BSP Circulars BSP Circular No. 1389BSP Circular No. 1389 1993-04-13T00:00:00.000+08:00

Consolidated Foreign Exchange Rules and Regulations

ICENTRAL BANK OF THE PHILIPPINES) MAYNILA PILIPINAS

Circular No. -1389

CONSOLIDATED FOREIGN EXCHANGE RULES AND REGULATIONS

Pursuant to Monetary Board Resolution No. 246 dated March : 28

1993 the. foreign exchange ruies andregulations : on current

accounts, capital aiccounts, foreign currency deposit units, offshore banking units and representative offices Q& foreigu

banks are hereby consolidated as follows:

PARI ONE.CURRENT ACCOUNIS

CHAPTER I

DISBURSEMENTS, TRANSFERS OF LOCAL CURRENCIES NON-TRADE FOREIGN IXCHANGE RECEIPTS AND AND GOLD TRANSACTIONS

Section i. Dispositionof Foreisn ExchangeReceipts. Foreign

exchange receipts, acquisitione or earnings of residents from

non-trade sources may, at the option of said residents, be 30ld

for pesos to Authorized Agent Banks (AABs) or outside the banking

system, retained, or deposited in foreign currency accourits

whether in the Phiiippines or abroad. All categories of banks

(except Offshore Banking Units [oBUs]), duly licensed by the

Central Bank shall be considered as AABs.

Section 2. Sales... .of..Foreisn....Exchaue byAaBs. AABs may

sell foreign exchange to residents, (inciuding the Governnent ,

its poiitical subdivisions and instrumen ities and government

IPAGPATULOY ANG KAUNLARAN MAG-IMPOK SA BANGKO

owmed and -controlled corporations), upon the latter's . written

application for any non-trade purpose without need of .prior

Central Bank approval. However, foreign' exchange for payment' of

obligations.that are foreign loan- or foreisn-investment related,

may be sold by AABu to residents upon: showing that Centrai' Bank

ipproval..and/or registration has been obtained for the loan 0r

investment, whenever reguired by'these regulations. AABs.selling

foreign exchange for remittance abroad shali ensure that. taxe.

when required, have been paid and that the remittance is net .0f

such taxes.

Section 3.. Purohases...of.Foreifm..Fxchanre by...Non-Residanta. Non-

: residents. may purchase foreisn exchange from AABs'only to the

extent of the amount shown to have been sold by them for .pesos to

AABs. Departing. non-residents may reconvert at .airports

other ports of exit unspent pesos of:up to a maximum of US$200 or

.an equivalent amount in any other foreign.currency calcuiated at

prevailing'. exchange rates,. without need of showins proof D&

previous sale by them of foreisn exchange to AABs

Soction 4. Importi/Fxport of Philinpine..Currency. No person may

importi or export nor brins with him into 'or out of the country,

OY olectronically tranmfer lesal tendor Philippine notes arid

coins,. checks, money order'and othor bills of.exchange drawn in

pesos. .against banks operatins 'in the Philippines in ut

oxceoding P5,000.00 without "authorization by the Central'Bank.

The term "electronic transfer" as used herein shall mean a'system.

where"the authority to debit or crodit an account (bank, business

or individual) is provided by wire, without a 'source ..document 'beins mailed to ovidence the authority.

Section 5. . Buxins..and Sellins_.of..Foreisn..Exchanse...nd....of._.Gold by Reeidenta.

Foreien exchangemay be freely bought and sold outside the bankins system. Except 'as provided in this Circular, goid and: gold- bearing' metals' may likewise be bought and soid

without specific approval of the Central Bank.

C Gold.'from'. smali-scale miners' shall. be sold. to

Central Bank. All other forms'or types of gold may. at the option of the owner or producer thereof .and

with. ths consent : of Centrai Bank, be.sold and deiivered to the Central Bank.

The Central Bank may sell gold grains/pellets/bars and sheets to

iocal jeweiry manufacturers and.other industrial users upon application, or to banks exclusively for re-sale to jeweiry manufacturers/industrial.users, at the Central. Bank' sold-selling price plus 0 service .fee to cover costs including. cost

conversion .and packaging.

CHAPTER

FOREIGN TRADK .TRANSACTIONS

IMPORT .TRADE TRANSACTIONS

Section 6. General.Policy. As.a genoral rulo,. all kinds of

morchandise imports are'rallowed. However, the .importation of

certain commodities are'regulated or prohibitod for reasone. of

public health and safsty, : national security, international

commitments, and development/rationalization of locai industry

Soction 7.: .Clasaification: mpo Import- aro classified

ns followo:

Fr-nlxImportabla.Commodittea.. Thoso - commo

reguiated. nor prohibitod as defined undor .(2) dities' the importation: of which FG neither and

(3): hereundor: The importation may be offectod

'without the prior.approval of or cloarance from : any

fovernment agency.

Rosulated Commoditios. These are commodities the

importation of. which requires clearancos/pormits

from, appropriate.'government agencios inciuding. the

Central Bank. .They are enumeratod under Appendix

of this Circular

3 Prohibitod Commodttion. Thoso are commodities tho

importation of which is not'allowod under oxisting

laws. They are onumerated undor Appendix 2 Of this

Ciroula

Soction B... Mod-a.of Pas nt..for..Importa. Commercial banks . may

seil foroign exchange to sorvice payments for imports under any of tho foilowing arrangements without prior CB approvai :subject

to the provisions of Sections 9 to iz:

1 Lettor of Credit (L/C):

2- Documents Against Payment (D/P); 3. Documents Against Acceptance (D/A);

4 Open Account Arrangement (O/A); and

5: Direct.Remittance

Section 9. Lattarof Crodit

Reauirom-ntsfor..L/C...Qpenins.. Aii L/Ce. muat bo

opened : on Dr before 'tho dato Qf shipment with

maximum validity of one (i) year. Likewise, only

one L/C shouid be opened for each import

transaction. For purposos. of opening an L/C

importers'. shall submit 'to the commercial bank . the

foiiowins documonts:

B* The duly accomplished L/C application;

: Firm offer/proforma invoico which'shali contain

information on spocific quantity . of. the importation, unit.cost and total.cost,. complete description/specification of the commodity and

Philippine :Standard Commodity Classification statisticai code;

Permits/ciearances : from appropriate government

agencios,. whenover. applicable; and

Duly accomplished Import Entry 'Deciaration (IED) Form which shall serve as basis for payment .of advance duties as required under PD i853. 2. . Amendments_..f...L/Ca. L/C amendments need hot be

referred to: the Central Bank for prior approvai:

However, amendments extending.the total validity period of an L/C for more than one (l)year,, ++

payment of the L/c is to be sourced from the banking

system, shail be referred to the Central Bank for

prior approval.

3.: N-gotiation.. 'of...L/Cs. L/Cs shall bo negotiated in

accordance with tho terms and conditions aet

forth .in the . L/C and shall be governed by the

Uniform Customs and Practices On Documentary

Credits The reguirement Df pre-shipment

inspection/Clean Report of Findings (CRF) .shali be

strictiy observed, whenever applicable.

Section io. Documenta_Asainat...Payment...(D/pi)

"Under .the D/P arrangement, commercial banks. shall.

advise: the importer.of the.receipt of the completo

original shipping documents'(inclusive of the : CRF

whenever applicable) and shall effect the reioaso of

said document8 t0 the importer upon receipt of

Payment

Commercial banks shall'remit payment to the supplier throush the correspondent bank abroad.

Section ii. Documents.._Against Acceptance (D/A. andOpen.Aocount (o/A. Arransements. Under a D/A arrangement. the shippins

documents are : released to the importer by the. local bank

concerned thru .the setler"s bank upon the importers acceptance of the seller's bill of exchange obligating the inporter to pay fo

the shipment at some future date. Under an O/A. arrangement, the

shipping documents are sent and released by the seller directly

Co the importer without coursing the documents thru .the banks

upon the .importer's promise to'pay at some future date after

shipment

Eligible_Eirms. Producers/menifacturers whether for

: the domestic or export market. oil firms, franchised

public utility concerns and importers-traderi

importing. raw materials reguired by domestic

manufacturers are allowed to import under D/A and

O/A arrangements

2 Resistration...and Favnent.ofD/A..andQ/A...imports

Importations under D/A andO/A arrangements

shall be covered.. by a Central Bank Release

Certificate (CBRC) and registered with the

Central Bank upon availment for monitorins

purposes. Commerciai banks .are authorized to

issue the :CBRC: upon receipt of the complete

shipping documents inclusive of the CRE If

appiicable,.: and submission by the importer of

the. duly'accomplished Record of Goods Imported

(RGI) and: tho pertinent : import permit

appiicable):

Payments. sourced . from the -commercial bankins

system shall not be effected for unregisterod DA/OA 'imports. Payments prior to maturity : date

'can be made providod these. have aiready boen registered. Paymentg subsequent to the originai maturity, date may be ' allowod'without prior

Contral Bank approval provided.that:

1 tho. importors report the extension of tho

maturity period to a specific dato; and 2} the cumulativo' length of, the maturity

periods, including all'extensions, does not in any case exoeed.one .(i) year from date.of . 'draft accoptance for D/A and B/L (Bill. of

Lading) date for O/A. Paymonts : of D/A and O/A obligations, the maturities of which shall have oxceeded 360 days from:date of draft acceptance in .caso of D/A or B/L date in'case of O/A shall be referred to the Contral Bank for approval; and M-chanics of Reristration. Appendix : 3 of this

Circular contains the:mechanics .of roportins and rogistration of D/A and O/A imports.

Sootion 12. .Diroct... Ramittenca. ...Commercial banks. may garvic applications for direct'remittance of import. payments effected through modes.other than those.undor L/C, b/P, D/A or O/A 'oniy

upon presentation of the complete original shipping documents BC

well . as copy of the CRF and/or' import clearance for. resuiated

:items issucd by concerned government asencies, if applicable

Soction i3. ' Qther_Import Arrangeinenta: . Import. arrangements not

involvins payments using foreign exchange purchased from. the

bankin's Systom are. aiso aliowed without prior Centrar Bank

approval: Theso' inciudo:

Seif-Funded/No-Doilar) Importa. These are imports

funded.from'importer*s owm foreisn currency deposit

accounts or those sent by suppliers abroad for which

no payment in foreign.exchanse will bo made whother

immediate or potential:

2: . Importations:..on..Consirnmerit..Ba-is. Theso are

importations ..by export producers of materials

and : accessories/supplies from foroign

suppliors/buyers.abroad. for...the .'manufacture Ox processing of products destined for export to.'said

foreign suppliers/buyers. . These shall aiso include

machinery/equipment. and spare parts consigned .to the iocal manufacturer/processor : for . oventual ro

oxport to the consignor, provided that the equipment

invoived shall 'be used oniy in. connection with ..the processing of products .for export

Soction 14...Comprehensive-...Import.. Supi ervicio Sahome (CIss)

Goods desttnod.'for importation into the . Philippines shall.. bo

subjoct inspection by the inspoctor(s) duly authorized by the

in. the countries of.supply, as, to the.. quality, Government Code, quantity, price/HCV, verification of'Tariff.and ' Customs

and 'verification. of Tariff rate, under B

classification

Comprehensive Import Supervision Scheme (Ciss).

Pursuant .to. Joint Order i-91 (Appendix 4) . which.'governs. the

impiementation of the.CIss, the following commodities are subject

C .inspection: countries -with

Goods sold and/or. supplied from ali

FOB value of. US$500.00 and above.

Goods. invoiced or .declared' in' the shipping documents.

off-quality '.under . such descriptive . terms ..as. BS seconds, mill stockiots,: side-runs, cull rolls,

junk scraps, off-grade, reconditioned,.used, lots, convoy or similar terms conveying or purporting.to

brand -new the condition of the article as not being.

first quality, regardless of yalue.

XPORT TRADK TRANSACTIONS

'Soction..15.. Gonorti Poiicy. It.. is'.the policy of. tho Central:

Bank ' to. oncourafe. commodity.. 'exports .. which Sonerato ..forcign

oxchange . oarnings: for : .tho country Accordingly. commodity

oxports . are. allowod.. without: rostriction .oxcopt for: cortain.

..commodities. .which "are regulated or.prohibited. for.. roa0onn ::of

national :intorost or by provimion '- aw

Soction 16.: Claaniftcation ot Rrionta

Fraciy Fxport bla. rnodtti-n. Thope aro

comnoditios: the exportation of .which 18 noithor

rogulatod. "nor.. 'prohibitod. :Thoy may offoctod

without. : prior approval of.or cloarance from any

governmont agoney.

Rosulatad Oe LGg Thoso 'are. commodities'.. tho

oxportation .of.which requiros cloarances/permits

from appropriato governmont. asonciog. Tho iist..of

thoso. : products .and: the "appropri te governmont

agonciom/offices.is.showm in Appondix: 5.

Prohibitad- .Fxporta: : Those aro. commoditios. 'tho

Kportat lon or sale of which is'prohibitod/ponaltzod

Soction 17. Export Declaration.(Ep)

1 IndividiaiExport_Declaration

Wtth. Foreirm.Exchans-. Proceeds. For avery

export. shipment with foreigm exchange proceeds,

exporters must accom plish Form CBP: .6-21-02

S Proceeds). : Exporters to ASEAN .countries Revised 1991 (ED With .. Foreifn : Exchango. must

ifkewise accomplish this ED oven if the shipment

18 paid' for - in Philippine' pesos... The: duly

accompiished ED 'shall. be submitted..to tho

commercial bank which shall .in turn forward .the

same to the Bureau of Customs (BOC);: and.

Without Foreisn Exchanra Prooceds. Every export

shipment : without : foreign exchange proceeds

shall' be coveredby : an : Export Doclaration

Without Foreign Exchange Proceeds,- issued by. C

commercial bank using CBP' Form No.: 6-2i-04.]

Household and personal effects forming part. ".f

the accompanied baggage of an outgoing passenger

leaving the Philippines shall be exempted from

this requirement.

Monthlx Export_Declaration MEDi: The use of a: MED

may be allowed by the 'commercial bank for exports

'with. or without foreign exchange proceeds that- are:

frequent and 'recurring, using the same form for ED

under the form Section 17. but adding the word : "Monthly" title provided 'that : the "exporter shaii to

submit a' summary report to tho commorcial bank of. all shipmonts offected under tho isaid MED. The. authority . to use 'such a MED.shall be vaiid.. for :a period of one (l) year. Resistration..and. Iasuanco. .. The . commorcial. bank shall register ail EDs it issues and Shall adopt a control .number. 'for. cach Eb as proscribed. by the Contral. Bank attached herewith as Appondix.e.. No ED: shail bo issued unless.the Letter .of. Credit (L/C), 'Purchase : Order (P.o.) or. Salos: Contraot (s.c.) 'is submittod to tho commercial bank. . Yalidity....Pariod. . An...ED shali ..have ' a.maximum..

validity. poriod ..of ninety (90). days.from .'dato. of

issue,. inciusivo of oxtonsions, provided that. tho.. expiry' dato doea'not go beyond the.delivery poriod

specified in'the L/C; P.O. or s.c. Amondmonta.. Amendments to tho ED may be allowed by

commorcial . banks . at .any.' timo. .before - . oxport

negotiation without. prior. Central Bank approval. Cancollation_Qf ED. . Roquosts for cancellation of an ED ' may bo given due course by the' commercial bank upon submission by the oxporter of the original EDi: thoreof or'Cortificate of Non-Shipmont issued by tho.

Bureau of Customs

(

Soction i8. Authorized Modes. Modea and Currency of Payment Payments for exports .may be made

under any of'the following modes without prior

Central Bank approval:

Letter of Credit (L/C);

Documents Against Payment (D/P)/Cash Against

Document (CAD);

Documonts Against Acceptance (D/A);

d. .Open Account (O/A);

Intercompany Open Account'Offset (Interco O/A)

Arransemont (can .bo availed of only by firms

with paront/affiliate rolationship abroad); and :

Consignment .

Oth. Authoriznd Modoa.. Paymonts for exports may

'also be made under the following modes without prior

Central Bank approval:

Export Advance - if the remittance is received

more than thirty (30) days before shipment; and

D Prepayment if the remittance is roceived

: within thirty (30)'days before shipment.

To .'enable the commereial bank to determine: whether

the remittance received is a prepayment or an sxport

advance, the. exportor upon receipt 1f Buch

remittance shalli disclose to the commercial bank the

date the shipment.is to bo 'cffected.

Bank draft/telesraphic transfor, buyer ' chocks.

travollor g. checks or acceptabie': foroign . curroncy notos may be used, in'prepaymont/export advance; . but for buyer's checks, the same shall be cieared beforo

shipment.

C Accoptabl- Currencios

Payments for exports may be made $n the

followins 'curroncies:

10 1.2 s) Nethoriands Guiidor 5) B 8 2 G 4 ) Boigian Franc Austrian Schillins Japanese Yen Deutsche Mark French Franc Canadian Dollar U.s. Dollar Hongkong Dollar Singapore Dollar Pound Steriins Swiss Franc :.14). 19) Brunoi Dollar i5)Italian Lira 20 21} 23} 13} 16.) 18) 22) 17} Australian Dollar Rinsgit:Mal'aysia Bahrain Dinar Indonesian Rupiah Thai .Baht Unttod Arab Emirates.Dirham Such other curroncies Saudi .Riai Kuwaiti Dina that may 'bo declared

accoptablo by : Bank Contral

N Payment's . may, '.however, bo' made In Philippino

pesos.for the followins: :

1 Exporta Contral to. ASEAN countrios : Bank 'shall . not:'. be providod : asked that 'to.

intervene"in the cloaring of. any balancos: from. this paymont schome, and

2} Gold saleg I to. Contral'. Bonk:. which aro

conaidored as conetructivo -exports.

Soction i8. .Nosotiotion.nd Paxmont Procaduros

Nasotiation. The .oxporter" shall. negotiate his bili

1f oxchango/account.. with : the comnercial bank

together'with the bill of ladins/airway biil, signed commercial invoico and other documents as requirod.

The commercial bank shall : cortify to' the : Baid negotiation in the ED2 copy which shall form part

QE .the commorcial bank's Daily Roport on Export Negotiations

In. C88e of availmonts tof export .advancos, the commercial .bank thru which tho availment WaB made

must. also ibo the same bank to negotiate the export documonts

In cases whore a'shipment is fully prepaid, or.' is.

O/A basis, the exporter may send the documents directly. to ' the buyer. Howevor, copies .0f theso. documents must be submitted to the QmmGrciA

'bank which issuod the ED.

2: Payment. Payment-shall be subject to the guidelines

set.forth undor Appendix 7 :of this Circular. Upon receipt 'of the export proceeds, the commercial baink shall certify' to I.such receipt. on: tho : ED5 : CORy thoreof.

Section 20. Disnonition..of.Export Proceeda. . Foreign. exchange receipts, acquisitions.or oarnings of residents from exports may;

4t 'the option of said'exporter, be sold for pesos to AABs Qr

Outside " tho bankine systom, rotainod, or depositod - in .foreirn

currency accounts; whother in tho Philippines or abroad and #ay

be used freely for any purposo.

Soction 2i. Gold and ConrtructixaExportm

. Gold. All ..exports .of.soid in 'any form .may be

allowed oxcept. for aold from. small-scale mining

which is. 'required to be sold to the'.Central Bank

pursuant. to: Republic Act No: 7076 dated June 2

199i.. Gold from. small. -scale mining inciudes pannod

gold

Conatrictivo Exporta. In addition.to gold sales tc

the. Contral Bank, tho followins sales of residonts

Paid for in foreign' curroncy shall be considered .

constructive exports:

Goid'sales'to the Central Bank even if paid: fo

in Phiiippine curroncy;

Sales of residents'paid for in foroign currency

to the following entities:

.1) Bonded. manufacturing warehouses OE export

producers/manufacturers;

2) Export Processing Zones;

C} BOI-registered export. traders operating

bonded - trading 'warohouses " supplying Yaw

materials used'in tho manufacturo of oxport

products;

Dt plomatic migsions 1n - the Philippi

5} Duty Free Philippines : Ihc. (DFP): and

6) Foroifn buyers of goods/products to bo

delivered directly to local consumers at the

instruction: of the former and paid for 1

foreign currency.

An ED for each sale shali be accomplished, provided

that the exporter shall submit'a: delivery receipt

signed by the buyer. in. lieu .of the bill 0f

iading/airway bill. For,sales of DFP,a MED shall

be accomplished instead of 'an ED.

PART TWO. CAPITAL ACCOUNTS

CHAPTER I

FOREIGN CURRENCY LOANS & GUARANTEES

Section 22. General Policx. The Central Bank shall regulate

forcign currency loans to ensure that interest and principal

owed to creditors can be serviced in an orderly manner and. with

due regard to the economy's overall debt 3ervicing capacity. Pursuant to Article'VII Section 20 af the Constitution, all

public and private sector publicly guaranteed obligations from

foreign creditors, Offshore Banking Units (OBUs) and : Foreign

Currency Doposit Units (FCDUs) shall be referred to the Central

Bank .for prior approval. Other private sector loans from'.these

creditors .and other:financing schemes/arrangements: shall reauir.

prior. approval and/or registration by the Central Bank if to be

serviced usins foreign exchange purchased from the banking

system

Section 23. Loans Reauiring..Prior.. Central..Bank...Approval. Prior

Central Bank approval shall be reguired for the following loan.

1t Loans of the following pubiic sector entities

irrespective of maturity, creditor and the source of

foreign exchange for servicing thereof:

National Governnent , :.its agencies and

instrumentalities;

Government-owned/controlled corporations;

Government financial institutions, except short

term normal interbank borrowings; and

Local governments.

Contral Bank.approval "shall be obtainod even. before commoncohont'of actual negotiations:

2 Loans . of the private . Boctor irrespective of

maturity, creditor and tho : gource OF foroir

oxchange .for servicing thereof if:

guaranteed' . by government corporations "and/or government financial institutions; covered.by foreign exchanga.'guarantees issued.by iocal commercial banks; and

to be .granted by. FCDUs. and:.spocificaliy. 1

directly: funded from; or: collateralized

offshore-loans or deposits.

3 Loans ' with 'maturities in oxcoss of ono.(i) year . to

bo : obtained.. by. private. commercial : banks. and

financial : institutions .intended for. rolendins tg

pubiic or private soctor onterprises: Loans to be extended by participating creditor banks

under the Revolving Trade Facility (RTF) :Agrooment

to . a Phiiippine obligor, havins a. :iong-torm : tenor and..'is. for. the. purpose of : tho purchase : and-

importation .into .the, Philippines. of :. tangiblo porsonal: property (Capitai Asset:Purchaso Credit), pursuant .to.Articlc vI (Relendin# Option) of 'said

Atroomont

Other privato sector loans, irrespective of maturity

1f to :be. sorviced using foreigm exchange purchabod

from thy.banking system and IO'w covered by

Section 24 hereof.

Loan applications shall be filed usins the

rescribed forms.

Section 24. Loans... Not.... Reouirins.. ...Prior..Central..Bsnk...Approval.

The foilowing loans may be granted without: prior 'approval of the

Central Bank:

1 Loans Of the'private : sector from FCDUs/offshore

sources : irrespective of'maturity, to be serviced

using foreign exchanse purchased from outside of the

banking.system.

Short-term: (with maturity not .exceedingone'.[i]...

year) loans of financial institutions, both ' public

and. private, for normal. interbank transactions,

e.8:, interbank call ioans and general liquidity

ioans.

3 Short-term loans of the private sector.in the form

of. export advances from buyers abroad. Short-term. loans of the following 'private sector

borrowers from FcDUs:

Commodity and service exporters: Provided

these 'loans are used to finance. export-related

import. costs of goods 'and services as Weli 3

peso cost requirements

Service exporters shall refer to Philippine

residents: engaged Or propoaing to engage in

rendering. . technical, professional Qr other

services which.are paid for in foroiin exchango.

Producers/manufacturers, inciuding'oil companies

and public utility concerns - .provided the ioans

are. used to finance import. costs 'of goods and

services 'necessary in the production of soods by

the borrower concerned.. .. Producers/

manufacturers shall refer to: any person Q

entity who undertakes the processing/conversion

Qf raw materials"into markotable .form. through

physical; mechanicai, chemical, or othor means:

or. by special treatmont or a series of actions

that 'results in.a change in the nature or . gtate

of the products.

Public utility firms shail refer'to any business

organization which regulariy suppiies the public

with commodities or services such 83

electricity, gas, wator, transpoi tI

telograph/tclephone services and the like.

Proceeds of FCDU loans shall not bo eligible for

deposit ,in an FCDU account if to be serviced using

foreign exchango purchased.from 'the banking system.

Short-term 1oans Of privato Bector

exporters/importers from participating creditor

banks under the Revoiving Trade Facility (RTF)

Arroemont. provided that:

The loans aro not covored by a guarantee from

a governm nt financi l'institution/corporation;

b The loans shall be.oxclusively used to finance

Bpociitc : trade transactiong in an amount

cquivalont to the import bills.to be .liquidated

and/or In. tho ..0ame 1f expor't financing

transactiono: to 'tho'..'borrowor" Pro-export financing requirements; Tho 'advice or.: notification on .the loans to . be

obtained together.with the pertinent documents 'cited in Appondix"s have"beon submitted to tho

Contrai* Bank" iat'loast fivo (5) days prior t0

drawdown datei

Drawdown and .rosistration roquiromonts undor

Sections 27 and 2s.horeof shali be complisd

withi.and

Any assignment: of. the loan B the creditor

Concorned: .-hall reguiro ..prior Central Bank

-pproval

Section 25. Proiects/Co-t- Flinibl- for Foraisn.Financins.

Lioans requiring prior Central Bank approvai shall

8G much ao possibie financo the. followins typos Of

projects:

Export-oriented projecte BOr-registered projects; Projects. listed 1 the Investment . Priorities

Project- listed : in. tho Medium-Term Public

Investment Program: and"

Othor projects, 'that may be .declared priority

under the country"s socio-economic development

plan by.the Nationai Economic ' and. Developnent

Authority or by Congress..

Short-term - loans shall finance.exclusively foreign

exchange .requirements of projects'except as may tbe

specifically allowed under' this Circular.

3. Medium. and lons-term toans may finance forein

exchange icosts and local costs (excluding workin

capital) of eligible projects:

Soction 26: Torm- of...Loans

Ioana Shall . have .terms reflective. 11 thoso

prevailing in tho international capital markots.

Terms. of loans to'be :obtained: by .the National

Government . 'shall.. be' .in" accordance. with the

provisionis of. Pertinent : laws. Sovernins National

Government borrowings.

3 Tho Monetary .Board may require longer grace/maturity

poriods for medium and long-term ioans invoiving

large amounts to roduce the.impact thoreof on .dobt

Servicins.

Soction 27. ..Drawdowm/Availmont_.on_Lnana. Loans intendod to..bo

serviced using foroign exchange purchased from tho banking system

shall . comrly with: the.. following Procedures/condittons (o

drawdowm:

Drawdowns shall bo.'made not earlior .than two {2}

days prior C the intondod utii ization of,the o

2..Loan proceeds shall be inwardly-remitted.and .sold

to' the. banking system'and shall not therefore be

eligible for .deposit in FCDU accounts. However,

amounts. intended to finance foreign exchange : costs

may be.remitted directly to the supplier as may be

specifically, allowed by the 'Central Ba'nk.

Section 28. Registratton of Loans

Only loans.which have been duly registered with the

Central Bank shall be eligible for servicing. using.

foreign exchange purchased from the banking system:

Applications for registration shall be filed by the

borrower .with, the Central Bank within: three 3}

banking days from drawdown date for short-term.ioans

'and fifteen (i5) banking days.for medium.and. lons-

term loans using the prescribed'forms.

'Private sector loans granted pursuant to .Sections

:24.4 and: 24.5 shall be reported to'the Central Bank

for registration purposes, using forms. prescribed

for the 'purpose. 3. Compliance with the provision of Section .27 above

shali be a precondition for registration ofYoans

with the Central Bank. :

Loans requiring prior:Central Bank approval, which

have been drawn/availed of without the. requisite

approval shall not be eligible for registration and

subseguent servicing using foreign exchange

purchased from the banking system.

Section 29. ServicinrofLoans

1 Payments. for principal, interest, fees and: related

charges on loans duly registered with the Central

Bank may be : remitted as they .fall:due .throuzh

commercial banks without prior Central. Bank

approval

2 Payments for. the following shall,. however, be

subject to prior Central Bank approval:

Prepayment/acceleration. of payments: on medium

and long-term (MLT) loans;

b Loans past . due for more' than thirty (30

calendar' days reckoned as'follows:

1 For short-term ' loans; from the 360th day

after availment; and

2) For MLT loans, from orisinal maturity date.

Other : loan-related fees/charges not .authorized

by the.Central Bank; and

Loans covered by official rescheduling with.

Paris Club creditors listed in Appendix 9.

Applications for .servicingof . loan-related

transactions shail be submitted to any commercial

bank .duly supported by the' following documents:

Central Bank resistration letter indicating: the

charges/costs payable on the due dates cited in

the application for remittance.and specifically

authorizing servicing of the payments involved

without prior Central Bank approval;

: Billins from' the foreign -creditor Bhowing.

amounts payable. and due datos, and whero

applicable, the detailed computation (includins

basis) of the charees to be paid; and

Proof..of compliance with relevant Bureau 'Qf

Internal Revonue (BIR) regulations on foreifn

loan-rolatod payments.

A Borrowers with: .existing Centrai..Bank-registered

credits.shall apply with the. Central Bank for a one-

time authority to'service their outstanding creditn

using the'prescribed forms:

Soction 30. Apnroyal/Rosistration andSerxicins -of Guarantooa

1 Guarantees'for account'of the public soctor as 'well

as. those :to..be issued 'by' government-ownod.. and-

controlled corporations in favor of .non-residents.

'shall continue to be 'referred to the . Central : Bank

for prior approval.

The following fuarantoes for.account'of the: private

sector shali not require prior Central Bank approval

but: .should be reported to tho'Central : Bank,: : for

rogistration purposes, to be eligible for .servicins

using: foreign exchange purchased from the: banking

system in the ovent of a default,' by 'the principal

obligor.. provided that proceods.of guarantees .'where

tho . beneficiary is a resident shall bo inwardly

remitted and sold to the banking systom:

Guarantees to : be issued by local : banks and

financial .institutions inciuding. government financial institutions in favor of non-residents

such as:

Payment guarantees (e.g. bid bonds, performance bond. advance payment nds);

and

2). Guarantees to secure foreign obligations Of

residents which do not partake the nature'of

a foreign ioan. Guarantees .to be issued by foreign banks and financial institutions as well as other foreign entities. to secure .peso as well as foreign obligations (which do not partake the nature

B foreign loan) of local firms; and. Gu81 antees .and other forms : of contingent liabiiities chargeable against the participating creditor banks- commitment under the RTF. 3 Other guarantees or similar arrangements which may

give rise ' to actual foreign.obligations shall require prior Central Bank approval to be -eligible for servicing using foreign exchange purchased from the 'banking system. A Fees " and charges on guarantees shall be reflective

of prevailing market terms, provided that guarantees.

not be charged any fee. issued by parent companies to their affiliates shall

Any . paymonts rolativo to Central Bank registered

guarantees may be romitted by .commercial. banks 88

thoy fall due without prior Central Bank -approval. Payments. on any foreign liability arising from C

call on the guarantoo shall roqufro prior Contral

Bank : approval, 11 to.be sorvicod iusing foreisn exchange purchased from the banking. system.

Section 3i. :Approval and Serxicint ofiother Financir Sch-maa4

Arransement-

Financing schemes requiring total'foreism exchanfo

commitment in oxcess of Us one million doliaro : :suc h

as, but not*limited to Build-Operate-Transfer:(BOT), Bufld and Transfer..(BT) shall recuire prior approval of the. Contral Bank to be eligible.: for

servicins using foreign exchange purchased from the

banking systom.

2 Payments rolatod -to:' financins Bchemss involving

foreign :exchange. commitments of less than US one

million dollars as weli as Contral Bank-approved

transactions .under .parasraph .1 above may be

serviced, ao. they. fail due without Prior Central

Bank approval.

CHAPTER II

FOREIGN INVESTMRNTS

Section 32. Generai..Policx.. Foreign investments need not be

registered ' with the Central Bank.. The registration.of a foreign

investment with the Central Bank is only required if the foreign'

exchange needed to.service the repatriation of capital. and the -

remittance of .&ividends, profits and .earnings .which accrue

thereon shall be sourced'from the banking system. Foreigm

exchange needed for capital repatriation : and romittance :of

dividends, profits and earnings of unregistered . foreign

investments may be sourced outside of the. banking system.

Foreign investments-shali be registered by the Central Bank :only

upon submission of proof that the foreign exchange',funding. .the

investment has been soid to the.banking system for pesos,'or that

there has been an actual transfer of assets to'the Philippines,

in the'case of investments'in kind and'the required endorsement

of: the Securities and Hxchange Commission (sEC) or Bureau :of

Trade Reguiation andCongumer Protection(BTRCP)has been

obtained

Section 33.. Catesoriesiof ForeisnInvestmenta.. For purposes of

registration, foreign investments may either be:(i) direct

foreign equity investments in Philippine'firms .or enterprises;

(2) investments in .Sovernment .Becurities and/or securities

:listed in the Philippine Stock Exchange; 'or (3) investments 1x

money market"instruments and/or bank deposits

Section 34.. Direct. "Foreign"Equity..Investments. Direct foreign

eguity, investment may be in cash .or .in .kind.

Assats eligible for'registration as .investment in kind .shall

include:: (1) machinery and eguipment;, and (2). raw materials,

supplies, spare parts.and other items including intangible assets

'necessary.. for the operation of the investee firm.. The'value of

these investments in kind'shail'be assessed and appraised by . the

Central Bank before their registration

Expenses incurred' by foreign firms'.pursuant to government

approved service "contracts for oil/geothermal energy

exploration/developments may be capitalized and registered 80

foreign .investment with the Central Bank.

Section 35. :Investments.in Government/Listed Secirities

Investments. in government securities ' shall mean

investments in certificates of indebtedness, issued

by the Philippine Government, or its political

subdivisions, agencies .or instrumentalities

Investments Ir iisted securities shall mear

investments in securities listed in:the. Philippine

Stock Exchange,. inciuding securities traded over

the-countel

Section 36.. Inyestments.. in Monetary"Market Instruments. and/or

Bank Denosits. Investments in money market instruments shall

.inciude all debt instruments such as but. not limited to bonds

and bills payables; issued by private.. domestic firms, not included in Section 23 Part Two,.Chapter.I of this Circular

Investments in bank deposits shall mean both peso savings. 'and time deposits with an AAB.

Section 37: Regi-tration. by Cuntodian.Benks. The : foreign 'investments .described . in Sections. 35. and 38 above .may: be registered directly with'the Central Bank or with an.: investor"s dosignated custodian bank which shali issue. a Central Bank

bank may, be a commercial. bank or an OBu. appointed by the . foreign Registration Document on behaif of'the Central Bank. : A'custodian investor to register his investments and to'hold' shares for' and tin his behalf and to represent him in all.the necetsary .actions in connection:with his investments in the Philippines.

Section.38.. Regiatration Procedurea. . The Procedure fon: regis- tration of foreign investments inciuding the'supporting documents is outlined in Appendix i0 hereto

Section 39. Imports... w and. Exnorts. ..of.Stock...Certificates....of Philippine.. Eirms. No. prior Central Bank authority shall be

required : for .the import/export .of.stock certificatos Of Philippine..firms issued to foreign. investor3; inciuding investments pribr to March 15,.1973 under Section 43 hereof

Soction 40. Reratriation. and Remittance.Privilster

1 Foreign investments duly registered .with the Central:

Bank 'or with a cuatodian bank duly designated by the foreifn investor, shall be ontitled: to : full: and

immediate repatriation of capital and remittance. :Qf

dividends, profits and earnings.

2 Without prior Central Bank approval, commercial

banks are authorized to seli and : to remit. .'the

equivalent foreign exchange . representing

sales/divestment proceeds.or'dividends, profits

earnings of duly registered foreign investments +r

accora ance with. the Procedures . outlined In

Appendix ii hereof entitled, "Capital Repatriation/

Dividend/Profits/Earnings Remittance 'Procedure'

Section 4i.. Deposit..-of....Divestment/Sales....Proceeds.. Pendins

reinvestment.or repatriation, divestment/sales proceeds of duiy

registered foreign.' investments, incIuding ' dividends, 'profits,

earnings may. be deposited temporariiy with any bank. The

eventual repatriation thereof .including interest earned net 1f

taxes, shall be remittable in full thru any commercial bank

without prior Central Bank' approval : in accordance with the

Procedires outlined in Appendix'ii hereof.

Section 42. .Reinvestment.: Foreign investors may ... reinvest

divestment/sales proceeds or remittable dividends/profits 1r

earnings of'duly registered investments. The reirivestments shall

be : registered with the Central Bank or the investors designated

custodian 'banks

Section 43. investnents...Prior. .to. Marchm.15. 1973 Foreign

estments .Certified by the stock transfer 'agents to have been

made prior to March 15, 1973 may be serviced through the' bankinr

system, without prior Central Bank approval.

Section 44. Qutward..Investments._.by....Philippine eidents

resident may invest abroad'only if:.

i. the investment are funded by withdrawals from

foreign currency deposit units (FCDUs); or

2- the funds .to be'invested are not. amons those

required to be'sold to AABs for pesos; or

3 the funds to be invested are sourced from AABs but

In amounts of.less than $i million Per inveator

per year

PART THRRR. OEUs, REPRRSKNTATIVE OFFICRS and FCDUs

CHAPTKR I

OFFSHORR BANKING.UNITS OF FOREIGN BANKS

Soction 45.. Definition of..Terms... As used in this .Chaptor,. : tho

foilowins .terms "shall' have the meaning indicated unloss the

context clearly indicates otherwise:

"Offshore Banking': shalirrofor to the. conduct:: O

banking transactions in foreign currencies invoiving

the.roceipt . of:.funds Principally. from: oxternal

'sources "and,. as. aliowed in this' Cireular... from

internal 'sources and utiiization of such fundsi." as

Iprovided herein.

2: "Offshore Banking Unit: or.."OBU" 'shall rofer . to.

branch, subsidiary,. Dr affiliato of a : foroign

banking corporation.which is duly :authorized by : the

Contral Bank of the Philippines to tramsact. offshoro

.banking business "in tho Philippinos: "...Net "office. funds" shall refer to the 'ret, credit

balance . : of. 'the Due to Head Office

(HO)/Branche/Parent . Company. Account* after

deductins'. the "Du- from HO/Branches/Paront' Company

Account", as shown in the,following computation.

Du- to j0/Br.nchos/Parent.Conpany

Romittances/Advances/Doposits to OBU by HO/Branchoo/Paront Company x.'x.x X:

Unromitted earnings of OBU

Iesst. Die f om HQzBrenohes4 Earont Com anx

Remittances/Advances/Deposits'of OBU with its HOxBranches/Parent Company x x x.x

1 *

Not"Offico Funds $x x 'x x.x 35EaaE23E

1 Deposits': "shall. refer .to .funds i foreisn

Currencies"which are accepted and held by an OBU.. in.

the.regular course of.business, with the obligation

to return an equivalent amount to the owner thereof,

:... "with.or without interest

'Resident: shall.mean

C an. individuai citizen of the Philippines

residing.thcroin; or

an .indtvidual 'who' is not..a citizen of. the

Phiiippines but:is permanently residins therein;

corporation or Other Juridical person

organized under. the laws of the Philippines; or

brancht: Hsubsidiary, affiliate, extension

office .or any other unit ' of ' corporations Qr

Juriaicai persons which are organized under. tho

Taws of.... any country and operatins. : in the

Philippines.

"Non-resident: shall mean an individual, corporation

oriother juridical person not included in the. above

definttion S *nt

T . . "Foreign currency deposit umit." or' ."FCDU" shall

refer Eo that unit of a local.bank or'of' a."local

branch of a foreisn bank authorized by the :Central:

Bank. to engase in foreign . ourrency-denominated:

transactions, pursuant: to the provisions :of R.A.

3426, as amended:.."Local bank"'shall refor. to. a

thrift bank or a commercial .bank organized under the

Iaws of 'the'Republic .of the Philippines. "Local

branch of a foreign bank" shall refer. to a branch 'of

a. :foreign bank doing business in .the Philippines;

pursuant to.'.the. provisions of R.A. No.. 337, A3

amended.

"Acceptabl- foreign exchange" comprise those foreisn

currencies which are acceptabie to:and exchangeablc

'at". the. 'Central' Bank and which form part -of. the

international reserves of 'the country.

Soction 46. Approvals.Required. A foreign bank may operato an

offzhore bankins unit (OBU) in the Philippines, after issuanco to

"it of a Certificate of Authority to operate by the Monetary Board

'and registration with the Securities and Exchange Commission.

Soction 47.. Criteria for'.Soloction. The following. factore

shall serve as basis for the issuance of certificate of authority:.

to operate an offshore banking unit: (i) .liquidity and 'solvency

positions; (2) networth and'resources base; (3): managerial. and

international banking oxportise of .. applicant .bank (4

contribution to the Philippine economy:'and (5) .Other rolevant

factors, such as participation in the eguity of iocal commercial

banks and appropriate geographic'representations

Section 48.. Pre-Qperation..Reguirements.. Upon advice . from the Central Bank, .a gualified bank shall submit a sworn undertaking of its head office,or parent company, through any of its duly authorized officers, supported.by an appropriate esolution : of

its board of directors,' to the effect that it shall:

. on' demand,iprovide the'necessary currencies to cover

liquidity .needs that may arise or other shortfall

that'its OBU may incur.

manage the iperations of its QBU soundly. and with

prudence.

3... train"continually a specific number of Filipinos i

international .banking and foreign"exchange tradins

with .a view to reducing the number of expatriates;

provide and maintain`in its offshore :banking unit at

all times net office funds in the minimum amount Qf

.Us$i miilion. start 'operations. of :its OBU. within one hundred

: eighty (i8o) days'from receipt of its certificate of 'authority to operate.such unit 6. comply with applicable local iaws relating to labor

and employment.

submit, before start of operations, other documents

as may be required 'by the Central Bank. such as

certification or'similar documents showing that it

is: duly authorized by the proper Government entity

ofits:.country to: engage: In offshore bankins

busincss :in the Philippines.

Section..49.. Annual....Fee. Upon issuance Qf 8 certificate 1f

authority .to .operate an OBU in the .'Philippines, .and. yearly

thereafter, the'authorized.bank shall pay the Central Bank a : fee

of not less than US$20,000.00.

Section 50:. Tranaactions._.with...Non-Residents_.and/or.. with.w.QBU-

:An OBU .may freely engage in all normal banking transactions. with

non-residents' and/orwith other OBUs, involving any currency

other than.. the. Philip Pine peso

. Soction 5l... Tranaaction-..with...Foreisn.Currencx Doposit.Unita

iFcD-a.: Subject to Central Bank regulations, an OBU may. 'ongase

in the foliowing transactions with local banks. incorporated 2

'registered, in the Philippines.as FCDU(s).in any currency otho

: than.the Philippine peso:

1 Aocept.. time, demand. 'and call deposits Qr isaue

negotiable certificates-of time deposits.

2 Borrow with maturities not exceedins 360 daye

3 Deposit.

A: Extend loans and advances

Deal in foreign currency 'instruments

3 Discount :.bills. accoptances and negotiabl

certificates of deposits.

Engage in foreign exchange trading.

8... Engage in such other transactiohs as are..authorized

under this section between.OBUs and resident banks

'authorized to accept foreign .ourrency deposits under

'the provisions of R.A. No. 6426, as amended.

Interbank short-term transactions of not exceeding 360 days guch

as . credit lines of Philippine banks-with correspondent banks,

interbank call loans and interbank loans for general: liquidity

purposes shall not require prior Central Bank approval

Section 52.. Transactions with..Residents.which_are not...Banks

Ar OBU.may engage "in the following transactions" with .residents

which are not banks:.

i.. Deal in foreign currency instruments.

2.. Extend foreign currency loans and advances, subject

to existing regulations on foreign borrowinfs.

3...Open letters of'credit (L/Cs) for :importations of

resident-borrowers provided such importations shall

be funded by a Central Bank-approved OBU foreign

currency loan to the resident borrower involved.

A Negotiate inward.(export) Letters..of Credit. (L/Cs)

and .handle other export transactions. (including

documents against acceptance [d/A] and .documents

against payments .[D/P] 'and . -open': account

arrangements.(0/Al).coursed'thru their woridwide

network 'of branches and correspondents subject . to

the following conditions:

OBUsshall bring in foreign"..exchange ...sourced

outside of the Trade Facility which shall G

sold to the domestic banking systom; and".

OBUs" share 'in"the total export.'L/C. hegotiation

business shail be limited to i/2 of 'the growth

(incremental).element in the .country"s. total

annual . export. This limit shall be observed

yearly until this equals l0.percent of total

exports. : .Exports not 'covered by L/Cs, .c

done. thru documenta' against .. acceptance/open:

account"arrangements shail .be considered subject

to this overall limit;

.Provide full foreign. exchange service for. all

foreign: currency non-trade renittances and trade

emittances 'resultins from or'related to their own

negotiation of export L/Cs.

6 .Render financiai, advisory and related aervices

Refinance trust receipts without prior Central Bank

approval 'arising from' import:. transactions Qf :

Philippine residents .in U.s: dollars or in othor

acceptable foreisn.currencies: . The .. refinancing

shall 'be 'evidenced by bankers. acceptances

Section 53. Peso.Denosits. OBUs may open . and l . maintain poso

deposit' accounts with domestic agent banks exclusively for the

followine:purposes:

1: To 'meet administrative and other operating'expense

such as salaries, rentals and' the like

2: : To pay the peso equivalent of foreign exchange tsold

by beneficiaries of inward remittances of Filipino

ovorseas workers or of Filipino or .multinational

companies, coursed through the OBUs* . correspondent

banks abroad

30 pay to .the , designated . beneficiaries n the

Philippines the peso equivalent of :foreigin.'.oxchange

inward remittances .other. than remittances'roiatod to

trade

To.pay the peso equivalent of foreign exchange . soid

by beneficiaries of.export L/Cs negotiated with . the

.OBUs.

The. .Peso. . doposit accounts shail be fundod

exclusively by inward remittances of forei n

exchange eligible : to form part of the Philippine

international reserves

OBUa may also' sell inward romittances'. of foroign

exchange . for pesos to the Central'Bank through .. the

Treasury. Department,. for. credit.'to. the. demand

depopit account of the dosignatcd commercial bank

for:account of.tho QBU:

. Section 54. Financial .Assistance to..Officers/Emplovees:. OBUs

may. extend' financiai. assistance' (real estate, car, "personal

loans, etc.)..in local or foreign currency. to their '.Filipino

officers' and employees as part of their fringe benefit. program.

They may likewise grant foreign currency loans. to : their

expatriate officers without need of Central Bank approval

Section. 55. Secrecy...f... Deposits. The provisions of R.A... No...

6426 (Foreign Currency deposit Act), as amended, shall apply to

deposits, in . OBUs; : Provided, however, .that numbered "deposit

accounts shall not be used.

Section 56. Exemptionfrom Certain Laws. The provisions of Act

NO. 2655 (Usury Law) as amended, R.A. No.. 529 (Uniform Curr

Law) 8 .amended, and..R.A: No. 3591' (Deposit Insurance Law) 48

amended, shail not apply to transactions and/or deposits in.' OBUs

in. the Philippines.

Section. 57. Acsounting.and Reportins.OBUs shall maintain an

accounting system in accordance with 'guidelines prescribed hy the

Central Bank. Periodically 'or as required. existing reports

shall continue 'to be submitted' in the prescribed forms to the

Centrai Bank

Section 58: Supervision.. The operations and activities 1f

offshore banking units shall 'be'conducted under the supervision

of the Central Bank of the Phiiippines.

Section 59.. Taxes. Cuatoms Duties. Transactions of OBUs in te Philippines shall be subject to such taxes as are'prescribed "in. Presidential' Decree No: i0s4, as implemented by regulations QO

the Bureau of Internal Revenue.

Section 60., RevocationzSuspension. : The'. Monetary Board, -by. the

recommendation .of the Governor,. may. revoke.:or suspe'nd: the

authority.."of. an Offshore Banking. .Unit to. operate in... the

Philippines for vioiation .of P.D. No. 1034.or these reguiations.

CHAPTER IT

REPRESENTATIVE .OFFICES OF FOREIGN BANKS

Section 6l. Definition...f Terms. As used' in this Chapter,:.. the

following: terms. shall have the meanins. indicated unless.. the

context clearly indicates'otherwise:

"Fo'reign, Bank". shall refer to a bank Qr banking

corporation formed,r'orsanized and existing under any

foreign law..

"Representative Office shall refer to'. iiaison

office. of a foreign bank which deals'directly with

the public by promoting and giving information-about

the foreign bank's' services offered... It does...not

include the regional or area headquarters fof

foreign.bank registered and licensed under..existing

Laws

Section' 62. Criteria for. Approyal. .. The. Monetary Board may

authorize qualified foreign banks to open representative offices

in 'the Philippines if, in its judgment,:the,pubiic interest and

economic 'conditions,' both general and .local, justify: the

establishment . of such.loffice. The' following ' factors, : amonf

others, shall serve as basis for issuance of authority to:open

representative: office: in the Philippines: (i). liquidity and

solvency. positions; (2) net worth and. resources base; :(3)

financial and credit standing 1 the internationai banking

community; 4 exposure in the.. Philippines, .and (5) other

relevant : factors, .such as Philippine commercial and.financial

relationships with the country where applicant bank.is based.

Section 63. Authorized Activities...of_.Repreaentativo ..Qfficoa.

. Authorized '. representative offices may ' promote 'and... provide

information about. the services/products offered by. the : foreign

banks but may not transact banking businesi, 'such an 'acceptance

: of deposits, issuance of letters of credit and.foreign. exchange

trading. ' Transactions generated through the promotional. .efforts

'of. the representative office may be.booked only by . the foreign ::

bank abroad:

Soction 'e4. Fees. established. after the effectivity of this Circular Banks. with representative offices shail; to 'upon De

issuance by the.Central Bank of a Certificate of Authority, pay

the. Centrai Bank a license"fee 'of US$2,000.00.

Section s5. . Use...of the. term_"Representative Office" Foreign

banks "authorized to operate ropresentative , offices shall,. in

their. representation with the public, carry with their name : the

.additional: term "Representattive.'Office". to properly- guide the

Public on the nature and.extent of their activities

Section 66. Licensing. The licensing . and . operations Of

reprosentative regulations . and such other rules and regulations that offices. including the :implementation :of . these may be

issued from time,to time shall be. the' responsibility of FERD

Section S7. Yisitorisl .Power.. The Central Bank may, from time.

to time, look into the affairs of 'the representative offices : to

determine the extent.of their compliance with .this regulation

and/or other related Central Bank issuances.

Section 68. Reportins. Representative. Offices shall submit. to

the Central Bank annual reports of their Head,Office:'and,'

periodicaliy .as may be'required,'reports on the transaotions of

their' Head 'Office in the Philippines 'in 'such'form .as may be

prescribed for the purpose.

Section 69: Revocation...of.License. . The Monetary Board may

revoke . the license of a representativeroffice if it finds'sfter.

die investigation that: - (i) the'representative office. or-. its -:

officers have violated the provisions'of this Circular: and. any.

other aprlicable rules.and regulations of the Central Bank of the.

Philippines; or :(z) its Head Office is'found to be in . imminent

danger tof. insolvency or that its continuance in . business will

invoive Probabie ioss to those transacting 'business ' with. it

purauant' to Section i6'of R.A. 337, as amended.

CHAPTER ITI

FOREIGN CURRENCY DEPOSIT SYSTEM

Soction.70. Definition of Terms.- As usod in this Chapter, the

following terms. shall.. have the meaning.. indicated unless the

context clearly indicates otherwise:

"Foreign Currency. Deposit Unit" or "FCDU" shall

refer. to..that unit of a'locai bank or.of .'a loca)

branch of a foreign bank.authorized by the Centrai

Bank' to engage'. in foreign currency-denominated

transactions, pursuant. to the provisions . of .R.A:

6426; as amended." ("Local bank" shall refer to.:. a.

thrift bank'or a'commercial bank organized .under the

iaws " of. the Republic'of the : Philippines.. "Local

branch.sf a foreign bank' shall 'refer to a branch of

B foreign bank doing business in the : Philippines,

pursuant to the provisions of .R.A..No. : 337 88

amended).

"Short-term loans and securities shall.: refer : to

credit accommodations with maturities of one. (.i)

year or iess.

G "Medium-term". . loans and securities.'shall..'refer :. tc

credit :accommodations with .maturities of more than

one year.but not more than five (5) years:

"Long-term" . ioans : and securities shail refer

credit accommodations with maturities of more than

five 5 years

The definition of such other terms used in this'Chapter shall be

consistent'with the definition of terms used under the .Chapter. on

Offshore Banking Units of Foreign Banks

Section 7i.: Qualification Requirements

i: Only commercial banks'can be authorized to function

under the expanded foreign currency deposit. system,

pursuant to the provisions of R.A. 6426, as amended,:

Provided, that they meet the foilowing minimum:

qualifications:

its networth or combined capital.accounts are at

ieast. egual to the minimum capital requirement

for commercial banks as'may be 'prescribed by the

.Monetary Board from time to time.. Networth 1r

combined ' capital accounts as used herein 'shall

refer to : the : total.. of unimpaired paid-in

capital, surplus, and undivided profits, net. 01

Such yaluation reserves and other capital

adjustments ss.may 'be required by the. Central

Bank;

It has shown profitable operations for a period

of two (2) cohsecutive business years

imnediately. preceding the date of application

Its profitability, - solvency, - and . .liquidtty

ratios must be satisfactory;

It has substantially complied ' with applicable

iawe and existing.. Central Bank rules and

egulations; and

a Bank officers shall have at least two'(2) years

Of actual iexperience in .. foreign. .exchange

operations . :or related activities Or have

undergone training in foreign exchange

operations acceptable to the Central Bank.

2 Thrift banks may also be authorized to operate an

FCDU provided that they have networth or : combined

capital .accounts of at least P50 million'"and. have"

the -other minimum quaiifications prescribed above

for commercial banks.

Section 72. Authorized Transactions

Thrift-. banks which are granted a certificate :0f

authority . to operate an FcDU are authorized . to

engage in the following. transactions in any

ptable foreign currency:

Accept deposits and trust accounts (for banks

authorized to engage in 'trust operations) from

residents and non-residents;

D Deposit, on short-tern maturity, with foreign

banks abroad,'OBUs,' and other FCDUs;

- Invest in : foreign .currency. denominated debt

instruments," which are'of short-term:. maturity

.and are.'readily marketabie;

d....Grant." .short-term foreign .currency loans 83 mar

be allowed .by : Central Bank regulations;

Borrow, O short-term maturity, from other

FCDUs; and from foreign banks abroad and OBUs. Y

subject to existing rules on foreign borrowings;

and..

.. :Engage in foreign currency-foreign currency.swar

with the Central Bank, OBUs and other .FCDUs.

2. Commercial banks,"which are authorized : to operate

'under . the expanded foreign currency deposit 'system'

under Section 7i hereof, may engage.in the followins

transaction's.in any acceptable foreign currency:

B Accept: deposits and trust accounts. (for: banks

authorized to engage in trust operations) from

residents and non-residents;

Deposit with. foreign banks' abroad. OBUa and

other FCDUs;

Invest in foreign .currency-denominated debt

instruments;

d Grant foreign currency loans as may be allowed

by'the Centrai Bank;

Borrow from other FCDUs; and from' non-residents

and. OBUs, subject to existing rules on foreign

borrowings;

Engage in :foreign currency-foreign currency swap

with the. Centrai Bank, other FCDUs, and OBUs;

Engage .in foreign exchange trading;. and with

prior Central Bank approval, engage in financial

futures and options trading; and.

O request/instructions Of $ts foreign

correspondent bank, it may:

1 ...issuc'.letters.of.credit for a non-resident

importer : In favor Qf non-resident

exporter;

2 pay,: accept."or negotiate.drafts/bills Qf

exchange drawn'under the letter of credit

and

3} : make payment. to the order Of the ..non

resident exporter.

Provided,: that. the foroign correspondent. ..bank

shali' depositi sufficient foreign exchange. with

the : FCDU issuing''tho -letter of.credit to. cover

.'ail drawings.

Section: 73. Foreian Currencx Cover..Requirement-.. FCDUs. shall

"maintain . at.all timosta one hundrod porcent:. (i00% .cover. for

... : their.. foreign currency liabilities. For purposes. of complyins

: with .this requirement; the principal offices in the. Phiiippines

' of':the... authorized banks and all its branches located theroin

Shali bo-considored as a singie unit: The foreign currency" cover

shall consist of the following:

For Thrift Banks :

Foroign currency deposits'with the Contral Bank;

Foreian : currency deposits short-term

maturity. with'foreign banks abroad. OBUs and

other FCDUo;

52:

.. c. . Short-term foreign currency: loans" authorized: by

the Central Bank except those classified by .'the

Central Bank as bad or uncollectible .debts;.

d Investments in foreign currency-denominated .debt

instrunents, which are of short-term ''maturities

and are readily marketable;

e.: Foreign currency notes:and coins on hand;

& Foreign currency swapped with 'the Central Bank.

OBUs and other'FCDUs;

2 Foreign currency interests receivable; and

.h.: Such. other assets, as may be determined by the:

Monetary Board as eiigible 'cover.

2 : Commercial Banks -- In addition'to the . above, the

following shall also be considered as eligible asset

cover

Foreign currenoy loans maturing beyond one: (

year.. granted with prior Central Bank ' approval,

except : those classified by the Central Bank: Ps

bad or uncollectible debts; and

b. Investments in foreign currency-denominated debt

instruments, irrespective of maturity.

For. purposes. of this Section, only real accounts

shall quaiify as eligible asset cover

:Section 74: Foreisn..Currency.. Deposit...with. the.. Centrai.. .. Bank.

FCDUs of thrift banks shall maintain. at'. all times foreign

currency : deposits with the Central Bank:equivalent.to. at :least

fifteen percent(15%) : of their foreign currency deposit

liabilities. .The. Central Bank may pay interest on the foreign

currency deposit and if requested shall exchange. the foreign:

currency notes and coins into foreign currency instruments. drawn

On its depository banks. FCDUs of commercial banks'shall...be

exempt from maintaining fifteen percent. (i5%) of the .cover : In

the form of foreign'currency deposit with the Central Bank:

Section 75. Currency Composition pf theCover. FCDUs of thrift

banks shall maintain the'foreign currency cover : in the ...same.

currency as that of the corresponding foreign. currency deposit

liability.

FCDUs of commercial banks shall maintain not iess . than seventy

percent (70%) of the foreign currency cover in the same. currency

liability and thirty percent (30%) or less, at the option of the

FCDU; may be denominated in other acceptable foreign currencies:

Sectton 76. Secrecxof Denosita. Pursuant to R.A. No..6426, 83

amended, : all ' foreign currency deposits are declared. arid

considered of an absolutely confidential nature and, 'except. .upon

the. written.: permission of the depositor, :in no instance. shall

such foreign currency deposits be examined, inquired ' or.'.Tooked.

into . by any person, government official, bureau or office

whether . judicial;. administrative or legislative, or any other

entity whether'public or private.

Section 77.. NumberedAccounts. Authorized banks 'may adopt

numbered' account' system.

Soction.78.. Withdrawability...and...Transferabilitx..... of...D-po-ita

There'shali be no restrictions on the withdrawal by tne depositor

of : his: deposit or on the transferabiiity of :the" same :. abroad.

oxccpt those arising from the contract between the depositor and

the bank.

Section 79. Insurance. Coverase Foreign. currency deposits shail

be:. insured under the provisions of R.A. No. 359i, a8 .' amonded

Depositors. are entitled to receive payment''in the same' currency

I in which the insured deposits are denominated.

Section 80. Rates ..of . Interest..' Authorized banka aro froe to

pay any rate iof.interest. on foreign currency deposits

1 Soction.8l. Eliribilityias. Collateral. Deposits : undor . the

Foreign.. Gurrency Deposit System are eligible as collateral : for

peso loans or for foreign currency loans to both domostic

juridical 'entities and/or rezident individuals.

Section 82: Taxes. All foreign :currency deposits. made under

this Chapter, including interest and ali other income or .earnings

Of . such deposits, :are exempt from any and all. taxos whatsoever

irrespective - of whether or not thesc deposits: are: mada by

residents or non-residents so long as tho.deposits are.'oligible

or .allowed' under aforementioned laws and in the .case of.: non-

rosidents, irrespective :.of whether or not they ar engaged 1n

trado or business in the Philippines

The' transactions: of FCDUs shail, however, be' subject to such

taxes.'as : are provided by iaw and regulations of the Bureau. of

Internal Revenue

Section 83. Exemption... from..Court.Order-...or. Process. Foreign

currency deposits shall be exempt from attachment; : garnishment.,

or any: other order or process of any court, lesislative : body, government agency or any administrative body whatsoever

Section 84: Inapplicabilitx of Certain Lawa.' The provisions.. of R.A. No: 529.(Uniform Currency.Law) as amended, and R.A. No: z655

(Usury Law) as amended, shall not apply to banks.in.'respect. to - their foreign currency transactions under this Chapter:

Section 85. Accountins. The foreign 'currency deposits and their corresponding cover. shail be considered as funds separate and

distinct from the regular assets and liabilities. of ::the authorized banks..' ..Authorized banks shall maintain a separate accounting for transactions covered by this Chapter.. that will enable. preparation...of the Balance Sheet and. Profit " and': Loss Statement covering said funds.

Periodically or as .required, existing: reports shall continue to . be submitted in the preseribed forms to the Central Bank .of.. the Philippines

.Section 86. Supervision. The Governor Or the head 0f the appropriate department of the Centrai Bank personally, or : by deputies, are authorized to verify the books 0f account and

transactions of each authorized bank, to verify . the eligibie.

cover, as .well : as review.all other . requirements."under."these

regulations and the bank's compliance with the provisions.of-law.

and these regulations.

Section 87.Prospective..Effect.of Resulations. In the event

new. enactment or regulation is. issued : decreasing the :rights

hereunder granted,". such new enactment or regulation shaii, not:

apply to foreign curreney'deposits.already made or' existing at

the. time of issuance of such new enactment'or resulation," but

such :new..enactment or resulation shali apply" only toforeign

currency . deposits: made after. $ts IsBuace

Section.88.. Sanctiona.. Any willful violatton ..of ** r.A. 6426

8s amended, or any regulation duly promulgated by. the.. Monetary.

Board pursuant thereto shall subject the offender"upon conviction

to : an imprisonment of not less 'than one year nor more than five

(5) years or"a fine of not loss than five thousand pesos nor'more

than twenty-five thousand 'pesos, or both' such . .fine 'and

.. imprisonment at the discretion of the court.

The Central Bank.may revoke or suspend the authority of a bank to

accept. new foreign currency deposits for violation of . R.A: : No

642s or these'reguiations, .on if.such bank ceases to possess the

minimum qualifications required.

PART FOUR.. GENERAL PROVISIONS

CHAPTER I

REPORTS AND POST-VERIFICATION

Soction 89.. .ReportorialiReauirements. The followinf raporto

are: required to be submitted to the CB .by the AABs and by OBUa

when applicable:

Titlo of Report Submi-sion_Froouency/Deadltnc

A Con-olidated Report on Foreisn Exchanse Asset- and Liabilttios

I0s Form i,"Schedules' 1-i7 For : commercial banks banking Daily. reference date within days two after (2):

I0s Form i, 'Schedules 18 Monthly, banking within days after ten ond 10) of

reforence month

D I0S Form lA, Schedules '1-5 For thrift banks C0

3 For IOs Form iB; Schedules 1-5 rural'banks :

B: Foreiin.Fxchanse .Trade...Transcctions

1 Report on Export Nesotiations, IoS Form i Schedule 10 reference date Daily, banking within days two aftor (2

Roport Received, 11 On Ios Form i Export Proceeds Schedule do

3 Foreign CBP Form 6-21-23 Report Issued on Export (With Exchange an'd Declaration Procoeds) Without Monthly, reference month banking days within after ten 10) end

'Report. Other CBP Form .on 8-2i-21-A Export Red Ciause Advances and do E

5 opened, 12 and i2A Report on Ios Form i Regular Schedule L/Cs Daily, banking reference withir date days two after (2

6 Schedule i3 Report Regular On L/Cs ; Negotiations Ios Form. O 1 c

Report Amendments of 1 Schedule 14 on L/Cs, Confirmation/ Ios Form C

8 with" Accompiished Record"of Report .Goods Schedule i5. .On DA/OA Imported, Ios Form Availments do

9: Report Ios Form il on DA/OA Schedule Repayments. 16 do

10 Report under D/P Direct Remittances, on Imports, FX Remittances inciudins CBP Form

6-15-09

C Foreisn rency Loans andRelated iTransactiona

$ Consolidated Foreign . Exchange Assets Liabilities, Schedules 3,.4,.7.and s Ios Report : Form and on Y? date ing . Daily, days. within two after (2) bank- referonce

Consolidated Repoft Granted by FcDUs, F I0s Form 4 On Loans calendar of reference.month Monthly, within days. after ten (10) end

3 Consolidated Report Granted.by .OBUs to CBP Form 6-24~24 on Residents Loans banking days after Monthly, reference :month within ten end (10) 1f

4 Report .on Foreisn Residenta Securing and (FIS) Financial Peso from Local Institutions Loans Guarantees : Banks of Quarterly, within banking days reference: guarter from ten end (10) Qf

Report by favor Local of Non-Residents 'on Guarantees Banks and . FIS Issued i Tc

D: For...Foreisn Currenoy Denosit Units (FcDUs)

1 FCDUs"of"TBs);"CBP"6'40.03 Consolidated Assets and Liabiiities Statement (For Of 'Monthly, banking reference month. days within after end of ten.: (10)

2 FCDUs"of.KBs/EKBs), SES Form 2 Statement of.Condition (For I/VI .Monthiy reference banking days month within after .end of ten 10)

3 Expenses,.CBP Statement of .6.40.04 Earnings and Semestral banking reference days after end".of semester withih ten. (io)

4 Report FX CBP 6.40.06 Transactions On' Spot. and Qf Forward FCDUS, reference month bankins Monthly, days. within after ton end of (10)

5 Long-term Investment in Report Instruments on FCDU Outstanding Debt do

8 Philippine Debt. Paper Report on Inventory Of Weekly, banking reference within week days three after (3

.actions Report on Options Trans- Bi-monthly, banking reference Week within days two after (2)

R Report Transactions Dn Financial Futures Month'ly, banking reference days month within after"end : ten (10) .Of

E Qffshore Bankins Untts

F Statement Liabilities, 1f CBP 6.40.01 Assets and banking days reference month Monthly, within after ten end 'of (10):

2 Statement Expenses, CBP Qf 6.40.02 Earnings and Semestral, banking reference days after semester within ten end (10) of

3: FX Report CBP 6.40:06 Transactions on Spot and 1f Forward OBUs, reference month': banking Monthly. days after end of within ten. (10)

Financial Training to its Filipino Granted Assistance Staff by OBUs and year. Annually, banking. days. within after ten. .end of (10)

Disbursements FX Caoh Receipts 'and Cagh Monthly, roforence month banking days within ton: (io) aftor.ond.of

Updated List and Bio-Data Qf Annually, within ten (10 Expatriates bankirg days aftor year ond Qf

ReprasontativeOfficof ofForeim Banks

FX 'cash. Disbursements :Receipts: and Cash referenco.month bankins daya Monthiy, within aftor. ten.:(10) ..endof

Annual Report of Head Offico Within aftor end dar year five of fiscal/calon- (5) months

G Ci-todian Banks/Remittinr AABa

Report of Contral Bank Regis- tration:Documonts for Foreisn Investments date Daily, within two .(2) bank-- ing days after registration

Statement of Remittanco toge- ments mentioned in Appendix il therwith.supporting. of this Circular. docu-- Daily,'within two (2).bank- actuai romittanco ing days from -'date of

Soction :go. Proceduren for Reporting.. Reports . shail.. bo.. filod

with. the. CB Main Office or with the CB.Regional Officos. or. by

sonding them.. by: mail. or. spectal .delivery, unless otherwise

spocified: The date of acknowledsoment of receipt on tho.copy of

the report .(if.'filed directly) or the .postmark dato on" the

onvelope. or registry'.receipt (if .mailod) shall bo considered :80

the date:of submission:

Soction Si: Finas and P-naltioa.

The. foliowing i.schedule of fines : for . late. and/or.

incomplcte submission of roports shall apply:

.Pi00 . per banking. day .for th...'first five

successive banking days of delay;

Pi50. .per. banking day . for. the next five

successive banking days of delay; and

P200 per banking day for the successive banking

days of delay until the particular report has

been. filed.

Manner of payment or collection of fines:

Fines shall',be collected thru debit to the AAB's

current' account deposit maintained.with the.. CB`

by.. the Accounting Department upon:. 'receipt...of

notice' from the IOs (International Operation-

Sector) Department involved;.or.

E In case payment of fines is effected thru check

or cash, the same shall be remitted to the. Cash

.Department of the Central Bank : thru the Ios

Department involved.

Section 92.. Post-Verification.: Post-verification O0 foroi-n

exchange transactions covered by this Circular and reported under

Section: :89 hereof shail be "undertaken by the Central. Bank to

verify compliance with. the provisions of this Circular. and. for

monitoring purposes:

CHAPTER. II

FINAL PROVISIONS

Section 9s. Penal_Sanctions. Any person Violating the provi

'sions .of this Circular shall suffer the - penalties prescribed

'under'Sections 33 and 34:of R.A. No. z65, as .amended

Administrative sanctions : : may 8130 be imposed..upon 'banking institutions : found, violating this' Circuiar,.. includinf.. their directors and officers:responsible for such violation.

Soction 94. Repealinr .Clausa. Ail: existing provisions of

"Circular: No.. 1284 dated April.25,'i99i, Circular No.. 1318 dated January 3,:1992, circular No. 1348 -dated July .25, 1992, Circuiar No. 1351.dated August 21, 1992; Circular No. 1353.&ated"September 1,.1992, Cir&uiar No. 1356 dated September 25, 1992, Circular No: 1362 dated:0ctober 23, 1992, Circular No. 1368.dated Ndvember 23 :1992,:Circular No. 1373 dated December.23, 1992 and Circular .No. 1376. dated January:4, 1993, including amendments: thereto,:.and other. Central Bank rules and resulations on current. account& capital accounts, I.foreisn currency deposit.units,. offshore

banking: units' and representative offices of foreign .banks. as

well as ail other existing Central Bank rules and regulations' .or

parts thereof .which are inconsistent with or: contrary to::the

provisions: ofthfs '.Circular are horeby..repealed or modified

accordingly. Provided, however, that"resulations, violations 1f

which are the 'subject of pendins actions or, investigations, shail 'not '' be considered' repealed' insofar as such pending.. actions :or investigations.are concerned, it being understood that'as to such

ponding ...actions or investigations, the regulations oxi8tin

the.time the cauae 'of action accrued shail'govern.

Soction 95. : Soparability.Clauae.' Nothing therein. is .intonded

nor shall be construod,.to repeal or amend any law or statute.:

Should any : provision of..thia Ciroular be . doclared

unconstitutional or invaiid,: the remaining provisions" or parts

thoreof shall romain inifuilforce tand offoct, and continue : to Y

valid 'and 'binding.

Sootion 98. Eff-ctivity. Thie Circular .shall tako offoct

fifteen. (is) -days after' its publioation in a 'newapapor. t fonoral

oircul. t.o

For tho Monotary Board:

imm P. GARDO P A'sTi AIALCITA

CG Charo

Apri1 13:: 1993

APPENDIX

Kegulated commasiitias. which agencies follows: reguires inciudinf..the Central Bank. clearances/permits from These are cormodities rhe inf@rtetisn They..are srpropriate. enumerated : as government. Cf

Commodity Iescription. Commsdity Group (FSCC Coae ) Governmsnt Ageney Issuirg Fermitr Clearance

i.: :Aoetic anhvdride (513.77-01) Dangerous Irugs'Board(DDB}

2." Rice and Ccrn National Food Authority s...Sodium Cvunids (sz3.8i-0i) Bureau of Food & Drug (BFAD

A Chlorcfiuorocarbon (5ii.3s-oi) BFAD 5.."Penicillins/derivatives (541.31-00/542.13-01/542.13-09) BFAD

6 Refined petreleum products' {Appendix T-A) Energy Regulatory Soard (ERB)

Coal and Coal dsrivetives 321.22-00/322.10-001 (321.10-00/321.21-00/ ERB

8 Color. (Subgroup.751.3) Reproduction Machinse NEIand Cash Central Bank Iepartment

0 : Verious Chemicals for the manufacture of explosives (Appendir l-B) PNF Fireerms and Explosives Office (PNP-FEO)

To. Onions,. cabbafe, farlic, for seedling purpoees potatoes and Bureau of Fiant Industry

12. 11. Pesticides Motor'Vehicles, Farts and Components (Aprenaix i-D) Chemicais. (Appendix.i-C) incl. Agricultural Authority Fertilizer DTI/BOI & ( Pesticide

13: Truck and automobiic tires 1086-November 25,-1980 tubes, used, of all zizes (LOI and DTI

14 No-dollar imports of used motor DTI

vehicles:

Te. Al1 from centrailv-Flanned Gommoditics Socialist and cricinatina eccnomy other Philippint .Internntionzi Tradins Csrporation

countries

18 111 from the Union of conmodities South Africa oricinating PITC

f.of ail kind Maritimo Industry Authority (MAFINA)

18 . year: Computere peripherele by eycees: Sovernment of P 2M within - fiscal afoncioe import*a : dn National Comauter Center

is: Radioactive materialo Fhilippine Inetitute (PNRI) Nuclear Rosearcn

20: Lef l tender in evcoso: of Philiprin P5.000 currenoy CBP

21::Others .(Appendix 1-E) CEP

2& Agriculturtl Appondix Tocally in.eufficient 1-F Proclucts productd qutntity Authority and the Bureau of Department thru Animal Industry the- OE National. Africulture Fooa

1-2

(+ entix y-A

LIST OF REFINED -FETROLEUIL FROPOCTS THE TPIPORTATION OF WNHCH

REGUTRES THE PRIOR AFPROVOE O TA ENEROY REGOLATORY HGAR

KFREVIOUSLY BEU

ESCC CODE COCTTRITYESCEETIO

334.11-01 Aviatlon.gamolin

334.11-02 Hotor epirit.(gatoline)

334.19-02 Fetroleum naphtha

334.21-00 Keroaene Fue1 Circiuding Eerosene tyte Ist

334.30-01 Diesel.odt

4309 Other gar oils

334-40.01 Fuel. electric power oilm tor use in the. generation C

234.40-02 334.40-011 Eunker oii (other ttian those af Etsh i teattr

354.40-03 Slop fuel oilw

334.40-09 Othsr .fuel oila. ns .*.

334:50-01 Lubricating Regulatory Ioard prior autharization oilt whan. by imported the Eriargy With

334.50-02 Lubricating Regulatory Eoard: wi th prior authorizatipn by'the oil. extept when importod Energy

354.50-03 Lubricating oil banr ftock when imported With Feguiatary Board prior authorization by the Energy

334.50-04 imported with prigr authoriiation by the Lubricating oii bass etock, except 'when

Energy Regulatory Board

334.50-19 Heavy oil prmparationa. n.e.e. of"petroieum Diln or piis obtained thesa oila being the basic bituminoum minerais ing of the not Iesa ithan 70 'percent by. preparations (other than constitunti contnin crude.r .weight Tram

244.50-03 Liquefied petrolaum gas (LFG)

trrrutli ITB (

PRTOREOPEROVOLOELTHE PHP-FTREARNS. SEXELOSIVES OFEICE- LTST CF CAEMICALS THE TPPORTATION OF WHECH RECULRES THE

PSCC CORE COEHIORTL DESCEIETICN

27.2003 Sodium nitrate

5.23-0 "ptitrt c acic

G EE "Sedi.merlcrate"

623.9-2 "fetassiumchlerate"

e-3 and potesstumperehtcrateu "godium persntcrates ammoraom percllorate

323.62-00 Ictassium rittate

ex023.0s05 Lead (ir) nitrate. ccpper (rr) atrortium ritrate ane cuprie nitrate Darium Iittates Cal.ct.tm Iitrateo nitrates

56213.-00 Aamory i um nitrate

6x575:53- -0 Ii krccallutioseend cnikroceIiuose

odctt.

HOTOR VEHECLESS PARTS AND COMPONENTS. OF WHICH RECORES FRTCR CLEARANCE FROrTHE D7T8OT THEIPFOFTATEO

FSCC_CODE CONNODETY DESCREFTEON mXFIEFI-IE not exeeeding 2to cc-yor traetors "used reciprocatircpistor ergires cya. irice- capacity exceeding to Cc tou't

ex713.2i-23 Dases r+-k "tsedreciprocaeirgpistcnengres cyil. inder exeeedirg3.oocc-for. cepaeity exceeding aso t+ac8 CG ar c bu't

x713.21-25 notexceecingi.o00 cc.for tractors ueed reeiprecating piston ergines ot cylirde capacjty axceectiric: Tce but't.

0x713.22 03 "used reciprocating piston engines for tructe.ard buses" cy it. incer capeeity exceeding ...>0. Ct ec

2x713.22-05 Tor. tractors" "used reciprocating piston engines cyl.inder capacity"erceedirg a 000 C C g

ex713.23-03 tractors" "tsed diesel ard semi-ciesel ergines +

Fat 4 O exceeding.3.oo0 Fassenger internal enginea combustion reciprocating piston Of Cars G Ce,' new. cy3inder with spar capacity ignitson not

781-20-02 exceeding Fagsenaer eigiriar interral comburtion i.000.cc.ued C Ca1S R cyiircer wit reciprocating Spar capacity icnition niston ro't.

781.20-03 ergine.. exceeding i.oo Staticn irternal .combustionreciprocating C wagcie t Cc. cylircar . with new spark canncity cnition piston : rio k

781.20-04 .internal station enainea Excesding combustion 0f 3000 waaons t cyiinder Gc. ttsed with reciprocating piston sparr capacity Hi gn i tior- ro't

FSCC CODE DESCRTF :.t(N

781.20-05 1.000. new Jeepe combustionreciprocating-piston- engine.- C cytinder Wi. 'tt E pa+: capacity iai. ti.om Ict ex ceedirg. internai

781.20-06 .000 Cs combustion reciprocating piston Jeept Cyiarter With fpare capacity ianition I'vct 't exceeding internal engine s

781.20-09 Dther motor yenicles with spark ignitior interrai combuetion reciprocetirg piston txeeeeling i.ooo cc, fcr the tranepert of persons endiries Cf a . cyiincer Capacity c't

781.20-11 ergines ot 1.0o0 cc but nct exceeding 1.3o0 Fagseraer imterriel combustion reciprocating pinton A Cars crlinder tapacity Wi.th Spark exceeding igritior ccs naw

781.20-12 interrai coabustion reciprocating piston engine of a cylincer capacity exeeeding i.ooo ec.but not exceeding i.so0ccs used Fassenaer cars witn epark ignition

781.20-13 engine, of a cyiinder capacity exceeding i.00o cc but not.exceeding t.soo cc. new Station internal combugtion reciprocating pieton: wagorns with- epark ignitizn

781.20-14 engine, ot a cylinder capacity exceeding i.000. cc but nct exceedina i.500ccs used Station wacions with Epark termai combustiom reciprocating ignition pistor in-

781.20-15 comlustion reciprocating piston cc but not exceeding i,5o0 cc, new Jeeps Q+ a cyiinder capacity exceeding withspark. ignition internai engine. $.000

731.20-16 combustion reciprocating pigton Jeeps Of cc but not exceeding i,soo cc, used a cyiiridrr eapacity"exceeding with spark. ignition internat engine. 1r000

781.20-19 engines of * cylinder capacity.excerding Other motor vehicies with spark ignition: internal combustion reciprocating pirton i.000 .cc but not exceeding i.5oo cc the transport of peraons far

1-D-2

FOCC CODE DESCR3. (

781.E0-t engine- cr a cyiinder-eapaeity exceeding Fagaerger internat combuttior..eeiprocating..piston- J..o0 cc but rot.exceeding 3.o00 cc. new CAT witt gpare ianition

781.20-2 Ueed engines cf a cylirtier irternal combustioy reciprptatirg pigton $ Fassender GC but rct ex ceeding Cee wath. spark capacity exceeding 3 000 ianation cc

781.E023 i.500 cc but net exceeding 3,000 ccr new Station internal Hrgines of a cyiincer capacity exceeding combustion reciprocating piston waaans Wi tt Epark Sgmiticr

781.20-24 engines of a cyiinder capacity exceeding internal combustion reciprocating piston i.to0 cc but nct exceedirg .3.000. uaed Station wagoris Wi th sparE ionition

781.20-25 Combustion reciprocating pirton cc but not exceedirg E.ooo cc, new Jeeps Qf a cyiinder capacity exceeding With spark ignition engine. internal 1.500

731.20-28 cc'but not exceeding 3.ooo cc. used Jeep$ combugtion reeiprocating piston C a cylincer Sapacity exceeding With spart. irmition internal engine. 1 500

781.20-27 Facing cars with epark ignition internel combustion reciptocatirg piston cc but not exceeaing 3.ooo ccr'new Cf a cylinder capacity exceecing enginer 1.300

781.20 Cf Racing cars with apark ignition internal cc but not exceeding E,ooo. cc, used comburticn reciprocating pieton a cyiinder capacity exteeding engine. 1.500

781.20-79 Dther motor vehicles with spark ignition internai'combustion reciprocating piston engines 'of a cylinder capacity excesding i.so0 cc but not txseeding E.o0o ccr far

the transport or persone **.

R1 1 engine. of a cyiinder Fassenger internal combustion Cars with reciprocrting pi*ton capacity spark excw*dino ignition W

3.000 cc. rew

2D-3

I cos d ct ootrtsa

FOCC CODE DESCRIFIIOI

781.20-32 ergine. cf a cylinder capacity exceeding 2.oo cc.umed Fat aorcer irternetccnbuetionreeiprocating piston Cisre Wi'ti spart: ioniticr

781.20-33 Drd irie s 3.oo0 ce, new S teti cr arteral of e cyiicer ccmbustion reciprocatinc piston taciCrg wa.tf capaaity tpat exceeding Sanitior

78120-34 interna 3Usd Station engires of a cyiinder cembastion reciprocating pieton WagcrIs witn capacity exceediug $par: icnition

781.20-35 Racins . enginasof 3.000 c iriteyral combustion reciprocating piston cars a cylinder capacity. exceeding with spark ionition

781.20-39 engine. of a cyiircler cepacity exceeding S.ooo cc for the transnort pt persora Dther motor vehicles with epark ignition tnteral combusticn reciprocating pistor

781.20-41 Fassenger cars with compression ignitton cylinder intermal Cer row combustion piston engine" of tapacity not exceeding 1 E00 G

781.20-42 Fassender engine exceeding ignition 1 500 f internst S caIs cc, uBea cylinder combusticn With capacity compressicn pirton ot

781.20-43 cc. new Statiom wacons with compression ignition cylinder internai combustion piston. erginer capaci'ty not. exceeding of $.500 :2

781.20-44 Station exceecing i soo ccs umed ignititm tngine. Df internai wadons 2 cylinder combustsan with capacity compression piston not

781.20-48 Jeeps with compression ignition.internal capacity not exceeding i,5oo cr, new combustion piston engine. of a syiinder

781.20-46 icapacity not Jeeps with compression ignition internal combution piston exceeding engine. 1 E00 Ofa Ccs uaad cylinder

1~D 4

+$$.j*

FSCC CODE E S S

781.20-49 ()'tner Iignitior... erigirte n transport at persors ootorvefisies etsceedingt.soo.cc.ror intertet.. .ecmbus.tior- witt compeseicr piston. 't ne.

781-f0-1 not exceedsng r ooo cc, new Faesenqer cylirder Intet' si. canatity exceeding l.so0 ce but carm witn compreesion ignition cpmbuatior pieton engine.ot

781.20-52 Fagnenger not exceeding E. soo cc used cylinder capacity exceedirg i aoo.cc but internai combustior pistor engine. of cara with compression ignition

71 1033 Stationwagons witn compreseion ianition cyiinder capacity exceeding i soo cc but not exceeding R.5oo cc. used irterral combustion pigton engines pf E

781.20-34 Station wagons with compremsion ignition interrat combustion pigton ergine. of E

not exceeding z,s0 cc. used cyiinder capacity exceeding i soo cc but

781-20r55 Jeepe with compreseion ignition internal exceeding 2,5o0 cc, new Capacity combustion pieton engine, of a exceeding. i.500 cc cylinder bu't not

781.20-56 .exceeding 2.s00 cc. used Jceps with tompreesion ignition internal ccmbustion piston engire- capacity exceeding 1.500 Ca CG .cyiinder but not

781.20-59 engine, or a cyiinder capacity excerding i.500 ce but not exceeding 2.s00 Cther ignition the transport of persoris motor vehicler internal combuetion with comprresion cc..for piston

781.20-61 Fasserger cars with-compression ignition cylinder internal combustion piston engine. capncity exceeding 2.300 Cf CC *

Tew

781.20-62 Faesenger internai combuetion cars with coirpreegion ignition piston ertgine- of R

Lsed cylinder capacity exceeding 2.500 Ce+

1-D-5

FSCC CODE IESCRFTTO

781.20~6 Station wagone wtth compreeeion ignitton internai- tembuytaor-pitotrengsner ct...- e cylireter capacityexceeding 200..CC

TYw

1-E0- Staticr uacone with compreseion ignition in terrai.coubus tionpts tcm ergire .-of g

cylincer capacity exceedirg 2 500 CCi usad

81-E0-65 Teepe wi th compreasior ignition.internal capaesty ex ceed.ng 2 eoo cer- new comous t ion piston erginesoy a tytindar

781.20-66 Seeps with compression ignition internal capacity exceeding F.soo ccs tasd combuetion piston engine- cf'a cylirder

781.20-69 2.soo ccs for the traneport ct persons Other - moter ignition ergine's of a cyiinder capacity internat vehiciee combustion Wi 't t compression exceeding pis tor

731.20-71 imported from one Comporer ts. parts C ardcr .mora countries mccessorias Tc

agtncrization participents vehicle marufacturing program upon eamembly Bcard of Investmer ts C and certification of i.n passenger. progressive car's prior motor Ite by

781.20-72 Comporents. imported assumbly designed of trtcts and simitar frem ore or fo pa"t.s 'the and cr morecoumtries Ihe transport Accessoriee vehiclee Hor C3

venicie manufacturing program upon participants authorixetion bersors (eug. amd. certification 3. AUJVE r progressive t.CVg} x C prior mator +te by

781.20-73 port'of Vane prircipaliy designed persons fcr the trans-

781.20-74 "tsed ambulances"

781.20-75 "Ueet heartes"

781.20-79 Othet paesenger Care (e-g battery

operated

1"D-6

I'ete. e Ittl)

rSce eoDE DESCRIETIOM

781.20-99 'perscne -rae.m- to tor veteles Ic tta trere port. C

ex782.11-00 "Ueed for otr hignway use" .dumpers t cunf trucif desiged

782.15-02 WEe Yarte compreasicr--agnttion engtre. +O. S.Y*W-. the transport of rotexeeecing combustion gC pis ton tore o wit+

7819-04 fetor vehictestexelwing vens) tor Wse H gri tion trareport engine s g-v.w.rot egeeet m internat sxceeding combus-t s.or Wi t.I ccmpreesion- E piston tons the

782.19-12 goodss with compression-ignition Fe 'ter I o exceoding I:crtf a Ecmbue tion usec Yehi.cles $ tons tut rot Or pi ston t he engine. exceeding tranaport irtar CJaYaW- 0 Of

782.19-27 exceeding r0 goocswith compression-ignition ('tck.c t" comtue tion Wehiclas tones used. pi.stom ct er - ine- tIe transtert irternai C.Vw C

782.19-32 spork-igriiion pit ton Yams tonssessemtled. :+c engines the tranaport of g.v.w.net HEed irtanal exceeding goods conbustion with 5

782.19-34 rotor venicles (excluding vans) ir ternal transport of gooda" with g.v.w. not exceeding s combustion tonss used pieton Epark-ignition for engines the

782.i9-42 Notor. goods combustior exceeding s vehicles With toris. used pistor sparhignition +C the engine. transport : ef internal g.vw

ex782.21-00 "used crane lorries"

ex782:m3-00 "used mobiie driliing derricts"

ex782.25-00 "used fire fighting vehiciee"

ex782.27-00 "used corcrete-mixer lorries"

E 1-D-7

1 Ittt +tli.

FSCC CODE DESCRIFTION

0x782.29-01 Titted-- wi th-an--ex amintnticr- ecuipmerty* +Utet I"oc mobile radiolcgical unite 'Ye complete radielogicat room r (as- tlat'+

x782.29-09 vehiclen" "c'tIer uaed Epecial purpOEe tnotor

783.11-02 Buses with comprettion-ignition internal combusticn'piston ergine- used

783.19-0 ignition Hueeg s o'ther internat ttan Wi'th combugtion compreaeion- piston

ergire, uses

ex793.19-09 ('ther mo t.cP compreseior-ignition internal combustion pubiic-transpot vehicleg other tyae than peesanaer With

piston engines. umed

ex783.20-00 "usec .road tractors fto semi-trailert"

ex784.10-00 motor venicles of group 78i Chassie fitted with enginess 4c the

784.11-00 vehicies of group"7ai Fodies (inciucing Cabs)s for the motc

ex784.3E-09 Otter parts and accessaries- vehicles cf giroup"781 bodies (irchudira catg) cf fE-S- the, motor Of

785.11-00 Hotorcycle* with recinrocating internal combustion capacity not exceeding so ccr aaeembied piston'engine of n cylinder

785.13-00 rotorcycles with reciprockting exceeding z50 combustion. piston engine of capacity exceeding cci asrembled CC but internal Cytinder not

783.15-00 'exceeding 500 cc, arsembied rlotorcycles with reciprccation capacity combustion exceeding piston engine of 250 CC bu't. internal cylinder H o*t

785.16-00 Tiotorcycies with reciprocating combustion capacity Exceeding 800.cc exceeding: piston engine of aseembled 500 CC but internai cylinder not

1-D:8

ege .S (

FSCC CODE IE.SC.E:F Ej

785.17-00 Hotctsyeles witt reciprocating. internel combustion.... pistcr engire..of capacity exceeding 8o ccs assembied sy tinder

Y3. Compoerts - parte andor acceesories

program for clirectly progressive motcrcycie inpcrted f'e Dy aasamtty .participants O or more coumtries C manuyacturing motorcyclen $n the.

under prior aathcrization or Investmerts Cf 'tte Eoard

783.19m02 Hotur' sccoters

785.19-09 Other motorcycle#s

785.35-01 Saddles.of motorcycles

783.33-09 parts. and storage'batteries Other incltding tric. partss parts rubber tires. engires,. completely 0f mctarcyclee knocked-down eiec- Inot

785.37-21 Side-car parts

821.i7-00 Seats or a kind used for motor vehicles

EU Tyic

LIST OF ITENS. THE INFORTATIUSRO FWHECA -REIRES FE FRIOR APFROVAL OF THE CENTRAL BANK OF THE.PHILIPFINES

ESCC CCDE COHIODTTY DESCETFLION

699-1 Coin blank essentialty of steel

699.73-05 Coin blank es'sentially of copper

699.78-03 Coin .biartk essentiaiiy of nickel

699.77-08 Coin biank eesentially of zinc

699.78-04 Coin blank essentiaiiy af`tin

699.79-05 Coin biank tgsentialiy of aiuminum

892.83-03 Bankno tes.

961.00-01 Coin, of precious mmtai (other coin), not being iegal tender than goid

9&1.00-09 Coinr Qf non-precious metal. mct being

Iegal. tender

$71.01-05 Coin blanks. essentially of gold

1-E-1

Append

List of Agricuitarai Prodets certified ty the Department of Agricuiture as produced iocally in sutficient quantity

Corn (and its aubatitutes, 3ncluding wheat used for :.feacr

Poultyy and Pouitry Prodicts

Hoga and Pork Procuots

Meat and Meat Products. agoxpt xo 1nt T. prochicts

specific list . will be supplied by NFA of.commodities for corn gubstitutos

IPPENDT

Prohibitsd Commoditic. following: Of which S0 Kst ailowed under sxisting iaws. Theo. con noditiss :.the : They import tipn RrG .the

B} Tariff. and Customs Code (Appendix Those specifically listed under Section 2A 101 OE the

b seediing purposes (R.A. i296.); Onions. Potatoes, garlic and cabbages axcept tOr

C Coffeo-(R.A.-2712.);

Used clothing and rags. (R.A. 4653.):

} Toy guns (LOI 1264 dated July 31, 1982.).

C oppendix2-

LIST OF PROHIBITED IMPORTATIONS

SEC101 Frohibited Importationsi

articlem is prohibited The importation into the Fhilippine C the following

(&) Dynamitei gunpowder ammunitionm.and other Tirearmm and weaponm ot wara and parta thereof explosiyes except

when authorised by iaw.

(b) written or printed articies in any form containing matter insurrection Goveinment to take thm iife of.or intiict bodily harm upon to any law of the Fihtlippines or containing any threet advocating or inciting treason o the Fhilippine or.forcible sedition or subvereion ngminmt. rbellion remistance any the ary.

person in the Philippines.

(c) Written or printed articlee, negatives or ,cinematogra- phic obimct paintingm, drawingm or other representation of TiIm. photographm engravinga Lithographs

an obmcene or immoral character

(d) Articie inmtrumentm drugm intended or adapted for producing unlawful abortion qives directly or indirectly information wherms how any printed matter which advmrtima or and subgtancet deecribes .designed C O C

by whom unlawful aboirtion im produced

(G) Kouiettm wheels, oambling outtite, ioaded dice. machines or similar contrivances, or parts thereof- cigarettes or othmr articlms when auch diutribution dependent Cards In gambling machinem apparatum or mechanical devices or or the chance, inciuding distribution iackpotand..pinball CY money cia marked taed

(f) Lottery arid weepstakes tickets cxcept thosm authorised and iiets of drawinos therein. by. the Fhilippin Government, advertimementm thereof

(g) Any articie manufactured in whoie or in part. milver or other precious mmtalm or alloys thereof. actual finenmmm or quality of said metals or alloye. Etamp5 brands or marke or which do not indicate Of goid e the the.

(h) Any adulterated or misbrandad adulterated provisaons oy the "Food or misbranded and Druga Act drua in articim of food or violation o the #ny

2-M1

taCe fpponct i x 2-

importec herearter be cectared habit forming by tne Fresidert oe Itat"ijuarartpiouu : Cathe 'y derivatiYes Derser Tor medicinadparposes orly- + Ie. FtiIi.ppjes scaertyCctpcds rarcctice duty authorised py the Darcst"cus by the oovernment of the Fhiii'ppines.. C ppLe CCe orsyrthetsc crugs whi ch are preparaticr tIeraoy. J.eavams marufae turec hetoirt cr except I>t"UC$ Gr SP Boards Ss . t war Oay AY arvy*

{ Cpium pipes ard partstnereetror whetever meterial

( of.which isprchibit.tocbyt.aw All cther Fresidential Hi a suect by tisloo Decree tos cco pe tent and par te thareof. A au the*j ty rulss and .-. F$ tIe amenced regulations importation BY

T2-A-2

$ hppendix N

Ist PROHEEYTED IMFORTAYIONS

8EC.: t01r Frohibited..mpor tat Iertst

article* in prohibited. The importation into tho Fhilippines the fcliowing

( Dynamitei 'gunpowder. Tirearmi and weappna ot war. wfen authorised by Eaw- ammunitionw. and and parta other thereot explosiyeg: except

b} Written or printed articicr in any Torm containing purson in the Fhiiippinem. inaurrection Govepnment matter t tw any"iaw ot th* Phtlippine " tnke the iife of. or intlict bodily harn. adyocating pr inciting treasont ot the' Fniiippine . or.toreibiel fadition br mubvur#icn gr containing any threat ( agairst. rmbeilion. reristance .upon any the Ay

c Writtun or printed articie , negatives or obi cte, paintinge. crawinge or other"reprenentation ct phic : an obmcsni or immoral ctaracter. "+ sIm+ photograph . engravingsr cinematogra tithographs

(d) Articici, instrumentm. drugs intend d or adapted tor Any. qivee directly br indirmctiyintormation wher s how by whom uniawful abortion in produced" .printed matter which advertisms or producing unlawfui and.aubetancer drecribes abortion, derigned. cr Cr CY

(c) Rouiettm whccl . carde. n gambling machinem. apparatu . or mechanical devicee 8r the gambiing distribution outtite, ioadad dicer OY money. cigarr markad ttaed

dependent machincr or eimiiar contrivancrs, cigarettea or cther articlws when Buch diitribution am chancar inciuding or parta thereof. iackpot ahd. pinbail

() and Lottwry 'nrid aweepetak is tickete except thoec authoris*d by . iimts ot drawingr thorcin. the.Phiiippinc Governm nt, advertisementi. thereof

Q) Any articic manutactured in whoie or' in part. Pilver or other precious metala or ailoys thereot. actuai tinenmmm of quality of maid mctais or" 8tamps brands or marke or'which do not indicate of ailoyE. goid. the. the: :

(h Any adulteratad or mi brandma aduiterated O mi*brandd druo in articism ot.tood or vioiation ot tf Any

provisaone ot ths "Food anid Drug* Act

*5 tage *Ar Apparvc i x 2x

(5 ttariJuanascpiom.peppies. hereaftor be ceciared habit forming by tne Fresicent cr derivative. Tmported cttInet* tteFhilrippsweg .cr any ccmpouuds Tor medicinal puposes orly. person.. narcotics duly authcrised pytne Dargatous by the Governmen't cf the Fhiii'ppines. Ct or.syrthetic drugs whi ch are ppa"-t sC SSGe tthorewf. 3eav0t7s naLf atu"e hercim cr DIucts excent C ( Bcard Bis J. t wtaart tty Ary ari'y

( Opium pipes ard parts thereot. or ohatever material

( All tther articlet Fresidertial Decree N.34) of which is prohibitec py taw cr I's sued A competert arcpartetherecf. autheri ty - Io l o $ (FE and .. t 'e ameridec Importation regulations AY

12-A-2

(

PENIX

Reporting and Reeiet: etion Reguirement for D/A-O/A Imports

1 facilityin the psscribed I0S Form l Scnsiue l5 together AnEs shali report ths availments hy importers of the D/A-O/A vith h auly accomplished RCI. copy of the CERC. shipping doeuments inciuding ccmmercial invoice end copy of thsCR Ceys eter ieeuance oi CERC. 1s applicable.- Submission shall be vitnin two (2) benking

1 Fegistered onlvipon receipt of adice from the Esshall considsr ths D/A-O/A importation the ecsigned Fegistration number. reportei C3 givint

3 Atze shall not eervice ths foreifn registsrsd as rreserikad herein. uponma-urity cl anyPA/-0/A obligztiom -ht v&s chn Teguirements no CN

anber acsigned - in aaditioh to ths Rct LeshllreFort rsperments oftheD/A-O/A indicating in. the firet column - thereof the mEeS sifeetts inthe Preeeribed Ios Form Ko. Account. 1 Shle1f rgirtrion oblittacns Fren

As.hallenieinimperters making sarly Treeertation'DfErm cilty 23 to Preeent ratsshiping ocu P05l. ts Dnly upon metarity Corollerily, ALES 159 Cate. S shell Ce nd s the CiESoCrEES D0

3-1

S APPENDIX

DEPARTHIENT OF FINANCE Repuhlic.nf ihe Philippines hanila

JOINT.ORDER HO. 1-9

Hereby Piomuigate this Joint-Order fer the implemmentatior of Huustry Aithe Secretary and Governor of the tentrai Bank colnpliance with Hotorandu Order No: of Finance, the. Secretary .of Trade arfd. :af t}it sa Fhiiippines dated the. Comprehensive Import Supervision Service:

Imortation (L/C) IaHs. circulars,.fules and rerulations. or without the use of an L/c as provided by of goods.may bo effectad by a Letter of. txisting Credit

Except as otherwise provided for herein. goods destined for importation inspector:duly authoriaed by Governuent in the countries. verification. vcrification zupply suRrly Gervice. Phiiippinesrt shall :as. to. the :0f irto of be : subject to"inspection by urder Tariff.and Customs cods cluszificztion Tariff qualityi.quantity. the a - Conprelienzive: Phiiippines from rate, Prior price/dutiable Iport to all sliipment SGS : countries .Supervisicn beinig to..the value ard the Of

dezignated by the -Government trrough the Bureau of tu legai restrieticns in tht host eountry which prevert said Cr The'Governnent of the Philippines nay require SGs to conduct shipmert zueh offieials beinr prestrt zt such inspsctions.. Frre-snipuerit inspection or: Toods otterrise exempt frou terms'of the hrreement"tetueen the Governnent and EGs. will otherwise."to Ritrcse the inspeotions perforined. subiect ixtptetitrs shali coopurzte irspection uider parzgraph 3 below in -which tith. bt sonduetod us provided Fhilippine Governent : officials under Custouns xre Case 'SGS t!t

T1 territory"is only perhitted with an ireptction report called "ciezn Report of Fixdinez" iMport."af these foods (CRF)"issudby SGs. into.the Philippine custots

3 zequirtnert of inspectiori: Th tolloaire importuticns of foods ar* exsmpt Tio tye

comnercial imports under consigument basis.- and Cuetons Code cf the PhiiiPpines but nct" Socas .imported pursuait to Section 105 of.. the inciuding Tariff

Petroleum adaitfves and lubrieatinf oils. Reformtes. Hot Q1 cude Hu't for lubrisants. limited not cil and petrcitum products in bulk such. inciudine Keresenes. Aviation fueiz- Gas to cruda Fuel Oils,'Asphalt. clitmieals . oil. LEG. 3rd naptha . their - tll:in Grroline* 011. Products. 25 bull} Busa but

rhipments of explosives. and :thsr stratenie fattrials ctrtiiied es auch hy amnuritign. arns and eguipment I tle

Department of Hational Defuia+: &ut not includinf U materials . such explosives, and firearns and aur...i tion for. coumercial as chemicziy : te manuiacture of

Use.

Precious stoniest.artitacts.und.precious-metnl

Taninais woris of"art. current"newspapers.. individuaily.owned motor venieles and parcei post. fresh frozeu or chilied Eocdstuffs and fruits. Periodicals Iiv

viluaof the invoice'covering .credit f.o.b..aguirist & Letter of Cro. exceeds.Uss500 f.o.b other tneans franted by ths Centrai"Bank of the Philippines. Cooas including US$500 time that other than a Letter of the'fOB valuc of which am fisclared in letter currcncies :0x is .iess than usss.ng Fo part shipnents invoi... its equivalentin the . authority at the In thie tie t- for C bv C+*ast. other currencies tre Such tlipment is less L/c openirig :r its at of goods.financed by the.vzlus less tham .03ts00 goods importation wguiv&leut where : 0t but 3t which than tle tot W85. the +1 of

: condition :apply documents similar BS... The Lots. Etock-lots: 'exemption Provided for in this paragraph'uill to scraps. teims .of tne articis goods invoiced or declared.in".tit as ofi-quality under such detcriptive off-giade.ireconditioned, conyeyinr or purporting to side-runs. as sub-standard or cull roils. ieconds. used. convey ofc juril shirping grade terms tuill yot the 4x

and not of Prine quality

E entitizs by private importere. Yot importations its -cither ths Governnent of"the Fhilippinee or any "corporations, agencies and inetrumentulities inciuding . goods into the'Philippines where' the imported : on benalt C+ consigfiee the3e but 10

importations.of semi-conductor and allied enterpriscs:

importations by export processins zone enterprises duly registered Authority. :88 such with the Exort.. Processinr Zone

importationg and i442.as certified by the Office of Enerey Affairs. oporations other service materials contractors pursuant"to"P.D. Nos-"s7,529, imiorted by petroieum, Feothermal and of equipment, machinery, for oii,. coal- mining ..and spare parts Seothermal coal 972 And

importation harness industry by member-firms of the automotive wiring

an exemption certificate materials; accessories are diractly Producta importations Proceasing sarment violated any rules and resulations of the GTEB,"CB, year importation of be on''the yoarB adminiatrativo BOC {1} for soverning'import/export operatinng during this five deiinquent sxport the CiSs period subject, to and thru firm be exported; into' finishsd garment and textile .products by firms'which have been {3} textile of its nor. or .however, 1 +he Garments and/or any 'pre-eut fabrics and raw material: have Judicial regardins the the exports for'the 4 - used is#ued by the Ad Hoc Committes said liquidation and to the followins 8ny Qf 4 and in the pendins its pre-cut {2) Textile the firm mist present officers "manufacture of the the firm must of accefsories engaged thie 1aat case Export P fabrics imported conditions: conduct five hava In whether and (5) rd not not and for the raw of

Pre-shipnent published by . Bureau &ssessment of duties and taxes. Importations regard the : Clean Order. However. The CRr shall .tothe mny be "sutiect to"further examination and excert vaiue is higher. Report of Firidinfs shaii be the of Custois at the discretion -f into tlre Phiiippines which are subject to inspection under the 'provisions of this be considercd recommendatory'in Tariff where. aid the value in the dutiable vaiuc Custons ..Code the invoice Classificatiori. the basis nature reportea Collector: aPpraisnl f0x or + Jciut Hitlt ax the 5GS the

S The inspection, to be conducted under tie Cuprehensive

Import Supervision Service shall consist 1f:-

Inspection aud Frice verifieation:

Price verificaticn: inspection of quality: inspection of puantity: determination Custonk Code: verification paragraph of Dg Of freight chargesi Section 20l of dutizble value the 3s in Tariff. ard. definca'. by arcordance with customs iules and regulations; Ciassification of Tariff rate. verification. of Tariff and Custouis Coae

overinvoicing commiztions and sinilar fees. Reporting 1 the. Governnent 1f undervaluation

1 roceduree for imp,ortations eifected through the optnin& 0t a L/C:

quality. quaxtity'. unit Price and total vmlue. The Bank. charees, include 3oode Importer ths foliowing additionzl ccnditions: The country of"suppiy.and"FScc Code numter of Th& LC L/C zrali eprly fcr the L/C to the aprlication opened by the Openina. Benk. shall slall state the Opertira freiflit type . ty'ie

the import of the gcods concerned shall be subiect to irspection by Egs prior to shipment:

the importer shall iniorm the recipient of the L/c in writine or by telex that the goods are" to pre-shipment inspection: subiect

: SGS: the recipiert of the L/c shall be responsibie facilitating the smooth inspectipn of the foods by for

0f confirmation the the th-seiier Efinal settloment invoice Bank shall only make payment upon rumber EYa by .SG3 date-of the ite affiliates or azents corr#spondinf submirzion atd Clar Dt E

:43

Report of Firdings (cRr):

prior to the' scheduled dxts oi -shiipuent: The L/c should.ur opened not iater.than tcn (i0) days

exemption from the authorized goverrment a tncy: the Heading, Ehall txempted shall Upon the Inport Ertry Deciarution (IED) etatina the Openin& issuance of the L/C. the.Importer shall.:compiete . pay the estimated udvance.custous.duties dua fuznish import duty charecs due on the shipnicrt from paymnent of advance duties Bark. the Oponinf Where an Bank .importution with the lettar Yas importer ..'turiff bcon +nd te O

4 the responsibie agency:. with a copy of any authority exemfting the Seiler's protorma invoice and the IED for collection by the SGs Hanila Liaison Office (Liaison Office) togtther from .duty imports. Receipt IThe Operinr the authority for their iportation iazued. to and/or taxes anid the Inporter; prepare'copies of. Bank - chall issue in the case the Cuctoms .Officiul Qt importat ou regulatod the. .L/C by

and issue an Import Advice.lote (IAH) with an. Tht country.of 3urply: number. Iinporter and anothei tranemitted to tlie SGs office Liaison Office shall `register the L/c and'thi: (Inepcction.Office) 'in.tha coumtry of Jaii Qne capy .of the:IAN eh&ll be sant inspuction assianod to th* 2a IEI

inspzction requirement to.tle .shippei/corisignor/stlier Th6 (Seiler) of the eoods: Inirection Offices. Ehall send t advice Q

Office ofthe dat*&nd piace of inspection and s nd the dociumentaticn to the Inspaction Office iiving at .iexst Office to p#riorm un iuspecticn prior ta.the receipt by seve circuustances. The' the Insrtction Offic: of tho IAn. Inspecticn D issutd Seller (} Office: ultil dys of'tie goods shall. advise . the sellcr may request th* IAn haz ravanCs notice. been Hawnvir. reccived In ths the O excoptional Irispeetion Inrpaction CRE by Ca the

inspection; verify the'declared export :mzfret prics itvei of the cirteria zet fortr in Parafrsph i of section 2ci ather surpiier issuo and courtry tuarlet: dutiable Tha Insptction: tariif alements..of deteriineth* dutixtle vaiue. and. :0f correspord value ahich sheli De dstermined on'the CRE. rato: verify thzt the zuprly Tht ERF rhall indicatt .oifict tha total amount witiin reazonable liits or uhsre thall generally prevailini in turiff lieadinf applicublc, partor invoice charfed tha the if varrinted acceptaol* yaiua the. .(hs.Ho.. Physical h' C Hcrl baeee. nd the tht. the

. wili not be warranted where:- Of.the' Tariff and Customs Code.. The issuance of.a CRE

are not accepted by"the importer. or in the'case' of responsible ageucy has been presented. unccrrected regulated commoditiss no authority issued by discrepancies in quality or quantity the

is unabie to justify a total -inivoiced amount wnich. export in the.country of supply. unrcasonabiy in: certified the : c2se marlet iist of the Monetary.Board..the exceeds, ir the orinion of . price level 1f tommodities Generally.' prevailirit included 0GO I Tt selicr the the .

.of : Findings : bank which wiii invoice to the Operirt Bank. the and .a confirmation by sGs, The nunber"and date of the correrponding Cieau. Report .Seller sliali.Prezent its firial settlemfent {CRF send documents and the final settlenent 'to'the advising/corresponding its aifiiiates or tgtnts irtvoice (A/C) 0f

S ...the '.. documents from the Liaison Offite: 'CORY. arrival The :Opening 6E i ofthe'documients and the Importer shali the CRF supplied to the Opening Banl together 'with an shall advise the authenticated importer Bani Of coliect custons direct tle

2 the autlienticated customs copy of the CRF; -will. prepare The Importer/Importer'3 Broker will prepart the kith :the additional duties. importer will then preeent fiormal Ertry from the autlierticated custous copy of documents the feauired for clearzrce pro-forma Order to the if any.and"taxes due Bureau of QE tofether. with Paytert. Cuetons .tlie the Iport CRE and The

.... The duties .due as Rell as the tax due and issus the Order of caiculate :Eureau oi Cuztouss thsll verify the the difference betueen the deposit paid dompersating/advanee Fayment to the Importer: docuerts sales. 3nd. axd

The Inporter shall preserit the Order of Payment to Orening due: Bank and Pny the balarice of duties amd tzxes the

Central Receipt and send a copy of the Order of Payniert to Liaison THG Openins Ofnice; Bank Reisass Eanr shall issue Certiiicate and Curtoos to tyt Inforter Official the th

Bureau of Customs the origirul custoins copy of.tlie. With authenticated. Bureau hc Importer/Importer - the other documsnts requirtd OE Customz znttl by the iafue the Eroler shall present Liaizon Deliverr. F*rit tor QEF30M clearancui toaetlttr 10. CRE SCt tis the

the : release of the goods .and retain-tre custons copy: of the CRF: "uutliJnticate

Custons SGs.issuing office :abroad. The Itoc later than the day foilowirt'its receipt from Liaison details of'the CRr for Office'shali transmit to veritication the. Bureau Purposes. to :0f

rocedures for importatiors effcrted uithout the Lettmr OE Credit. (DA: No-Doliar (Open Account (oA): Documnts Import arrangemerts 3d Arainst importatioris Acceptancs O consiznuert.) : -

proforma invoice to.tlie Central Bank or tg'the'GrEe (in The. Importer shall subunit - written proposed the pase of goods refulated by the GTeB).indicating: importations torether with.the detaile Selier's Ct His

due on Elipaert: Government Pscc .and Hs 'code: of toods'to be imported: duties and/or taxes. Value of goods to be imported ind unit P'rice: Seller: Nane.ard address of seller; telex/teiephone: Freight charges and compensating/advance sales tax. The 'bank and tranch wlich will receive the cRF: Currency of transaotion: Tyre, quantity ard guality of goods: Importer's nane and address: telex/telephone Importer s Trx Account 'Code: Country .coPy . of OE ariy aeency sxempting the importation supply authority if. different froe * from.that authorised frou

.inspector. ffnai settlement invoice bearing a confirmation by sGs, of Exchans-, etc. requirement Faragraph z of this Joint Order"and tnat the: its affiliates.or agerts of tle"nuuber and dztc 'of corresponding Ciean Report of Findings (cRe) shill be -* document necessaiy to support the negotiationi of responsibility The'details.should te sutitted not izter than ten .(io) days prior- to the scheduled date inspection. Importar. shall by of pre-shipment inspection as provided. All SGS to facilitat- sncoth irispection by: instruct contracts and advise the Eeller Hst the. of. shiFnsnt. te.zrraif+ Sellor. of stipulate Etlltr*r Pills: :tho the The for. His w Dy

'the.IAll. and issue an IAN with an assigned number. GTEB (in the-case of transmitted to the Inspection Office in mentioned The Lizison Pararraph 7a above from the Central Eank shalr Oifice .shall. collect the be sent to the commodities resuiated. by tha .GTEB) Iporter the' One'copy: .of and informationj country another of Or

saie and country of suppky:

C inspection reguirement to the Seller: : THe.-.. Inspcction-..office-- shall.. 'send.: E advice 1f

Di The Officc of the date anu"piace of inspection arid send the documeritation to the Inspsctiou Oifice giving -at Office to peiform an inspection prior to the receipt by the Inspection Office of"the IAN. circumetances. sever be issued Seller (7).days until of the toods shali advise. the Eeller may reuuest..the -the Ian has advance notice. been Hlowever. received In tie exceptional HQ.CRE Inepection Inspection Ay least - ca tke

Irspection Office:

acceptabli dutiable"value Rhich shali be determined issuance of a CRF wiil riot be warranted wnere:- inspection: and supplier warranted, Section- t2oi-.of. the Tariff .and. market: Tlie other export country the tariff basis of the Criteria set forth in Paiagraph-i Inspection market price levei generaily prevaiiing elements of 1f correspond determine. verify tne declared tariff headinz issue suPFly. rate: verify that tle* Qffice aCRE. : tha total amourt within reasonable limits cr.where the s1al1 .The 'CRr shall dutiable .applicable. Perfor Custots invoice value, charged the irdicate Code. Yaluf the 2rid, : phyeical (s T AY Pt .Ho. torld Ed the the Th the the OO If O

are not accepted by"the importer or in the"c&se of responsible ageicy has been presented. rezulated uricorrected cominodities no authority issued by dizcrepancies -in quaiity or quantity the

in certified list cf the lionetary Board. the seller the czse. of commodities inciuded I- t.he

unreasonably the country of eupply. expoit market price level is uriabls to justify a total invoiccd amount. Rhich "exceedz, in the opinion of generally Prevaiiing SGe: the i

importer rezulated, by ThS customs Linison copy oi the.CRF to the bank noinated D2 the GTEB-) to the GTEB (in the cuse Office'will trariznitthe S autherticated womuodities y 11

taxes due and .wiil Prepare the pro-forma The. Importer/Importer's cicarance together with'the autrienticated customs C Payment. of the'cRF:. Eritry Co the Custos Declaration fro the.authenticated custons CRF with the additionai duties. The importer wiii then present to the .Burtau the norual Broker will prepare documents- required 1I thb any. Ordfr for Iarort copy COrY and the Ot

Tha .Eureau of Custona zlali verify tht docutart.s ahd

calculate- tax.due and issue the Order of Payment to the importeri duties wdue"asiell as.thecompensatirig/advance- -the difference between the deposit paid' and 3aas

The Importer shall Present'the Order of Payment :to the Importer's Bank and"pay the:balance of duties and taxes due :

and send a copy of the Order of Paymert to the. Liaison Office; Te Certral Importer's Bank Release Certificate and Bank shall imsue to the Importer ' the Customus Receipt.

.authenticated .by the Liaison Office together witn Bureau of Custons the oriainai customs copy of ths Delivery Pernit for the relcase of the foods.'retaininf tther. The Customs importer/iuporters documents"required for clearance; the Bureau shail : verify thedocunentsard Broker shall present issue :+0 CRE the tle the 1f

the authenti&ated customs copy of the cRr.

8 The'. quantity: inspection. Price/HCy comparison; Inay tnat Tariff Tariff. be.lrequired. : .the : Inspection Office, can carry out. the Seller is bound to 'provide .all necessary facilities - rate"and conduct ali such test, analysis, :and Customs Code classification and verification verification: quality etc.. and 150 Of Of 3s

0 handlinr, presentation. sampiirig. shop testingi etc..'of the The incurred therefore'shall be for tne account of the Seiier eoods Selier For the. shall Purpose tuzke of the inspection: .necessary arrangemeuts ZIcl any exper&&s Or

10 have.Jointly "signed a"Release, Waiver and Quitclaim and have of Findinzs. shail'submit-to the Irispection Office a ccfy.of submitted the same .to the Inspection 'Oifice. final isettienent invoice only where both seller and inporter The His Ct. Findings may"be issuea in the absence of the .Seller.. as a pre. finalsettlement'invoice coverinz tne goods. :a -condition to the issuance of.a. Report Eelier'3 Rerort

inspection ef ths goods is not intended to relieve. nim his contractual obiigations to the buyer. The. . Seller . SE furtharmore azrried that Pre-shipment 1f

custouis copy.of*the CRFy of: the importer,such roods shall be subject to No Customs Entry shull pe filed or accepted or zny Provided: for ty tn&s Jairrt Order where the Imperter released...in rospecttof unable to Produce. seizure ...by.ths..Burezu of Customs. warned". inspected afainst or for which a'CRr has the shipment-of goods which Tave to the-Bureau of Customs tlie zuthenticated any goods which reuuire With sr without fault on the part not been issued. The Seller is E r0t automatic therefors zhipiuent CRE beer* as s

:, value Ali:.'auf. tions Pre-shipinent under the office of the Couinissioner of Customs. Custons-SGS. but- not linited to shipnents effccted Hithout the-.reruired. and"ciassification"and other relaten mattcrs such as Import Valuation and inspection"shail be rcferred to thc Bureau""of concernina the findingsy Classification : Committec /reports 0f " SGS:* o-

The issuance of a CRr is conclusive.only as to the fact that

regulations: constitutes proof of such compliarce: pre-shipuent inspection was conducted pursuant to'this:Joirit Order. the: importer Neither such issuance nor the cRF itsclf reiicves Pertairins from compliance 'with".ali" laws. to . the.. ..import...of Eoods. rulez: arid O

: 15 .of".goods" financed by Phiiippine Letters of"Credit" s7"Goods financed by means other than a Phiiippine Letter The: provisions of this Joint.Order shall arply in thie. date of effectivity of this Joint Order. effectivity ror except of Credit shall be subject to the Provisions of this. Airwaybill Foods Philippine effectivity of. this Joint Order shali be exempt from Pre-shipment shipment Order : where the. Letter :of where the Lctter of Credit is'opened on or after irspection under the provisions of'Joint Ordsr Letters : of Credit opened prior.to. the: -date is on or after the. date of effectivity. inspection reguircment'except'in the Credit. date for those igonds . is, amendea shown on . the after the date Bill Goods finaneed. by sutiect .to..prer f cases..where.: Lading.or of.! this to..all Joint gase -the the 0f Of

Joint .Order.

16 supersede.Joint Order l-87 Thi's Joint. Order shell upon its date of eliectivity

k -The.date of eifectivity of this I Joint Order shall be set : ty

A Fhilippines. .official. Menorardum. of the Certral Bari :05 : tlie

3ttf W0

PctinE Tbhias v- Secretary APACIBLE Qf Finace

Secretary of PETER D. Trade ans. GARRUCHG rdustry Certral Bark Governor S of CUSIA the Fhiis

tppendi...

PRODUCTS REOUIRING PRIOE EIPOET APPEOVAL/PEPHIT FROM PELEYARI COFEENHEKI AGEHCIES

Prohibited* keguiated Office/ipensy

- countrise vith or vithout guota Gareents polyeattr iurniture and other, natural .and syathetic fiber& and all Yahe tate yp thest fiber and textilec. stapie liber. in whoit or tabrics. tot export T aphoirtered Frounsts part carpets. to: Tilantat 2 O Garatnt& and Iextile Eoard'(GTEB}

2: Copper concentrates Eoard oi inveetrente

Brri geeds and stedlings 3 tll piante. planting axteriais and plant produete capable ai harborins peste, insect specinens, live and aead Eurear of Pinnt Iadnstry (BPI}

Aninals, aninal produsti and aaisel efiects Brreau of Aniaal Industry {Ril}

3 Suger znd Wolasses Sugar Regalatorr Aaninistratioa (Spe)

Sactors: and-Rost. Stocke and Other Abaci - and Eazie Ssede. Planttnl Mtorial Sttdlings, 6. Coffet Batara! sabahon, Salagc, magucy, sisal, ienif, coir, Dumtal, caeo aegro, cottoat. Taffia tikot aud cocoon (atcoadary topiah, pini, banana fibar sil Pcol, wa fibers: Rbact fiber), canton abasz. apecies, tapo Taait. B Tlbet Interaational Certifying bgency {ICO-LH}-DII {FIDh} Inistry Coffet: : Oranizstion : t "tutharity

8. Aircraft Departaent of iIransportation Dad

Conmunicition (DoIC):

9 .Antiguss, historical relics caltural artiiacts and tixtional Haas

Taese products are prohibited for tiport ander eriatiat policiea of the EOrC ot oftice

* ticept for acicatific or testiat parpoaes.

5-1

3 Bakavan (sangroye) Ironibiteds 10. Lopa. poiet and pilet including lof cere and flitches/railroad.ties keeniatfd Foreat Harafenent Burein (FHBi. DERE Offict/Afency

H. Lunber Barean D'f Fisheries do- tad kquatic Bangus Fry Eesources(BFAR)

5. Hothei Banpus (aabalo) *a

T., Saelic: B Fravc-Spayner and Ery 12. Sasl1s: ao-:

Trarpst shsils (Iriton): - Rav shelle and. thsir by-products Helnst shells (cassis): porcellanus, H. hippopus) inciudint aat of tiant (Tridzcna figas, I. 590anost, : Rarina derasa. Rippopis ciaas I Ggld lip. Bartoratug crosca Unisrsized raw shells of' Trocas. and Biack kapis Yp. Tridacna I nr bo i

8 Wildlife *pseies: 13. Wildiife speeies:

Frecions, aeni-precions and all : Wild zerinc spacies e.t.: crdinarj products ccrals,rax and by- Yild aarine'specis, e.t.: live skia or products fron Rater Hachops}; Seasnaies; akin' or teat snakes (cerberus Tots: ths dt

b: .Hild-terrestial specis* mhethet liva, etuffed or by-producte. t.e.: Wild Terristial Species, t.t.: b... Himals (i.t., Philippint Honksys, ciond-rats} Protected (PAYB} Tas and : Wildlife

t1 :b 2. Hral ti.t.,. tirsier, deera, me. truit batsl +et+*at cackiton, Palma Iyna, horn bilis, nicobal 1a Peaceck pheanat, Palma (I.t. 'tanara, co tle b2 res aeart BperroNs, .lints, hangint 'paraissts. Parrot xhitt-eye, broak cackoo. ti.t. Pisegas, finchet. tret sparrov: Phil. plaintire bleeding Phil S jaa B

b.3. Eeptil. pifton, Hindoro pittonj Pythors} dts, Hrin (1.. iprial turt ies, Croco- 'eatst, dove, tartle dors. bet-tater, created gyal. Pini-necisd zreaa pipeon. Cucton, DyS hie-tailed ansthyxt chastoat headad fraft tbra bt

5-2

rechibited: keguatad Officefhreney

I.A. ELoTa slipper sanderiana..pither piant) (i.t. Orchid. L&d "& Yada Yiafed bil ied triale Daaarch. CE3i0 Diat 2ased gsnlrishates starpheu. JoYt cuckoo. benisd br ovn '..: 3nadavat) blact-naped blacl-taped glender- White- freet- tai. dore

b3 " keptiles conttor tattlee :2ard. teeto. Tand

b.4. Flota fi.t., tret cycar piant, all apeciss itros.

sandert alocasia, striped of orchids, alot plant. alocabi&, Lantant ipod Yolayai.

d.5. all specics of ovtterflies

1 Cerent and clinier Hozrd of Investaente

15... Firezrrs, aumnition and expiosivss Tirsars Hg and Exploriver offics. Pip.

16. gold Guld frot 5all-scaie aining/paned Central bant of the Philippiits

1?. Teal other. .bilis of tichang: cois, tender Philippint checka. fo1ay orders and tretter noter

thin P5,000.00

1 Grains aud grain by-prodacts Hntional Food hnthority {El}

j ed coconuts Dd .coconst Philippiac Coconut Arthority {PCa} aetdlings

19 Oil and pstrol*m products Eaerty Isgulatory Board {IB}

10 Dankey (inclidins poles), seri-finiahsd or seni-proctaned capir shells industrisx: mttriais pod banboo, buri (acecia,. fot fibers. cottaft Ttttaa Eegional and bonsstic frovg Departaent of Irade ud Inditi

.YrcEibitedt sgulated Office/tpener

Il. Stalastites and stalagnitss Vepartreat ' of Enviromert ind iatura! kesourcet {DEME}

2 and related padlicity naterials Motion pictures/teleyision fies Hovie and . Ciassificatios Board {MIRCB} Iclerizion: keviex at

2 tadioactive naterials Philippiae Huelcir reaearch lastitute 22: ll...pfosucts kepublic oi South Africa detticn to t'at Philippine Corporation (PITC) . Isteraitional Itadia

23: tibanfa: :Socialist kepablicof Ill. erporte to ceatfaliy+planned econony.countriea Yiotaat,. Lag. Peoples :Bagola, Hcngolia People*s kepnblic. Peoples Repnblic Magtratic Bepublic of Iorea (Morth Horea},nicafatna, Libya, Hyannar} Espublic Ethiopia, socialist. Df Hozatbigus. Lerocratic Chiaa aad

HOTE: This list ny be arerdad-fror tin to tin based on decicions taren by the inter-agency co Mittee .creatod under Erecntiye.Order Mo: 1015 dated Harch 25, 1995.

IDD

Appendix 6

GUIDELINES ON CODING: AND NUMRERING SYSTEM

FOR EYPORT"DECLARATIONS

1 Exporters 'shail. indicate in the Export Declaration the

appropriate . commodity.i code/s of the item/s to be exported

based on ' the Philippine standard Cornodity Classification

Manual Published.by ...the... National..Economic . Developnent

Authority (please consult the Central Bank-Export Departmsnt;

Tel.. No. 50-65-92,. for.the"coimmodity code/s):

2 AAbs shall adopt the numbering system for Export Declarations

(EDs) outlined.. hereunder .tinciuding the : prefix ... alphabot

assimed to.each authorized.agent bank:

The -code. for EDs shall consist of the following

fourteen (i4) elements

SYMBOT MEANING/PURPOSE

1.} Prefix ietters (see c: herein Name of issuinf bank

a2.) 000 digits Heed Otfice

83. 001 to 999 digits Branch Office

84.Y giem Shall seperate the type of document from year of iBau0

5 Last the. year two digits of 3t 9o Year of issue

91,:92,-ctd

a6.) 00001 to.99999.airits Number of Sequence

The code for tho type of document shall follow : the

code. for. the Hoad.office or. Branch Office. The

codes for'the different types 'of documents 2ro.

(o!

bf...Dooument. Code

bit With... Foreirn...Exchenre.Proceeds.

issued to BOI- registered firns B

issued ta EPZA- registered:firms

issued to other firms

b2. Without.ForeimExohanre Proceeds N

Code number of AABs to be used:

Nsme of.Bank Code

17 19 12 13 14 16) 20 21 22 23 24 25 26 28 30 31 32 11 15 18 27 10) 29 2 A :6 5 3 9 1 .. Hongkong & Shanghai Bankinf .Corporation Asian Bank Corporation Bank, of Phiiippine Commercial & Int-l Bank Philippine National Bank Producers Bank -of the Phiiippines Republic Planters Bank United Urban Bank Associated Bank Bank'of America,. Bank of Equitable Banking Corporation Far East Barik & Trust Company Land Bank of the Philippines Metropolitan Bank & Trust Company Philippine Bank of Communications Philippine Bankins Corporation Philippine Trust Company Pilipinas Bank Prudential Bank Rizal Commercial Banking Traders Royal Bank China Banking Corporation Citibank, N.A. Citytrust Banking Corporation International Corporate Bank Security Bank & Trust Solidbank Corporation Standard Chartered Bank Union Allied Banking Corporation Bank Coconut Philippine Isiands Coimmerce of Planters Bank the Philippines NT & SA Company Corp. MA PA AB AC E HA PB PC PR PE UB UC UD AA BA BC CA HA IA PR PH RA R SD TA BB C CC FA PG SC 2

(D 2

d Examtlas :

d1. The number.AA00iB/Sz 0001 ttands for the first

Export Declaration . (With Foreign . Exchange

Proceeds) issued by Allied Bankint Corporation,

Quiapo Branch in 1992 to a B0I-registered firm;.

and

32 The number AA000N/92 0000i'stands for the firet

Export: Declaration (Without Foreicn Exchange.

Proceeds)' issued. by Allied Banking Corpor

Head Office in 1992.

3.. In .the. event..that. the bank .cannot .identify the Export..

Declaration. number of the particular transaction beins . paid

tat the time ths.foreign exchange is'received, a dummy : number

may be used by'indicatins the letter "D" as the code for. the

type -of document and using the sequence number.mentioned. in

2a above The,seguence number shall begin with: ool every

month.

When using e duamy number in reporting anexpo

: Payment, it is assumed that negotiation has .. already

been reported in I0s. Form i, Schedule i0 .(Scheduic.

on Export Nefotiations) by.the bink.. For. easy.

identification, Ios Form i, Schedule lo 'shali. be

used ' for trensactions with dumoy numbers: under'

separate heading calied "Export Proceeds with Dumuy :

Nunber

b. At the .end of each month, 2 : computer print-out

.summarizine the above transactions shall be prepared

by .the Central Bank Export Department which -shall .be

forwarded to the AABs for them to indicate the

correct ED No. of each transaction: The same shall

be returned to the Central Bank Fxport : Department

within fifteen (l5) banking days from receipt Of the

Print-out.

Exampie:

ED.AA001D/9200001"stands for the first Dummy. Number

(Export Declaration With Foreign Exchange Procceds)

used by the.. Allied Banking' Corporation, Quiapo

Branch in i992 to repiace the ED number .. previously

issued to a BoI-registered 'firm.

L0 4

Anpendix.

GUIDELINES ON PAYMENT OF EXPORTS

1 For prepaid shipment, the AAB shall simultaneously certify to

the -negotiation and payment thereof.

2 In case where the reporting bank cannot identify. .the ED

Number of the particular transaction being paid at'the time

the foreign exchange is received, a dummy number may be 'used

by the AAB. For easy identification, AABs reporting 'such

transaction/s to Central Bank under said Daily" Report," shbuid

Place the 'I same' under a .separate heading. called"Export

Proceeds with Dummy Numbers".

3 In'the case' where one AAB handles the export negotiations but

the. cor Donding payments are''received through another AAB:

The report .on the export negotiations -shall be

submitted by the negotiating -bank to- the.' Central

Bank together with the negotiated copy of the ED and

other'supporting documents;. H Y

D The receiving AAB shall issue a certification of the

receipt of payment to'the negotiating bank within

twenty-four (24) hours from receipt thereof; and :

The negotiating bank shall report payment in .the

Schedule of Export Proceeds Received, to the Central

Bank together with the certification of the receving

bank of export.proceeds received.

Liquidation statements of undrawm balances. on export

with initial drawings of less than i00%'of invoice vaiue

(partiaily paid .exports ): shall .be': stamped by : the

negotiating AAB. with a .certification of payment for the

.. net proceeds received on:the face thereof in the : form

.illustrated i below, and payment thereof reported in the

'said Daily Report on Export Proceeds Received:

We hereby' certify that payment. underi

this liguidation statement has been'received,

as follows:

Date Received Amount Recei'ved US$

ED 'Nc

Name of Authorized Agent Bank

Signaturo.of .Authorized Official

Position of Sisning Officer.

Leb

ENDX

DOCUMENTS TO BE SUBMITTED BY PRIVATE SECTOR BORROWERS UNDER THE REVOLVING TRADE FACILITY (RTF)

The borrower shall submit to MEDD

A... Within five (5) banking days prior to drawdowm'.date:

A notification of its intention to borrow citing the

amount of the loan and proof cf the creditor's conaont:

2. : A notarized undertaking to the effect that:

The loan shall be. used exciusiveiy to. finance

eligibie trade transactions:

The borrower coneents to the Central Bank examination

of the specific deposit account with their respective

authorized agsnt banks wherein the ioan proceeds

shall be deposited to determine utilization thereof

and

It . is fully awars of the attendant responsibiiities:

8S a borrower under the RTF as well as ths rightt: of

the Central Bank to examine its books'of accounts and '.

to impose appropriate sanctions' EOT any

misrepresentations . and/or misapplication.. of loen

proceeds.

3 The company. Prof le which shail include, the .foliowing

.- documents, if not yet previously submittea/on-file with

the Central Bank:

( +

Articles of Incorporation 'and Certii at0 T

Registration with I the. Securitiss and Erchange

Commission:

Capital structure showing the amounts .and percentages

of equity participation by natinality, together with

list ' of members 'of ' the Board. of Directore and:

Principal : officers/stoclholders With respective

shares in . the .equity of.the firm;. citirensnip anG

resident status;

Certificate of. Registration with the Boerd Of

.Investments and other government agencie: any,

C Letest audited financial. statements' and, irtinin

financial statements if the former is sisi months. oid

at the time of loan applicatidn; end

Certification ' from an independent auditor 2

status of the company's RTF loans, if any:

The reievant loan agreement or alternative. document/s

evidencins the borrower/s acceptance of the 108n offor

and the terms and conditions therefor, as weil the

security/collateral' for'the sams; if any.

5 Certification from'an indepondent auditor as to the

status. of the'com'pany's RIF loans,, if any.

B. Within three (3) bankinf days after end of. .reference Weck:

weokly reporton. status of short-term foreifn loans (ST-3)

obtained

1 t

APPENDIX S

PARIS CLUR MAMRERS/GREDTTORS

3 AUSTRALIA Export Finance & Insurance. Corp. (EFIC)

2 AUSTRIA (b) Bank fur Arbeit'und Wirtschaft'AG (BAWAG) () Oestcrreichischs Kontrollbank AG (OeKB)

BELGIUM Office Nationale du Ducroire'(OND) A CANADA Export Developnent Corporation (EDC) Canadian (CIDA) Internationai Development Aency

5 DENMARK Eksportkreditraadet (EKR)

8 FINLAND Valtiontakuukeskus/Export Guarantes Board

of Finland (VTL)

FRANCE (a} b Bangue de France Compatmie Francaise lc.Commerce Exterieur. (COFACE) d Assurance pour

8 GERMANY ) {b) Hermes Kreditversicherungs AG (HERMES) Kreditanstalt.fur. Wiederaufbau (KFW)

ITALY Credito Aii "Exportazione (SACE) Sexione' Specialc Per L-Assicurarione del

10. JAPAN b)i a} (c Export-Import Bank of Japan Ministry .of Internationai Overseas Economic Coopcration Industry (MITI) Trade and und..(OECF)

1 NETHERLANDS Nederlandsche Credietverzekering Maatschappij (NCM)

12 SPAIN .(b) Inztituto de Credito Oficial (a) Compania Expanola de Seguros de Credito. a la Exportacion :S.A. (CESCE) (ICQ

13 SWITZERLAND Union Bank of Switzeriand

14 UNITED KINGDOM Export .. Credit Guarentee'Department (ECGD

15 UNITED STATES (b) (c) a ( e) U U Development (USAID) U U Federal S. Asency for.International S S S. Commodity Crodit Department Exinbank Financins Bank of Africuiture :(PL 48O) Corporation" (usccc) (FMS Credits)

9 -1

Appendix: 10

FOREIGN INVESTMENTS - REGIETRATION PROCEDURE

1 DirectForeicn Eauity.Invegtments

Direct foreign eguity invectments which under cxisting lawe

have to be'. registered with the Secirities and Exchange

Commiscion. (SEc) or Bureau ot Traae Reguiation and Consumer

Protection. (BTRCP) shell be ertended Central Bank

Regiatration Document (CBRD) upon the endorsement by either

agency concerned without need on the part of 'the foreign

investor/applicant to submit supporting documents to Central

Bank.

Direct . forcign equity investments not required by law to be

registered with SEC/BTRCp shall bo regietered directly with

the Central Bank.. The following aro: the procedures for

registration and the requigite supporting documente:

For Cash Inve-tment

The. application in the prescribed form . shall be

filed directiy with Central Bank together with... the - following gupporting documente:

1)' Credit advice or bank certification eigned by an

officer. of the department/unit concerned with the' rank of Assistant Vice President (AVP)

showing the amount.of foreign exchenge inwardly

remitted and. converted to pesos thru 0 commercial bankand

101

Z) .Eworn (ertifichtion.. of tht. officer Oo the

inveftee firm aoncerned attertinf to the numbor

of shares and amount paid ior the investment

b For Invastnsntuin kind

Tho applio tion sh ii'bo filed :directiy with Central

Bank tosether With th followinf supportine

.dooumentz.:

1 Shipping' dooum nta;

2 SGS Cl an Report of Findinge; and

) Sworn. o rtifioation of tho' oificer Df the

investeo firm aonaarn d attozting to the number

of sharos and amount paid for the investment.

Fon Inveatmente. ftnancit nstitations

which-erersove 1414 ndri-mlat.-d hv.th. Cantre

Bank..

Contr l Bank Supervision and Exs :amtnation Sector

cicarance shall bo required in : addition to tht

aboveetatod supportins documents.

Rofistration.is.forain.tnvestmants.ot. enttiltmed

pti soothermalaxnloration.cm wrendturas

Ths application for fefistration shall be filed

. direotiy . with Contral Bank . together ..wtth the

foiiowing supporting'doouments:

1 Government-approvod sorvioe contract; and

2).Copy .'ofthe Office of Energy Affairs. (OEA)

i tt r-validation-of expenditures.ehowing:'among

* thoru the distribution : alidatod

10-2

(( 2

erpenditures amone the partnere under the

service contract.

Z. Forsion Jnvestment.in Government.AListed Securities

Custodian banks designated by the' foreisn investors. are

authorieed to issus on bshalf of the C^ntral Bank, .Central Bani Registration Document (cBRD) for foreien investments. in.

listed/governmentsecurities: The duplicate copy and one ertra copy of the new CBRDs.. i.esued ."by.. custodian. banks tosether with the reguisite supporting documents enumerated

in this Appendix shall be submitted to Central Bank -within

two (2) banting days from date of 'registration,, for post

audit. The original copy of the CBRD shell be under ithe

custody of the issuing custodian bank and the triplicate and

guadruplicate copies shall be siven to ithe stock broker. who: shall deliver the guadruplicate copy to the Stook Tranzfer

Agent.

On the other hand, investments of foreisn inveetors.. without

custodian banks, shall be registered directly : by Centrai

Benk. The orieinel -copy of the CBRD issuod by Centrel : Bank

upon. application of the buyinf gtock broker shall be under

the custody of 'the latter who. shall be considered. the cistodien . stock broker. : The quadruplicate. copy shall. lirewise be delivered by .the custodian ztock broker. to the Stock Transier Agent. The application for registration shall

be eupported with the followins -documente:

OTT

1) Purchase invoice: or. Eubscription aereement

and/or . proof of .listing in the local ftock

erchange for new/additional iesuet/etock righte;

and

2 Credit advice or bank certification signed by an

officer s of the concerned department/unit . with

the' rank of AvP chowing the amount of foreign

exchange inwardly remitted and converted tc

Pesos thru a commercial bani.

For.registrationof_stock divioends whiah anc nsd to

duiy arirtered.investments:

1) Stock dividend notice.

For.rssiatration cf stockeplita:

i) Stock split notice.

3 Fxistine. Centrel Benk Refiatared Foraiar Ioyanitrenta.

Erieting registration documents. of duly resistered . torcien

inveetnsnts Ehail be replaced with the'new CBRDs by the issuine

custodian. banks: All copies of the repiacenent CBRDs issued by

.custodian banke shell be submitted to. the Central Sank for post

audit. Oid resistration documents 'of foreigm'. inveetnente

reristered. directly. with the Central Bank zhall eimilariy be

replaced with the new CsRD=, upon application by 1te custodisn

brokers.

A Surrondsr. ofCBRD to Contr.lB-nk. Whenever the remaining

number 0f Shares .appsarinr On the CBRD hes boen fully

10-

((!

BoIdtiisd the curtodian of tht orifinal copy thcreof h1

Surrender the CBRD to the Central Bank, for cancellation, within

two (2) banking days from date . of. full remittance 1f

divettmente/sales Proceeds of all the remaininf number of sharee:

5. Reportorial Reauiremmnts. AABz are reauired to indicate in

Schedule'4 of I0s Form i, all inward foreign erchanfe remittances

utilized to fund foreign invertments

10-5

6ix1

FOREIGN INVESTMENTS CAPITAL REPATRIATION/DIVIDEND/PROFITS/ EARNINGS RTMITIANCE PROCIDURE

Capital Repatriation/Remittance of Dividends/Profitt/Earninfs

Direot fonoian eouity...invaxtnents.

The repatriation : of sales/divestment proceeds

includine dividends/profits/earnincs which .accrued

to.duly resistered direct forein equity investments

may be 'cffected by a commercial bank without prior

Central Bank approval upon presentation of the ' new

Central Bank Refistration Document (CsRD) : torsther

with the followinf supporting documentz:

For capital repatriation:

1) Proof of Sale.

For remittance of dividend/profits/earninss:

1 Board Resolutton declaring the'aividend;

2} Audited financial. statement covering the

dividend deciaration period.

Additionai'supportins documents' shell be rcquired on

the following toreim investmente:

i). For. investments in banko". Ciearsnce fron the

Supervision and. Examination Sector (SES)

1-1 nent of.the. Central Bank

2} For invertments P insurarcc companiet

Ciearance from Office Of the Insurance

Commissioner (OIC):

3 For investments in oil compani&s operatinc 1n

thc Philippines Ciearance from the Bureau of

Enerey Utilisation.

Investmenta.in liated/-overnment..ancuri

The ' repatriation of sales/divestment, proceeds: of

foreign inveztments in fovernment/listed securitiee

O0 A savings 1r time deposits inciudinf

dividends/earninfs which accrued thereto mey be

effected directly. by the cuztodian bank without

prior Central Bank approval.

Whenever . the repatriation/remittance shall bo

effected- thru commercial bank 'other than the

custodian bank or the seilins transaction wa made

thru a stock broker.other than the custodian broker.

ths 'custodian bank/broker, upon request from .the

remitting bank or selling broker.' shall issue a CBpD

Letter Advioe authorizins the latter to uso.fully or

in Part the remaining thares of the. CBRD:. The

remitting commercial bank zhail only .effect the

remittence upon. presentation 'of the following:

For repatriation of divestment/sales proceeds:

Bale8 invoicei and

2) CBRD Letter Advice issued by the custodian ba

or broker ae the case may be.

For remittance of cash dividends:

1} Schedule showinf : the namee Qf investors and

their addresses, CBRD numbers of the securitiss

involved, gross amount of cash dividsnd, ten

withheld and net amount.

2 Board Resolution coverinf the dividend

declaration period.

II Investments Registered undor the old Centrai Bank

Refistration Documents (Transitory Procedures)

Dirict Foreien EouityInve ont

For capital repatriation:

The repatriation of. capitai of: Central .. Bank

registered direct foreign equity investments shall

be efiected thru a commsrcial bank, without prior:

Central . Bank approval, upon- presentation. of. the

foilowing documentz:

i) Proof of Central Bank Registration: and . Z) "Proof of Sale.

For remittance of dividends/profits/earninge:

F Board Resolution declaring atvidend. and the

amount due the foreisn inve-tor; 2 Auditcd finencial : statement coverine the

dividend declaration period

11-3

Inveatments inGove nnment/ListadFacuritims

For capital repatriation:

Capital repatriation of inveetments 1

listed/government securities reeistered under the.

old'registretion document form, may be effected thru

commereial bank without prior Central Bank

approval upon submission Qt Central Bank

Confirmation Document (CBCD)

For remittance of cash dividend/earnings The remittance shail be effected thru .a commerciai

bank without prior Central Bank approval upon submisaion of the followins:

Schedule showing ths names Of investors and

thsir .addresses, sTD numbers'of the Becurities.

involved, groas amount of cash dividend: t8r

withheld and net amount rcauested for

remittance.: and I

2).Board . Resolution coverins the dividend

declaration period.

III. Reporting Reguirements

The remitting commercial bank shall.submit, .within: two: (2) banking days.fromdate of: actuai remittance, to the appropriate department :of the Central Bank, B statement bf

remittance . together with copies of the supporting docu

mentioned in this Appendix

11-4

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Consolidated Foreign Exchange Rules and Regulations

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