Supreme Court E-Library
Information At Your Fingertips

  View printer friendly version

Rules 1, 4 and 8 of Executive Order No. 361 dated October 12, 1959, entitled “PROMULGATING RULES AND REGULATIONS FOR THE IMPLEMENTATION OF THE PROPOSALS OF FILIPINOS RESIDING IN THE UNITED STATES TO INVEST IN THE ECONOMIC DEVELOPMENT PROGRAM OF THE PHILIPPINES,” are hereby amended to read as follows:

“1. NATURE OF INVESTMENTS. – The eligible forms of investment are (1) producers’ goods and consumers’ goods and (2) capital, producers’ and consumers’ goods purchased in the United States.

“Producers’ and consumers’ goods. – Producers’ and consumers’ goods produced by Filipino independent farm operators and farm hands in the United States may be channeled to the Philippines for sale, except those that would tend to displace similar locally produced goods or to disrupt the agricultural development program of the country. Likewise, such products, should not be allowed to be channeled into the country if the importation thereof is banned by Philippine laws and regulations or rules promulgated by the Central Bank or other competent authorities of the Philippines.

“Capital, producers’ and consumers’ goods purchased in the United States. – Capital, producers’ and consumers’ goods purchased in the United States by Filipino residents either by direct cash purchase or thru the use of credit facilities may be sent to the Philippines by the Filipino investors’ corporations or associations, mentioned in paragraph 3 hereof, or individually if he prefers not to join such corporations or associations, thru their representatives who would sell them and invest the proceeds thereof in the Philippines.”

“4. THE FAR EAST MANAGEMENT CORPORATION AND OTHER AGENTS. – The association of Filipino residents abroad or any investor acting independently may deal directly with the Far East Management Corporation or any other corporation or association duly authorized to transact business for the distribution and sale in the Philippines of capital goods, producers’ and consumers’ goods and the investment of the proceeds thereof locally. The funds may be invested in government bonds or in other forms of investment which is expected to give reasonable returns.

“Any representative of the Far East Management Corporation or of any otter corporation or association or any individual operator who solicits investment in accordance with Rule 1 hereof from any Filipino resident abroad or opens an office in the United States for this purpose must first report to the Philippine consul who has jurisdiction over the particular territory concerned. It is understood that these representatives or persons shall comply with all the other existing legal requirements or rules and regulations enforced in the different states where they may desire to solicit such investments.

“Any contract otherwise valid and legal under existing laws must further contain for its recognition under these rules and regulations a clause providing for a guarantee or performance bond issued by a surety or bonding company or a recognized bank to the satisfaction of the investor, conditioned on the faithful administration of the proceeds of the goods and their proper investment.

“In the event that the Far East Management Corporation or any other corporation or association or individual acts as agent in the sale of Philippine Government bonds or securities to Filipinos in the United States, the said corporation or association or individual must be bonded in an amount to be determined by the Central Bank of the Philippines, and the said Corporation or association or individual must operate under the terms and conditions to be promulgated and required by the Central Bank of the Philippines.”

“8. CONTROL ON IMPORTS. – All importations under this grant shall be strictly in accordance with the listing of permissible importations embodied in the Central Bank Statistical Classification of Commodities and shall be reported to the Central Bank of the Philippines. Authority for the release of goods shall be issued by the Department of Commerce and Industry.

Executive Order No. 361 is hereby further amended by adding the following rule:

“9. PROCESSING OF PAPERS. – The processing of the papers in connection with the investments under this Executive Order shall be handled by the Department of Commerce and Industry, which is hereby authorized to issue the necessary implementing rules and regulations. All duly processed applications shall be submitted to the Cabinet for approval.”

Done in the City of Manila, this 6th day of January, in the year of Our Lord, nineteen hundred and sixty, and of the Independence of the Philippines, the fourteenth.


By the President:
(SGD.) ENRIQUE C. QUEMA
Assistant Executive Secretary