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WHEREAS, Presidential Decree No. 1863 was enacted, in implementation of certain policies of the State, to encourage, promote and assist the substitution of coco-chemicals for petro-chemicals in the manufacture of soaps, detergents and other consumer and industrial products;

WHEREAS, in order that the purposes and objectives of the Decree could be more effectively achieved, there Is a need to include in the coverage of the Decree other chemicals, natural-based or synthetic, and other detergent feedstocks/products derived from mineral oil, which could be substituted with coco-chemicals;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, do hereby decree and order that:

SECTION 1. Section 5 of Presidential Decree No. 1883 is hereby amended to read as follows:

"SECTION 5. Conditionally Prohibited Importation and Use of Petro-Chemicals and substitutes. — Upon certification to the BOI by the bank acquired for the benefit of the coconut farmers under P.D. No. 755 that UNICHEM, in accordance with its BOI certificate of registration, has commenced commercial production of coco-chemicals which may be utilized as raw material feedstock by the surfactant industry, initially in the manufacture of soaps and detergents, the importation and the use in the Philippines of fatty alcohols (natural based or synthetic) and their derivatives, and detergent feedstocks/products derived from mineral oil and natural gas and their derivatives, for use in the manufacture and sale of detergents and soaps and such other consumer products as may hereafter be determined pursuant to Section 7 herein, are hereby prohibited and shall be allowed only in the manner and in the instances prescribed under Section 6 hereof."

SEC. 2. Section 6 of Presidential Decree No. 1863 is hereby amended to read as follows:

"SECTION 6. Manner of and Conditions for the Importation of Petro-Chemicals and Substitutes. — To ensure an orderly and gradual shift from the use of petro-chemicals to coco-chemicals and to minimize, if not eliminate, illicit importations of the chemicals covered by the prohibition wider Section o hereof, all importations of fatty alcohols (natutral-based or synthetic) and, their derivatives, and detergent feedstocks/products derived from mineral oil and natural gas and their derivatives, for use in the manufacture and sale of detergents and soaps and such other consumer products as may hereafter be determined pursuant to Section 7 hereof, shall be made solely through and by UNICHEM at its own expense, for resale at cost plus a reasonable return to, and use by, manufacturers of detergents and soaps and other industries that may hereafter be determined pursuant to Section 7 hereof, and only upon the occurrence and on the duration of a shortage in supply of coco-chemicals."

SEC. 3. This Decree shall take effect immediately.

Done in the City of Manila, this 19th day of July in the year of our Lord, Nineteen Hundred and Eighty-Three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) JUAN C. TUVERA
		Presidential Executive Assistant