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WHEREAS, tobacco is one of the pillars of the Philippine economy, contributing to the government about P800-900 Million annually of revenue derived from specific taxes, licenses and inspection fees;

WHEREAS, the revenue from export of tobacco and tobacco products has contributed largely to the export income of the country and there is a big potential of maximizing this contribution because of increasing world demand for tobacco products;

WHEREAS, tobacco has been successfully grown and is a major crop of the Ilocos provinces and Cagayan Valley and at present is the main source of livelihood of about 6 million people aside from another 21 million in related enterprises that depend on the tobacco industry;

WHEREAS, the production of good quality tobacco leaf is the key to the maintenance and expansion of the local and export markets;

WHEREAS, the country must organize a comprehensive and integrated tobacco program to develop high yielding varieties and improved cultural management, postharvest handling and processing practices so that the country can produce quality tobacco at a cost that is competitive in the world market;

WHEREAS, the foregoing considerations require the services of highly competent, full-time teams of agricultural scientists, amply supported with facilities, funds, staff and working conditions conducive to the development of improved varieties and production, processing, classification, grading and marketing techniques in the shortest time possible;

WHEREAS, the Philippine Council for Agriculture and Resources Research (PCARR) has recommended the establishment of a National Tobacco Research Center at the Mariano Marcos Memorial College of Science and Technology (MMMCST) with Cagayan Valley Institute of Technology (CVIT) as research station and other testing stations as necessary;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers in me vested by the Constitution do hereby decree and order the following:

SECTION 1. There is hereby established the Philippine Tobacco Research and Training Center in the Mariano Marcos Memorial College of Science and Technology (MMCST), Batac, Ilocos Norte (hereinafter referred to as the Tobacco Center) to integrate and conduct researches on tobacco all over the country in line with the national tobacco research program developed by the Philippine Council for Agriculture and Resources Research (PCARR). The specific functions of the Tobacco Center are the following:

1. To develop high yielding, good quality and pest resistant varieties of all types of tobacco;
2. To develop improved production and harvesting techniques and effective cropping systems for tobacco;
3. To undertake investigations in controlling insects, diseases, and other pests attacking tobacco;
4. To conduct studies on modern processing, postharvest handling, classification, grading and marketing;
5. To provide training to farmers, students, specialists and extension workers on production, post-harvest handling, primary processing, classification, grading and marketing;
6. To disseminate improved varieties and release up-to-date information on production, post-harvest handling, processing, classification, grading and marketing; and
7. To coordinate research activities of the Philippine Virginia Tobacco Administration (PVTA), the Philippine Tobacco Administration (PTA), the Philippine Tobacco Board (PTB) and other research institutions or agencies which may conduct researches on any type of tobacco;
8. To enter into agreements or relationships with other institutions or organizations — private and public, national and foreign — furtherance of the above purposes.

SEC. 2. To carry out this project an initial appropriation in the amount of P40 million will be appropriated and disbursed from the Tobacco Fund established under Republic Act No. 4155 for the capital requirements of the Tobacco Center which will include acquisition and development of experimental field, construction of buildings, laboratories and housing for the center's staff and trainees and acquisition of equipment while P20 Million per annum will be allocated and disbursed for the operating expenses of the Center.

SEC. 3. In accordance with these objectives of the Tobacco Center, the Mariano Marcos Memorial College of Science and Technology (MMMCST) is hereby authorized to acquire by negotiated sale or by expropriation private agricultural properties which are deemed necessary in the furtherance of its objectives; Provided, That acquisition of said agricultural properties shall be in accordance with existing policies and procedures of MMMCST.

SEC. 4. The Tobacco Center shall be headed by a Director who shall be appointed by the Board of Trustees of MMMCST upon recommendation by the President of MMMCST. All other employees will be appointed by the Director. All officers and employees of the Center shall be selected and appointed on the basis solely on merit and fitness and are not subject to the regulations of the Wage and Classification Office.

The Director shall have the responsibility of planning, implementing, and supervising the Center's programs and activities.

SEC. 5. The research priorities of the Center shall be consistent with the framework of Section 1 above and shall be subject to the research planning and monitoring mechanism of the Philippine Council for Agriculture and Resources Research (PCARR) as provided under Presidential Decree No. 48. The policies, plans and programs of the Center shall be reviewed annually by an Advisory Board composed of:

1. The Secretary of Agriculture
2. The President of Mariano Marcos Memorial College of Science and Technology as Vice Chairman
3. The Director General of the Philippine Council for Agriculture and Resources Research
4. Two representatives of the Private Sector appointed by the Secretary of the Department of Agriculture
5. The Director of the Philippine Tobacco Research and Training Center

The members of the Advisory Board shall serve without compensation other than actual and necessary expenses incurred upon meetings of the Board or upon other authorized official business.

SEC. 6. The Tobacco Center may, for the purpose of its training, research and development activities, obtain the services of scholars, scientists and technical personnel of other unifc in the Mariano Marcos Memorial College of Science and Technology and of any other agency of the Philippine government, of from abroad. Such personnel may be paid honoraria by the Center as fixed and authorized by the Advisory Board.

SEC. 7. The staff of the Tobacco Center is hereby exempted from government restrictions on travel abroad for purposes of advanced studies, observation trips to agricultural universities, institutes and reseach organizations with similar functions and attendance in scientific symposia and conferences.

SEC. 8. The Tobacco Center is hereby authorized to plan and construct buildings and other facilities and to purchase equipment locally and abroad as may be necessary to carry out its functions. Furthermore, the Tobacco Center shall be exempt from all forms of taxes and import duties and other imposts on any materials, equipment, articles,, goods and services that may be imported from abroad for its operation.

SEC. 9. All existing facilities, experimental farms, laboratories, equipment and similar resources devoted to tobacco research and training by present agencies may be used by the Tobacco Center for carrying out its stated functons.

SEC. 10. Funds of the Tobacco Center shall be used only for purposes recommended by the Advisory Board and approved by the Board of Trustees of MMMCST.

SEC. 11. Expenditures and disbursements made by the Tobacco Center in the conduct of its activities shall be subject to special auditing and accounting rules and regulation suited to the requirements of research.

SEC. 12. Any and all savings and income of the Tobacco Center shall constitute a revolving fund which shall not be reverted to the General Fund but shall be used to attain the objectives of the Center.

SEC. 13. The President of MMMCST is hereby directed to take such appropriate steps as are necessary for the immediate implementation of this Decree. Furthermore, the Advisory board shall prepare for approval of the MMMCST. Board of Trustees suitable operational guidelines pertaining to staff development, salaries, honoraria, disbursement powers of the Director and such other regulations that will ensure speedy realization of the objectives and functions of the Tobacco Center.

SEC. 14. All acts, parts of acts, executive orders, ordinances, rules and regulations which are inconsistent with the provisions of this Presidential Decree are hereby repealed, amended or modified accordingly.

Done in the City of Manila, this 25th day of November in the year of our Lord, Nineteen Hundred and Seventy-Seven.