Implementing Section 17 (f) of Republic Act No. 5186 and the Provisions of Republic Act No. 5455 and Republic Act No. 6135

October 26, 1972

LETTER OF IMPLEMENTATION NO. 5

IMPLEMENTING SECTION 17 (F) OF REPUBLIC ACT NO. 5186 AND THE PROVISIONS OF REPUBLIC ACT NO. 5455 AND REPUBLIC ACT NO. 6135

WHEREAS, there is need to rapidly generate exports of manufactured products, in order to lessen our heavy reliance on export of primary materials, which are continuously suffering from deterioration in prices relative to manufactured exports of industrial countries;

WHEREAS, it is urgent to accelerate the creation of employment opportunities and productive jobs for the many unemployed among our people;

WHEREAS, foreign investors have indicated their interest in export-oriented manufacturing projects, using labor-intensive processes, especially in the production of garments and electronic components, but have been discouraged by various bureaucratic obstacles and delays;

WHEREAS, such foreign investments are in the national interest, generate substantial export earnings and employment, would bring access to foreign markets not otherwise available to domestic producers, and would make Philippine products more competitive, without displacing or injuring Philippine nationals in similar lines of business but by example enhancing their productive capacities and improving their competitive position in international markets in the long run;

NOW, THEREFORE, the following directives are hereby issued for immediate implementation by all agencies and instrumentalities of Government:

1. The Board of Investments is instructed and authorized to form an "Assistance Team for Foreign Investments in Labor Intensive Export Projects" which (the Assistance Team) shall advise and actively assist foreign investors and their Filipino joint-venture partners if any to establish and put into operation in the shortest time feasible projects to manufacture labor-intensive products for export. Such projects shall comply with the provisions of R.A. 5455 (the Law Regulating Foreign Investments) and/or R.A. 6135 (the Export Incentives Act) and/or R.A. 5186 (the Investment Incentives Act). The Assistance Team shall report to the Chairman of the Board of Investments.

2. The Board of Investments is instructed to recruit the members of the Assistance Team from among the personnel the Board of Investments and from among personnel of any other government agencies and instrumentalities that may be qualified and required for the efficient functioning of the Assistance Team. Requests for detail of personnel from other agencies, whether as members or as liaison officers of the Assistance Team with the agencies concerned, shall be coursed through the Executive Secretary who shall issue the corresponding instructions to the agencies concerned.

3. All agencies and instrumentalities of the government are hereby directed to extend full cooperation to the Assistance Team, and to expedite action within the provisions of existing laws on matters related to the projects authorized for assistance by said Team. Unjustified obstacles or bureaucratic delays imposed in the way of attaining early materialization of the projects authorized for assistance by the Assistance Team shall be grounds for disciplinary action against the responsible personnel of the agency or agencies concerned.

4. Projects to be the subject of assistance by the Assistance Team with agencies and instrumentalities of government other than the Board of Investments shall, prior to requests by the Assistance Team to such agencies and instrumentalities for assistance to the project, be authorized by the Executive Secretary under this Letter of Implementation, upon the recommendation of the Chairman of the Board of Investments, which recommendation shall set forth an outline of the project, and its benefits to the economy.

5. The Chairman of the Board of Investments shall submit every two weeks to the Executive Secretary a report on the status of each project being assisted by the Assistance Team. The report shall make suggestions, based on the Assistance Team's experience, for appropriate changes in regulations of procedures of implementation of laws by the various agencies, which changes would bring about faster action by such agencies on a routinary basis on matters involving desirable investments, whether domestic or foreign. The Executive Secretary shall take the appropriate steps after review of the recommendations and consultation with the agencies and instrumentalities concerned, to effect the desirable and feasible changes in the interest of accelerating economic development and desirable investment activities.

The authorities granted hereunder expire on June 30, 1973 unless otherwise amended. This Letter of Implementation does not repeal, but supplements, Administrative Order No. 122 issued on June 1, 1968.

DONE in the City of Manila, this 26th day of October in the year of Our Lord, Nineteen Hundred and Seventy-Two.