Scope and Title of the Act
- Known as the "Act to Rationalize the Soap and Detergent Surfactant Industry and thereby promote and expand the utilization of coconut oil"
- Applies specifically to the soap and detergent surfactant industry in the Philippines
Rationalization Program for Local Content
- Requirements to increase local raw material content in soap and detergent surfactant industry:
- Minimum 20% local content in first year
- Minimum 40% local content in second year
- Minimum 60% local content in third year and thereafter
- Raw materials mandated to not endanger the environment
Regulation of Importation
- Importation of raw materials and finished products for industries covered by this program may be restricted
- Restrictions subject to guidelines set by the Board of Investments (BOI)
Authority and Guidelines
- Empowerment of the Board of Investments (BOI) to issue necessary guidelines
- BOI tasked to fully implement the objectives and regulatory intent of the Order
Repeal of Prior Monopoly Law
- Presidential Decree No. 1863, which created a monopoly favoring United Coconut Chemicals, Inc. (UNICHEM), is repealed
- Ensures decentralization and prevents monopoly in surfactant raw material supply
Effectivity
- The Executive Order takes effect immediately upon issuance
Legal and Environmental Considerations
- Emphasizes environmental safety in raw material use
- Aligns industrial policy with agricultural support and environmental protection