EXECUTIVE ORDER NO. 880 March 4, 1983
DECLARING THE ESTABLISHMENT OF A COCONUT CHEMICAL INDUSTRY AS A MEANS TO RATIONALIZE THE COCONUT INDUSTRY OF THE PHILIPPINES AND GRANTING ADDITIONAL INCENTIVES THEREFOR
WHEREAS, part of the program of the Government is to rationalize the coconut industry to ensure its survival, viability and stability and thereby assure the consuming countries of an adequate and continuous supply at fair and reasonable prices of copra, coconut oil and their by-products.
WHEREAS, a major cause of the violent fluctuation of prices of coconut products is that coconut oil competes with other fats and oils, principally soybean oil, in the edible market;
WHEREAS, the violent fluctuation of prices has created undue hardships to a substantial segment of the citizenry who are directly or indirectly dependent on the coconut industry as their source of livelihood;
WHEREAS, it has been ascertained that one viable measure to minimize, if not eliminate, the violent fluctuation of prices of coconut oil is to induce the greater consumption of coconut oil in the manufacture of chemicals;
WHEREAS, the Philippines should demonstrate to the entire world that the utilization of coconut oil, being a renewable resource, is a cheaper and more stable raw material base for the manufacture of chemicals than fossil oils;
WHEREAS, in the implementation of this policy, the bank acquired for the benefit of the coconut farmers of the Philippines under P.D. No. 755, acting as the Administrator of the Coconut Industry Investment Fund, has caused the organization of a private corporation owned and controlled by the coconut farmers purposely for establishing, operating and maintaining in the Philippines a chemical process plant utilizing, as its principal raw material, coconut oil (herein referred to as the "Enterprise");
WHEREAS, the Enterprise has been registered as a "preferred pioneer enterprise" under the Omnibus Investments Code (P.D. No. 1789) and is entitled to the benefits granted by law to such enterprises;
WHEREAS, there is a need to grant additional incentives to such Enterprise in order to ensure its viability and capability to fully and effectively implement the policy of inducing greater consumption of coconut oil in the manufacture of chemicals;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution and by the laws, do hereby declare, direct and order that;
Sec. 1. The establishment, operation and maintenance by the coconut farmers of the Philippines, through the Coconut Industry Investment Fund, of a chemical process plant, utilizing coconut oil as its principal raw material, is hereby declared to be vital to the national interest and shall be part of the Government's rationalization program for the coconut industry.
Sec. 2. The Government, its agencies and instrumentalities are hereby instructed to extend to the Enterprise all assistance, cooperation, benefits, incentives and exemptions to the fullest extent permitted or allowed to be granted by this Executive Order and applicable laws and regulations.
Sec. 3. To ensure the viability and capability of the Enterprise to fully and effectively implement the national policy herein ordained, the purchase abroad and the importation into the Philippines by the Enterprises, and the sale by the foreign supplier/contractor of all required, necessary and useful technology, machinery, equipment and services for the establishment of the chemical process plant, are hereby declared non-taxable events and are therefore totally exempt from any and all assessable taxes, including income tax, duties, levies, imposts and other similar charges, as well as the ad valorem duty imposed by Executive Order No. 860.
Sec. 4. In accordance with Article 57 of the Omnibus Investments Code (P.D. No. 1789). The Board of Investments is hereby directed to recommend to the President such other additional incentives to be granted to the Enterprise which will aid it in the full and effective implementation of the national policy herein ordained.
Done in the City of Manila, this 4th day of March in the Year of Our Lord, Nineteen Hundred and Eighty-Three.
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