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This web page features the full text of the
Export Development Act of 1994
[Republic Act No. 7844]
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[Republic Act No. 7844]

SECTION 1.  Short title. - This Act shall otherwise be known as the "Export Development Act of 1994."

SEC.  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.

SEC. 3.  Key operating principles. - A macro-economic policy framework that supports export development shall be provided, especially in key areas of concern to exporters:

SEC. 4.  Definition of terms. - For purposes of this Act, the following definitions shall apply to the following terms: Back to Top
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SEC. 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.

SEC. 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.

SEC. 7.  Powers and functions. - The Council shall:

The DILG and the regional development councils shall be the channels through which these standards and policies shall be coursed.

Sec. 8.  Composition of the Council. - The Council shall be composed of the following:

Other heads of executive agencies, private organizations or individuals can be called upon by the Council to attend any Council meeting and assist the Council to resolve issues and problems that concern their respective offices.

Likewise, such heads of executive agencies, private organizations or individuals shall respond to the queries of the Council within two [2] weeks from the time such queries are received.

SEC. 9.  Mode of selection and tenure of private sector representatives. - The President shall appoint the private sector representatives, who are not ex officio members, upon nomination of the accredited organization, ensuring balanced representations from the Visayas and Mindanao and various sectors, such as the labor sector, agricultural and traditional export sectors as against the non-agricultural and non-traditional export sectors and the like.

The private sector representatives of the Council shall serve for a period of two [2] years. When a vacancy occurs due to the resignation, death or incapacity of a member, a replacement who shall serve for the remainder of the member's term of office shall be appointed by the President.

SEC. 10.  Meeting of the Council. - The Council shall meet once a month: Provided, That the President or the chairman may convene the Council anytime whenever he deems it necessary.

The President shall preside over meetings of the Council on a quarterly basis.

SEC. 11.  Funding. - The activities and operational expenses of the Council shall be funded jointly by budgetary appropriations from the government and by private sector contributions as provided for in Executive Order No. 98.

SEC. 12.  Accredited export organization. - The Council shall accredit a single umbrella organization of exporters pursuant to section 7[1] of this Act to represent the export sector concerns and interests for three [3] years, after which the Council shall undertake a review of the accreditation prior to the granting or re-granting of the said accreditation.

The accredited organization shall:

SEC. 13.  Export financing guarantee and insurance. - Pursuant to Section 7[1] of this Act, the Council shall make the necessary legal and feasibility study/recommendation on the alignment and rationalization of government programs relative to export financing and existing organizations dealing primarily and exclusively with export financing guarantee and insurance and likewise considering the creation of a private sector led export financing institution whose services shall be primarily devoted towards supporting the operations of exporters and indirect exporters, particularly the SMEs.

The study shall include the powers , functions, and operations of the proposed institution, and government contributions to the said institution, and if and when necessary the preparation of a bill creating the same which the Council may recommend to Congress within six (6) months after the effectivity of this Act.

The government counterpart funds shall come from direct budgetary appropriations and from consolidated capital funds of government institutions involved in export financing and guarantees, or from equity contributions from government financial institutions.

SEC. 14.  Export promotion and information. - As provided in Section 7[1] of this Act, the Council through the DTI shall prepare an export promotion privatization program within ninety [90] days from the approval of this Act and shall subsequently identify the appropriate funding mechanism for such a program . The privatization process shall be completed within a period two [2] years. 

While the appropriate funding mechanism is not yet in place, financial and technical assistance to the accredited organization on a project-to-project basis shall be granted. In this regard, the national government shall appropriate such sums as may be necessary to the Council to be exclusively earmarked for export promotion and information until such time that the Council establishes the funding mechanism. The Council shall formulate the criteria to avail of this financial and technical assistance and the extent to which the assistance shall be granted with the primary consideration of encouraging the formation of a nationwide marketing cooperative for export promotion.

SEC. 15.  Philippine Trade Center. - The government shall hereby assist the private sector in the establishment of Philippine Trade Centers which shall house the trade promotion offices and shall serve as permanent exhibit sites of the country's export products. In this regard, the government shall provide the land for the center, through a land grant or long term lease to the accredited organization, and shall arrange financing for the construction of the trade complexes. Upon its establishment, the centers shall be managed by the accredited organization.

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SEC. 16.  Incentives. - In addition to existing incentives provided by the Board of Investments, the following incentives shall likewise be granted to exporters:

    [a]  Exemption from Presidential Decree No. 1853, provided that the importation shall be used for the production of goods and services for export.

    [b]  Importation of machinery and equipment and accompanying spare parts which are used in the manufacture of exported products at zero percent [0%] duty for a period of three [3] years, until 1997.

    [c]  Tax credit for imported inputs and raw materials primarily used for the production and packaging of export goods, which are not readily available locally , shall be valid for five [5] years. Provided, That the tax credit shall be issued within thirty [30] days from exportation.

    [d]  Tax credit for increase in current year's export revenue computed as follows:

    [e]  For exporters of non-traditional products who use or substitute locally produced raw materials, capital equipment and/or spare parts, tax credits equivalent to twenty-five percent [25%] of the duties that would have been paid had these inputs been imported ; Provided, That this incentives would be available for a period of three [3] years upon effectively of this Act and can be extended for another three [3] years by the President upon the recommendation of the Secretary of Finance; Provided, further, That the Secretary of Finance, in consultation with the Export Development Council, shall prepare a list of non-traditional exports which are entitled to avail of this incentives:  Provided, That these incentives shall be granted only upon; [1] the presentation of a Bureau of Export Trade Promotion [BETP] certification of the exporter's eligibility, in compliance with the minimum wage and SSS laws; and that [2] in the case of importation, the items imported shall be used exclusively for production of export goods.

    [f]  In the interim, while the Eximbank is not yet established, government financial institutions [GFIs] including the Development Bank of the Philippines [DBP] , the Philippine National Bank [PNB] and the Land Bank of the Philippines shall extend credit facilities to be used for plant and equipment expansion purposes, among others. These credit facilities shall offer preferential and simplified credit schemes to exporters.

SEC. 17.  Negotiability. - All tax credit herein provided shall be negotiable.

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SEC. 18.  Appointment of private sector representatives. - Upon the effectivity of this Act, the President of the Republic of the Philippines shall appoint the nine [9] private sector representatives to the Council who shall serve for a term of two [2] years . Thereafter, the determination of the private sector representatives shall be governed by Section 9 of this Act.

SEC. 19.  Funding of the Council. - Upon the effectively of this Act, the budget granted to the old Export Development Council shall be transferred to the new Council created under this Act. Thereafter, such sums as may be necessary for its operation and maintenance shall be included in the annual General Appropriations Act.

SEC. 20. Operation of the Council. - the Council shall immediately function one [1] month after the approval of this Act.

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SEC. 21. Non-compliance of the mandatory provisions of this Act. - Any person, entity, government instrumentality or institution, found to be willfully violating or grossly negligent in executing the mandates of this Act shall result in the expulsion from office of its chief executive and operating officers, as well as the responsible officers thereof.  Notwithstanding any provision of law to the contrary, they shall likewise be prohibited from holding any government position for least two [2] years.

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SEC. 22. Implementing rules and regulations. - The Secretaries of Trade and Industry and Finance, in consultation with the Council, shall formulate the rules and regulations to implement the provisions of this Act.

SEC. 23.  Separability clause. - The provisions of this Act are hereby declare separable and in the event any of such provisions is declared unconstitutional, the other provisions which are not affected thereby shall remain in force and effect.

SEC. 24. Repealing clause. - All other laws, decrees, executive orders, administrative orders, rules and regulations or parts thereof which are inconsistent with the provisions of this Act are hereby repealed , amended or modified accordingly.

SEC. 25. Effectivity. - This Act shall take effect two [2] weeks after its publication in the Official Gazette or in at least two [2] national newspapers of general circulation in the Philippines, whichever comes earlier.

This Act which is a consolidation of House Bill No. 12073 and Senate Bill No. 1863 was finally passed by the House of Representatives and the Senate on December 20, 1994.

 Approved: 21 December 1994

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