# Administrative Code of 1987/Book IV/Title X/Chapter 1

Source: Supplement to the Official Gazette. Vol. 83, No. 38. Manila. National Printing Office. 1987. pp. 163–166.
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Chapter 1—General Provisions
Sec. 1. Declaration of Policy.—The State shall develop a self-reliant and independent national economy effectively controlled by Filipinos. It recognizes the indispensable role of the private sector, encourages private enterprise, and provides incentives to needed investments.
The State shall promote industrialization and full employment based on sound agricultural development and agrarian reform, through industries that make full and efficient use of human and natural resources, and which are competitive in both domestic and foreign markets. It shall protect Filipino enterprises against unfair foreign competition and trade practices.
In pursuit of these goals, all sectors of the economy and all regions of the country shall be given optimum opportunity to develop. Private enterprises, including corporations, cooperatives, and similar collective organizations shall be encouraged to broaden the base of their ownership.
The State shall pursue a trade policy that serves the general welfare and utilizes all forms and arrangements of exchange on the basis of equality and reciprocity.
The State shall regulate or prohibit monopolies when the public interest so requires. No combinations in restraint of trade or unfair competition shall be allowed. The state shall protect consumers from trade malpractices and from substandard or hazardous products.
Sec. 2. Mandate.—The Department of Trade and Industry shall be the primary coordinative, promotive, facilitative and regulatory arm of the Executive Branch of government in the area of trade, industry and investments. It shall promote and develop an industrialization program effectively controlled by Filipinos and shall act as catalyst for intensified private sector activity in order to accelerate and sustain economic growth through; (a) comprehensive industrial growth strategy, (b) a progressive and socially responsible liberalization program, (c) policies designed for the expansion and diversification of trade, and (d) policies to protect Filipino enterprises against unfair foreign competition and trade practices.
Sec. 3. Powers and Functions.—The Department of Trade and Industry shall:
    (1) Formulate and implement policies, plans and programs relative to the development, expansion, promotion and regulation of trade, industry, and investments;
    (2) Consolidate and coordinate all functions and efforts pertaining to the promotion of exports, diversification and decentralization of industries, and development of foreign trade;
    (3) Encourage and promote the growth and expansion of industries which make full use of human and natural resources and which are competitive in domestic and foreign markets;
    (4) Adopt and implement measures to protect Filipino enterprises against unfair foreign competition and trade practices;
    (5) Provide incentives to broaden the base of ownership of large-scale industrial enterprises and accelerate the formation and growth of small and medium-scale enterprises;
    (6) Regulate the importation of essential consumer and producer items to maintain their fair and competitive prices to end-users;
    (7) Protect consumers from trade malpractices and from substandard or hazardous products;
    (8) Adopt and implement measures to prohibit combinations in restraint of trade and unfair competition;
    (9) Develop the capabilities of industry to increase the domestic content of its products and upgrade the quality of products according to competitive international standards;
    (10) Encourage and support the formation of People’s Economic Councils at regional, provincial and municipal levels as well as other trade, industry and consumer protection institutions or associations;
    (11) Upgrade and develop the manufacture of local capital goods and precision machinery components;
    (12) Formulate the appropriate mechanics to guide and manage the transfer of appropriate industrial technology in the country;
    (13) Formulate country and product export strategies which will guide the export promotion and development thrusts of the government; and implement programs and activities geared towards the overseas promotion of Philippine exports in overseas markets;
    (14) Take the primary role in negotiating and reviewing existing international trade agreements, particularly those affecting commodity quotas limiting existing exports of Philippine products to determine programs for renegotiations of more favorable terms;
    (15) Administratively adjudicate and impose reasonable fines and penalties for violation of existing trade and industry laws;
    (16) Prepare, for consideration of the Monetary Board, proposed programs in the commercial banking sector for directing commercial lending facilities towards priority areas of commercial and industrial development, as well as coordinate government direct funding and financial guarantee programs to achieve trade and industry growth;
    (17) Issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of the necessary information, papers and documents which it may deem necessary in the exercise of its powers and functions;
    (18) Prescribe and enforce compliance with such rules and regulations as may be necessary to implement the intent and provisions of this Code, which rules and regulations shall take effect fifteen (15) days following their publication in the Official Gazette; and
    (19) Perform such other functions as may be necessary or incidental in carrying into effect the provisions of this Code and as may be provided by law.
Sec. 4. Organizational Structure.—The department shall consist of the offices of the secretary, undersecretaries and assistant secretaries, national service centers, regional offices, and line corporate agencies and government entities.
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