Executive Order No. 640-A, s. 1981





WHEREAS, the motion picture industry has become a significant social institution that wields tremendous influence in the lives of our people and serves as a vital instrument for social and cultural changes in our society;

WHEREAS, the Government recognizes the need to integrate and rationalize all existing and envisioned efforts designed to encourage the preservation, growth and development of the motion picture art and science in the country, to the end that the motion picture will not only be a viable and profitable business enterprise, but a vehicle to accelerate the artistic, scientific and cultural advancement of the nation, and reinforce the national endeavor of social and economic development and progress;

WHEREAS, the Cultural Center of the Philippines as created under Presidential Decree No. 15, is the most appropriate Government agency through which the Government may promote and enhance the preservation, growth and development of the motion picture art and science in the country, through the adoption and proper implementation of sound and effective regulatory measures, the grant of incentives, and other reasonable means of attaining such purpose;

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

SECTION 1. It is hereby declared a policy of the State to provide support and assistance to the motion picture industry in the country, specifically for the purpose of achieving sound, effective and progressive integration and correlation of the business, economic and commercial functions and operations of the said industry, thereby making the motion picture industry a truly dynamic and vigorous instrument for national cultural growth and development and vital social institution which will enhance the artistic as well as scientific heritage of the nation.

Accordingly, the Cultural Center of the Philippines by itself or through any of the supporting bodies created or mentioned herein is hereby designated and authorized to implement such policy of the state.

SECTION 2. Pursuant to Presidential Decree No. 15 as amended, and in accordance with the policy declared in Section 1 hereof, a Filipino Motion Picture Development Board is hereby created as an arm of the Cultural Center of the Philippines. The Board shall perform the following powers and duties or activities:

1. To establish, operate and maintain an institution to be known as the Film Academy of the Philippines to be headed by a Director-General. The basic function of the Academy shall be to give due recognition, awards distinction, appreciation and other forms of reward for significant efforts and accomplishments of the improvement and development of the motion picture art and science in the country. In relation to its basic function as herein stated, and to further professionalize the motion picture industry through the formation of representative guilds in the various creative and technical sectors of the industry, the Academy shall maintain educational programs, scholarships, grants and other forms of and/or assistance, through which qualified and deserving persons with exceptional talent and ability in the film arts shall be afforded better opportunities for further development. In connection there with, the Academy shall coordinate with the already established MOWELFUND Film Institute of the Movie Workers Welfare Foundation, Inc.;

2. To establish, operate and maintain a special fund to be known as the Film Fund, to be headed by a Director-General, which shall be utilized to provide financial assistance to motion picture production venture or projects;

3. To establish, operate and maintain a Board of Standards to be headed by a Director-General. The Board shall formulate and administer, subject to the approval of the President, a national film rating and classification system based on the criteria prescribed by the said Board. In relation to its basic function as stated herein, the Board shall be authorized to administer and enforce a system of tax incentives structured on a graduated scale in coordination with the Ministry of Finance, which System shall be applied on the basis of the rating received by Film productions from the Board. In the discharge of these functions, the Board of Standards shall coordinate with and shall be assisted by the Board of Review for Motion Pictures and Television.

4. To establish, operate and maintain a Film Archive to be headed by a Director-General, for the purpose of preserving and disseminating motion picture which are historical, cultural and/or aesthetic value of the nation.

5. To establish, operate and maintain such administrative units as it may deem necessary or proper for the purpose; appoint, control and supervise the personnel therein; and promulgate such rules and regulations governing the duties, functions and responsibilities of such units in conformity with the objectives stated in this Order.

6. To provide assistance and support for all efforts, activities and enterprises which are designed or envisioned to raise the standard of the cinematic art and science in the country in consonance with the cultural, scientific educational values and sensibilities of our people and our society, and in keeping with the country’s social and economic development aims and objectives; add consistent therewith, to adopt and implement such measures as may be proper or necessary to ensure the success of such efforts, activities and enterprises and to obtain satisfactory results therefrom, particularly performance, and also in terms of cultural achievements;

7. To set up and administer a viable system of objectives to encourage the growth and development of high quality motion pictures in the country, which incentives shall include the grant of recognition to deserving individuals or entities who have contributed to the vital task and objectives of improving the quality of film-making or cinematic production in the country in accordance with the criteria formulated by the Filipino Motion Picture Development Board; and

8. To furnish and extend assistance to 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 their purpose and objectives;

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 participate and engage in productive projects and investments in order to generate adequate funds for their financial requirements, functions and responsibilities; and

12. To do and perform all acts and things as may be necessary in the exercise of their powers, functions, duties and responsibilities, or incident thereto, including all the corporate powers of the Decree No. 15 as amended.

SECTION 3. The Board shall be composed of seven members, with the Chairman of the Cultural Center of the Philippines, as Chairman, and the following as members: The Director-General for the Film Academy, the Film Fund, the Film Archives and the Board of Standards, and two (2) representatives of Cultural Center of the Philippines to be designated by the Chairman of the Cultural Center of the Philippines who shall be individuals widely respected in the motion picture industry for their commitment to the development of Philippine cinema.

The Board shall prescribe such rules and regulations for the conduct of its meeting and internal governance.

SECTION 4. The Director-General for the Film Academy, the Film Fund, the Film Archives and the Board of Standards shall be appointed by the Chairman of the Cultural Center of the Philippines, from members in good standing and of general repute of the Philippine motion picture industry. The Director-General for the Film Academy, the Film Archives and the Board of Standards shall serve for a term of two years. The Director-General for the Film Fund shall serve for a one-year term, without immediate reappointment during which term he may not engage in any feature film project, directly or indirectly, whether or not for personal, financial or other gain.

SECTION 5. The International Film Foundation, Inc., a non-stock corporation adhering to the policy declared herein, is hereby affiliated to the Cultural Center of the Philippines to assist the Filipino Motion Picture Development Board in implementing activities and operational undertakings related to the financial growth and stability of the motion picture industry, such as but not limited to:

1. the establishment, organization, operation and maintenance of international film festivals, markets, exhibitions and other similar activities, provide subsidies for deserving films invited to competition in International Film Festivals, for the purpose of having an effective and efficient mechanism which will enhance and promote constructive competition, trade and commercial relations, and goodwill in the motion picture industry, and also to foster closer relations between the Philippines and other countries.

2. the construction and maintenance of buildings and establishments such as theaters, screening rooms, archives and other similar facilities.

3. the importation of raw stocks and materials for the production of good quality motion pictures, particularly where such importation will result in the lowering of production costs and other economic as well as financial gains or advantages and at the same time in improving the quality of the motion pictures produced in the country; and

4. the undertaking of motion picture production ventures or projects of film makers or producers who are citizens of the Philippines, or of business firms, engaged in film-making which are wholly owned by Filipino citizens, through financial participation or investment in such ventures or projects, and by extending special services to such persons and films, such as research and consultancy, which are related to this specific function and area of responsibility.

SECTION 6. In furtherance of the objectives of this Order, the Cultural Center of the Philippines is hereby empowered and authorized to establish, construct, administer and maintain within the Cultural Center Complex, a Film Center and all buildings and facilities appurtenant thereto, to service the requirements of the motion picture industry. Any savings from any general or special appropriation or infrastructure act when approved by the President may be appropriated and expended for the purposes of this Executive Order.

SECTION 7. The amount of ONE MILLION PESOS (P1,000,000.00) is hereby appropriated out of the unappropriated portion of the General Fund for the operations of the Filipino Motion Picture Development Board through the Cultural Center of the Philippines, and thereafter they shall have an annual budgetary appropriation of TEN MILLION PESOS (P10,000,000.00) subject to applicable laws, rules and regulations.

DONE in the City of Manila, this 5th day of January, in the year of Our Lord, nineteen hundred and eighty-one.

President of the Philippines

By the President:

Deputy Presidential Executive Assistant

SourceMalacañang Records Office

Office of the President of the Philippines. (1981). [Executive Order Nos. : 631 – 705]. Manila : Malacañang Records Office.