EXECUTIVE ORDER NO. 250
EXECUTIVE ORDER NO. 250 -
IMPLEMENTING THE RATIONALIZATION OF DUTY FREE STORES/OUTLETS AND THEIR
OPERATIONS IN THE PHILIPPINES PURSUANT TO EXECUTIVE ORDER NO. 140 AND
FOR OTHER PURPOSES
WHEREAS, Executive Order No. 140,
dated 30 November 1993, provides for the rationalization of duty free
stores/outlets and their operations in the Philippines, in order to
enhance their conformity with the generally observed practices in most
countries and to avoid their possible adverse impact on local
enterprises;
WHEREAS, to implement the rationalization, there is a need to modify
policies and improve certain existing operational aspects of the duty
free stores/outlets in the Philippines;
NOW, THEREFORE, I, FIDEL V. RAMOS, President of the Republic of the
Philippines, by virtue of the powers vested in me by law, do hereby
order, as follows:
Section 1. Allowable Areas for Duty Free Shop
Operation. — The moratorium on the establishment of duty free
stores/outlets imposed by EO No. 140 is hereby lifted. Accordingly,
duty free stores/outlets, whether operated by the government and/or
private entities, may be established within the country’s international
ports of entry subject to the terms and conditions set forth in EO No.
46, as amended, and in the secured and fenced-in areas of special
economic zones/freeports pursuant to the provisions of the Bases
Conversion and Development Act of 1992 (RA 7227), establishing the
Subic Special Economic Zone/Freeport Zone, Clark Special Economic Zone,
John Hay Special Economic Zone, Poro Point Special Economic and
Freeport Zone; RA 7922 (Establishing the Sta. Ana, Cagayan Special
Economic Zone and Freeport); and RA 7903 (Creating the Zamboanga City
Special Economic Zone and Freeport).
Sec. 2. Phase Out of Certain Duty-free Shops. —
Duty free stores/outlets located outside said international ports of
entry and special economic zones/freeports shall be phased out on
December 31, 1995.
Sec. 3. Purchase Limits. — The purchase limits for
duty-free shopping shall be as follows:
a.
Tourists and Filipinos traveling to or returning from foreign
destinations-One thousand U.S. Dollars (US$1,000) but not to exceed Ten
Thousand U.S. Dollars (US$10,000) in any given year;
b. Overseas
Contract Workers and Balikbayans as defined under RA 6768-Two Thousand
U.S. Dollars (US$2,000);
c. Residents,
eighteen years of age and above, of special economic zones and/or
freeports, and in the case of Clark Special Economic Zone, in
accordance with Proclamation No. 163 and Executive Order 80-One Hundred
U.S. Dollars (US$100) per month per person; and
d.
Non-Residents of special economic zones and/or freeports-Two Hundred
U.S. Dollars (US$200) per person per year; provided that this privilege
shall be determined on December 31, 1995.
Sec. 4. Acceptable Currency. — Purchases in all
duty free shops shall be made only in U.S. Dollars or other acceptable
foreign currencies.
Sec. 5. Allowable Items in Duty Free Shops. — The
range of items to be sold by duty free stores/outlets operated by Duty
Free Philippines outside of special economic zones/freeports
established pursuant to Republic Act Nos. 7227 and 7916 shall
henceforth be limited only to consumables, light durables, television
sets of sizes not manufactured in the Philippines and locally
manufactured heavy durables. Imported heavy durables carried by duty
free stores/outlets operated within special economic zones/freeports
can only be sold to the residents of the secured area of the special
economic zones and/or freeports. Sale of all locally manufactured goods
in duty free shops/outlets shall be encouraged.
Sec. 6. Oversight Committee. — There shall be an
Oversight Committee, chaired by the Executive Secretary with the
representatives of the following as members: the National Economic and
Development Authority, Departments of Trade and Industry, Finance,
Justice and Tourism, the Bases Conversion Development Authority, and
three (3) representatives from the private sector, as recommended by
the Department of Trade and Industry. The Committee shall recommend to
the President policies for the efficient administration of the duty
free shops operations shall submit quarterly reports to the President
on the duty free shop operations.
Sec. 7. Secretariat. — The Presidential Management
Staff shall be the secretariat of the Oversight Committee.
Sec. 8. Control System. — The Duty Free
Philippines and operators of duty free stores/outlets in special
economic zones and/or freeports shall put up and operate control
systems designed to detect and prevent abuses of the privileges granted
under this Order. The control system must be made available for audit
by the Bureau of Customs. Any violation of this Executive Order and/or
abuse of the privileges granted herein or other related laws and
issuances shall be acted upon within seventy-two (72) hours after
its report or discovery and a report thereof submitted to the Bureau of
Customs for appropriate action.
Sec. 9. Reporting. — The Duty Free Philippines and
operators of duty free stores/outlets shall submit to the Department of
Finance on a quarterly basis such information as may be required by the
Department.
Sec. 10. Export Promotion. — Under the direction
of the Department of Trade and Industry, the Duty Free Philippines
shall undertake export promotion activities the cost of which shall not
exceed one (1%) percent of its annual net sales.
Sec. 11. All other provisions of E.O. No. 140 not
otherwise affected by this order shall stay in force, including, but
not limited to, the requirement that the Duty Free Philippines shall
remit to the National Government an amount equivalent to 1.5 per cent
of its net sales.
Sec. 12. Repealing Clause. — All executive orders,
letters of instructions, issuances, memoranda, and proclamations not
consistent with the provisions of this Order are hereby repealed or
amended accordingly.
Sec. 13. Effectivity. — This Executive Order shall
take effect immediately.
Done, in the City of Manila
this 2nd day of June in the year of Our Lord, Nineteen Hundred and
Ninety-Five.
chanrobles virtual law library
Back to Main
chan
robles virtual law library
Since 19.07.98.