WHEREAS, the motion picture is one of the popular media of expression in modern times which serves as a vital instrument in the promotion of social, cultural and economic progress;

WHEREAS, the recent film festival has been acclaimed as a tremendous success by local and foreign sectors of the film industry;

WHEREAS, the film festival has demonstrated that there is a need for improvement in the local film industry;

NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by law, do hereby order as follows:

SECTION 1. Creation of the Experimental Cinema of the Philippines. - There is hereby created a corporation to be known as the Experimental Cinema of the Philippines, attached to the Ministry of Tourism, hereinafter referred to as the Cinema.

SEC. 2. Powers and Functions of the Cinema. - The Cinema shall have the following powers and functions:

1. To engage in various activities for the promotion of the growth and development of the film industry;

2. To produce or import all kinds of films for exhibition at the Film Center established under Executive Order No. 640-A;

3. To manage and operate the Film Center established pursuant to Section 6 of Executive Order No. 640-A under such arrangement as may be entered into with the Cultural Center of the Philippines;

4. To coordinate with the Filipino Motion Pictures Development Board in all matters affecting the film industry;

5. To establish, operate and maintain a special fund which shall be utilized to provide financial assistance to motion picture projects;

6. To formulate and administer, subject to the approval of the President, a national film rating and classification system based on guidelines, rules and regulations promulgated by the Board of Trustees;

7. To establish, operate and maintain a Film Archive for the purpose of preserving and disseminating all kinds of motion picture;

8. To assist Filipino talents in the acquisition of skills, experience and expertise necessary for quality film production;

9. To borrow funds, acquire, manage and hold such real and personal property as may be necessary to carry out the purposes and objectives of the Cinema;

10. To invest funds and other assets in such activities or undertakings and under terms and conditions as it may deem wise or desirable;

11. To establish, organize, operate and maintain international film festivals, exhibitions and other similar activities;

12. To construct and maintain buildings and establishments such as theaters, screening rooms and other similar facilities; and

13. To perform such other functions authorized by law or by the President of the Philippines.

SEC. 3. Freedom from Censorship. - All films produced or imported by the Cinema for exhibition at the Film Center shall be free from censorship.

SEC. 4. Board of Trustees. - The operations of the Cinema shall be managed by a Board of Trustees composed of three (3) members as follows: The Minister of Tourism or his duly authorized representative, a Chairman and one member who shall be appointed by the President of the Philippines.

SEC. 5. Responsibilities of the Board. - In the exercise of the powers granted under this Order, the Board of Trustees shall:

(1) Prepare and adopt such rules and regulations as it considers necessary for the effective discharge of its responsibilities;

(2) Prepare and/or approve a budget for the operations of the Cinema; cd

(3) Review periodically the administration and the programs of the Cinema; and

(4) Perform such other functions authorized by law.

SEC. 6. Director-General. - The Chief Executive Officer of the Cinema shall be the Director-General who shall be appointed by the President of the Philippines. The Director-General shall be the Chairman of the Board. He shall receive such compensation and remunerations to be fixed by the Board. He shall have the following powers and duties:

(a) To submit for the consideration of the Board of Trustees proposed policies and measures necessary for the operations of the Cinema;

(b) To recommend, coordinate and administer the programs and projects of the Cinema;

(c) To direct and supervise the operations and internal administration of the Cinema;

(d) To submit an annual report to the Board of Trustees setting forth the Cinema program of operations during the years; its financial operations and status, and a program and budget for the ensuing year;

(e) To organize and appoint the personnel necessary for the operation of the Cinema;

(f) To coordinate and establish linkages with other entities on matters related to its activities; and

(g) To exercise such other powers and to discharge such other functions as may be vested upon him by the Board.

SEC. 7. Deputy Director-General. - The Deputy Director-General shall be appointed by the President of the Philippines and shall receive such compensation and remunerations to be fixed by the Board. He shall assist the Director-General in:

(a) Directing the implementation and administration of the policies approved by the Board of Trustees governing the business of the Cinema; and

(b) Directing, supervising and coordinating the operations of the various departments and offices of the Cinema.

SEC. 8. Staff Appointments. - The Cinema shall appoint and maintain an adequate technical and administrative staff who shall be appointed in accordance with the laws, rules and regulations governing government corporations.

SEC. 9. Authority to receive donations; other powers. - The Cinema shall have the authority to receive donations from domestic and foreign sources and may exercise all the powers and prerogatives of a private corporation under the Corporate Code of the Philippines.

SEC. 10. Exemption from taxes. - Any donation, contribution, subsidy or financial aid which may be made to the Cinema shall be exempt from taxes of any kind and shall constitute allowable deductions in full from the income of the donors, contributors or givers for income tax purposes.

The Cinema, its assets, acquisitions, income and its operations and transactions shall be exempt from any and all taxes, fees, charges, imports, licenses and assessments, direct or indirect imposed by the government or any of its political subdivisions, including import taxes, duties and fees.

SEC. 11. Appropriation. - There is hereby appropriated out of the Special Activities Fund, the amount of three million pesos for the initial operation of the Cinema. The additional amount needed for its operation shall be included in the General Appropriations Act.

SEC. 12. Disposition of assets upon dissolution. - In the event of dissolution of the Cinema, its remaining assets, after payment of its liabilities, shall be disposed of and turned over to any foundation or institution of the same or similar pursuits as the Cinema, or to the Republic of the Philippines or any of its agencies or instrumentalities as the Board of Trustees may decide.

SEC. 13. Repealing Clause. - All provisions of Executive Order No. 640-A and all other laws, decrees, orders or regulations inconsistent herewith are hereby repealed, amended or modified accordingly.

SEC. 14. Effectivity. - This Order shall take effect immediately.

Done in the City of Manila, this 29th day of January, in the year of Our Lord, nineteen hundred and eighty-two.


By the President:

(SGD.) JOAQUIN T. VENUS, JR.
Deputy Presidential Executive Assistant