Guide to the Magna Carta for Micro Small and Medium Enterprises

Penalties on noncompliance shall be directed to the development ofthe MSME sector. Ninety percent (90%) of the penalties collected should goto the MSMED Council Fund, while the remaining ten percent (10%) shouldbe given to the BSP to cover for administrative expenses.(RA 9501 through Sec. 20 amended Section 14 of the RA 6977, asamended by RA 8289 and renumbered it as Section 19)SEC. 20. Implementing Rules and Regulations. — The Departmentof Trade and Industry, through the Bureau of Micro, Small and MediumBusiness Development and in consultation with other concerned governmentagencies, nongovernment organizations and private sector involved in thepromotion of MSMEs, shall formulate the Implementing Rules and Regulations(IRR) necessary to implement the provisions of this Act within ninety (90)days from the approval of this Act. The IRR issued pursuant to this Sectionshall take effect thirty (30) days after publication in a national newspaper ofgeneral circulation.(RA 9501 through Sec. 2, inserted a new section after Section 14 of RA6977, as amended by RA 8289)* This document prepared by the DTI-BMSMED presents the current/effective provisionsof RA 6977, in order to provide ready reference for a complete laws on the Magna Carta forMSMEs.**RA 9501 took effect on June 17, 2008, fifteen (15) days after its publication in twonewspapers of general circulation as provided under Sec. 24 of the Act. The Act waspublished in the May 31, 2008 issue of the Malaya and in the June 2, 2008 issue of theBusiness Mirror.18