WHEREAS, Presidential Decree No. 51 provides that the National Intelligence and Security Authority (NISA) shall be the focal point of direction, coordination and integration of government activities involving national intelligence and security;

WHEREAS, PD 1468 was promulgated creating the Finance Department Intelligence and Investigation Bureau (FDIIB) to provide efficient implementation and enforcement of revenue laws; gathering, collating and evaluating intelligence data relative to finance and economic functions and basis for counter-action and remedial legislations on smuggling, tax evasion and other related illegal activities, and cause the investigation of such cases;

WHEREAS, to maintain the FDIIB as a continuingly effective intelligence arm, it should not be saddled with investigative functions;

WHEREAS, in order to maintain integrated economic plans and programs, the NISA and the Finance Department Intelligence Bureau (FDIB) must be fully coordinated and supportive with each other in the pursuance of their objectives;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order and decree the following:

SECTION 1. CHAPTER II of Presidential Decree No. 1458 is hereby amended to read as follows:

"CHAPTER II.—ORGANIZATION OF THE FINANCE DEPARTMENT INTELLIGENCE BUREAU"

SEC. 2. ARTICLE II of Presidential Decree No. 1458 is hereby amended to read as follows:

"ARTICLE II—The Finance Department Intelligence Bureau (FDIB)"

SEC. 3. The first and second paragraph of Section 1, Article II of Presidential Decree No. 1458 are hereby amended to read as follows:

"SECTION 1. Creation. There is hereby created the Finance Department Intelligence Bureau, hereinafter referred to as the FDIB, under the administrative and operational control and direction of the Secretary of Finance. The Director General of the National Intelligence and Security Authority (NISA) shall have functional supervision over the FDIB as provided in PD 51.

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

SEC. 4. The first paragraph and sub-paragraph (a) of Section 2, Article II of Presidential Decree No. 1458 are hereby amended to read as follows:

"SECTION 2. Functions. The FDIB shall be the intelligence 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."

SEC. 5. Section 3, Article II of Presidential Decree No. 1458 is hereby amended to read as follows:

"SECTION 3. Organization. The FDIB shall be organized and composed of the Manpower Division; Intelligence 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."

SEC. 6. Section 4, Article of Presidential Decree No. 1458 is hereby amended to read as follows:

"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 FDIB."

SEC. 7. Section 5, Article II of Presidential Decree No. 1458 is hereby amended to read as follows:

"SECTION 5. Application of WAPCO and Civil Service Rules. Personnel of the FDIB shall be exempted from the 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."

SEC. 8. Section 6, Article of Presidential Decree No. 1458 is hereby amended to read as follows:

"SECTION 6. Appropriations. 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 FDIB shall be included in the annual appropriation act."

SEC. 9. 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 rescinded or modified accordingly.

SEC. 10. This Decree shall take effect immediately.

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