CREATING THE FINANCE DEPARTMENT INTELLIGENCE AND INVESTIGATION BUREAU (FDIIB), PRESCRIBING ITS POWERS AND FUNCTIONS, APPROPRIATING FUNDS FOR ITS OPERATIONS, AND AMENDING FOR THI…

WHEREAS, it is a declared national objective to establish
and maintain continuing, coordinated, and fully integrated social and economic
plans and programs (Sec. 1, Art. XIV, Constitution) in order to set up a stable
and enduring national economy to uplift the quality of life of the
Filipinos;

WHEREAS, adoption and maintenance of sound and enduring
social and economic plans and programs depend on, among others, efficient
implementation and enforcement of revenue laws and in the gathering, collation
and continuing evaluation of intelligence data and information relative to
finance and economic functions;

WHEREAS, smuggling, tax evasion and other related illegal
activities that undermine revenue and customs laws not only hamper effective
economic planning and programming but also are forms of economic subversion
which are inimical to national interest and security;

WHEREAS, it is necessary to provide Government authorities
continuing intelligence on the nature, methods and extent of smuggling, tax
evasion and other related nefarious practices that undermine the national
economy, to serve as basis for counter-action and remedial legislations; and

WHEREAS, Presidential Decree No. 1, dated September 23,1972,
reorganizing the Executive Branch of the National Government, provides that
changes and modifications in the Integrated Reorganization Plan, adopted and
approved pursuant to same decree, shall be made from time to time, as necessity
requires.

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 order and decree as part of the law of the land that
Part IV of the Integrated Reorganization Plan be amended by adding the following
provisions:

CHAPTER II—ORGANIZATION OF THE FINANCE DEPARTMENT INTELLIGENCE
AND INVESTIGATION BUREAU

ARTICLE I—Declaration of Policy.—Section 1, Article I, Chapter I,
Part XIX of the Integrated Reorganization Plan, as amended by P.D. 51, declares
that the concept of national security shall be broadened to encompass national
strength not only in the politico-military but also in the socio-economic sense,
and it is likewise the policy of the State to promote and develop a stable and
enduring economy and bring about optimum use of all appropriate agencies of the
Government to stamp out and counteract smuggling, tax evasion and other finance
schemes and activities that undermine the national interest and security.

ARTICLE II—The Finance Department Intelligence and Investigation Bureau
(FDIIB)

SECTION 1. Creation.—There is hereby created the
Finance Department Intelligence and Investigation Bureau, hereinafter referred
to as the FDIIB, under the administrative and operation control and direction of
the Secretary of Finance.

The FDIIB shall be headed by a Commissioner, to be assisted by a Deputy
Commissioner, both of whom shall be appointed by the President.

The Commissioner, and in his absence or incapacity the Deputy Commissioner
who shall act as Commissioner, shall have the following specific powers and
functions:

1. He shall be the principal adviser of the Secretary of Finance on
   intelligence matters;
2. He shall be the technical adviser of the Director General of the NISA on
   finance intelligence;
3. He shall exercise functional supervision over intelligence and investigation
   matters in the other bureau/agencies under the Department of Finance and shall
   make appropriate recommendations for the coordination and integration of such
   activities therein;
4. He shall act as liaison/coordinating officer of the Secretary of Finance on
   matters relating to economic subversion, insofar as they involve other
   departments/agencies of the Government.
5. He shall be responsible for counter-intelligence in the Department of
   Finance; and
6. He shall exercise such other powers and perform such other functions as may
   be directed by competent authority.

SECTION 2. Functions.—The FDIIB shall be the
intelligence and investigation arm of the Department of Finance and shall have
the following functions:

1. It shall receive, gather, collate and evaluate and disseminate intelligence
   data and information primarily on the modes, methods, nature and extent of
   smuggling, tax evasion, and other related illegal activities. It shall cause
   investigations of such cases to find out the guilty parties;
2. It shall monitor the finance and economic activities of persons or entities,
   whether domestic or foreign, which may adversely affect national interest and
   security;
3. It shall conduct counter-intelligence on smuggling, tax evasion and other
   related illegal activities;
4. It shall coordinate with other Government agencies and low enforcement
   functionaries for necessary assistance in carrying out any of its functions.
5. It shall render reports and submit intelligence assessments to the Secretary
   of Finance, the Director General, NISA, and to such other officials as may be
   directed;
6. It shall recommend steps or actions as may be appropriate to prevent or
   suppress smuggling, tax evasion and other related illegal activities; and
7. It shall exercise such other functions and perform such other duties as may
   be directed by competent authority.

SECTION 3. Organization.—The FDIIB shall be
organized and composed of the Manpower Division; Intelligence Division;
Investigation Division; Liaison and Monitoring Division; General Services
Division; Field Inspection Division; Legal Division; Comptrollership Division;
Communications Division; and Regional Offices, as may be provided and staffed
according to the corresponding Letter of Implementation and Staffing
Pattern.

SECTION 4. Abolition of ASAC.—The Anti-Smuggling
Action Center (ASAC) and its regional offices (RASAC) created under Executive
Order No. 11, dated February 24, 1966, as amended, are hereby abolished and its
applicable appropriations, records, equipment, properties and such personnel as
may be necessary are correspondingly transferred to the appropriate divisions or
units of the FDIIB. The Intelligence and Investigation Division in the
Department of Finance and other sections, units or personnel engaged in
intelligence and. investigation work in the bureaus and offices under the
Department of Finance shall as much as possible be integrated with the
Bureau.

SECTION 5. Application of WAPCO and Civil Service
Rules.—Personnel of the FDIIB shall be exempt from WAPCO and Civil Service
Rules and regulations relative to appointments and other personnel actions:
Provided, That they shall be entitled to the benefits and privileges
normally accorded to government employees: and Provided, further, That
the Secretary of Finance shall, after appropriate consultations with the
Director General, NISA, have final authority on matters of appointments.

SECTION 6. Appropriation.—In addition to the
transferred appropriations, there is hereby appropriated out of the
unappropriated balance in the National Treasury so much amount as may be
necessary to carry out the provisions of this decree but subsequent
appropriations for the FDIIB shall be included in the annual appropriation
act.

SECTION 7. Repealing Clause.—Pertinent provisions
of the Integrated Reorganization Plan, Executive Orders, other decrees, and
rules and regulations which are in conflict with the provisions of this Decree
are hereby rescinded or modified accordingly.

DONE in the City of Manila, this 11th day of June, in the year of Our Lord,
nineteen hundred and seventy-eight.

			(Sgd.) FERDINAND E. MARCOS President of the Philippines
	By the President:
	(Sgd.) JACOBO C. CLAVE
		Presidential Executive Assistant