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ADMINISTRATIVE ORDERS
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ADMINISTRATIVE ORDER NO. 98
ADMINISTRATIVE ORDER NO. 98 -
AUTHORIZING THE PHILIPPINE INTERNATIONAL TRADING CORPORATION (PITC) TO
OPERATE AS A CUSTOMS BONDED WAREHOUSE SOLELY FOR THE PURPOSE OF
IMPORTING SUGAR FOR FOOD EXPORTERS
WHEREAS, the Export Development Council as
provided under RA 7844 shall mandate specific departments and agencies
to attend to the bottlenecks and problems constraining the development
of exports;
WHEREAS, streamlining export procedures and documentation has been
identified as one of the strategies to create a favorable environment
for export promotion;
WHEREAS, food exporters are suffering from the long-standing problems
on the supply, unstable price and quality of domestic sugar compelling
them to import tax and duty-free through Customs Bonded Warehouses;
WHEREAS, the Sugar Regulatory Administration (SRA), Export Development
Council (EDC), Bureau of Customs (BOC), Philippine International
Trading Corporation (PITC), and Philippine Exporters Confederation
(PHIPORT), the EDC accredited organization, agreed to allocate annually
a minimal volume of sugar for food exporters through the PITC Bonded
Warehouse;
WHEREAS, the PITC is a corporation duly organized and existing under
the Department of Trade and Industry and by virtue of the laws of the
Philippines mandated to assist exporters to enhance export performance.
NOW, THEREFORE, I, JOSEPH M. EJERCITO ESTRADA, President of the
Republic of the Philippines, by virtue of the powers vested in me by
law, do hereby order:
Section 1. The PITC shall operate a Special Customs
Bonded Warehouse (SCBW) solely for the importation of refined sugar by
food exporters, the operating guidelines of which is attached as Annex
A;
Sec. 2. The SRA shall allocate annually the volume
of sugar to be imported for processed food exporters through the PITC;
Sec. 3. The creation of the Committee on Sugar
Importation for export which shall be composed of the EDC, PITC, BOC,
SRA, and PHIPORT with the following functions:
1. Monitor importation and liquidation of sugar used
by processed food exporters;
2. Accredit processed food exporters for the purpose
of using the PITC-SCBW; and
3. Recommend revisions in the procedures for
importation.
IN WITNESS WHEREOF, I have hereunto set my hands and caused the seal of
the Republic of the Philippines to be affixed.
DONE in the City of Manila,
this 28th day of October, in the year of our Lord, Nineteen Hundred and
Ninety-Nine.
ANNEX A
PITC-SPECIAL CUSTOMS BONDED WAREHOUSE FOR THE IMPORTATION OF REFINED
SUGAR FOR FOOD EXPORTERS
OPERATING GUIDELINES
I. OBJECTIVES
A. To facilitate the access of duty-free imported
refined sugar thru the Customs Common Bonded Warehouse (CCBW) for use
of processed food exporters;
B. To ensure compliance with governmental rules and
regulations on the use of CCBW for imported refined sugar;
C. To define functions and responsibilities of all
concerned agencies and offices; and
D. To monitor the importation and liquidation of
refined sugar imported under the Special Customs Bonded Warehouse
(SCBW) to be operated by the PITC
II. QUALIFIED IMPORTERS
Processed food exporters are qualified to import refined sugar in the
following manner:
A. PITC-CBW Accredited Members of good standing
PITC-CBW accredited processed food exporters are those who passed the
BOC rules and regulations on standard accreditation. Processed food
exporters who are PITC-SCBW accredited with must also sign pertinent
service agreements with the PITC.
B. Accredited Members of other Customs Common Bonded
Warehouses of good standing (i.e. PHIPORT, PHILFOODEX, etc.) provided
that such warehouse or processed food exporters have not been
blacklisted by the BOC and provided further that said warehouse is
still operational.
C. Processed food exporters who operate their own
Private Bonded Manufacturing Warehouse (PBMW) upon the approval of the
Committee.
D. Subcontractors who directly supply processed food
products to processed food exporters provided that direct importation
from PITC should be done by the subcontractor's qualified processed
food exporter.
III. KEY RESPONSIBILITIES
A. PHILIPPINE EXPORTERS CONFEDERATION, INC. (PHIPORT)
1. Provide PITC the list of qualified processed food
exporters/members of good standing who will be importing refined sugar
under this scheme together with updated company profile and list of key
officers, their contact numbers and addresses;
2. Coordinate with SRA quantity of imported refined
sugar required by processed food exporters;
3. Provide financing thru Export Bank to PITC, when
necessary, for PITC to support the required amount of refined sugar to
be imported;
4. In collaboration with PITC, ensure liquidation of
the imported refined sugar with the Bureau of Customs (BOC) in
accordance with existing regulations and within the prescribed period;
and
5. Ensure compliance by all accredited
members/exporters of rules and regulations issued by competent
authorities including PITC relative to the scheme
B. SUGAR REGULATORY ADMINISTRATION (SRA)
1. Establish the sugar requirement of all processed
food exporters;
2. Issue clearance to PITC for the imported refined
sugar required by processed food exporters, the quantity of which as
determined by PHIPORT, prior to release of the sugar from the BOC;
3. Monitor the liquidation of such imported refined
sugar; and
4. Issue pertinent sugar orders necessary to
facilitate/implement this refined sugar importation scheme
C. BUREAU OF CUSTOMS (BOC)
1. Supervise and monitor operations of PITC-SCBW for
the importation of refined sugar for food exporters;
2. Ensure compliance by all concerned of BOC rules
and regulations pertinent to refined sugar importation;
3. Ensure liquidation of imported refined sugar in
accordance with existing regulations; and
4. Cooperate and coordinate with PITC on matters
pertaining to the refined sugar importation for food exporters
D. PHILIPPINE INTERNATIONAL TRADING CORP. (PITC)
1. Provide its Special Customs Bonded Warehouse
facility for the refined sugar importation of processed food exporters
as authorized by competent authority;
2. Provide refined sugar sourcing or procurement
services and other allied services (i.e. brokerage, financing, etc.)
for the food exporters per their requirements subject to such
guidelines and conditions as may be drawn up between the entities
concerned; and
3. Coordinate with concerned participating agencies:
PHIPORT, SRA, EDC and BOC on the operations of the SCBW and the refined
sugar importation scheme herein established
4. Request financing, when necessary, from the
PHIPORT thru the Export Bank to finance the required amount of refined
sugar to be imported;
IV. PROCEDURES
A. Qualified processed food exporter shall coordinate
with PHIPORT re the amount of refined sugar they need;
B. PHIPORT shall endorse the amount of refined sugar
required by the qualified processed food exporter to PITC;
C. SRA shall issue clearance to PITC prior to release
of the import refined sugar from the BOC;
D. PITC shall release the refined sugar to the
qualified processed food exporter or to his bonded warehouse;
In coordination with the BOC, the PITC could also effect deliveries of
imported refined sugar of food exporters from PITC-SBW to their
respective PMBWs, which shall be considered as constructive exports or
bonded-to-bonded transfer to food exporters.
E. After exporting the processed food products, the
exporter shall liquidate his importation with the BOC. However, the
ultimate liquidation of the imported refined sugar shall therefore be
the responsibility of the CCBWs and PMBWs concerned.
F. PITC shall, upon transfer or delivery of the
imported sugar to food exporters and upon presentation of
relevant/required documents to 130C, be deemed to have constructively
liquidated the original import entry; and
G. PITC shall submit report on the importation and
liquidation to the Committee on Refined Sugar Importation for Processed
Food Exporters composed of the EDC, BOC, PITC, SRA and
PHIPORT
V. PITC REQUIREMENTS FOR REFINED SUGAR IMPORTATION
A. PITC-SCBW will only accept and handle applications
to import refined sugar which shall be used by processed food exporters
and/or their subcontractors to service existing export orders with no
legal impediments subject to existing rules and regulations;
B. PITC shall source the refined sugar using PITC's
own supplier/s, PHIPORT/processed food exporters, or subcontractors
recommended suppliers and the quantity/volume shall be based on the
schedules submitted. Suggested minimum volume is one (1) boatload or
5,000 metric tons;
C. Should PITC opt to finance refined sugar
importation, PITC's financing terms, payment terms, and other related
conditions shall be subject to mutual agreement with concerned parties
and on a case-to-case basis. However, should PITC opt to ask for
financing, it shall ask PHIPORT thru PITC to finance their refined
sugar importation;
D. The refined sugar importation shall be
processed/coursed thru PITC's Special CBW per BOC's rules and
regulations and in accordance with the guidelines herein adopted
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