Log Export Ban - Rationalization of the Wood Industry

December 29, 1975

LETTER OF INSTRUCTIONS NO. 357

 

In order to implement the log export ban, including the temporary limited and selective exportation of logs, and the rationalization of the wood industry without creating unnecessary economic dislocation, the following instructions are hereby issued:

1. All the agencies enumerated above shall jointly prepare and submit within one (1) month an integrated program for the efficient and economic implementation of said export ban.

2. The Department of Natural Resources shall servee as the lead agency in the formulation of the said integrated program, in coordination with the BOI and the NEDA and, in furtherance of the objectives of this Letter of Instructions, may create such interagency ad hoc committees as may be necessary.

3. The PITC shall handle the exportation of processed wood products for companies in the industry not capable of or not having the necessary expertise in export marketing. For this purpose, the PITC shall be authorized to handle all such exports and create such foreign offices as deemed necessary. The handling of such exports cover but is not limited to the following:

a. The negotiation and entering into contract for shipping facilities necessary for export of wood products including the purchase and/or charter of vessels;

b. The negotiation and entering into contracts for the export of wood products; cTaDHS

c. The establishment and maintenance of advance depots or storage facilities for Philippine wood products in foreign markets whenever such facilities are deemed necessary for the promotion of wood exports to these markets; and

d. The arrangements of necessary financing to successfully meet PITC's export commitments.

4. All government housing and/or housing-loan-granting institutions specifically NHC, GSIS and SSS shall impose a requirement on all housing projects to have at least 30% wood components in terms of cost.

5. The Central Bank shall decrease the reserve requirements of all the banks that will extend inventory financing of wood products to the extent of the amount made available for such financing but not to exceed 20% of the necessary reserve requirements.

6. The PNB shall set aside an amount for financing the wood products inventory, as required.

7. The Department of Finance shall seek and participate actively in securing foreign loans to meet the additional financial requirements of the wood industry.

8. The DPWTC, DPH, and PPA shall make plans for and begin or complete the construction of the necessary roads, ports, and other infrastructure facilities to enhance the wood processing industry.

9. The Budget Commission shall release the necessary funds as required in the program implementation upon consultation with the different agencies concerned.

10. The Maritime Industry Authority shall promote and develop the establishment of shipbuilding firms to serve the logging and wood industries of the country.

11. The Department of Trade shall undertake a more vigorous promotional campaign and market research for our processed wood products.

12. The Bureau of Forest Development, the Bureau of Customs and the Central Bank shall have exclusive joint responsibility in formulating and effecting an orderly and more efficient system of regulating the exportation of logs herein authorized to be exported.

13. The Department of Natural Resources through the Bureau of Forest Development, the Department of Local Government and Community Development and the Department of Labor shall design a special assistance program for workers and employees of the industry who may be displaced. IEaHSD

DONE in the City of Manila, this 29th day of December, in the year of Our Lord, Nineteen Hundred and Seventy-Five.