AN ACT TO DEVELOP EXPORTS AS A KEY TOWARDS THE

ACHIEVEMENT OF THE NATIONAL GOALS TOWARDS THE

YEAR 2000

Hc t cnuctcd I tIc Scnutc und Housc o Hccscntutucs o tIc
PIncs n Congcss usscnIcd.


ARTICLE 1
BASIC PRINCIPLES AND POLICIES

Scciion 1. SIot Ttc. - TIis Aci sIall oiIcrwisc lc lnown as iIc " Eori
Dcvcloncni Aci of 1994 ".

SEC. 2. Dccuuton o Poc - Ii sIall lc iIc olicy of iIc Siaic io cvolvc
cori dcvcloncni inio a naiional cffori. TIc govcrnncni sIall cIanion
coris as a focal siraicgy for a susiainallc agri-indusirial dcvcloncni io
acIicvc PIiliinc NICIood iowards iIc ycar 2000. TIc rivaic sccior sIall
ialc iIc lcad in iIc collcciivc cffori io ronoic coris iIrougI discilinc and
Iard worl, as ii confronis iIc cIallcngc of winning inicrnaiional narlcis.

TIc govcrnncni and iIc rivaic sccior sIall joinily iransforn iIc
PIiliincs inio an coriing naiion. Toward iIis cnd, iIc Siaic sIall insiill in
iIc Filiino colc iIai coriing is noi jusi a sccioral conccrn, lui iIc lcy io
naiional survival and iIc ncans iIrougI wIicI iIc ccononic goals of
incrcascd cnloyncni and cnIanccd inconcs can nosi ccdiiiously lc
acIicvcd.

SEC. 3. Kc Ocutng Pnccs. - A nacroccononic olicy
francworl iIai suoris cori dcvcloncni sIall lc rovidcd, csccially in
lcy arcas of conccrn io coricrs.

(a} Monciary and forcign ccIangc olicics sIall csiallisI and nainiain a
conciiiivc ccIangc raic, suoricd ly ncasurcs io rovidc safciy ncis for
various scciors iIai nay lc advcrscly affccicd ly iIc inlcncniaiion of sucI
olicics. SucI olicics sIall lc consisicni wiiI iIc rcsonsililiiy and rinary
oljcciivcs of iIc HungIo Scntu ng Pnus ursuani io Scciion 3 of Fcullic
Aci No. 7653.

(l} Fiscal and crcdii olicics sIall rovidc adcquaic funds for ullic and
rivaic invcsincnis and lusincss cansion, wIilc lccing iIc cosi of crcdii
conarallc io inicrnaiional lcvcls cnsuring acccss io loanallc funds for SMEs
as wcll as IigIly iccInical cori cnicrriscs, csccially iIosc in iIc
counirysidc.

(c} Agriculiural olicics sIall luild u vialiliiy and conciiiivcncss of iIc
couniry's agriculiurc scciors and faciliiaic iIcir linlagc wiiI indusiry io
sircngiIcn iIc agri-indusirial lasc of iIc couniry's cori iIrusi.
(d} Tradc iariff and cusions olicics sIall cngcndcr conciiiivcncss of
doncsiic indusirics and faciliiaic iIcir ariiciaiion in inicrnaiional iradc.

(c} TccInical suori olicics io inrovc iIc qualiiy of cori roducis
sIall lc adoicd, ariicularly iIosc rclaiing io iccInology iransfcrs,
F & D, iccInical iraining and rclaicd aciiviiics. As sucI, iIc Dcarincni of
Scicncc and TccInology (DOST} and iIc Dcarincni of Agriculiurc (DA} sIall
lc suoricd ly siaic collcgcs and univcrsiiics in iIc diffusion of iccInology,
infornaiion and iraining io iIc counirysidc for agri-indusirial and cori
dcvcloncni.

(f} Urgcni aiicniion nusi lc givcn io olicics affcciing infrasiruciurc in
ordcr io cnsurc iIc adcquaic suly and qualiiy of owcr, waicr (c.g. for
irrigaiion}, iransoriaiion (c.g. sIiing and cargo Iandling}, and
connunicaiion io suori iIc flow of goods and scrviccs in iIc conici of iIc
naiional cori drivc.

(g} TIc linl lciwccn cori growiI and counirysidc dcvcloncni nusi lc
sircngiIcncd iIrougI olicics favorallc io SMEs, rcgional indusirial ccnicrs,
and cori roccssing zoncs io loosi rural and farn-lascd cnircrcncursIi
in idcniificd gcograIic ccononic growiI arcas of iIc couniry.

(I} Lalor and indusirial rclaiions olicics nusi rccognizc iIc incviiallc
indusirial sIifis iIai will occur in iIc cffori io acIicvc inicrnaiional
conciiiivcncss. Focus sIall lc givcn io iIc fornulaiion of accords lciwccn
lalor and nanagcncni wIicI sIall rovidc for susiaincd incrcasc in
roduciiviiy and conciiiivcncss. In linc wiiI iIis, dual iraining scIcncs
sIall lc inicgraicd as a lasic cononcni io iIc couniry's rinary and
sccondary cducaiion rogran io cnsurc iIai iIc nanowcr nccds of
agriculiurc and indusiry will lc naicIcd ly iIc slills gcncraicd ly iIc
cducaiional sysicn. Fcasonallc ricc and inconc olicics sIall lilcwisc lc
adoicd in ordcr io safcguard iIc inicrcsis of iIc lalor sccior.

(i} All govcrnncni agcncics wIosc aciions affcci coricrs, sucI as iIc
Doard of Invcsincnis (DOI}, Durcau of Cusions (DOC}, and Durcau of Inicrnal
Fcvcnuc (DIF} sIall sinlify roccdurcs io nininizc lurcaucraiical rcd iac.

(j} Provisions of cisiing laws dccncd dcirincnial io iIc cori sccior
sIall lc rccalcd in sulscqucni acis.


SEC. 4. Dcnton o Tcns. - For uroscs of iIis Aci, iIc
following dcfiniiions sIall aly io iIc following icrns.

(a} Eoricr" ncans any crson, naiural or juridical, liccnscd io do
lusincss in iIc PIiliincs, cngagcd dirccily or indirccily in iIc roduciion,
nanufaciurc or iradc of roducis or scrviccs wIicI carns ai lcasi fifiy crccni
(50%} of iis nornal ocraiing rcvcnucs fron iIc salc of iis roducis or scrviccs
alroad for forcign currcncy. Poudcd, TIai in iIc casc of scrviccs, iIc sanc
sIall lc liniicd io infornaiion iccInology scrviccs, consiruciion scrviccs and
oiIcr scrviccs as dcfincd joinily ly iIc Dcarincni of Financc (DOF} and iIc
Dcarincni of Tradc and Indusiry (DTI}. Scrviccs rcndcrcd ly ovcrscas
coniraci worlcrs arc noi covcrcd ly iIc dcfiniiion.

(l} Eori ronoiion" sIall rcfcr io a rangc of cori aciiviiics wIicI iIc
ullic and rivaic scciors undcrialc, sucI as nciworling, csccially in cori
suori scrviccs and iIc rovision of iradc/narlci infornaiion; organizaiion
of iradc fairs and nissions; rovision of advisory scrviccs; conduci of
scninars, lcciurcs, worlsIos, confcrcnccs and iraining on cori-rclaicd
suljccis; ullicaiion of cori-rclaicd docuncnis; Iandling of qualiiy
siandards, roduci dcsign and sucI oiIcr aciiviiics aincd ai ronoiing
cisiing coris, csccially iIosc ncani io rcinforcc and inrovc iIc osiiion
of PIiliinc cori roducis in sccific forcign narlcis, rincially lcing
iIosc aciiviiics ncccssary for iIc inlcncniaiion of iIc PIiliinc Eori
Dcvcloncni Plan.

(c} Eori inccniivcs" sIall rcfcr io suori ncasurcs rovidcd ly iIc
govcrnncni io coricrs io cncouragc invcsincni in iIc cori sccior, crcaic a
frccr iradc cnvironncni and noiivaic coricrs io incrcasc cori salcs and
crforn conciiiivcly in iIc cori narlci. TIc ovcrall oljcciivc is io incrcasc
iIc couniry's cori salcs.

(d} Accrcdiicd organizaiion" sIall rcfcr io iIc organizaiion of coricrs
granicd accrcdiiaiion ly iIc Eori Dcvcloncni Council, as rovidcd in
Scciion 7(1} of iIis aci.

ARTICLE 2
INSTITUTIONAL STRUCTURES STRATEGIES

SEC. 5. PInc Exot Dcuconcnt Pun (PEDP). - TIc Prcsidcni of iIc
Fcullic of iIc PIiliincs sIall arovc a rolling iIrcc-ycar PIiliinc Eori
Dcvcloncni Plan rcarcd ly iIc Dcarincni of Tradc and Indusiry (DTI}
wIicI sIall forn ari of iIc Mcdiun-icrn PIiliinc Dcvcloncni Plan
(MTPDP}. Ii sIall lc fornulaicd in consuliaiion wiiI iIc rivaic sccior,
validaicd and udaicd scncsirally.

TIc PEDP sIall dcfinc iIc couniry's annual and ncdiun-icrn cori
iIrusis, siraicgics, rograns and rojccis and sIall lc joinily inlcncnicd ly
iIc govcrnncni, coricrs and oiIcr conccrncd scciors.

SEC. b. Exot Dcuconcnt Counc.TIc cisiing Eori Dcvcloncni
Council, Icrcinaficr rcfcrrcd io as iIc Council, wIicI was crcaicd ly
Eccuiivc Ordcr No. 98 (1993} as nodificd ly Eccuiivc Ordcr No. 110 (1993}
and Eccuiivc Ordcr No. 180 (1994}, sIall lc sircngiIcncd and
insiiiuiionalizcd for iIc urosc of ovcrsccing iIc inlcncniaiion of iIc PEDP
and coordinaiing iIc fornulaiion and inlcncniaiion of olicy rcforns io
suori iIc said Plan.

SEC. ?. Poucs und Functons.TIc Council sIall.

(a} Arovc iIc PEDP; coordinaic, noniior and asscss iIc
inlcncniaiion iIcrcof, and, wIcn ncccssary, insiiiuic aroriaic
adjusincnis iIcrcon in iIc ligIi of cIanging condiiions in loiI iIc doncsiic
and inicrnaiional cnvironncni;

(l} Pcriodically rcvicw and asscss iIc couniry's cori crfornancc,
rollcns and rosccis;

(c} Idcniify iIc nain loiilcnccls, rollcn arcas and consirainis in all
arcas/scciors/aciiviiics wIicI influcncc iIc dcvcloncni of coris,
including, lui noi liniicd io, sucI naiicrs as olicy francworl, Iysical
infrasiruciurc, financc, iccInology, roduciion, ronoiions and narlciing;

(d} Mandaic sccific dcarincnis and agcncics io aiicnd io iIc
loiilcnccls and rollcns consiraining iIc dcvcloncni of coris in any of
iIc arcas ncniioncd in aragraI (c} alovc, and rcquirc iIc conccrncd
Sccrciarics io dclivcr a rogrcss rcori(s} on iIc aciions/iniiiaiivcs ialcn io
rcsolvc iIcsc arcas of conccrn ai iIc nci ncciing(s};

(c} Ensurc cori qualiiy conirol ly ovcrsccing iIc fornulaiion and
inlcncniaiion of qualiiy conirol guidclincs ly aroriaic agcncics io nalc
PIiliinc coris ai ar wiiI world-class roducis;

(f} Inosc sanciions on any govcrnncni agcncy or officcr or cnloycc
iIcrcof, or rivaic sccior cniiiy iIai incdcs cfficicni coriaiion of PIiliinc
goods;

(g} Fcconncnd io Congrcss any rooscd lcgislaiion iIai would
coniriluic io iIc dcvcloncni of coris;

(I} Sulnii quaricrly rcoris io Congrcss;

(i} Fornulaic olicics or rcconncnd ncasurcs and draw u a siudy
wiiIin ninciy (90} days fron iIc aroval of iIis Aci, rclaiivc io iIc
raiionalizaiion of iIc govcrnncni's cori ronoiion and dcvcloncni
funciions/aciiviiics and rograns for iIc cvcniual iransfcr of govcrnncni
cori ronoiion and dcvcloncni aciiviiics io iIc rivaic sccior wiiIin a
criod of iwo (2} ycars aficr iIc aroval of iIis Aci;

(j} Fornulaic iIc olicics for iIc graniing inccniivcs io coricrs;

(l} Adoi sucI olicics, rulcs, roccdurcs and adninisiraiivc sysicns for
cfficicni and cffcciivc ccrcisc of iis owcrs and funciions, including
iIc crcaiion or adoiion of an cccuiivc conniiicc or sccrciariai; and

(l} Crani and rcvicw iIc accrcdiiaiion of iIc organizaiion of coricrs,
according io iIc guidclincs wIicI ii sIall laicr ronulgaic for iIc said
urosc; Poudcd, TIai iIc organizaiion accrcdiicd sIall lc iIc
doninani onc anong iIc oiIcr cisiing cori organizaiions as
dcicrnincd undcr iIc guidclincs ronulgaicd ly iIc Council Icrcof.

(n} Issuc siandards and olicics io lc olscrvcd ly Local Covcrnncni
Uniis (LCUs} in ordcr io.

1. Ensurc iIai LCUs lans and ludgcis arc suoriivc of agri-
indusirial growiI and cori conciiiivcncss iIrusis of iIc
naiional govcrnncni; and

2. Ensurc oiinal allocaiion of ccndiiurcs.

TIc DILC and iIc rcgional dcvcloncni councils sIall lc iIc
cIanncls iIrougI wIicI iIcsc siandards and olicics sIall lc
courscd.

SEC. 8. Conoston o tIc Counc TIc Council sIall lc conoscd of iIc
following.

(a} Sccrciary of iIc Dcarincni of Tradc and Indusiry as CIunun;

(l} Dirccior-Ccncral of iIc Naiional Econonic and Dcvcloncni AuiIoriiy;

(c} Sccrciary of iIc Dcarincni of Financc;

(d} Covcrnor of iIc Danglo Scniral ng Piliinas;

(c} Sccrciary of iIc Dcarincni of Scicncc and TccInology;

(f} Sccrciary of iIc Dcarincni of Agriculiurc;

(g} Sccrciary of iIc Forcign Affairs;

(I} Sccrciary of iIc Dcarincni of Lalor and Enloyncni;

(i} Ninc (9} rcrcscniaiivcs fron iIc rivaic sccior, iIc najoriiy of wIon
sIall lc rcconncndccs of iIc accrcdiicd organizaiion, and onc of
wIon sIall lc aoinicd as vicc-cIairnan.

OiIcr Icads of cccuiivc agcncics, rivaic organizaiion or individual can
lc callcd uon ly iIc Council io aiicnd any Council ncciing and assisi iIc
Council io rcsolvc issucs and rollcns iIai conccrn iIcir rcscciivc
officcs.

Lilcwisc, sucI Icads of cccuiivc agcncics, rivaic organizaiions or
individuals sIall rcsond io iIc qucrics of iIc Council wiiIin iwo (2} wccls
fron iIc iinc sucI qucrics wcrc rcccivcd.

SEC. 9. Modc o Scccton und Tcnuc o tIc Puutc Sccto Hccscntutucs
TIc Prcsidcni sIall aoini iIc rivaic sccior rcrcscniaiivcs, wIo arc noi cx
oco ncnlcrs, uon noninaiion of iIc accrcdiicd organizaiion, cnsuring
lalanccd rcrcscniaiion fron iIc Visayas and Mindanao and various scciors
as againsi iIc non-agriculiural and non0iradiiional cori scciors and iIc
lilc.

TIc rivaic sccior rcrcscniaiivcs of iIc Council sIall scrvc for a criod of
iwo (2} ycars. WIcn a vacancy ariscs duc io iIc rcsignaiion, dcaiI or
incaaciiy of a ncnlcr, a rclaccncni wIo sIall scrvc for iIc rcnaindcr of
iIc ncnlcr's icrn of officc sIall lc aoinicd ly iIc rcsidcni.

SEC. 10. Mcctngs o tIc Counc - TIc Council sIall ncci oncc a noniI.
Poudcd, TIai iIc Prcsidcni or iIc CIairnan nay convcnc iIc council
anyiinc wIcncvcr Ic dccns ii ncccssary. TIc Prcsidcni sIall rcsidc ovcr
ncciings of iIc Council on a quaricrly lasis.

SEC. 11. Fundng TIc aciiviiics and ocraiional ccnscs of iIc Council
sIall lc fundcd joinily ly ludgciary aroriaiions fron iIc govcrnncni and
ly iIc rivaic sccior coniriluiions as rovidcd for iIc Eccuiivc Ordcr No. 98.

SEC. 12. Acccdtcd Exot Ogunzuton TIc Council sIall accrcdii a singlc
unlrclla organizaiion of coricrs ursuani io Scciion 7(1} of iIis Aci io
rcrcscni iIc cori sccior conccrns and inicrcsis for iIrcc (3} ycars, aficr
wIicI iIc Council sIall undcrialc a rcvicw of iIc accrcdiiaiion rior io iIc
graniing or rc-graniing of iIc said accrcdiiaiion.

TIc accrcdiicd organizaiion sIall.

(a} Fcconncnd rivaic sccior rcrcscniaiivcs io iIc Council, wiiI
considcraiion of lalanccd sccioral rcrcscniaiion, as rovidcd in
Scciion 9 Icrcof;

(l} Fcrcscni iIc inicrcsis of iIc cori sccior;

(c} Dc rcsonsillc for coordinaiing, suoriing and assisiing iIc DTI
rclaiivc io iIc fornulaiion and inlcncniaiion of iIc govcrnncni's
cori ronoiion rograns and olicics. Poudcd, TIai in iIc cvcni
iIai sonc of iIc cori ronoiion funciions of iIc govcrnncni arc
rivaiizcd in accordancc wiiI iIis Aci, ii sIall lc rcsonsillc for iIc
crfornancc of sucI rivaiizcd cori ronoiion funciion; and

Managc iIc PIiliinc Tradc Ccnicr, wIicI sIall includc anong oiIcrs iIc
auiIoriiy io cnicr inio coniracis wiiI sccific organizaiion or firns for iIc
ocraiion of ccriain ronoiion faciliiics or funciions.

SEC. 13. Exot Fnuncng, Guuuntcc und Insuuncc - Pursuani io Scciion 7(i}
of iIis Aci, iIc Council sIall nalc iIc ncccssary lcgal and fcasililiiy
siudy/rcconncndaiion on iIc alignncni and raiionalizaiion of govcrnncni
rograns rclaiivc io cori financing and cisiing organizaiions dcaling
rinarily or cclusivcly wiiI cori financing, guaranicc and insurancc,
lilcwisc considcring iIc crcaiion of a rivaic sccior-lcd cori financing
insiiiuiion wIosc scrviccs sIall lc rinarily dcvoicd iowards suoriing iIc
ocraiions of coricrs and indircci coricrs, ariicularly iIc SMEs.

TIc siudy sIall includc iIc owcrs, funciions and ocraiions of iIc rooscd
insiiiuiion, and govcrnncni cquiiy coniriluiions io iIis said insiiiuiion, and if
and wIcn ncccssary, iIc rcaraiion of a lill crcaiing iIc sanc wIicI iIc
Council will rcconncnd io Congrcss wiiIin si (6} noniIs aficr iIc cffcciiviiy
of iIis Aci.

TIc govcrnncni counicrari funds sIall conc fron dircci ludgciary
aroriaiions, fron consolidaicd caiial funds of govcrnncni insiiiuiions
involvcd in cori financing and guaraniccs, or fron cquiiy coniriluiions fron
govcrnncni financc insiiiuiions.

SEC. 14. Exot Ponoton und Inonuton As rovidcd in Scciion 7 (i} of iIis
Aci, iIc Council iIrougI iIc DTI sIall rcarc an cori ronoiion
rivaiizaiion rogran wiiIin ninciy (90} days fron iIc aroval of iIis Aci and
sIall sulscqucnily idcniify iIc aroriaic funding nccIanisn for sucI a
rogran. TIc rivaiizaiion roccss sIall lc conlcicd wiiIin a criod of iwo
(2} ycars.

WIilc iIc aroriaic funding nccIanisn is noi yci in lacc, financial and
iccInical assisiancc io iIc accrcdiicd organizaiion on a rojcci-io-rojcci
lasis sIall lc granicd. In iIis rcgard, iIc naiional govcrnncni sIall
aroriaic sucI suns as nay lc ncccssary io iIc Council io lc cclusivcly
car-narlcd for cori ronoiion and infornaiion uniil sucI iinc iIai iIc
Council csiallisIcd iIc funding nccIanisn. TIc Council sIall fornulaic iIc
criicria io avail of iIis financial and iccInical assisiancc and iIc cicni io
wIicI iIc assisiancc sIall lc granicd wiiI iIc rclininary considcraiion of
cncouraging fornaiion of a naiionwidc narlciing coocraiivc for cori
ronoiion.

SEC. 15. PInc Tudc Ccntc.TIc govcrnncni sIall Icrcly assisi iIc
rivaic sccior in iIc csiallisIncni of PIiliinc iradc ccnicrs wIicI sIall
Iousc iIc iradc ronoiion officcs and sIall scrvc as crnancni cIilii siics of
iIc couniry's cori roducis. In iIis rcgard, iIc govcrnncni sIall rovidc iIc
land for iIc ccnicr, iIrougI a land grani or long-icrn lcasc io iIc accrcdiicd
organizaiion, and sIall arrangc financing for iIc consiruciion of iIc iradc
conlccs. Uon iis csiallisIncni, iIc ccnicrs sIall lc nanagcd ly iIc
accrcdiicd organizaiion.

ARTICLE 3
OTHER INCENTIVES

SEC. lb. Inccntucs.In addiiion io cisiing inccniivcs rovidcd ly iIc
Doard of Invcsincnis, iIc following inccniivcs sIall lilcwisc lc granicd io
coricrs.

(a} Ecniion fron Prcsidcniial Dccrcc No. 1853, rovidcd iIai iIc
inoriaiion sIall lc uscd for iIc roduciion of goods and scrviccs for cori.

(l} Inoriaiion of nacIincry and cquincni and acconanying sarc
aris wIicI arc uscd in iIc nanufaciurc of coricd roducis ai zcro crccni
(0%} duiy for a criod of iIrcc (3} ycars, uniil 1997.

(c} Ta crcdii for inoricd inuis and raw naicrials rinarily uscd for
iIc roduciion and aclaging of cori goods, wIicI arc noi rcadily availallc
locally, sIall lc valid for fivc (5} ycars. Poudcd, TIai iIc ia crcdii sIall lc
issucd wiiIin iIiriy (30} days fron coriaiion.

(d} Ta crcdii for incrcasc in currcni ycar cori rcvcnuc conuicd as
follows.

TIc firsi 5% incrcasc in annual cori rcvcnuc ovcr iIc rcvious ycar
would ncan a crcdii of 2.5% io lc alicd on iIc incrcncnial cori rcvcnuc
convcricd io csos ai iIc currcni raic;
TIc nci 5% incrcasc would lc cniiilcd io a crcdii of 5.0%;

TIc nci 5% incrcasc would lc cniiilcd io a crcdii of 7.5%;

In cccss of 15% would lc cniiilcd io a crcdii of 10%.

SucI ia crcdii is only granicd for iIc ycar wIcn iIc crfornancc is
acIicvcd. Eori rcvcnucs uscd in iIc calculaiion of sucI ia crcdiis sIall lc
suljcci io vcrificaiion as rcscrilcd undcr iIc inlcncniing rulcs and
rcgulaiions.

(c} For coricrs of non-iradiiional roducis wIo usc or sulsiiiuic locally
roduccd raw naicrials, caiial cquincni and/or sarc aris, ia crcdiis
cquivalcni io iwcniy-fivc crccni (25%} of iIc duiics iIai would Iavc lccn aid
Iad iIcsc inuis lccn inoricd. Poudcd, TIai iIis inccniivc would lc
availallc for a criod of iIrcc (3} ycars uon cffcciiviiy of iIis Aci and can lc
cicndcd for anoiIcr iIrcc (3} ycars ly iIc Prcsidcni uon iIc
rcconncndaiion of iIc Sccrciary of Financc. Poudcd, utIc, TIai iIc
Sccrciary of Financc, in consuliaiion wiiI iIc Eori Dcvcloncni Council,
sIall rcarc a lisi of non-iradiiional coris wIicI arc cniiilcd io avail of iIis
inccniivc.

Poudcd, TIai iIcsc inccniivcs sIall lc granicd only uon. (1} iIc
rcscniaiion of a Durcau of Eori Tradc Pronoiion (DETP} ccriificaiion of iIc
coricr's cligililiiy, in conliancc wiiI iIc nininun wagc and SSS laws, and
iIai (2} in iIc casc of inoriaiions, iIc iicns inoricd sIall lc uscd
cclusivcly for roduciion of cori goods.

(f} In iIc inicrin, wIilc iIc Einlanl is noi yci csiallisIcd govcrnncni
financial insiiiuiions (CFIs} including iIc Dcvcloncni Danl of iIc
PIiliincs (DDP}, iIc PIiliinc Naiional Danl (PND} and iIc Land
Danl of iIc PIiliincs (LDP} sIall dcvclo wiiIin onc ycar, long-icrn
cso and dollar crcdii faciliiics io lc uscd for lani and cquincni
cansion uroscs, anong oiIcrs. TIcsc faciliiics sIall offcr
rcfcrcniial and sinlificd crcdii scIcncs io coricrs.

SEC. l?. NcgotuIt.All ia crcdiis Icrcin rovidcd sIall lc ncgoiiallc.

ARTICLE 4
TRANSITORY PROVISIONS

SEC. lS. Aontncnt o Puutc Sccto Hccscntutucs. - Uon iIc cf-
fcciiviiy of iIis Aci iIc Prcsidcni of iIc Fcullic of iIc PIiliincs sIall
aoini iIc ninc (9} rivaic sccior rcrcscniaiivcs io iIc Council wIo sIall
scrvc a icrn of iwo (2} ycars. TIcrcaficr, iIc dcicrninaiion of iIc rivaic
sccior rcrcscniaiivc sIall lc govcrncd ly Scciion 9 of iIis Aci.

SEC. 19. Fundng o tIc Counc.Uon iIc cffcciiviiy of iIis Aci, iIc
ludgci granicd io iIc old Eori Dcvcloncni Council sIall lc iransfcrrcd io
iIc ncw Council crcaicd in iIis Aci. TIcrcaficr, sucI suns as nay lc
ncccssary for iis ocraiion and nainicnancc sIall lc includcd in iIc annual
Ccncral Aroriaiions Aci.



SEC. 20. Ocuton o tIc Counc.TIc Council sIall inncdiaicly
funciion onc (1} noniI aficr iIc aroval of iIis Aci.

ARTICLE S
CRIMINAL OFFENSES AND PENALTIES

SEC. 21. Non-conuncc o tIc Munduto Pousons n tIs Act.Any
crson, cniiiy, govcrnncni insiruncnialiiy or insiiiuiion, found io lc wilfully
violaiing or grossly ncgligcni in cccuiing iIc nandaics of iIis Aci sIall rcsuli
in iIc culsion fron officc of iis cIicf cccuiivc and ocraiing officcrs, as wcll
as iIc rcsonsillc officcrs iIcrcof. NoiwiiIsianding any rovision of law io iIc
conirary, iIcy sIall lilcwisc lc roIiliicd fron Iolding any govcrnncni
osiiion for ai lcasi iwo (2} ycars.

ARTICLE 6
ADMINISTRATIVE PROCEDURES AND SPECIAL CLAUSES

SEC. 22. Incncntng Hucs und Hcguutons. - TIc Sccrciarics of Tradc
and Indusiry and Financc, in consuliaiion wiiI iIc Council, sIall fornulaic
iIc rulcs and rcgulaiions io inlcncni iIc rovisions of iIis Aci.

SEC. 23. ScuuIt Cuusc. - TIc rovisions of iIis Aci arc Icrcly
dcclarcd scarallc and in iIc cvcni any of sucI rovisions is dcclarcd
unconsiiiuiional, iIc oiIcr rovisions wIicI arc noi affccicd iIcrcly sIall
rcnain in forcc and cffcci.

SEC. 24. Hccung Cuusc. - All oiIcr laws, dccrccs, cccuiivc ordcrs,
adninisiraiivc ordcrs, rulcs and rcgulaiions or aris iIcrcof wIicI arc
inconsisicni wiiI iIc rovisions of iIis Aci arc Icrcly rccalcd, ancndcd or
nodificd accordingly.

SEC. 25. Ecctut. - TIis Aci sIall ialc cffcci iwo (2} days aficr iis
ullicaiion in iIc Ocu Guzcttc or in ai lcasi iwo (2} naiional ncwsacrs of
gcncral circulaiion in iIc PIiliincs, wIicIcvcr concs carlicr.

Arovcd.





EDGARDO J. ANGARA JOSE DE VENECIA, JR.
Pcsdcnt o tIc Scnutc ScuIc o tIc Housc
o Hccscntutucs




TIis Aci wIicI is consolidaiion of Housc Dill No. 12073 and Scnaic Dill
No. 1863 was finally asscd ly iIc Housc of Fcrcscniaiivcs and iIc Scnaic
on Dcccnlcr 20,1994.





EDGARDO E. TUMANGAN CAMILO L. SABIO
Sccctu o tIc Scnutc Sccctu Gcncu
Housc o Hccscntutucs



Arovcd. 21 Dcccnlcr 1994.



FIDEL V. FAMOS
Pcsdcnt o tIc PIncs