mandatefunctions

 

 

MANDATE

 

By virtue of PD 1071 s. 1977, PITC’s original charter PD 252 was amended in full, giving it a broader and diverse mandate to engage in a wide range of trading and trade related services as well as to embark on major business activities including joint ventures, foreign procurement and distribution, warehousing and dealerships, among others.

By virtue of E.O. 756 s. 1981, amendments to the PITC Charter were introduced, which included the new composition of the PITC Board of Directors.

Executive Order No. 133 s. 1987 provided PITC with a mandate to:

  • Engage in both export and import trading new or non-traditional products and markets not normally pursued by the private business sector; and provide a wide range of export oriented auxilliary services to the private sector.

 

 

FUNCTIONS

 

As the state trading enterprise, PITC:

    • Engages in exports, trade services and special trading arrangements
    • Ensures most efficient and cost-effective procurement services for Government
    • Contributes to price and supply stabilization of goods & services
    • Creates strategic alliances that promote the growth and sustainability of businesses and enterprises

PITC's intervention in actual trade practices creates a bias in favor of the small and medium export producers who otherwise will not stand a chance to develop and compete with the large and well-established enterprises, especially the multinationals. Within the DTI, therefore, PITC plays a key role in the actual export scenario:

a) As a support to the exporters/export producers who can export on their own, or as an exporter itself sourcing from local producers by providing:

  •  Bonded Warehousing assistance
  •  Market development assistance through its success in the marketplace
  •  Developmental marketing assistance through its:

* Overseas marketing network (i.e., thru the Foreign Trade Service Corps (FTSC)
* Trade promotions
* Negotiations of bilateral and special trading agreements (Countertrade)

b) As a provider of auxiliary services needed by private exporters and export producers:

  •  Importation of raw materials
  •  Quality assurance
  •  Product development
  •  Packaging
  •  Logistics, shipping and cargo consolidation

c) Special functions:

♦ EO No. 120 s. 1993 - Designated PITC as the implementing office for the government's Countertrade Program to encourage foreign suppliers of government to reciprocally purchase Philippine goods or services.
♦ EO No. 442 s. 2005 - Designated PITC as the lead coordinating agency to make quality medicines available, affordable and accessible to the greater masses of Filipinos.
♦ Government price/supply stabilization projects.

PITC paves the way for the private sector to trade with other countries even if in the process of opening these new markets, PITC incurs losses. This developmental function requires sizable investments, which PITC provides from its own internally generated funds.

Thus, PITC as a self-sustaining trading organization renders an invaluable services to the private sector and helps realize the country's international trade objectives without being a financial burden to the National Government.