WHEREAS, pursuant to the provisions of Section 23 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, local chief executives may, upon authority of the sanggunian, negotiate and secure financial grants or donations in kind, in support of the basic services or facilities enumerated under Section 17 thereof, from local and foreign assistance agencies;

WHEREAS, pursuant to the provisions of Section 25 (c) of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, the President may, upon request of the local government unit concerned, direct the appropriate national agency to provide financial, technical, or other forms of assistance to the local government unit, at no extra cost to the local government unit concerned;

WHEREAS, pursuant to Section 13 of the General Provisions of Republic Act No. 8745, otherwise known as the General Appropriations Act of CY1999, national internal revenue taxes and import duties payable by national government agencies to the National Government arising from foreign donations, grants and loans are deemed automatically appropriated;

WHEREAS, the League of Municipalities of the Philippines (LMP) has taken the initiative to revive the Donated Vehicle Program (DVP), undertaken from 1994 to 1996, which has assisted municipalities in facilitating their availment of second-hand, slightly used motor vehicles from foreign countries;

WHEREAS, the Department of Interior and Local Government (DILG) is the duly constituted national government agency under Republic Act No. 6975 that is mandated to assist the President of the Republic of the Philippines in the exercise of general supervision over local governments;

WHEREAS, the DILG and the LMP have entered into a Memorandum of Agreement (MOA) which provides for the establishment of a new Rationalized Donated Vehicle Program that not only revives the old DVP, but also institutes improvements to the system that will facilitate the municipalities' availment of second-hand, slightly used motor vehicles from foreign countries.

NOW, THEREFORE, I, JOSEPH EJERCITO ESTRADA, President of the Republic of the Philippines, by virtue of the powers vested in me by law, do hereby order that:

SECTION 1. All concerned national government agencies, including the Bureau of Customs and Fiscal Incentives Review Board - both of the Department of Finance, the Department of Budget and Management, the Bureau of Import Services - Department of Trade and Industry, and the Philippine Ports Authority (PPA) and the Land Transportation Office (LTO), both of the Department of Transportation and Communications, are hereby enjoined to assist the DILG and the LMP in implementing the LMP's Rationalized Donated Vehicle Program and to facilitate the importation, documentation, release and registration of the vehicles acquired under the said program.

SECTION 2. The aforecited agencies, jointly and/or severally, are likewise enjoined to formulate and issue the necessary implementing guidelines and procedures, consistent with existing laws and regulations, to effect the intents and purposes of the program.

The agencies concerned are also requested to conduct a yearly review of said guidelines and procedures, subject to such rules and regulations as may be prescribed by the appropriate government agencies.

SECTION 3. All heads of involved agencies and offices are hereby directed to report to the Office of the President, through the Executive Secretary, the extent of participation and assistance in the program. Once the said program is on stream, the Secretary of the Interior and Local Government is directed to provide a quarterly report on the status of its implementation.

SECTION 4. This Memorandum Circular shall take effect immediately.

Adopted: 28 Sept. 1999

BY THE PRESIDENT:

(SGD.) RONALDO B. ZAMORA
Executive Secretary