, trademarks, licenses, and technical know-how
- Can enter agreements or contracts with government or private entities to further objectives
Governance: Board of Directors
- Board of 13 members, including government officials and six presidential appointees
- Secretary of Trade presides; President of the Corporation presides in Secretary's absence
- Terms: appointees serve 5 years; staggered initial terms; President and Vice-President serve 2 years renewable
- Board members must be Filipino, ethical, experienced in foreign trade
- Provision for resignation, removal, remuneration (per diems capped at ₱700/month), and accountability
- Board adopts bylaws, determines commodities under Corporation's exclusive trading jurisdiction (with NEDA approval), sets policies and fees, approves senior appointments, and organizational framework
Executive Management: President and Vice President
- President is chief executive, prepares agenda, administers Board policies, supervises operations
- President represents Corporation in all dealings, legal actions, contract authorizations
- Emergency powers allow President to act decisively, subject to later Board approval
- Salary limits fixed (₱70,000 for President, ₱60,000 for Vice President until revised by law)
- Vice President acts as chief executive in President’s absence
- Both must limit professional activities to roles at the Corporation; no outside employment allowed
Functional Departments
- Department of Trade Services: centralized procurement and marketing to consolidate imports/exports
- Department of Shipping, Collection, Distribution, Storage Services: consolidates cargo shipments, operates warehousing and customs brokerage
- Department of Promotions and Marketing: supports export market development and competitiveness
- Department of Trade Financing Services: provides or arranges financing assistance for trade-related activities
- Board may establish additional departments as required
Auditor
- Auditor appointed by Commission on Audit Chairman, assisted by appointed staff
- Auditor and staff salaries fixed with Board advice; funded by Corporation
- Auditor removable only by Commission Chairman
- Qualifications: Certified Public Accountant with at least 10 years' experience
- No familial relation (up to fourth degree) to Board members or Commission Chairman
Reporting and Financial Management
- Annual report to President of the Philippines by end of February yearly summarizing operations, policies, and financial condition
- Net profits accumulated as surplus used for corporate objectives, capped at capital stock amount
- Losses debited first to surplus, then to capital if surplus insufficient
- Allocation of profits: 60% for corporate objectives, 40% remitted to Philippine Treasury
Applicability of Civil Service and Employment Restrictions
- Civil Service and Wage and Position Classification Laws do not apply to Corporation's officers and employees
- Employees and Board members, including officers, prohibited from engaging in partisan political activities except voting
Penalties for Violations
- Directors, officers, employees or agents violating provisions punished by fine up to ₱10,000, imprisonment up to 5 years, or both
Repealing Clause and Transitory Provisions
- All inconsistent laws, orders or regulations repealed
- First President appointed enjoys a three-year term, then renewable two-year terms thereafter
Effectivity and Organizational Meeting
- Decree effective upon approval
- Secretary of Trade shall convene organizational Board meeting within 15 days of full appointment of members