PRESIDENTIAL DECREE NO. 165

Law Summary

Introduction

Presidential Decree No. 165, issued on March 31, 1973, establishes the Philippine Shippers' Council (the Council) to enhance the competitiveness of Philippine exports and to protect the interests of shippers.

Statement of Policy and Creation of the Council

Purpose: The decree aims to facilitate the growth of Philippine foreign trade and the national economy by supporting the interests of Philippine shippers.
Creation: A non-stock corporation named the Philippine Shippers' Council is created, comprising all enterprises engaged in exporting commodities, with options for certain firms to join or be excluded based on regulations set by the Secretary of Trade and Tourism.

Purposes and Powers of the Council

The Council shall have the following powers:

Promotion of Interests: Promote and protect the common interests of exporters, importers, and commercial users of water transport.
Negotiation: Conduct negotiations with shipping companies and authorities to secure vessels and favorable shipping terms.
Dispute Resolution: Facilitate mediation and arbitration for disputes among members.
Information Clearinghouse: Serve as a source of information on shipping services.
Policy Advocacy: Bring attention to laws and practices that hinder trade and recommend legislative measures.
International Relations: Develop relationships with shippers' councils abroad.
Corporate Powers: Adopt a corporate seal, sue and be sued, and engage in necessary actions to fulfill its objectives.
Participation in Policy Meetings: Attend meetings on national shipping policies and advocate for favorable treatment for Philippine exports.

Governing Board

Composition: The Council is governed by a Board of Directors with fifteen members; eight appointed by the President and seven elected by the Council members.
Term: Directors serve a term of three years, with the possibility of reappointment or reelection.
Leadership: The Board will elect a Chairman and a Vice-Chairman; the Secretary of Trade and Tourism serves as Chairman for the first two years.
Guidelines: The Board will establish compliance guidelines for members and approve budgets for the Council's operations.

Funding Sources

Membership Contributions: Members must pay fees and dues as determined by the Board of Directors.
Government Appropriation: An annual contribution of PHP 250,000 is allocated from the National Government's general funds for the first two years to support the Council.

Assistance from Agencies

Government Support: Various government and financial institutions are encouraged to assist the Council and its members, particularly in providing incentives and financing.
Organizational Attachment: For the first two years, the Council will operate as a private corporation attached to the Department of Trade and Tourism for supervision and coordination.

Council Secretariat

Leadership: The Council shall have a Secretariat led by an Executive Secretary appointed by the Board for a term of six years.

Implementing Rules

Promulgation: The Secretary of Trade and Tourism is tasked with issuing rules and regulations for the effective implementation of the decree.

Repealing Clause

Inconsistencies: Any existing laws or rules that contradict this decree are repealed or modified accordingly.

Effectivity

Immediate Effect: The decree takes effect immediately upon issuance.

Key Takeaways

The Philippine Shippers' Council aims to enhance the competitiveness of Philippine trade and protect the interests of shippers.
It is governed by a Board of Directors with a mix of presidential appointments and member elections.
The Council is funded through member contributions and a government appropriation for its initial years.
Various government agencies are mandated to support the Council in its objectives.
The decree provides for the establishment of a Secretariat and the promulgation of implementing rules by the Secretary of Trade and Tourism.