WHEREAS, these recommendations recognize that, unless replanting program is implemented, the coconut industry must be reduced to a domestic industry rather than a major export industry as most of the coconut tree population of the country are senile and the coconut trees in major coconut producing areas in the country were destroyed by natural calamities in 1982-1984;
WHEREAS, even international financial institutions had offered to finance the restart of the replanting program by way of assisting the country to overcome and survive the economic crisis and to preserve the role of the coconut industry as a major export industry;
WHEREAS, in its comprehensive report on the coconut industry, the National Economic Development Authority ("NEDA") studied different sources of financing and recommended that, in accordance with the self-reliance program of the country, financing for the replanting program be internally generated and that for this purpose, the export duty and the additional export duty on coconut products be utilized as the initial source of financing;
WHEREAS, in accordance with the self-reliance program the country, there is a need to enlist the resources of the private sector in the efforts to increase the coconut sector production of the country and to encourage the private sector to devise and implement its own new area planting and/or replanting program throughout the country;
NOW, THEREFORE, I FERDINAND E. MARCOS, by virtue of the powers vested in me by the Constitution and the laws, particularly Sections 514 and 515 of Presidential Decree No. 1464, as amended,President of the Philippines, do hereby decreed and order the following:
SECTION 1. The basic export duty imposed by Section 514 of Presidential Decree No. 1464, and the additional export duty imposed by Executive Order No. 920-A, on coconut products, as identified and at the rates prescribed by Executive Order No. 920-A, which is hereby incorporated made part hereof any reference, are hereby made permanently constituted as the initial source of financing for the coconut replanting program to be implemented by the Philippine Coconut Authority ("PCA"), with the active assistance and participation of the recognized organization of the coconut farmers pursuant to the provisions of Act No. 6260.
SEC. 2. In the implementation of the replanting program, the PCA shall service the requirements of small coconut farmers owning not more than twenty-four (24) hectares who volunteer to participate in the replanting program. Initially, the PCA shall give priority to the devastated areas in the Visayas and Mindanao.
SEC. 3. In accordance with the self-reliance program of the country, and to encourage the private sector to device and implement their own area planting and/or replanting program, copra millers/refiners and other exporters of coconut products which voluntarily form associations and/or cooperatives in accordance with the provisions of Presidential Decree No. 1960, are hereby exempted from payment of the basic export duty and the additional export duty on coconut products herein imposed, Provided, they conform with the following conditions:
SEC. 4. Any violation of the provisions of this Presidential Decree, and/or the rules and regulations issued pursuant hereto, shall be punished and penalized in accordance with Section 1, Article IV of Presidential Decree No. 1468, as amended.
SEC. 5. All laws, executive and administrative orders, and/or rules and regulations respectively issued the governmental agencies concerned, inconsistent herewith except the provisions and tax exemptions provided in the Presidential Decree No. 1960 and Presidential Decree No. 1468, as amended, are hereby repealed, amended or modified accordingly.
SECTION 6. This Decree shall be effective immediately
Done in the City of Manila, this 8th day of April, in the year of Our Lord nineteen hundred and eighty-five.
(Sgd.) FERDINAND E. MARCOS
President of the Philippines
By the President: (Sgd.) JUAN C. TUVERA Presidential Executive Assistant