WHEREAS, it is the declared policy of the state to promote the rapid integrated development and growth of the coconut and other palm oil industry in all its aspects;

WHEREAS, there are certain enterprises in the industry, mainly the coconut desiccators, which are major end-users of fresh/matured coconuts converted into processed commodities that contribute a significant share in the export of coconut products;

WHEREAS, the export performance of these coconut-based commodities has tremendously declined due mainly to the unabated increase in production capacity resulting in cutthroat competition, over-production, underselling and smuggling of poor quality products thereby threatening the very existence of this labor-intensive industry and resulting in a dramatic decline of export receipts from this sector of the coconut industry;

WHEREAS, it is to the national interest that the government rationalize the desiccated coconut industry in order to insure its survival, growth and viability;

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

Section 1. Prohibition. Except as herein provided, no government agency or instrumentality shall hereafter authorize, approve or grant any permit or license for the establishment or operation of new desiccated coconut processing plants, including the importation of machinery or equipment for the purpose. In the event of a need to establish a new plant, or expand the capacity, relocate or upgrade the efficiencies of any existing desiccated plant, the Philippine Coconut Authority may, upon proper determination of such need and evaluation of the condition relating to:

a. the existing market demand;

b. the production capacity prevailing in the country or locality;

c. the level and flow of raw materials; and

d. other circumstances which may effect the growth or viability of the industry concerned,

authorize or grant the application for, the establishment or expansion of capacity, relocation or upgrading of efficiencies of such desiccated coconut processing plant, subject to the approval of the President.

Section 2. Rules and Regulations. To give effect to the foregoing and in order to insure the growth and viability of the desiccated coconut and other allied industries, the Philippine Coconut Authority is hereby given full power and authority to regulate the marketing and exportation as well as to determine and impose limitations on the production capacities of firms/entities engaged in the production of desiccated coconut and to issue such orders, rules and regulations as it may deem appropriate, including, but not limited to, the imposition of floor and/or ceiling prices for all exports of aforementioned product; the prescription of quality standards; establishment of maximum quantities for particular periods and particular markets; and inspection and survey of export shipments.

Section 3. Additional Measures. The Authority, in consultation with associations of coconut desiccators utilizing fresh/matured coconuts as raw material shall study and recommend, for approval of the President, additional feasible measures to further insure the growth and viability of the desiccated coconut and other allied industries using fresh/matured coconuts as their raw material.

Section 4. Effectivity. This Order shall take effect immediately.

Done in the city of Manila, this 28th day of August, in the year of Our Lord, nineteen hundred and eighty-two.


By the President:

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