CREATING THE PHILIPPINE SHIPPERS’ COUNCIL

WHEREAS, the pressing need for economic growth requires that
Philippine exports be more competitive in the world markets and that
the cost of imports and domestic production and consumer prices be
rationalized;

WHEREAS, these objectives can be obtained faster by
facilitating the movement of goods to, from and within the Philippines
at reasonable and stable freight rates and other terms of shipment; and

WHEREAS, it is necessary to organize the Philippine shippers
into a cohesive group to enable them to promote and protect their
common interest and the economy and to negotiate with foreign shipping
interests from position of strength for reasonable freight rates and
optimum shipping terms;

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, in order to effect
the desired changes and reforms in the social, economic and political
structure of our society, do hereby order and decree as part of the laws
of the land the following:

SECTION 1. Title. This Decree shall be known as the
Philippine Shippers’ Council Decree of 1973.

SEC. 2. Statement of policy; creation and composition of
the Philippine Shippers’ Council. — It is hereby declared the
policy of the State to facilitate the development and growth of
Philippine foreign trade and the national economy by enhancing the
interest of Philippine shippers. For this purpose, a non-stock
corporation to be known as the Philippine Shippers’ Council, hereinafter
referred to as the Council, is hereby created which shall be composed
of all enterprises regularly engaged in the Philippines in the business
of exporting commodities, except those firms with efficient chartering
operations which shall be given the option to join as members of the
Council, as well as other firms which may, in the general interest, be
excluded under rules to be promulgated by the Secretary of Trade and
Tourism.

SEC. 3. Purposes and powers. — The Philippine
Shippers1 Council, which shall have its head office in the Greater
Manila area, shall have the following purposes and powers:

a. Promote and protect the common interest of Philippine
exporters, importers and other commercial users of water
transport, and maintain and foster close cooperation and mutual
assistance among them;

b. Conduct consultations and negotiations, on behalf of the
members, with shipping companies, associations of shipping interests,
government authorities and other institutions and persons, whether
foreign or domestic, in order to secure appropriate
vessels for the shipment of their goods, on time and at reasonable rates
and other favorable shipping terms;

c. Facilitate consultations, mediate and/or arbitrate disputes
between members and between members and non-members;

d. Serve as clearinghouse of information on shipping services
and other matters of interest to Philippine shippers;
e. Bring to the attention of the government authorities the
laws, policies, rules and practices which hamper the healthy
development of Philippine trade and commerce, especially
those which serve to delay or obstruct the speedy,
economical and efficient carriage of merchandise, and recommend and work
for appropriate legislation and the adoption of remedial measures;

f. Maintain and develop close relationships and
enter into mutually-beneficial arrangements with shippers’ councils
and other related organizations in Asian and other countries for the
attainment of the objectives of the Council;
g. Adopt a corporate seal, sue and be sued, receive donations
and grants from international and domestic organizations, exercise the
general corporate powers, and do all things necessary, suitable or
convenient for the accomplishment of any of the objectives stated herein
or the promotion, directly or indirectly, of the interest of the
corporation; and

h. Attend, participate and/or present its views in meetings
concerning promulgation of national shipping policies and government
assistance in promoting the export and import trades, in securing
reasonable freight rates from international shipping conferences and
non-conference lines and trampers and in obtaining favorable tariff and
customs treatment for Philippine commodities entering foreign markets.

SEC. 4. Governing board. — The Council shall be
governed by a Board of Directors consisting of fifteen members, eight of
whom shall be appointed by the President of the Philippines from
nominees of major commodity groups into which the members shall be
classified. The remaining directors shall be elected by the members of
the Council. The term of office of the members of the Board shall be
three years and they may be re-appointed or re-elected, as the case may
be. The members of the Board shall elect from among themselves a
Chairman and a Vice-Chairman: Provided, That, during the first
two years of the Council, the Secretary of Trade and Tourism shall serve
as Chairman of the Board.

a. The Board shall prescribe guidelines and rules for
compliance by the members, which shall enhance the collective strength
of the Council, promote ethical conduct among the members and provide
for effective management of the affairs of the Council.

b. The Board shall approve an annual and such supplemental
budgets as may be necessary for the administration and operation of the
Council.

SEC. 5. Sources of funds. — The members shall pay
such fees, dues and other contributions as the Board of Directors may
determine. However, in order to assist it during its formative years,
the amount of Two hundred and fifty thousand pesos is hereby
appropriated annually for two years from the general funds of the
National Government as counterpart contribution for the administration
and operation of the Council.

SEC. 6. Assistance of financial and other agencies.
— The Central Bank of the Philippines, the Development Bank of the
Philippines, the Philippine National Bank, the Philippine Export Credit
Insurance and Guarantee Corporation, the Board of Investments, the
Bureau of Customs, the Philippine Coast Guard and other government
offices and instrumentalities as well as private financial institutions
are hereby enjoined to extend the necessary assistance to the Council
and its members, particularly in the extension of incentives, credits,
financing and facilities. During its first two years, the Council, while
operating as a private corporation, shall be attached to the Department
of Trade and Tourism, through the Secretary, for direction and
supervision and for coordination of the efforts of government
authorities to assist the Council.

SEC. 7. Council Secretariat. — The Council shall
have a Secretariat to be headed by an Executive Secretary who shall be
appointed by the Board for a term of six years.

SEC. 8. Implementing rules. — The Secretary of
Trade and Tourism shall promulgate the necessary rules and regulations
to implement this Decree.

SEC. 9. Repealing Clause. — All provisions of
existing laws, orders and rules which are contrary to or inconsistent
with this Decree are hereby repealed or modified accordingly.

SEC. 10. Effectivity. — This Decree shall take
effect immediately.

Done in the City of Manila, this 31st day of March, in the
year of Our Lord, nineteen hundred and seventy-three.