,

REPUBLIC OF THE PHILIPPlNESe

KAGAWARAN NG KALAKALAN AT INDUSTRIYA (Department ofTr'ltde end Industry) Trade and Industry BUilding 361 (Buendia) Sen. Gil J. Puyat Avenue Makali. Metro Manila. Pbllippines 3117 Cable Addn:ss

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Tel. No. 1l\Il·S7·\»to 23 P.O. Bo~ 2303,Makati Commercial Center

Telex 14830 M11PS 4S466MOTPS 45467 MOTPS

DEPARTMENT ADMINISTRATIVE ORDER NO. _ _--'3 _ Series of 1995 SUBJECT:

ACCRRQITATION OF EXPORTERS VIS-A-VIS INCENTIVES UNDER THE EXPORT DEVELOPMENT ACT CR.A. No. 7844)

Whereas, under Repulllic Act No. 7844, An Act to ~evelop ~{ports as a ]{ey Towards the Achievement of The National Goals Towards The Year 2000, approve~ on 21 December 1994, it is the policy of the State to evolve export development into a national effort and sha11 champion exports as a focal st.rat.egy for a sustainable agri-industrial development to achieve Philippine ~:I Chood t.owar-ds, t.he year 2000; Wheree.s, R.A. No. 7lJ44, also known as the R':port revelopment Act (EDA), affords ';he export sector to en.iov specific incentives, in addition ';0 incentives provided by the Board of Investments, ae cited in Section 16; Whereae, the specif.lc incentives mentioned in Section 16 of RA 7844, ehe Ll be granted cn l y to que.lified e,:;;-orters upon presentation .)f·. a EETP/appropriate Deputized Agency certification of t}le exporter's eligibility, as specified in its implement.ing r-uIes and regulations. NO!';, THEREFORE, pursJant to the mandate mer.tioned in the R.A. No. '1'844 Series of 1994 and its in;plement.ing r-u l as and regulations, the following are hereby pr-omu Lga t ed for the comp.l Lance , gu i darice and information of all concez-ned :

1.

SCOPE This fepartment. Administ.rative Order shall provide the policies, rules and procedures in accreditation of exporters who vlant to pvai.~ of the incentives provided by R.A. No. 7844. Rules and p1'ocedures set forth here ill shall IH;evlise apply to those instances tvhe r-e i n a certification 01' accredi tation of an exporter is o t.he r-wa ae required, for any purpose imposed under other law's, rules and/or regulations.

2.

DEFINITION OF TERMS : For purposes of this r;epartment Adm i n i a'tr-ar.; ve Or-de r- , follovling defini tLon shall apply :

2.1

BETP-

the

e.re l I ref'er- to the Bur-eau of E::port Trade Pr-cmo t Lon , Department of Trade .,and Il~dustry

Deputized Agency

shall

refer

to

the

concerned

government agencies and private institutions, particularly the Philippine Economic Zone Authority (PEZA) / the Board of Investments (BOIl/the Garments and '.~extile Export Board (GTEB)/the Subic Bay Metroj~olitan Authority (SBMA) / the Clar-k Development Corporation (CDC) / the Philippine Expor-t.ere Confederation, Inc. (PHILEXPORT)/ the Philippine Chamber of COIT@erce and Industry (PCCI)/ other offices or authorities deputized by the BETP to accredit exporters_ 2.3 3.

EDC-

Bhall refer to the Export Development Council

PROCEDURE FOR ACCREDITATION OF EXPORTERS

The following et.epe shall be observed: 3.1

The exporter shall file the duly notarized accomplished ApplicatioL Form for Accreditation with the BETP / Deputi:::ed i.gency together' with the f o Ll.owi.ng documents, as a.pplieat'le: 3.1.1

,6n e.f f Ldav i t, of comp La anoe with the ~age and S5S L8.\'18;

3.1. 2

For companies falling uLder the supervisory or regulatory functions of the BOI, e1'C, GTEB, and/or SBMA, and applying for FEZA accredi tation \~i th said agencies, a eummar-y report of export revenue/sale", for the imrnediately/preceding t.axab Ie year'.

t~inimum

Unless other·t'1ise required. by said 8..];en.:·.ies, the cJmpany applying for accreditation with any of said agencies, need not submit any supporting d ocument. to show its nor-ma I ope.ratina revenue and export eale8/expo~t revenue for the preceding taxable year; 3.1.3

F~r companies not covered the su~ervieory or r egu Lat.or-y functions of the BOI, CD:~, GTEB, P.i:ZA ani; or SE:.1A, and/or applying for a ~credi tat ion vIitil the EOC, BETP. PCCI and/or EULEXPORT, audited fir.ancial statements to S.1m~ nor-mal operating revenue forthe ilnmediately/pr'eceding t axab Le year;

3.1.4

For direct exporter's, bank cer-t i t rcat Lon of e::por't sales/r'evenue f or- t ne i:nmediately p: -ecedi.ng taxable vear , or an affidavit from the export.er a~testing and cer-tifying to his e::por't r-evenue/export sales for- the. pr'ec.eding t.uxab Le year vJi th enclosures of :"'ieting of commer-c La I documents (i" e. EXPCI·t De c l.s.rti"':. ions ,

• ':ommer-cial Invoices, et.c.) in support. of such eertification, or copies of bank certificates o f inwar-d remit.tances ar-ising from export -:.ransac.t ions. :for service exporters, an additional copy or proof of international contract, is required.

3.2

3.1. 5

For indirect expor-t.er-e ~ ea Le a invoices and c;ertification from the d i.r-ec t, expor-ter t.hat the goods were pur-chased from the indirect expor-ter and that the same vlere actually e7-por-ted.

3.1. 6

::n case of importations, a statement under oath from the e:{porter that the items to be impor-ted ehall be used primarily for the production of export goods.

The exporter shall pay an application fee per fc llowing achedu l.e to the BETP I De puti.z e d Agency: f:xport. Value Per Year $ 1M

P,bove $ 1M Above s 5r-J Above $10M P..bove $15M 3.3

Hax. 5M Max. 10M Max. 15M Ma~:.

the

Application Fee

P 1. 000.00 2.008.00 3.000.00 4.000.00 5.000.00

Review and apprcval by the BETP / Deputized Agency. 3.3.1

The BETP / Deputized Agency shall review the applications for accreditation, to determine their completeness and authenticity. Applications with insufficient. supporting documents will be returned by the BETP/ Ieputized Agency to the exporter-applicant for completion. If upon evaluation by the BETP/Deputized Agency. the exporter-appl icant. appears to have complied with the applicable export requirements set fort~ in R.A. 7844. the EETP/Deputized Agency approves the npp::'ication.

-a ....... ..

"':I"

'-'

? ......

Upon approval, the BETP / Deputized Agency shall issue a corresponding Accreditation Number- to the exporter together t1i th an A~creditation Certifica~e in the narr.e of the e xport er-, which shall contain the e::porter - s a:creditation number.

,

4.

•

..

3.4

The Accred:.tation Gert.ificate shall be rea1~1 for r e Le aee -:0 the eXI= ort.er after- it has been signed by the BETP; :Jir'ector / Head of Deputized Agency or by its duly authorized representative/signatory.

3.5

The Deputi3ed Agencies shall submit to the BETP theirrespective lists of accredited exporters at the end of each month, to be submitted within the first ten (10) days of the month. The BETP however shall be notified within twenty four (24) hours on denied applications and the reasons therefor.

3 _6

The BETP shall submit to the EDC and Department of Fimmce a monthly list/repor·t of accredited exporter's, for notation and reference.

MONITORING BY TEE BETP /DEPUTIZED AGENCY

4 _.:.

It shall be the responsibility of the BETP and the deputized a geric Le e to monitor their' respective accredited exporter's cn compliance to the reguiremeY.l.t setforth in Repu'~lic Act No . 7844, Section 4A.

4.2

Hh.=n. neceS:3ar·y,. a.t the end of the taxable year the Accredited ~xporter shall submit to the BETP / DeI=~tized Agency, duly certified and notarized summary reports of its export .sa Le s . \'1i th copies of s-..:tpporting documents to pzov e that export sales exceed 50~~ of total annual r-evenue f o.; the pr-eceding tax.able year'. The BETP /Deputized Agency may likew~se require the submission of addi tional books/reports/documents as it m.. ay deem necessary. These r-epor-ts/documents shall be used by the BETP/ Deput ized Agency in moni t.o r-Lng and deter-mining compliance oher-ewith.

4 _3

The BETP/ DE'putized Agency may Li.kewi ee co or-d i.na'te with, or re':;luest for the assistance of other gcvernment agencies conoerned such e.s t:'le Bur-eau of Irrt e r-ne L Revenue (BIR), Bureau of Customs (30C), and Bangko :3entr·al ng Pilipinas (:3'.3P) for' purpose", of jetermining compliance. In the event th,at the export performance of the Accredited e):porter- for- the preceding taxable year falls below the export requir'ement,. the exportey- ~ s e:"~"pox·t pe r-f oz-manoe over' the last t.hree (:3) vear-e eha Ll be averaged forpur-po ae e of de t.e r'mi u Lng cClmp:"iance. Fs.d Lur-e of the Accr-e d i t.e d exporter' to comply

,. •

with the requirements shall r-e eu Lt, in "ttle cancella-cion of accr-editation and the revQcation of its Accreditation Certificate. Furt.her, the BETP / Deputized Agency shall inform the expor-ter- of such cancellation/

r-evoc.at.i on ,

5.

VALIDITY OF ACCREDITATION: The accr·edita·t,ion with the BETP " Depu-cized Agency shall be valid for- a per-iod af one (1) year from Laeuance of the Certificate of Accy·editation. Upon expir.:;.tion of aoc r-ed i. tation period. the expol'ter shall re-apply, submit the corresponding documents required under Item 3.1 her-eo f , and pay the prescl'ibed application and accreditation fees.

6.

EFFECTIVITY This Order shall take effect immediately after its publication in t,,10 newspaJ;ers of general c i r-cu.Le c a on . Makati. Metro Manila, this ULth day

Of~lv

R~'NO

s. NAVARRe

Secre'Lary