ESTABLISHING GUIDELINES FOR LIBERALIZING TRADITIONAL TRADE FOR THE SULU ARCHIPELAGO AND ADJACENT AREAS.

WHEREAS, it is a tradition that bona fide Filipino resident
traders in the Sulu Archipelago and Zamboanga del Sur by reason of geographical
proximity, historical and social ties, are from time immemorial engaged in
commercial intercourse with neighboring islands;

WHEREAS, majority of the people living in those areas depend
upon such trade as their principal means of livelihood and source of income;

WHEREAS, in order to attain the foregoing objectives it is
necessary to liberalize the procedure for entrance and clearance of cargoes and
vessels of bona fide Filipino residents who are engaged in such trade;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the
Philippines, by virtue of the powers vested in me by the Constitution as
Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to
Proclamation No. 1081, dated September 21, 1972, and General Order No. 1, dated
September 22, 1972, as amended, do hereby order and decree:

1. That bona fide Filipino resident traders in Sulu Archipelago, the island of
   Balabac and Zamboanga del Sur who desire to engage in trade with neighboring
   islands shall properly register with the branches of the Philippine National
   Bank in Jolo or Zamboanga City or their designated representatives. Said traders
   may sell, buy, barter or trade any merchandise, goods or articles except those
   which are contraband or prohibited by the Tariff and Customs Code, as amended,
   or those which are banned by special laws and regulations, the value of which
   does not exceed Five Thousand Pesos (P5,000.00) per trip not to exceed two trips
   per month, with such trading houses in neighboring islands as shall be duly
   approved and certified by the Philippine National Bank. The registry list
   containing the names of authorized traders and trading houses shall be
   transmitted to the Commander of the Southwest Command, who is hereby empowered
   to coordinate all activities and to undertake all necessary measures for the
   implementation of this Decree.
2. That the formalities relative to the entrance and clearance of traders,
   vessels and cargoes and military clearances shall be required and effected at
   the ports of Jolo and Zamboanga City.
3. That only vessels duly registered with the Philippine Coast Guard shall be
   allowed to carry, convey or transport merchandise, goods or articles for
   purposes of the trade. To facilitate the registration of vessels, the Philippine
   Coast Guard may avail of the services of the Philippine Constabulary and the
   Bureau of Customs.
4. The Monetary Board is authorized to waive the requirements of Central Bank
   rules and regulations for purposes of carrying out this trade. The Philippine
   National Bank shall also undertake such measures as shall be necessary to
   promote the greater participation of the banking systems in the trade areas,
   including the designation of correspondent banks to pave the way for the gradual
   shift from barter trade.
5. Merchandise, goods or articles imported pursuant to this Decree shall be
   free of import duties or taxes when sold and consumed either in Jolo or in an
   area in Zamboanga City which shall be determined under the implementing
   regulations. Merchandise, goods or articles removed or taken out from these two
   areas shall pay the necessary import taxes and duties and any individual in
   possession of untaxed merchandise, goods or articles outside of these two areas
   shall be held liable pursuant to the provisions of existing laws.
6. The Commander of the Southwest Command shall, in consultation with the
   representatives of the Philippine National Bank, the Bureau of Customs and the
   Philippine Coast Guard, issue the regulations necessary to implement this Decree
   and shall recommend to me the necessity of modifying this Decree after six
   months from the date hereof.

All laws, decrees, rules and regulations which are inconsistent herewith are
amended or modified accordingly.

This Decree shall take effect immediately.

Done in the City of Manila, this 9th day of January, in the year of Our Lord,
nineteen hundred and seventy-three.

			(Sgd.) FERDINAND E. MARCOS President Republic of the Philippines
	By the President:
	(Sgd.) ALEJANDRO MELCHOR
		Executive Secretary