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Republic of the Philippines
Congress of the Philippines
REPUBLIC ACT NO. 7844
EXPORT
DEVELOPMENT ACT OF 1994
[Republic Act No. 7844]
AN ACT TO DEVELOP EXPORTS AS A KEY TOWARDS THE ACHIEVEMENT
OF THE NATIONAL GOALS TOWARDS THE YEARS 2000.
ARTICLE I
BASIC PRINCIPLES AND POLICIES
SECTION 1.
Short title. - This Act shall otherwise be known as the
"Export Development Act of 1994."
SECTION 2. Declaration of policy. - It shall be the policy of the State
to evolve export development into a national effort. The government
shall champion exports as a focal strategy for a sustainable agri-industrial
development to achieve Philippine NIChood towards the year 2000. The
private sector shall take the lead in the collective effort to
promote exports through discipline and hard work, as it confronts
the challenge of winning international markets.
The government and the private sector shall jointly transform the
Philippines into an exporting nation. Towards this end, the State
shall instill in the Filipino people that exporting is not just a
sectoral concern, but the key to national survival and the means
through which the economic goals of increased employment and
enhanced incomes can most expeditiously be achieved.
SECTION 3. Key operating principles. - A macro-economic policy
framework that supports export development shall be provided,
especially in key areas of concern to exporters:
[a] Monetary and foreign exchange policies shall establish and
maintain a competitive exchange rate, supported by measures to
provide safety nets for various sectors that may be adversely
affected by the implementation of such policies. Such policies shall
be consistent with the responsibility and primary objectives of the
Bangko Sentral ng Pilipinas pursuant to Section 3 of Republic Act
No. 7653.
[b] Fiscal and credit policies shall provide adequate funds for
public and private investments and business expansion, while keeping
the cost of credit comparable to international levels ensuring
access to loanable funds for SMEs as well as highly technical export
enterprises, especially those in the countryside.
[c] Agricultural policies shall build up viability and
competitiveness of the country's agriculture sectors and facilitate
their linkage with industry to strengthen the agri-industrial base
of the country's export thrust.
[d] Trade, tariff and customs policies shall engender
competitiveness of domestic industries and facilitate their
participation in international trade.
[e] Technical support policies to improve the quality of export
products shall be adopted, particularly those relating to technology
transfer, R & D, technical training and related activities. As such,
the Department of Science and Technology [DOST] and the Department
of Agriculture [DA] shall be supported by colleges and universities
in the diffusion of technology, information and training to the
countryside for agri-industrial and export development.
[f] Urgent attention must be given to policies affecting
infrastructure in order to ensure the adequate supply and quality of
power, water [e.g., for irrigation], transportation [e.g., shipping
and cargo handling], and communication to support the flow of goods
and services in the context of the national export drive.
[g] The link between export growth and countryside development must
be strengthened through policies favorable to SMEs, regional
industrial centers, and export processing zones to boost rural and
farm-based entrepreneurship in identified geographic economic growth
areas of the country.
[h] Labor and industrial relations policies must recognize the
inevitable industrial shifts that will occur in the effort to
achieve international competitiveness. Focus shall be given to the
formulation of accords between labor and management which shall
provide for sustained increase in productivity and competitiveness.
In line with this, dual training schemes shall be integrated as a
basic component to the country's primary and secondary education
program to ensure that the manpower needs of agriculture and
industry will be matched by the skills generated by the educational
system. Reasonable price and income policies shall likewise be
adopted in order to safeguard the interest of the labor sector.
[i] All government agencies whose actions affect exporters, such as
the Board of Investments [BOI], Bureau of Customs [BOC] and Bureau
of Internal Revenue [BIR] shall simplify procedures to minimize
bureaucratic red tape.
[j] Provisions of existing laws deemed detrimental to the export
sector shall be repealed in subsequent acts.
SECTION 4.
Definition of terms. - For purposes of this Act, the
following definitions shall apply to the following terms:
[a] "Exporter" means any person, natural or juridical, licensed to
do business in the Philippines, engaged directly or indirectly in
the production, manufacture or trade of products or services which
earns at least fifty percent [50%] of its normal operating revenues
from the sale of its products or services abroad for foreign
currency : Provided, That in the case of services, the same shall be
limited to information technology services, construction services
and other services as defined jointly by the Department of Finance [DOF]
and the Department of Trade and Industry [DTI]. Services rendered by
overseas contract workers are not covered by the definition.
[b] "Export promotion" shall refer to a range of export activities
which the public and private sectors undertake, such as networking,
especially in export support services and the provision of
trade/market information; organization of trade fairs and missions;
provision of advisory services ; conduct of seminars, lectures,
workshops, conferences and training on export-related subjects;
publication of export-related documents; handling of quality
standard, product design and such other activities aimed at
promoting existing exports, especially those meant to reinforce and
improve the position of Philippine export products in specific
foreign markets, principally being those activities necessary for
the implementation of the Philippine Export Development Plan.
[c] "Export incentives" shall refer to support measures provided by
the government to exporters to encourage investment in the export
sector, create a freer trade environment and motivate exporters to
increase export sales and perform competitively in the export
market. The overall objective is to increase the country's export
sales.
[d] "Accredited organization" shall refer to the organization of
exporters granted accreditation by the Export Development Council,
as provided in Section 7[1] of this Act.
ARTICLE II
INSTITUTIONAL STRUCTURES AND STRATEGIES
SECTION 5.
Philippine Export Development Plan [PEDP]. - The President
of the Republic of the Philippines shall approve a rolling
three-year Philippine Export Development Plan prepared by the
Department of Trade and Industry [DTI] which shall form part of the
medium-term Philippine Development Plan [MTPDP]. It shall be
formulated in consultation with the private sector, validated and
updated semestrally.
The PEDP shall define the country's annual and medium-term export
thrusts, strategies, programs and projects and shall be jointly
implemented by the government, export and other concerned sectors.
SECTION 6.
Export Development Council. - The existing Export
Development Council, hereinafter referred to as the Council, which
was created by Executive Order No. 98 [1993] as modified by
Executive Order No. 110 [1993], and Executive Order No. 180 [1994],
shall be strengthened and institutionalized for the purpose of
overseeing the implementation of the PEDP and coordinating the
formulation and implementation of policy reforms to support the said
Plan.
SECTION 7.
Powers and functions. - The Council shall:
[a] approve the PEDP; coordinate, monitor and assess the
implementation thereof, and when necessary, institute appropriate
adjustments thereon in the light of changing conditions in both the
domestic and international environment;
[b] periodically review and assess the country's export performance,
problems and prospects;
[c] identify the main bottlenecks, problem areas and constraints in
all areas/sectors/activities which influence the development of
exports, including but not limited to, such matters as policy
framework, physical infrastructure, finance, technology, production,
promotions and marketing;
[d] mandate specific departments and agencies to attend to the
bottlenecks and problems constraining the development of exports in
any of the areas mentioned in paragraph [c] above, and require the
concerned Secretaries to deliver progress report[s] on the
actions/initiatives taken to resolve these areas of concern at the
next meeting[s];
[e] ensure export quality control by overseeing the formulation and
implementation of quality control guidelines by appropriate agencies
to make Philippine exports at par with world-class products;
[f] impose sanctions on any government agency or officer or employee
thereof, or private sector entity that impedes efficient exportation
of Philippine goods;
[g] recommend to Congress any proposed legislation that would
contribute to the development of exports;
[h] submit quarterly reports to Congress;
[i] formulate policies or recommend measures and draw up a study
within ninety [90] days from the approval of this Act, relative to
the rationalization of the government's export promotion and
development functions/activities and programs for the eventual
transfer of government export promotions and development activities
to the sector within a period of two [2] years after the approval of
this Act;
[j] formulate the policies for the granting of incentives to
exporters;
[k] adopt such policies, rules, procedures and administrative
systems for the efficient and effective exercise of its powers and
functions, including the creation or adoption of an executive
committee or secretariat; and
[l] grant and review the accreditation of the organization of
exporters, according to the guidelines which it shall later
promulgate for the said purpose: Provided, That the organization
accredited shall be the dominant one among the other existing export
organizations as determined under the guidelines promulgated by the
Council hereof.
[m] issue standards and policies to be observed by Local Government
Units [LGUs] in order to :
[1] ensure that LGUs' plans and budgets are supportive of
agri-industrial growth and export competitiveness thrusts of the
national government; and
[2] ensure optimal allocation of expenditures.
The DILG and the regional development councils shall be the channels
through which these standards and policies shall be coursed.
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